The short answer
Run hotel RFPs on an annual cycle: prepare twelve months of room-night data by property, shortlist the properties that already receive your business, issue in September or October for rates effective January 1, compare offers on equivalent terms, and negotiate the non-rate terms before signing.
Before you send anything
The quality of the responses you receive is decided before the RFP goes out. Gather:
- Room nights by property: actual stays over the past twelve months, not contracted volumes.
- Average daily rate paid: what the company actually paid in each market.
- Booking pattern: advance booking window, length of stay and the weekdays that drive volume.
- Cancellation rate: how much of what is booked is later canceled, and how far out.
- City coverage: which properties travelers actually ask for, including the ones outside your current preferred list.
This is also the moment to decide how many properties you can genuinely concentrate volume into. A shorter list with real numbers attached will outperform a long list of speculative asks.
The annual timeline
- July to August: pull twelve months of booking or expense data and agree the shortlist.
- September: issue RFPs to priority properties with volume data and travel patterns attached.
- October: compare responses, counter-negotiate the terms that matter, and set competing offers against each other.
- November: finalise agreements and confirm how each rate will be loaded.
- January 1: rates take effect. Confirm they appear in the booking channel.
- Quarterly: review what was actually booked against what was agreed.
What to ask every property
- The nightly rate, and which room types it covers.
- Last-room availability: does the rate hold on the nights the hotel is nearly full?
- Cancellation and change terms.
- Inclusions such as breakfast, parking or Wi-Fi.
- Attrition terms, and any volume commitment attached to the rate.
- How the rate will be loaded, and where it will be visible to travelers.
Rate loading is the item most often left out of an RFP and the one most likely to decide whether the agreement produces any saving at all.
How to compare offers
Compare on equivalent terms, not on the headline rate. Two offers are not comparable if one excludes breakfast, blocks your rate on peak nights, or carries a 72-hour cancellation window.
| What to compare | Why it changes the answer |
|---|---|
| Rate and room type | A lower rate on a room category your travelers do not book is not a saving. |
| Availability | A rate blocked on your busiest nights has a smaller effect than the headline suggests. |
| Inclusions | Breakfast and parking can be worth more than a small difference in the nightly rate. |
| Cancellation and attrition | Flexibility protects the saving when plans change. |
| Loading and visibility | A rate travelers cannot find is not a rate they can book. |
Common RFP mistakes
- Sending a generic template with no volume data attached.
- Issuing in the wrong part of the year, when hotels have already set their budgets.
- Negotiating the rate and accepting everything else as offered.
- Approaching more properties than you can genuinely service.
- Leaving rate loading and traveler access unconfirmed until January.
Questions worth asking
Related guidesNegotiating corporate hotel ratesGetting the best corporate hotel ratesWhat a hotel sourcing service does
Let Zodiac run the cycle
Zodiac prepares the data, issues the RFPs, counter-negotiates the terms and confirms the rates load where travelers book.
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