On any given weeknight, there are hundreds, if not thousands, of federal employees who are TDY in any major U.S. city or business center. Agencies now pay for hotel costs up to the per diem amount. The GSA should consider having hotels in a particular area (e.g., downtown Washington; O'Hare Airport) compete on who can provide the best services and lowest rate. The selected hotel would be required to keep a large block of rooms open at that rate, and federal employees would be required to use that hotel as long as it had rooms available. Because of the volume of guaranteed business, the rate should result in significant savings over the current per diem. The GSA could begin this as a pilot program, and consider feedback from federal employees and agencies. Hotels that believed that they could not compete probably would not like this change, but travel should be run for the benefit of the Government, not the travel industry.
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