Local Sales and Marketing Reference Guide

Government

Who Are U.S. Government Renters?

The U.S. Government market is comprised of two main segments: the military, or Department of Defense (DOD); and the civilian branch, which is labeled Federal or General Services Administration (GSA).

The Military

The military represents 63% of government travel, and includes the following branches: 

• Army

• Marine Corps

• Navy

• National Guard

• Air Force

• Coast Guard 

 The General Services Administration

The General Services Administration, representing 37% of the government travel market, is extensive in its network of agencies and departments.  Examples of major GSA branches are:

Other examples of Federal agencies which fall under the auspices of the GSA are federally funded programs, services and institutions such as:

Government Travel Market:  U.S. Government Car Rental

The U. S. Government spends approximately $7.5 billion per year on official travel.  From that figure, about 63% is spent on airlines, 33% on hotels, and 4% on car rentals.  That amounts to about $210,000,000 per year spent by the Federal Government in the car rental industry.

Generating in excess of $26,000,000 for Thrifty in annual revenue, the U.S. Government represents a major account for Thrifty Car Rental.

Who Manages Government Travel? The Military Traffic Management Command

The Military Traffic Management Command (MTMC), often heard referred to as "Mitmic", is the overseeing administrator for all government travel and transportation, encompassing both the military and the General Services Administration.

Within the military or Department of Defense, Regional Traffic Coordinators report to MTMC, and oversee geographic regions of the U.S. in all military branches.  Under the Regional Traffic Coordinators are Transportation Officers (T.O.s), who are assigned to each military base of installation.  In many instances, the Transportation Officer will be assisted by a Traffic Manager.

For the General Services Administration, GSA Regional Coordinators oversee ten segmented areas of the United States and possessions.  The coordinators serve as liaisons between the federal agencies within their regions, the travel agencies, and the vendors of travel services.  Each separate government agency or department under the GSA Regional Coordinator may or may not have its own dedicated contact person in charge of travel.  If so, that individual usually has other responsibilities in addition to overseeing employee travel, and my even hold an unrelated title.

Establishment of the MTMC Agreement

The Military Traffic Management Command (MTMC) is responsible for signing the joint contractual agreements with car rental vendors for the U.S. Government.  The contract is drawn by MTMC and presented to the vendor, who then completes it with rate information and a list of locations agreeing to participate in the government program.  The specific rate and service guidelines and inclusions of the MTMC contract are consistent for all car rental companies.  MTMC accepts the contract from the vendor based upon the viability of proposed rates as well as the extent of participating locations.

Components of the Agreement

The complete MTMC agreement, including rates, rules and restrictions is discussed in the Corporate Discount File section titled "Government". 

Travel Agents in the U.S. Government Market

Travel agencies which manage U.S. Government travel are divided into two groups: SatoTravel offices, and government approved travel agencies.  The majority of these agencies belong to an industry association known as the Society of Travel Agencies in Government (STAG). 

A History...

Dating back to 1899, the Federal Government prohibited Federal travelers from using commercial travel agency services.  Travelers were required to procure transportation through in-house travel management operations or directly from the suppliers.  To more conveniently provide service to Government travelers during the regulated era, in 1949 the domestic airlines created a joint reservation and ticketing operation known as the Scheduled Airline Ticket Offices (SATO).  SATO was established by agreement among the airlines and was subject to Civil Aeronautics Board (CAB) supervision. 

In the early 1980's, the General Services Administration initiated pilot programs using the services of commercial travel agencies to determine whether they could provide an acceptable level of service and cost benefits.  As a result of 31 successful GSA test sites and a smaller number of Department of Defense locations using commercial travel agencies, the General Accounting Office concluded that travel agencies could, at a minimum, provide an acceptable level of service for the government.  The ban on the use of travel agencies was lifted in May 1984.  The CAB had previously removed the ban on carriers paying commissions to the agents for official travel. 

SATO continued to be the dominant method of procuring travel for the Department of Defense.  The SATO agreements were denied anti-trust immunity effective in 1986, and the airlines created a new corporation called SatoTravel, Inc.  The Defense Appropriations Bill of 1986 included a statement which encouraged the Department of Defense to competitively procure all of its travel rather than relying on pre-existing Memoranda of Understanding (MOU) to have the SATO's provide travel services.  Commercial travel agents and SatoTravel, Inc. would, thereafter, compete with one another for government travel business.

Bidding on Government

The GSA separates the national network of military installations and federal agencies and departments into smaller segments, usually grouped according to size and geographic region.  Periodically, an offer is posted to travel agencies to bid on the procurement of the travel business for government locations within that region.  In order for a travel agency to submit an acceptable bid for government travel business, it must demonstrate the ability to fulfill a set of predetermined requirements.  These criteria vary according to each bid, and may include such stipulations as the number of agents who will be dedicated to booking government reservations, agents' years of experience in the travel industry, the agency's prior experience in government travel, or number of agency offices located nationwide.

After the bid is awarded, a Memorandum of Understanding (MOU) is jointly composed by travel agency and the military facility or federal agency (or agencies). This document essentially amends the original contract terms to create a more workable agreement for both parties.

Typically, the average government travel contract extends for a term of five years.  At the end of each year, travel agency performance is evaluated to assure that the agency has adhered to the terms of the contract and MOU.  If it is determined that flagrant disregard for contract guidelines has occurred, the contract may be withdrawn and awarded to another travel agency.  

SatoTravel

In providing transportation services, Sato offices assist the Department of Defense Installation Transportation Offices, government agencies, and unofficial travelers in obtaining flight arrangements, air freight, hotel reservations, car rental, and other travel requirements.  In addition, the DOD will rely upon Sato services in the event of a national emergency for priority transportation such as troop movement or refugee relocation. 

