Government Wide Lodging Programs Part 2 DoD Preferred Ms. Lori Leffler, DTMO Hospitality Management Branch (HMB) Chief Ms. Beth Carver, HMB Ms. Jade Powell, HMB Mr. Daniel Woodruff, HMB Department of of Defense Office of the Under Secretary of Defense (Personnel and Readiness)
Agenda Program Introduction 2019 Snapshot Making the Program even Better Improving Hotel Responses Mechanics of the Program Moving Forward 2
ILPP Team Dane Swenson Senior Technical Advisor Lori Leffler Hospitality Management Branch Chief Beth Carver Kim Shine Program Analysts Chuck Hudson Program Analyst, Data Scientist Yuriy Nesterchuk Data Scientist Jade Powell Daniel Woodruff 3
Legislation and Policy The ILPP is supported by legislation passed in Section 914 of the FY15 NDAA (P.L. 113-291) Authorizes the Secretary of Defense to establish lodging program and direct Military AND Civilian personnel to occupy adequate lodging on official travel Exempt from title 5 collective bargaining Applies to Government, Privatized, and Commercial lodging establishments Report to Congress on effectiveness and recommendation on legislation Supported by Joint Travel Regulations and Defense Type Memorandum 2015 National Defense Authorization Act (P.L. 113-291) Integrated Lodging Program Pilot FY19 Legislative Proposal: Codification and permanent extension of government lodging program 4
DoD Integrated Lodging Program Pilot (ILPP) Launched in June 2015 to assist the Department in determining the best approach for providing quality government (DoD), privatized and commercial lodging with the goal of achieving reduced rates, better services, and greater safety and security for the traveler The ILPP consists of: DoD Preferred Commercial Lodging Public Private Venture (PPV) Lodging Privatized Army Lodging (PAL) DoD Lodging (government) Army Lodging (OCONUS), Navy Lodging, Air Force Inns, Marine Corps Lodging SCOPE Nights Spend Total FY17 36 M $1.9B Success through the effective integration of policy, strategic sourcing, technology and program management 5
ILPP Initiative Strategic focus through aligned Business Operations Plans throughout the Agency Department of Defense Reform the DoD Business Practices for Greater Performance and Affordability Defense Human Resources Activity ILPP is a 2019 Top 5 priority and a 2019 Major Activities key milestone/notable event Defense Travel Management Office Adopting industry best practices to leverage strategic sourcing opportunities: expand and formally institutionalize the ILPP 6
Program Evolution 2015 2019 Program launched Strategically sourced 8 DoD Preferred Pilot sites with 53 commercial hotels Integrated adequate DoD Lodging 162 sites Modified the Joint Travel Regulations (JTR) policy 32 DoD Preferred Pilot sites with 187 commercial hotels 29 Privatized Lodging Site 166 DoD Lodging Sites 65 DoD Preferred Pilot sites with 362 commercial hotels 30 Privatized Lodging Site 168 DoD Lodging Sites 2015 2016 2017 2018 2019 January 2016 14 DoD Preferred Pilot sites with 95 commercial hotels 162 DoD Lodging Sites March 2016 28 Privatized Lodging sites July 19 DoD Preferred Pilot sites with126 commercial hotels 52 DoD Preferred Pilot sites with 258 commercial hotels 29 Privatized Lodging Site 167 DoD Lodging Sites 263 of 370 sites now in program (71%) DoD Lodging: Total 210 installations, 168 in ILPP (80%) Public-Private Venture: Total 40 installations, 30 in ILPP (75%) DoD Preferred Lodging: Total 120 installations, 65 in ILPP (54%) 7
ILPP 2019 US Sites All Lodging 8
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Property Amenities as Reported Requirements Considerations 400 350 300 250 360 360 360 360 360 100% 100% 100% 100% 100% 400 350 300 250 359 360 100% 100% 296 323 307 304 296 82% 90% 85% 84% 82% 251 70% 200 200 150 150 100 100 Last Year 50 0 50 100% 100% 100% 100% 100% 0 100% 100% 94% 92% 86% 85% 79% 72% Last Year Hotels that offer same day cleaning, onsite w/d or both: 362, 100%. 10
Tax Exemptions When travelers ask for tax exemption Is your state highlighted in yellow on the map? Are they paying with a GTCC? Are they paying with a centrallybilled account? Even in these states, some local taxes not exempt Map courtesy of GSA website 11
Tax Exemptions Individually Billed Cards Card numbers start with 4486 or 4614 Sixth digit is 1,2,3, or 4 DoD Visa issued by Citi Dark blue cards are replacing current silver both in current use Centrally billed cards are always exempt from state taxes Sixth digit is 0, 6, 7, 8, or 9 GSA reference card for vendors 12
DoD Preferred Logo Available for DoD Preferred hotels in current year All uses of the logo must be approved contact dodhra.mc-alex.dtmo.mbx.lodging-data@mail.mil Use on welcome letters for our travelers Embed in our traveler folios Promotional messages directed at our travelers For access to logos and logo usage guide Posted on DoD Preferred webpage Process for Logo distribution to be determined Coming Soon! 13
Customer Satisfaction Survey Increases understanding of program success Key Performance Indicator Right hotels in the right locations Pulse of traveler satisfaction Hotels that deliver a quality product Measure our Duty of Care commitment Share information with our industry partners Areas of success Areas of focus 14
Customer Satisfaction Survey 2018 15
How to Read the DoD Preferred Customer Satisfaction Survey Report First graph depicts the Overall Satisfaction score for your property. The Overall Satisfaction score is made up of 4 attributes (Assurance/Reliability, Product/Service Quality, Customer Interaction, and Overall Experience), and questions are weighted. 16
How to Read the DoD Preferred Customer Satisfaction Survey Report (continued) The second image depicts the breakdown of the 4 major attributes that make up the overall customer satisfaction score. The third image depicts the 5 attributes that make up the Customer Interaction score, one of the previously mentioned 4 major attributes. 17
Customer Satisfaction Survey - 2018 In 2018 Travelers were sent a 24 question survey 33,503 travelers completed the survey in CY2018 The 2018 End of Year DoD Preferred Customer Satisfaction Survey Report is cumulative, covering the surveys submitted calendar year 2018 18
