01 BAFO — Best and Final Offer
Second-round negotiation where shortlisted suppliers submit a single, irrevocable revised proposal. Targets 2-3 finalists after round 1. The buyer awards based on the BAFO submission with no further rounds.
BAFO Meaning: 12-Term Procurement Glossary
12 procurement acronyms hotels use in every RFP round, defined.
How to use this: Each term is defined with the way hotels actually use it in European MICE sourcing. Paired with the full article.
02 RFP — Request for Proposal
A structured invitation to suppliers to submit a detailed proposal including rates, terms, scope and timeline. Differs from RFQ (price only) and RFI (information only). The standard sourcing instrument for European hotel buyers.
03 RFQ — Request for Quotation
Price-focused invitation, used when scope is already defined and the only open variable is price. Rare in hotel sourcing because hotel scope (block, F&B, AV, meeting space) usually requires more negotiation.
04 RFI — Request for Information
Information-gathering stage prior to RFP. Used to assess supplier capability before issuing a full proposal request. Common in pharma and regulated industries where vendor due diligence precedes the RFP.
05 EOI — Expression of Interest
Supplier-initiated indication of interest in a forthcoming RFP. Used by buyers running an open competition to gauge supplier appetite before publishing the full brief.
06 Shortlist
The 2-3 finalist properties chosen from the round 1 long-list. Only shortlisted hotels are invited to BAFO; long-list properties not invited are formally declined.
07 Long-list
The initial 8-12 hotels invited to round 1. Includes a mix of incumbent, competitive, and stretch options. Narrows to shortlist within one week of round 1 responses.
08 Attrition
Contract clause obligating the buyer to pay a fee when room pickup falls below a contracted threshold (typically 80%). Calculated as (threshold − actual pickup) × group rate × variable-cost net.
09 Comp ratio
The number of contracted paid rooms required to earn one complimentary room. Typical ratios: 1:40 on standard groups, 1:50 on larger blocks, 1:30 on smaller premium groups.
10 Cut-off date
The date after which unbooked rooms in the contracted block are released back to general inventory. Typically 30 days pre-arrival; can be negotiated.
11 Pickup report
A post-event report from the hotel showing room-nights consumed by named guests from the rooming list. Used for attrition reconciliation. Should be contractually obligated within 30 days post-event.
12 Walk-out
Supplier-initiated withdrawal from an RFP. Happens when first-round pricing is rejected or BAFO terms are unacceptable. Different from buyer-initiated decline.