HomeMy WebLinkAboutCORRESPONDENCE - RFP - P687 TRAVEL MANAGEMENT SERVICES (5)C
Ornn6lon
August 11, 1998
Mr James B O'Neill 11, CPPO
Director of Purchasing and Risk Management
City of of Fort Collins
256 West Mountain Avenue
Fort Collins, CO 80521
Dear Mr O'Neill
MR A Travel Inc
a, Colorado Corporation
dba Travel Connection
Thank you for the opportunity to bid on the City of Fort Collins Travel Management Services
We have worked with City officials since 1992 and have been pleased with the excellent
working relationship
Travel Connection, however, has decided to decline submitting a proposal for future City travel
services This decision was a difficult one, but after reviewing the potential revenue dollars to
our Company, we cannot make the City account profitable to our business
The biggest obstacle is the City requirement that no service fees can be charged At our current
commission level of 8% from the airlines, we cannot provide the reservations, ticketing and
reporting services required by the City and still be profitable For instance, at your $90,000
projected annual ticketing volume, if we were to issue 100% of the tickets, our total gross profit
before any expenses would be less than $6500 Our cost for the services you require to issue and
manage this $90,000 in ticketing volume is substantially higher than $6500 In addition, we
fully anticipate these commission levels to be further reduced, or eliminated, in the future
The only way to justify not charging transaction fees would be to substantially reduce our level
of services One method is to assign less experienced agents to the City account rather than our
most experienced corporate travel consultants We can not compromise our service quality in
this manner
Thank you for your past business We have enjoyed working with the City Please keep Travel
Connection in mind for future City travel should circumstances change
Very truly yours,
re M Yode
President
Corporate Office Foothills Fashion Mall Branch Cheyenne Location
3538 John F Kennedy Pkwy Suite 2 215 E Foothills Parkway Downtown Mall
Fort Collins CO 80525 Fort Collins, CO 80525 1651 Carey Avenue, Suite 13
970-223 0442 • FAX 970-206-9697 970 223 0442 • FAX 970-223-0451 Cheyenne WY 82001
307-637-4784 • FAX 307-637-3808