Currently, there are over 600 Sato offices nationwide, employing approximately 1900 travel agents and staff.  SatoTravel, Inc.'s headquarters and key administrative offices are located in Arlington, Virginia, outside of Washington, DC. 

Government Approved Travel Agencies

Commercial agencies which have been awarded government travel contracts are classified as government approved travel agencies.  Although any commercial agency is eligible to bid on and receive government contracts, for the most part, the following agencies are the major players within this arena: 

• Carlson-Wagonlit Travel Network 

• American Express/Lifeco Travel

• US Travel Services

• Omega Travel

• Crimson/Thomas Cook Travel

• Woodside Travel

Thrifty's Government Programs & Services

Preferred Cards

Preferred cards are reusable and contain a free upgrade, as well as a 50% discount on refueling and a 15% discount on parking. 

Holiday Inn Promotion

On the back of the Preferred Card, Holiday Inn also offers of a free in-room movie, free continental breakfast, and free local telephone calls (up to $5). 

Supply Order Forms

Supply order forms are vital in making sure travel agencies are well-stocked with Thrifty brochures, Preferred Cards and promotional items.  It's extremely important that we not only make sure the agencies and accounts have re-order forms, but that they use them. 

Public Relations

Remind the agency manager of Thrifty’s philosophy of quality vehicles, high level of service and low rates.  Offer information about yourself and your goals at Thrifty to steer the conversation to a less business and more social level.  Get to know your customer personally to build rapport and loyalty to Thrifty.  

The Sales Call

Before the Sales Call

Since your sales call will usually take place within the confines of a restricted military facility or government office building, it is important to call ahead for an appointment.  Usually the contact person will leave your name and appointment time at the base gatehouse or building reception desk to ensure your admittance.  Procedures for security clearance vary; often you will be required to show identification and complete a registration form to secure a temporary pass for you and your vehicle.  Heavily restricted facilities may conduct a search of your briefcase and vehicle, and disallow the carrying of recording devices, cameras, or computer disks.  Remember never to regard these procedures with annoyance or impatience.  They are performed in the interest of national security, as well as your own.

Preparing for the Sales Call

Your sales presentation will also be more effective if you are armed with a knowledge of Thrifty's competition in the government car rental market.  Periodically, competitive information will be sent to you with facts about rates, programs and services offered by Hertz, Avis, Budget, National, Alamo, Dollar and other secondary car rental companies. 

Since Thrifty Car Rental has maintained such a positive and well-respected position within the government travel market, your sales calls will usually be well received by both travel agents and government contacts.

The military as a whole is somewhat price-conscious when selecting travel vendors.  The U.S. Navy, in particular, restricts their SatoTravel offices to favoring the lowest rate available.  When calling on transportation officers, it is vital to emphasize the value and cost-effectiveness in choosing Thrifty Car Rental: 

• High Quality Service - strict and monitored franchising agreements. 100% U.S. participation in agreement. 

• Airport Parking - Ease of use, reduced rates, added amenities.

• Free Upgrades - a higher car class at a lesser price

• High Quality Vehicles - driving reliability and safety 

• Locations Nationwide - everywhere government has a need 

Suggest the possibility of circulating a memo to all base personnel describing Thrifty’s features and benefits. 

Federal Agencies

Essentially, the sales visit with the decision maker at a federal agency follows the same guidelines as with the military T.O., except that there is generally more flexibility permitted in choosing a car rental company.  Many federal agencies utilize the central billing systems offered by travel vendors. 

Sales Call Follow-Up

Thorough follow-up is as important as the sales visit itself.  Resolve any service, billing or commission complaints brought to your attention during the sales call.  For any of the above issues, please contact Shae Nelson at (800) 334-1705.

Sales Call Collateral Material

The following collateral material should be distributed on sales calls to government approved travel agents, SatoTravel agents, transportation officers and Federal agency contacts: 

• Preferred Cards

• Supply Reorder Forms (for all other supplies and collateral)

• Blue Chip Brochures 

Contact Lorie Anaya at (800) 331-3550, fax (918) 669-2164, or e-mail lorena.anaya@thrifty.com  to order government collateral materials.

Government Approved Travel Agencies/Sato Travel

In many instances, your sales visit to a government travel agency will be with the supervisor of the government reservation agents, as well as with the agency manager.  Your goal for the sales call is based upon the following formula: 

• 30% Retrieving Information

• 50% Imparting Information

• 10% Public Relations

• 10% Miscellaneous

Retrieving Information

Should you encounter information that needs to be communicated to other local sales people, please contact Katie Kelley at (918) 669-2234, fax at (918) 669-2273, or e-mail katie.kelley@thrifty.com. 

Imparting Information

Update the manager of noteworthy happenings within Thrifty, such as lower government rates at particular locations, promotions, commission payment or improvements in Thrifty’s automated reservations and counter system.  Promote any current travel agent booking incentive program or contest.  Reiterate the availability of Holiday Inn promotional credentials and preferred cards. 

Public Relations

Remind the agency manager of Thrifty's philosophy of quality vehicles, high level of service and low rates.  Offer information about yourself and your goals at Thrifty to steer the conversation to a less business and more social level.  Get to know your customer personally to build rapport and loyalty to Thrifty.

For questions concerning the U.S. Government Account contact:

Randy Tietsort 13973 Gill Brook Lane Centreville, VA 20121 (703) 631-6628; (703) 631-6629 (fax), or e-mail randy.tietsort@thrifty.com.

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