5-Question Pre-BAFO Checklist

Use this before issuing the second-round invitation on any hotel RFP.

1. Is the first-round price spread at least 3 percent?

   Compare the leader's all-in price against the runner-up's. Below 3 percent spread (or 5 percent for events under €15,000), BAFO upside is too narrow to justify the round.

   In our data, sub-3 percent spreads produce negative-NPV BAFO in 71% of cases.
   YES NO

2. Is the awarded value at least €15,000?

   Or €8,000 if BAFO runs inside an automation platform. Below that threshold, planner-hour cost typically exceeds expected savings even when the round runs cleanly.

   Median saving on sub-€15k events is 4.8% — about €600 on a €12k spend.
   YES NO

3. Do you have at least 3 genuine finalists?

   Properties you would actually award the event to. Performative shortlists (5+ “finalists” with only 2 real contenders) dilute the competitive signal and erode pricing aggression.

   3-finalist BAFO is the median sweet spot; 6+ finalists flatten the savings curve.
   YES NO

4. Do you have at least 7 days of cycle-time buffer?

   BAFO adds a median 6.4 calendar days. Without slack against internal approval deadlines, 14% of BAFO rounds blow past the original due date by more than 50%.

   Tight cycle = leadership escalation risk. Loose cycle = lower walk-away rate.
   YES NO

5. Is the leader NOT in a tight-inventory configuration?

   Tight = booking window under 60 days, mid-week dates in T1 cities (Paris, London, Amsterdam), or a managed-account discount already given in Round 1. Tight-inventory leaders walk during BAFO 11–14% of the time.

   If the leader IS tight-inventory: structure BAFO as price re-confirmation from leader + full BAFO from positions 2–3.
   YES NO