2019 Survey Updates Streamlining the survey for 2019 Feedback from travelers and industry partners Goal of increasing response rate - 2018 33.5k of 173k surveys sent (19.4% response rate) - 24 questions Potential five questions with matrices covering multiple topics - Removed demographics - Removed DTS functional questions - Removed program questions Studied industry surveys In testing with plan to implement 1Q19 19
2019 Survey Updates Sample question 4 subject to change 20
Rate Loading Some brands/hotels have consistent issues; taken into account the next year Weekly rate audits in the GDS Hotel won t display in DTS if it doesn t pass the rate audit If a property does not pass rate audit, the property and NAM are notified and given the opportunity to correct If the correction is not made by the specified date or there is an ongoing issue, the property will be removed from the program When squatters are detected: The property, management company, and brand are advised to remove immediately In the event of an on-going issue, the management company and/or brand has the potential of all hotels being removed If persistent, won t receive RFP following year 21
My Hotel Doesn t Display DoD Preferred Didn t pass rate audit DoD Preferred rates not loaded or rates loaded are above the rate offered Best Available/GOV/Fedrooms rate is lower Policies not in synch (same day cancel) Corrected rate audit issues and still not displaying Once a rate issue is corrected, there can be up to three and a half weeks to be bookable Rates updated every two weeks File is audited and tested for another week No availability for dates searched (sold out?) If a DoD Preferred property has availability and meets the criteria listed above and is still being told it does not display, the property should contact the TAC at 1-800 HELP1 GO 22
My Hotel Doesn t Display - Commercial Solution is through your internal GDS contact If a traveler says a participating property is not displaying, in the DoD online booking system, DTS, check to make sure the dates the traveler is searching for are available If the property is not a DoD Preferred property, but has a FEMA number, offers a government rate, and is bookable in the GDS, it will display on the Alternative Options section (if there is availability) 23
My Hotel Doesn t Display (continued) DTS interfaces with two systems: the GDS and Flight Global (previously Innovata) The GDS pulls availability, so if GOV rates are not listed, a property won't display Property may also not display if its information mismatches with Flight Global Missing/incorrect FEMA #, HOD #, or chain code in the GDS may mismatch with Flight Global and the property will not display, or not display correctly, in DTS Property shows GOV availability in the GDS, but does not display in DTS: contact Flight Global's customer support desk, in order to update all necessary property data If a property displays in DTS, but "flags" as non-fema compliant, the property must update its FEMA information, HOD # & chain code with Flight Global 24
RFP Response Ensure rates meet requirements At least 10% below per diem for each season Round down! Can you be more competitive with your discount? Fewer and fewer negotiations make your best offer Negotiations to get hotel competitive don t guarantee acceptance Be prepared for property inspections We need to see two rooms Public facilities We take photographs Submit questions to contractor 25
Breakfast Continental Limited cold items, including breads (even if toasted), cold cereal, yogurt, and fruit. Includes all "grab and go" options. Buffet Hot or cold buffet with more extensive offerings (beyond Continental) including eggs (cold or hot), oatmeal, meat, cheese, waffles, etc. Includes buffets with multiple hot options. Full American Applies only to restaurant dining with full table service and a breakfast menu from which to order. 37 hotels reported offering Continental (none do) 136 hotels reported offering Buffet (283 do) 122 hotels reported offering Full American (only 13 do) 26
Property Responses Check it in Lanyon! 77% reported having video surveillance in public areas 82% reported offering same or next weekday dry cleaning 6 hotels reported no coffee makers in rooms (they all have them) 37 hotels do not have AAA ratings (not including new builds) 16 hotels reported having shared bathrooms! We have 65 DoD Preferred sites and are growing help us get our data right! 27
My Hotel Wasn t Selected Another hotel that didn t make it last year was more aggressive this year with rates and amenities Offer was NLRA No food service offered (competitors include breakfast) Neglected to bid this specific program (bid FedRooms but not DoD Preferred) Traveler satisfaction survey responses Visit to property Front desk (or manager) refused to show us rooms We didn t need as many hotels in this site as last year Consistent problems meeting rate audits 28
Moving Forward Continue DoD Preferred Pilot site expansion FY2019 site inspections/re-inspections for some or all current sites Quality improvement 2019 program: 83% of hotels have 3 or 4 diamond/crown rating Review current Pilot Site actual room nights to ensure we have the right number of DoD Preferred hotels 29
Defense Travel Modernization Incorporating latest technologies, including e-receipts Testing now small sampling of travelers Continued use of DTS during phased DTM rollout More information and a live demo on Wednesday at 1:15 DTMO s professional development breakout session featuring Mr. Mansell performing a live booking! 30
American Forces Travel Site Leisure travel only Powered by Priceline Current: active-duty, retired, reserve Military; non-us DoD civilians Future: US-based DoD civilians Representatives will be available at DoD Connect: Program Managers Workshop at 3-4pm on Wednesday in Magnolia! 31
DoD Preferred Dining Program Pilot DoD Dine Smart Hotel Card front & back Mobile App 32
ILPP Resources www.defensetravel.dod.mil/site/lodging.cfm 33
Resources for Download 34
What more can we help you with? 35