The Society of Government Travel Professionals last week presented a lodging agreement template designed for state and provincial travel programs, as well as it latest annual survey of those programs showing how management of hotel costs is maturing. Meanwhile, the federal government is developing arrangements for corporate housing and conference and event lodging, and pushing for greater use of its FedRooms program.
The SGTP lodging template is a work in progress, based on formats used by "leading" state and federal travel management centers. "This straightforward approach to what really is needed for an informed selection process will substantially improve the response from individual hotels, and availability of good value properties for government travelers," according to SGTP.
"We all agree that a standardized format is the way to go," said Tim Hay, a procurement analyst for the state of Oregon, speaking here last week at an SGTP conference.
In addition to asking for property details and contact information, the template spells out a number of requirements for hotel properties, including commissionable rates paid within 10 days of the traveler's check-out date; last-room availability; preferred rate availability through global distribution systems and hotel Web sites and call centers; and close proximity to state government offices. Properties must provide rate information that includes any applicable state and federal rates, preferred rates for the specific buying entity, details on eligible users (official employees, meetings attendees, state contractors, employees booking leisure trips, etc.) and any black-out dates.
The document also notes that properties cannot include minimum-stay clauses or early departure fees, and that additional amenities "will be highly considered" during selection phase.
In return, the state/provincial travel management center soliciting bids "will ensure that preferred properties are sold on a priority basis."
According to an SGTP survey of 67 states and provinces, about 75 percent of room nights on average are at in-state properties. That observation prompted InterContinental Hotels Group government director Jim Reiter, also speaking during the SGTP conference, to suggest "the possibility of collaborating among multiple states to combine buying power."
The SGTP survey also found that " 'minimum rate available' and contract rates have begun to aggressively replace 'actual and reasonable' as policy," and that many states and provinces "appear to be rebidding contracts ... they're reducing the number of vendor awards to improve contract management."
According to SGTP, 29 states and provinces "are tied to federal per diem policies" for lodging. The federal per diem for standard lodging rates, as established by the U.S. General Services Administration, will increase by $10 to $70 for the fiscal year starting Oct. 1.
"It is usually up or down $1 or $2 and this year it is a pretty significant 13 percent increase for the top 50 government travel destinations," said IHG's Reiter.
That increase coincides with the "broad cuts" for travel budgets expected by state travel managers, according to SGTP. The organization said, "Major deficits have been projected due to falling sales tax receipts, decreased home assessments and the cost squeeze due to energy prices."
Overall, the average state/provincial travel spend this year was $44.3 million, up 2.6 percent from the 2006 SGTP report. A given state's official travel may include all or partial spending from higher education; city, county and school district employees; and state contractors.
Meanwhile, 35 states and provinces covered by the SGTP study now use a print or electronic directory to communicate approved lodging options, up from 21 in 1997, with some converting to Internet directories. Meanwhile, Colorado, Delaware, Montana, Washington and Ontario, Canada use "direct reservations programs" with hotel suppliers.
Some states also may be considering a lodging program similar to the GSA's FedRooms arrangement. That program--administered by Carlson Wagonlit Travel and launched in April 2005--now encompasses about 5,000 properties and handles 17,500 monthly room nights, according to Frank Robinson, deputy program manager for GSA's E-Travel program. Those properties are rated as two stars or above, have been certified by the Federal Emergency Management Agency, meet the requirements of the Hotel and Motel Fire Safety Act and offer flexibility to government travelers.
"No corporation has negotiated rates that offer cancellation deadline of 4 p.m. day of arrival, nor can they claim that 70 percent of their rates offer last room availability," according to the FedRooms Web site. Government travelers using the FedRooms program also never encounter fees for changes or early departures.
The rates themselves are at or below federal per diems, audited regularly and available through GDSs, government online booking tools and travel management centers, the FedRooms Web site and hotel reservations centers.
According to Robinson, properties responding to the 10,000 requests for proposals sent out for next year's FedRooms program must submit bids by Sept. 30. An option for this year allows hotels to include commissionable rates, he said.
The GSA has proposed a change to a federal law that currently disallows a government agency from dictating exactly where employees should stay. "The legislative proposal under review by the Office of Management and Budget is the start of a long process, which may or may not result in changing the law that bars federal mandates related to accommodations for federal employees traveling on business," according to a GSA official.
Meanwhile, the federal government is developing other new lodging arrangements. A corporate housing program--for stays in excess of 30 days--currently includes Marriott ExecuStay and Oakwood Worldwide. A corporate housing program Web site will become available to federal agencies "once we have a third vendor," Robinson said.
Robinson also noted that the government currently is "doing market research" to determine how to best build a lodging program covering conferences, events and tradeshows, all areas where spending has increased dramatically within the federal government, according to various audits and studies.