The tender processwas never designedto fix your programme.

    Nine months. Six departments. Hundreds of questions. And usually, the same TMC at the end. On worse terms.

    Exhibit A · Programme diagnostics

    The problem is almost never where it looks

    RefWhat you think it isWhat it usually isConf.
    A.01Travellers ignoring the hotel programmeRates never loaded, or beaten by the chain's own appHIGH
    A.02Poor online adoptionA tool that handles the booking well and the trip badlyHIGH
    A.03A TMC that has stopped caringA service model priced for a different pattern of demandMED
    A.04Savings that never reach the P&LA discount measured against a fare nobody paysHIGH
    A.05A programme nobody can report onThree systems that were never reconciledHIGH

    Change the supplier and every one of these moves house with you. A tender is the most expensive version of this problem. It is not the only one.

    96%
    customer retention.Customer retention at the largest TMC in the world, most recent year.
    2.2×
    retenders vs new wins.CTM defended $1.5bn against $670m won. The tender happened. The supplier stayed.
    1.2%
    net margin.Amex GBT, 2018, in a boom year. There is no fat in the fee you are negotiating.
    A tender produces a lower fee. Not a better programme.

    Take fifteen per cent out of the fee and it does not come out of profit. It comes out of the team that answers your phone — fewer experienced agents, more travellers per head, the dedicated desk quietly folded into a shared one.

    Karen McKenna

    Who is telling you this

    I made tendering faster. Faster was never the problem.

    I'm Karen McKenna. I spent a decade selling for three of the largest travel management companies in the world — all three now part of American Express Global Business Travel.

    In 2004 I founded ETABID, the industry's first online sourcing platform. Siemens, PwC, Morgan Stanley and Adidas ran their tenders through it. The world's ten largest travel management companies responded through it. Buyers liked it, the TMCs liked it, and it was acquired in 2006.

    What came after was broader. A consultancy, sold in 2010. Workshops on bid management, travel technology and programme design, run for buyers and suppliers alike. Years training agency owners for IATA across five continents. An e-learning platform for the industry, certified by the Business Travel Association.

    Which is the useful part. I have taught most of this programme to most of the people in it — sourcing, technology, policy, supplier strategy, risk, service models. It is why I can usually tell when the hotel problem is actually a payment problem.

    Before you launch your next RFP, talk to me.

    Speak to Karen →