What is the meaning / definition of RFP, in the  industry?

RFP stands for and is a formal solicitation for bids on business from suppliers that are interested in providing a commodity, service or valuable asset to the hotel.

Basically speaking a company/ organization/  announces a request for a particular project or program and companies / providers can place bids for the project’s completion.

The document of RFP specifies what the customer is looking for and establishes evaluation criteria. It outlines the process, the terms and conditions and provides guidance on how the bid should be formatted and presented. RFPs allow hotels to gain fair market price quotes from multiple sources before choosing a source.

RFP can come from construction companies looking to build a or a car-rental that wants to provide transportantion to a guest. A common RFP in the industry is the annual consortia and the negotiation process between hotels (suppliers) and travel management companies or corporations (demanders).

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