What is the meaning / definition of RFP, in the hospitality industry?
RFP stands for Request for Proposal 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/ hotel 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 hotel or a car-rental company that wants to provide transportantion to a hotel guest. A common RFP in the hospitality industry is the annual consortia and the corporate rates negotiation process between hotels (suppliers) and travel management companies or corporations (demanders).
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