A tender changes yoursupplier. It does notfix your programme.

    Nine months, six departments, hundreds of questions. And every problem that was yours rather than theirs is still there afterwards. I find out which is which before you go to market, and if you are going, what you should be asking for.

    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 way to find out. It is not the only one.

    What a new supplier will not fix

    Some of what is wrong with a travel programme belongs to the TMC. Some of it belongs to Treasury, or Finance, or a business unit that books outside the system for reasons nobody has written down. The second kind survives a change of supplier, and it is still there in year two under a new logo.

    Knowing which is which is the difference between a tender that fixes something and a tender that moves the problem.

    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.

    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 →