BAFO: Best and Final Offer – The Complete Hotel Negotiation Guide
BAFO stands for Best and Final Offer — the single most powerful negotiation tool available to MICE planners, and the one most frequently skipped. Research from MPI shows that planners who conduct a structured BAFO round drive meaningful savings on total hotel contract value. Yet few planners use it systematically.
When to deploy BAFO
BAFO is step three of a three-step negotiation process:
- RFP submission — Parallel request to 3–5 venues simultaneously
- Receive and qualify initial proposals — Select 2–3 finalists
- BAFO round — Ask finalists for their best overall package
The BAFO email template
Dear [Name],
Thank you for your proposal for [Event Name] on [dates]. We are now in the final selection stage. Please submit your Best and Final Offer by [date + 5 business days], including any additional concessions your property can offer. The strongest overall package will receive our business.
Best regards
What hotels typically improve at BAFO
- DDR price: −5% to −15% from initial offer
- Additional F&B credits: €1,000–€5,000
- Improved comp room ratio (from 1:50 to 1:35)
- Free WiFi for all delegates (vs. basic complimentary)
- Suite upgrades for VIP guests
- Complimentary basic AV package
What to do if the hotel won't budge
If the hotel refuses to reduce the rate, shift focus to concessions. Free parking (worth €25–40/car/day), suite upgrades for VIPs, F&B credits and complimentary welcome receptions are often more flexible than DDR. A €5 DDR reduction for 100 delegates saves €500 — a €2,000 F&B credit delivers the same value with less rate transparency risk for the hotel's revenue manager.
Related deep-dive: 11 group hotel booking mistakes — Mistake #11 is leaving BAFO concessions on the table.
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Try Easy RFP freeRelated in the BAFO series: 2026 BAFO savings benchmark · what is BAFO? · automating the 2nd round.