Saturday, August 17, 2024 Hoteliers welcome GSA’s FY 2025 per diem rate hike, with increased lodging and meal allowances set to boost industry revenue and support federal travel. Kevin Carey , the Interim President and CEO of the American Hotel & Lodging Association (AHLA), responded to the recent announcement by the General Services Administration (GSA) regarding the fiscal year 2025 per diem rates for federal employees. These rates dictate the reimbursement for lodging and meal expenses incurred by federal workers during official government travel.
Effective October 1, 2024, the daily lodging allowance for most regions within the continental United States will rise by $3, bringing the total to $110 per day. This increase is expected to generate around $100 million in additional revenue for the hotel industry. Additionally, the meals and incidental expenses allowance will see a $9 increase, reaching $68 per day, marking the first adjustment in this 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 AHLA Interim President & CEO Kevin Carey . “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 GSA Administrator Robin Carnahan and the Biden administration.
” Each year, the General Services Administration (GSA) establishes per diem rates to cover the lodging and meal expenses of federal employees during official travel within the continental United States. These rates are crucial for ensuring that federal workers are reimbursed fairly for their travel costs. The American Hotel & Lodging Association (AHLA) plays a significant role in this process, collaborating closely with the GSA to ensure that the per diem rates strike a fair balance between the interests of hoteliers and the government.
To determine these rates, the GSA typically uses a formula based on the average daily rate (ADR) for lodging and meals over a trailing 12-month period, then subtracts five percent from this figure. This method helps to establish rates that reflect current market conditions while remaining fiscally responsible. For fiscal year 2025, the standard per diem rate for most regions within the continental U.
S. has been set at $178. This total includes an allowance of $110 for lodging expenses and $68 for meals and incidental costs.
These figures represent the GSA’s effort to align the per diem rates with the economic realities of federal travel needs while ensuring that hoteliers are fairly compensated for their services..
