AltoVita has won a contract from the U.S. government for federal agency workers, signaling a resilient sector for travel companies

Short-term rental specialist AltoVita, which specializes in corporate housing, has been selected by the U.S. Federal Employee Relocation Center as its official booking platform, replacing a relocation company specialist. The center itself is part of the U.S. Environmental Protection Agency, and it works with several federal agencies, “dedicated to supporting the recruitment, retention, and relocation of your most important asset: your people,” it says on its website.

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Corporate housing is a highly regulated area, but offers opportunities for growth for travel companies in the face of diminished traditional business travel.

The Federal Playing Field

There are some concerns government spending could be cut back in the wake of the billions of dollars spent on financial aid and support programs related to the pandemic.

However in the U.S., bipartisan legislation was introduced by Representatives Bill Posey and Charlie Crist that would require federal “per diem” rates to not drop below those set for 2021 for 2022 and 2023. Per diem rates are the daily amounts employees are entitled to spend.

In 2020, the U.S. General Services Administration set a per diem rate of $151 for 2021: $96 for lodging and $55 for meals and expenses.

“Government travel is incredibly important to the hotel industry, supporting tens of thousands of jobs and billions in travel spending that benefits communities across the country,” said Chip Rogers, president and CEO of the American Hotel and Lodging Association.

The association supports the legislation. “At a time when our industry is fighting for survival, it is critical that the General Services Administration establish reasonable rates for 2022 and 2023 that reflect the timely business conditions for hotels and travelers. We urge Congress to swiftly pass this legislation,” Rogers added.

Bespoke Approach

At a federal level, this kind of due diligence came into play for AltoVita with the Federal Employee Relocation Center’s array of conditions.

“Depending on which city you’re in, if it’s outside of the General Services Administration, the per diem allowance rates vary. It’s all very fascinating and complex,” Vivi Cahyadi Himmel, CEO and co-founder at AltoVita, told Skift. “Factors like seasonality, whether you have a spouse, the number of dependents you have, and their age, all play into the allowance rates.”

The amount of money federal workers receive also depends on whether it’s a house hunting trip, or if they are looking for temporary quarters before finding somewhere more permanent.

Cahyadi Himmel said AltoVita analysed the policies, simplified them and built a user-friendly interface. “It’s a complex calculation, but we built a platform so federal employees can never overspend, with per diem features built in. For example, we’d only show properties of $120 per night or lower.”

The custom platform echoes another corporate travel platform, TapTrip, which gained new clients by developing a custom booking platform for the maritime industry.

“When we pitch to clients, our targets are relocation companies, and they all have their own unique value proposition,” Cahyadi Himmel said. “We can’t build the same features for all of them. They may have a different workflow.”

She added the strategy was to treat the Federal Employee Relocation Center like any other relocation company they partner with, and she assumed it would be open to innovation.

“We are excited to expand our presence to North America with our customer service center in Dallas, Texas,” added Karolina Saviova, AltoVita co-founder and chief operating officer. “They will curate our portfolio of 30,000 properties across 110 locations in the U.S.”

Read more at Skift.com