How to Create Incentives to Save on Government Travel TDY Lodging Expenses

Excerpt from the Save Award Ideascale website:

"In 2009, President Obama called for “a process through which every government worker can submit their ideas for how their agency can save money and perform better.” The President’s SAVE (Securing Americans’ Value and Efficiency) Award fulfilled this commitment by enabling Federal employees from across the government to submit their ideas for efficiencies and savings as part of the annual Budget process.
Now in 2010, we expanded the process so Federal employees can both submit ideas and vote on ideas submitted by others in a collaborative process."

ISSUE
"Currently OPM per diem rates for travel (TDY) are set so that the lodging rate is a 'use it or lose it' system whereby money not spent on lodging is returned to the government. This fosters an environment where most government travelers don't spend any time looking for the best rate. In fact, in many cases the upper limit is what travelers look for so that they can maximize their frequent traveler program points."

SOLUTION
"The lodging per diem rates can stay the same but make a hybrid solution of the current lodging and M&IE rules so that money spent under the maximum is split between the government and the traveler - perhaps a 50/50 split of the savings. For example, if the lodging in Area A is $100/night and a traveler finds a hotel for $50/night, he would keep $25/night and $25/night would be cost savings to the government."

IMPACT
"Incentivize travelers to find more cost effective lodging with immediate and universal impact of hundreds of millions of dollars per year."


Full Article:  http://saveaward2010.ideascale.com/a/searchPanel.do

Corporate Housing Provider boosts profits in Defense Lodging Industry

National Corporate Housing Provider TDY Lodging boosts profits for Defense and Military Temporary Lodging providers.

The Corporate Housing industry has officially expanded into the Department of Defense Lodging market.  TDY Lodging has become a very attractive marketing outlet for Temporary Lodging providers within the government travel and Corporate Housing sector, and DoD Lodging is now offered at more than 100 locations within the United States and Overseas.  Year to date results reveal increased occupancy rates and record profits for Corporate Housing companies and Hotels that use TDYLodging.com to market their hotels and lodging to Military and Defense travelers within the Federal GSA Per Diem Rates.  Corporate Lodging Providers including Hotel owners and Temporary Housing companies pay a small annual fee to be connected directly with military and government travelers seeking temporary lodging at extended stay hotels, furnished apartments, and Corporate Housing. 

TDY Lodging acquired Corporate House Rentals earlier in the year, which allowed the company to gain a large market share of the Defense Lodging and Corporate Housing industry.  The acquisition included government contracts with major Department of Defense Contractor clients within the Washington DC Corporate Housing market and many other major markets including MacDill AFB Lodging for Air Force personnel and Fort Huachuca TDY Lodging for Army travelers.  Despite a decrease in FY 2011 Department of Defense spending, TDY Lodging has enabled many hotel and corporate house rental owners to obtain record profits based on the popularity of their Corporate Housing model.  DoD Lodging is often sparse around major cities, forcing many users of the Defense Travel System (DTS) to seek temporary lodging through Corporate Housing providers outside of the DoD Travel System.   

The Corporate Housing industry is affected by the Department of Defense Budget in several cities and metropolitan areas, and the new 2011 GSA Per Diem Rates affect Temporary Lodging providers in TDY locations near military installations, which may cause a drop in Corporate Housing Rates where providers rely on the Government Per Diem Rates.  Although there was a drop in many of the 2011 GSA Per Diem Rates, Corporate Housing Providers marketing through TDY Lodging’s unique Defense Lodging System anticipate increased profits for FY11 because they have been able to market directly to government and military travelers without paying a commission for every reservation.

TDY Lodging Featured in Hotel Interactive

Hotel Interactive author Maria Wood’s recent article Marching Orders, reveals a valuable revenue stream for hotel owners; the government travel market:

For hotels looking to boost revenues in a recession-racked economy, there are two customer bases they can attack: the Department of Defense (DOD) and government travel sectors.

The Renaissance Schaumburg Convention Center Hotel ran a special promotion from December 2009 to October 8 offering government and military workers a discounted rate starting at $158 a night (down from the standard $169), along with free breakfast and high-speed Internet service.

To borrow a currently popular military phrase, the 500-key hotel, located in Schaumburg, IL, witnessed a surge in bookings in the first quarter, when more than 300 room nights were reserved through the promotion, reported Jeanette Ulepic, the Renaissance Schaumburg’s director of sales and marketing. That translates to a 20 percent uptick in bookings in comparison to the same time a year earlier. And that’s in an area where demand from military and government personnel is generally not high, Ulepic noted. After the first quarter, she said, bookings were flat in comparison to 2009.

Nevertheless, the hotel considers the promotion a success.

“Any opportunity we have to increase awareness of our hotel and also provide a benefit to a (customer) segment, like the government and military, is always a positive opportunity for us,” Ulepic said.

Individual hotels don’t necessarily have to rely on one-off promotions like the one at the Renaissance Schaumburg to call in the military. TDY Lodging, an online marketing platform, lists hotels located primarily near military installations and major cities, allowing those properties to get in front of DOD personnel and government workers looking for lodging while on a temporary assignment that can last anywhere from a few days to six months.

Matthew Foster, founder and general manager of Ventura, CA-based TDY Lodging, estimated that there are between 400 and 500 hotels, stationed in more than 100 locations in the U.S., in the system. TDY Lodging also inventories corporate housing and furnished and unfurnished apartments.

There is certainly no shortage of potential guests in this sector. According to the U.S. Bureau of Labor Statistics, 1.4 million individuals current serve in the U.S. Army, Navy, Marine Corps and Air Force.

In addition to military personnel, defense contractors and any government agency employee working under the auspices of the GSA (General Services Administration) are eligible for the government’s per diem rate for lodging accommodations.

Another advantage to joining up with TDY Lodging is that owners pay a flat annual rate of $199 per hotel. There are no commissions or third-party booking fees.

“It’s very easy for a hotel to recoup that marketing cost,” Foster said, “and then make some profit on top of that.”

For the full article by Maria Wood, visit Hotel Interactive .