Third Party Vendor Management
The partnership with a Third Party Vendor (also called Travel Company, Planning Agency, etc.) is an
accepted, and common, practice in the meetings and events industry. The ability to capitalize on
external expertise can result in cost savings and increased efficiencies. In order to ensure that the
partnership between MetLife and the Third Party vendor is favorable to the enterprise, outlined below
are some guiding principles which should be immediately implemented.
Third Party Guidelines for Sourcing & Contracting Programs
One of the most important factors to consider when working with a Third Party is the level of
transparency they provide, or open communication. Transparency related to pricing or and program
inclusions is of the highest importance. Third Parties should always specifically:
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Identify themselves as working on behalf of MetLife and not operating independently.
All communications with potential vendors – transportation companies, airlines, hotels, DMCs,
etc. – should be listed as “XYZ Travel on behalf of MetLife”. This makes it easier for the end
vendors to provide reporting to MetLife when requested and to recognize MetLife’s Enterprise
spend.
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Source the programs through MetLife’s preferred hotel global sales contacts for major hotel chain
properties.
This will encourage recognition of MetLife business at an Enterprise level and enable MetLife to
benefit from any applicable hotel concessions (concession examples to consider when
negotiating have been provided in this same package of information). This means that the
MetLife in-country contacts for Hilton, Hyatt, InterContinental, Marriott or Starwood, should
receive the requests for proposals directly from the Third Party.
For Fairmont, Four Seasons, Shangri-La or any other major hotel chain properties, US based
global sales contacts should be contacted with the RFPs (see provided list for hotel contact
information). Third parties should not use their own hotel contacts unless it is an independently
managed hotel that is not affiliated with any chain where MetLife has no pre-existing
relationship.

Negotiate favorable terms and establish a standard of service with local Destination Management
Companies (DMCs) on MetLife’s behalf.
Third Party companies also traditionally source local support for programs from a DMC.
Examples of standards of service that should be expected and concessions that should be
requested from DMCs is attached.
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
Provide the MetLife planning team with a copy of the actual hotel and DMC contracts, and
estimated concessions.
It is critical to the planning process that the MetLife planning team, Third Party, hotel and DMC
are all clear on the inclusions of the contract and appropriate terms and conditions. The hotel
and DMC contracts should be signed by MetLife, not the Third Party. This allows MetLife to
“own” the program and be better positioned as the true client and decision maker in the
process. This will result in better service and value for MetLife. It also protects MetLife should a
change in ownership or problems with the financial status of the third party occur.

Provide the MetLife planning team with a separate contract for the Third Party’s consultative
services.
This contract should be separate from the hotel and DMC contracts. The MetLife planning team
should determine a negotiation strategy for what type of fee structure that they want to pursue
with the third party. Examples of negotiation strategies that can be used are:
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Cost plus – The fee for the Third Party is based on an agreed upon percentage of
program spend. The concern related to this scenario is that the Third Party may
want to upsell and not negotiate enough on MetLife’s behalf so that the final
program cost, and therefore their fee increases. In this case, it can be difficult to
budget for the Third Party fees since it is variable. For example, the program
estimated total spend at the time of proposal was $1,000 and the Third Party fee is
10%, or was estimated $100. At the time of program invoice, the program spend
was $1,200 so the Third Party fee is $120.
-
Flat fee – The fee for the Third Party is a fee that is agreed upon at the time the
business is awarded to the Third Party. It does not vary based on the program final
pricing or costs. This is considered a preferable scenario.
-
Multi-year or Multi-program – This is a strategy that is considered beneficial for
both MetLife and the Third Party. It assumes that based on volume business from
MetLife, either for many programs in one year or many programs over a number of
years, that the Third Party would provide a list of concessions relative to the volume
of business. For example, if XYZ Third Party gets 2 programs in one year, that they
would offer one set of concessions but if they get awarded 3 programs, they will
offer an increased list of concessions.
Once the above is agreed upon, it is important to also take these two additional steps:
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As per your country’s specific guidelines, legal review of all contracts should be
conducted to limit MetLife’s exposure and risk.
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After legal review and prior to signature, please provide English copies of all Third
Party contracts/associated contracts, for major incentive or business meetings for
events having the value of $200,000 USD and over to Corporate Conference & Event
Management for review and record keeping.
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Third Party Vendor / MetLife Planning Team Operations
Once contracting a third party Vendor is complete, the process moves into an operations phase. Here
are some key elements to keep in mind when moving into this phase of planning.
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Specific roles and responsibilities of MetLife Planning Team versus the Third Party Vendor
should be agreed to in writing
Planning schedule should be identified and timeline for deliverables established
Complete proposals / costing prepared and presented by the Third Party
Site visits conducted and key introductions of local vendors made
Final arrangements/services agreed upon and updated final program specifications
Event review of all specifications including staffing /roles
On-site operation of program
Third Party Post-Program Responsibilities

Provide the MetLife planning team with a copy of the actual hotel/DMC invoices, and include an
outline of the actual value of negotiated concessions.
Transparency related to pricing and costs is an important part of the Third Party relationship.
Complete invoices directly from the hotel/DMC should be provided to MetLife. The invoices
should include an outline of the monetary value of negotiated concessions. This information is
valuable and should be reported in our collective global effort to showcase cost savings and
reduce expenses.

A formal post-conference meeting should be held to review the Third Party, and recommended
vendor, performance.
Adjustments for improving operations, service and attendee experience should be documented.
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