REPORT FROM THE U.S.—The U.S. General Services Administration has refreshed its per-diem rates for fiscal year 2015.
“Non-standard” areas, which are regions frequently traveled by federal employees and are reviewed annually, saw a variety of changes. For instance:
- The New York (Manhattan) fall season rate ticked upward to $304 from $303.
- Chicago’s fall rate dropped to $194 from $209, but its summer season rate jumped to $192 from $166.
- San Francisco’s fall rate increased to $251 from $226.
- Washington, D.C.’s fall rate increased to $222 from $219, while its summer rate fell to $162 from $167.
- Two locations will become new non-standard areas for fiscal 2015: Kayenta, Arizona (Navajo County), and San Angelo, Texas (Tom Green County.)
The standard continental U.S. per-diem rate for hotels will remain unchanged at $83 for fiscal year 2015. Standard areas, which are reviewed every three years, are regions not as frequently traveled by federal workers.
Speaking last week during the 6th annual Hotel Data Conference presented by STR and Hotel News Now, Jill Denning, the GSA’s per-diem program manager, said approximately 11,500 hotels were used in putting together the new per-diem rates. The GSA uses its own methodology in determining rates.
In 2013, the GSA had considered using new methodology that would have excluded top-tier hotels, resulting in a reduction of per-diem rates in most markets. The GSA ultimately decided to freeze rates, which achieved savings of $20 million for the government.
The per-diem rate includes a 5% discount for federal employees, Denning said during a session titled “Not so top secret: The methodology behind GSA lodging per-diem rates.” After calculating per diems for each market, the GSA then applies that discount because the federal government represents such a large piece of business. The 5% discount is represented in the published per diems.
“The government definitely tries to negotiate a discount on large-volume purchases,” she said.