Reverse Auctions for Hotel Room Furniture

Tuesday, May 03, 2011

Reverse Auctions for Hotel Room Furniture

Last week eBridge ran a second event for a large hotel chain to purchase furniture for their second phase of rooms.  These rooms were larger, therefore different styles of furniture were outlined in the specifications.  The same suppliers were approved to bid on the project.  Each had set up a demo room in the hotel so the purchasing team could visualize the set up and evaluate the quality of the goods prior to the companies responding to the bid specifications.

The live event ran just over an hour, with the three suppliers placing 43 bids total.  First place changed hands 26 times and first and second place bidders were separated by a mere 1.5%, indicating that true market value was achieved.  At the conclusion of the reverse auction event, the final low bid was 16.95% below budget.

The hotel organization is slated to run several more bids this month including other building and renovation materials.