policy and per diems for travel of 30 days and longer
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Policy and Per Diems for Travel of 30 days and longer. Schedule 48 Long-Term Lodging Vendor Council September 2011. Today’s objectives. Clearly define 30 day+ housing Review “industry” inventory and pricing Compare to hotel lodging options - PowerPoint PPT PresentationTRANSCRIPT
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Policy and Per Diems for Travel of 30 days and longer
Schedule 48 Long-Term Lodging Vendor Council
September 2011
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Today’s objectives Clearly define 30 day+ housing Review “industry” inventory and pricing Compare to hotel lodging options Consider impact of Per Diem and
discretionary 30 day+ policies On your travelers On your budget
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Long-Term Lodging Defined Lodging for 30 continuous days or longer Travel usually related to TDY or PCS Typically means a furnished apartment or
condo If contracted, NAICS 531110 used most often
GSA Schedule 48, SIN 653-9 Travel Services Solutions 26 approved vendors (as of 29 Aug 2011) $51.3M in total sales since 2007 inception
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Alternative Names for 30+ travel
Corporate Housing
Temporary Housing
Long-Term Lodging Extended Stay 30+
Lodging
TDY
TCS
TAD
PCS
Temp Quarters
Within our industry, vendors have found “Temporary Housing” is
used more often as the key word search by government travelers
than the “corporate housing” term.
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2011 Highland Report
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Corporate Housing Industry Statistics
Measurements 2010 2009 Industry Revenue $2.5B $2.36B
Guests in housing every day 65,000 62,000
Average length of stay: 83 nights 92 nights
Industry Average Daily Rate
(ADR) per night: $116 $115
from 2010 and 2009 CHPA Reports
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Average Daily Rate By Apartment Type
CHPA Industry Report 2010 for U.S.(The Highland Group)
One Bedroom - $112
Two Bedroom - $120
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Industry Inventory Predominantly “virtual” inventory
Vendors rent apartments in residential communities on both long-term and as-needed basis
Vendors furnish apartments, provide housewares and services, connect utilities, facilitate all service and billing
Offers greatest flexibility – of location, of furnishings, etc.
Some dedicated buildings – “fixed inventory” typically a mix of furnished and unfurnished apartments capacity to change ratio of furnished to unfurnished
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2011 Highland Report
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Industry Inventory and Rates “Available” inventory shrinks or expands based
on supply and demand
Apartment rent is biggest cost factor Current demand is driving rental costs up have increased 5 - 11% nationwide since 2009
Per diem does not consider rental costs
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Supply Change-2011 Highland Report
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U.S. Corporate Housing Average Rates – 2011 Highland Report
2007 ~ $ 115.97
2008 ~ $ 117.35
2009 ~ $ 114.35
2010 ~ $ 115.88
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Furnished Apartment or Hotel?
APARTMENT: Multiple rooms, like home Residential community Full Kitchen Washer/Dryer in apt. Housekeeping options Enhanced privacy Self-sufficiency
HOTEL: Usually a single room Transient Population Microwave, Mini-fridge Shared laundry facility Daily Housekeeping Entry Additional cost potential
(parking, internet, etc.)
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Furnished Apartment or Hotel?
APARTMENT Selection of locations
based on client needs Can select properties
that are current and fresh
Space for family to visit or stay
HOTEL Fixed location Black-out dates Infrastructure may be
dated or obsolete No additional space in
room for family – or additional cost
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Choosing Corporate Housing …WIIFY - What’s In It For You? Utilizing the GSA Schedule:
Faster and more simplified procurement Pre-qualified vendors Negotiated, discounted rates Cost savings – travel and administration Reporting / Spend Analysis Flexibility and transparency
Option to buy direct via individuals, groups or contracts
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Choosing Corporate Housing …WIIFTT - What’s In It For The Traveler? More location options –
Quality Shorter Commutes
Quality of Amenities Full size kitchen and appliances Larger Fitness Centers In-unit Washer and Dryer
Personal privacy and security Maintenance of morale & well-being
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Per Diem Dilemmas Per Diem rates are based on mid-priced hotels’ average
rates less 5% Apartment costs rising – not part of per diem calculation
Discretionary authority further restricting 30+ lodging spend to “XX% of per diem” or sliding scales How are these percentages determined? Costs do not go down proportionately to enacted restrictions
GSA Schedule Rates must be “most preferred rate” No volume or compliance requirements as in commercial sector
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Per Diem Dilemmas, continued $112 average 1BR daily rate nationwide
Versus flat PCS daily rate at $77 nationwide
Significantly reduced rates may force traveler: into inconvenient location compared to workplace into inferior lodging options
Above factors takes a toll on productivity performance level, work quality and satisfaction adds cost, stress, and time for commute
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Travel Policy Recommendations
There is methodology and science behind the per diem process.
It is created by the Federal Government for use by federal personnel.
It further impacts private sector for defense contractors.
Please support and use systems in place.