Defense Lodging Prepares for FY 2011

The Defense Lodging System managed by TDY Lodging anticipates a large volume of bookings for FY11 as Military and Government travelers return from the Thanksgiving holiday and prepare to make arrangements for DoD Travel for schools and courses scheduled to begin after the new year.  Yet this all comes at a price based on the drop in GSA per diem rates in may cities near military installations offering off base lodging options such as hotels and extended stay suites.

The Defense Lodging System, which manages over 100 TDY Locations for the DoD community has seen an adjustment in TDY Lodging Rates for official travel, which has left some lodging providers in a hard position: Accommodate a very loyal customer base - the DoD Lodging community, or try to to stay afloat when the overall economy and reduction in the Military Spending Budget has hurt many hotels near military installations and extended stay hotels near Army, Navy, Air Force, and Marine Corps bases.  Many lodging providers have seen reduced occupancy rates, yet operating costs have remained relatively unchanged.  This provides a challenging position...do the military hotels raise rates above per diem to be able to meet expenses, or do they reduce many of the "free" incentives offered like free breakfast, gym passes, laundry service, and other complimentary services offered to military and government travelers.

Check back for updates as we anticipate the Congressional Defense Budget to see many changes as well as an FY11 DoD Supplemental Budget Increase in the upcoming weeks.