Government Accounts

Hosted by Scott Lamb, Deborah Giammanco and Raffaele Russo

© 2014 Hilton Worldwide Confidential and Proprietary

US Government F2015

Political Impasse – Polarized Electorate•Difficult budget approval process•NO new taxes•User fees in vogue

Sequestration

Executive Order #13589

© 2014 Hilton Worldwide Confidential and Proprietary

$4,000,000,000,000

US Federal Budget - 64% Mandatory Spending

MedicareSSInterestOther MandatoryDODOther Descretionary

© 2014 Hilton Worldwide Confidential and Proprietary

DOD F2015

• Two Wars Ending

• Layoffs

• Up or Out

• BRAC

• Veteran’s Benefits

• Major Weapons Systems in Question

© 2014 Hilton Worldwide Confidential and Proprietary

Civilian Government F2015

• Immigration – Border Security

• Data Security - Cloud

• Healthcare - Obamacare

• Education – Common Core

• Do more with less

© 2014 Hilton Worldwide Confidential and Proprietary

Contractors F2015

• Many large contracts under review

• New Players

• Better prepared than Government

• Subscribe: GovCon Daily

Government Executive

Defense One Today

• Per Diem Rates – Standard Process

© 2014 Hilton Worldwide Confidential and Proprietary

L-3 Communications

• Per Diem only• LRA is requested but not mandatory• Amenities enhance hotel chance of acceptance

(internet, breakfast)• Proximity up to 3 miles to installation is optimal• Qualifier accepted if hotel communicated per diem

inclusion• Marketing support from customer (Fast Track to

Gold)• HW is #1 in market share and most preferred chain • IHG has been aggressive in pursuing business;

Marriott very limited, not customer choice• Project business/working with other contractors

© 2014 Hilton Worldwide Confidential and Proprietary

Northrop Grumman

• Per Diem only (only one market exception)• LRA is required (online tool positioning)• Amenities included (internet, breakfast are key);

free bottles of water a plus• Hotel description for online tool (92% adoption) is

primary marketing driver• Limited marketing (BCD only); Fast Track to Gold• HW is #1 in market share; Marriott is #2 scaled

back past two years• Projects not always identified by travel team

 

© 2014 Hilton Worldwide Confidential and Proprietary

Booz Allen Hamilton• Per diem required in key volume cities (approx. 90% of preferred

at p.d.)

• LRA is required (same as above)

• Internet & Breakfast are required, in particular internet (not including breakfast is not deal breaker)

• Proximity to a project/military installation has not been a key negotiation condition

• Qualifier accepted if hotel communicated per diem rate

• Marketing support only at travel agency level

(HHonors Fast Track)

• HW is #1 in market share

• Marriott had been their primary chain but have not been supportive with per diem commitment past two years

• New project business is not identified at travel management level

© 2014 Hilton Worldwide Confidential and Proprietary

Raytheon

• Per Diem only• LRA is mandatory unless no one in the market is

offering LRA. (Waltham)• Amenities enhance hotel chance of acceptance

(internet, breakfast)• Proximity up to 3 miles to installation is optimal• Qualifier accepted if hotel has received at least 150

annual room nights • Marketing support from customer (must be an offer

that gives value back to Raytheon)• HW is #1 in market share and most preferred chain • If you are in the program and offer per diem LRA

you will be fast tracked to acceptance for 2015

© 2014 Hilton Worldwide Confidential and Proprietary

Lockheed Martin

• Per Diem only

• LRA is mandatory unless no other hotel is offering

• Amenities enhance hotel chance of acceptance (internet, breakfast)

• Proximity up to 3 miles to installation is optimal

• Qualifier accepted if an additional hotels in needed in the market

• HW is #2 in market share and but is a preferred chain

• Marriott is #1 in market share

© 2014 Hilton Worldwide Confidential and Proprietary

CSC (Computer Sciences Corporation)

• Per Diem only• LRA is mandatory• Amenities enhance hotel chance of acceptance

(internet, breakfast)• Proximity up to 3 miles to installation is optimal• Qualifier accepted if hotel is at or under per diem

LRA and there is at least 100 annual room nights at the hotel.

• Marketing support from customer (must benefit CSC in cost savings)

• HW is #1 in market share and most preferred chain • IHG has been aggressive in pursuing business;

Marriott very limited, not customer choice

© 2014 Hilton Worldwide Confidential and Proprietary

Thank you for your time!