Online request for proposal (RFP) systems are being misused as “mystery shopping” devices and causing bottlenecks for venues who use them, it has been revealed.
Designed to streamline the venue-finding process, RFP systems allow clients to shop around for venues by requesting information in an online form which is submitted to the operator. More operators are embracing the technology as a time-saving device that minimizes personal contact.
However, Agenda managing director Elizabeth Rich says cracks in the system are starting to show as more PCOs turn to online systems.
“People are abusing the system to shop around for competitive prices,” she told The Nibbler. “Rather than negotiating over the phone, they are clogging up the system and creating bottle necks at the other end.”
With some PCOs sending out 60 requests for one piece of business, Rich said many venues are being inundated with hundreds of “empty business requests” each day.
“RFP could be the death of some venues who will never be able to put on enough staff to keep up with the number of meaningless online request,” she added.
Meetings and Events Australia (MEA) chief executive Linda Gaunt agreed some PCOs who were using online proposal systems as “mystery shopping” devices to get the right price.
But as more businesses move to online technology, Gaunt stressed the need to find a happy medium.
“Like everything, online is the way of the future. We have to get smarter about how we use these requests to ease these bottlenecks,” she said.
Gaunt suggested venues should work closer with RFP suppliers to minimize how their processes can be abused. “We need to put our heads together to find out a better system,” she said.
