Premier Lodging Program May Hurt Federal Travel

NEW YORK— A General Services Administration (GSA) lodging program intended to lower hotel costs is instead significantly raising the cost of lodging and may force agencies to cut back on travel, reported the Federal Times. Under the Federal Premier Lodging Program (FPLP), which began in 2001, the GSA works with hotels in downtown areas and near federal workplaces to set aside a specified number of rooms at guaranteed rates. So far, GSA has signed on hotels in 20 metropolitan areas and hopes to have such contracts in the 75 most popular destinations for federal workers. But apparently the new contracts have not greatly reduced prices so far, but rather have raised per-diem lodging rates. And federal agency travel budgets have not been adjusted to reflect the increased rates. “Congress is reducing our budget, so we can’t afford to increase our travel budget in line with the Federal Premier Lodging Program,” said Les Oden, Interior Department staff accountant. “This is having a big impact on us. They are reducing the number of trips we are able to take.” Of the 20 cities under FPLP contract, 17 saw increases in hotel per diems. Oden noted that in many instances, federal employees can get a lesser rate — up to $20 — simply by asking for the government rate. These higher rates are expected to affect all military and federal agencies, Oden said, but especially will be felt by Interior and Agriculture Department employees who travel to rural areas where lodging is available for less than the FPLP rates. Program officials acknowledged there are some problems with the program but expressed confidence the problems can be worked out, the report said. “We’re seeing that one size doesn’t fit all,” said Patrick McConnell, FPLP official. “The per-diem rate in a particular city drives the county rate. Maybe that’s not the way to go.” However, the program already is delivering a number of benefits, McConnell said, including a list of hotels more conveniently located for the federal traveler. That in itself can do away with the need for travelers to rent cars, perhaps more than offsetting the additional room cost, he said. In addition, lodging costs eventually will come down, McConnell said. When lodging at FPLP hotels becomes mandatory, GSA will be able to virtually guarantee hotels that join the program will get a minimal amount of business, McConnell said. That will give GSA leveraging power to negotiate lower rates, he said. Eventually, GSA hopes to have 10 million to 12 million “room nights” available through FPLP each year. On average, about 93,000 federal workers travel on work assignments each day. SOURCE: Federal Times