USA | Hoteliers across the USA have sighed in relief as the General Services Administration raises per diem rates.
The American Hotel and Lodging Association (AHLA) Interim President and CEO Kevin Carey has spoken out following the announcement from the General Services Administration (GSA), which has released its fiscal year 2025 per diem rates for federal workers.
General Services Administration’s per diem guidelines govern reimbursement for federal employees’ lodging and meal expenses for official government travel.
Beginning on the first of October, 2024, the standard daily lodging allowance for most of the continental United States will increase by USD $3 to USD $110 per day, an increase estimated to be worth approximately USD $100 million to the hotel industry.
The standard meals and incidental expenses allowance will increase by USD $9 to USD $68 per day, the first increase for this expense category in three years.
“These increases are an important victory for AHLA, which has made fair per diem rates a perennial federal advocacy priority on behalf of our members,” said American Hotel and Lodging Association Interim President and CEO Kevin Carey.
Carey said this was a significant step forward in the right direction for hoteliers, as well as a crucial moment for the industry.
“Government travel is a vital source of revenue for hotels, and it’s critically important that the federal government’s per diem rates reflect market conditions and take into account the economic realities hotels are facing, including the lingering effects of inflation and the nationwide workforce shortage. We appreciate the work done on this issue by General Services Administrator Robin Carnahan and the Biden administration.”
Each year, the General Services Administration sets per diem rates to reimburse federal employees’ lodging and meal expenses for official travel within the continental U.S. American Hotel and Lodging Association works closely with GSA to ensure that per diem rates are fair to both hoteliers and the government.
Typically, GSA calculates per diems based on the average daily rate (ADR) for lodging and meals from a trailing 12-month period minus five percent.
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