An effective procurement process generates savings for our clients in both money and time. The heart of HPN Global’s reason for being is to offer a highly efficient solution for venue finding, with a system specifically designed to generate value for our clients. Savings in rate reductions, food and beverage costs, contractual concessions and sometimes more importantly, in financial risk mitigation with proper attrition and cancellation terms. Besides saving money, with all of our actions we are here to save clients significant time.
The Company does not utilize a generic industry RFP platform to send RFP’s. Hotels are currently being inundated with what they refer to as RFP “spam” from systems such as those and it has become a major issue in the industry. Conversion rates for these RFP systems for the major chains are less than 1%. As a result, Hotels have delegated the responses to these systems to a function handled by a “lead catcher” who is typically an administrative person, and not a sales executive. The rate quotes from these lead catchers are nearly always higher than the rate quotes sent to HPN for the relevant time period, thus HPN Global leads have a much higher conversion ratio to closed business for hotels. As a result, hotels provide a quicker and more attractive response to our RFP’s.
HPN Global developed its own sourcing platform based upon efficiency and just as importantly, to foster relationships between hotels and clients. The company’s philosophy is to have a single point of contact at each hotel so a long-term relationship can be formed, resulting in priority handling of our inquiries. This also allows us to maximize our purchasing leverage and partnerships at the property level. The ease of our system response form allows hotels to submit their bids efficiently. Every group hotel in North America and most globally are preloaded into our system so hoteliers can respond to the RFP in literally less than 10 minutes. The quick follow up process conducted by the Senior Sourcing Specialist ensures responses are submitted in an appropriate amount of time. Typically, in North America the company’s RFP’s have a response rate of over 90% within 24 hours and virtually 100% within 48 hours.