American Hotel & Lodging Association (AHLA) President and CEO Chip Rogers released the below statement after the General Services Administration (GSA) announced it increased the standard CONUS per diem rate and has set all Non-Standard Area (NSA) rates at or above the FY2022 rates.
“The General Services Administration’s (GSA) increase of FY2023 per diem rates for government travel in the Continental United States (CONUS) is extremely welcome news for the hospitality industry as our recovery continues. By increasing the standard rate and setting a floor at pre-pandemic rates for NSAs, GSA has ensured fair increases in markets that warrant them while also avoiding hurting hotels in markets that have taken longer to recover.
“This is a big win for hoteliers across the country, as government travel supports tens of thousands of jobs and billions in travel spending, and many private sector organizations also base travel reimbursements on federal per diem rates.
“We are extremely grateful to the GSA for working with AHLA and recognizing the lingering, and disparate, impact that the pandemic has had on hotels across the country and the importance of a flexible approach to setting per diem rates for FY23. Without this novel action, hotels across the country faced depressed, pandemic-era rates for federal travelers. ”
Background on per Diem Rates
Each year, the General Services Administration (GSA) sets a per diem rate to reimburse employees’ lodging expenses for official travel within the continental U.S. Normally, GSA calculates per diems based on the average daily rate (ADR) from the previous fiscal year, less five percent.
As a result of pandemic-related recovery, AHLA members and State Associations across the country, were able to make a clear and convincing argument on why setting a rate floor and allowing increases where appropriate was sound policy and critical to reinvigorating government travel as well as the hotel industry’s continued recovery.
The FY23 CONUS per diem rate is $157, which includes $98 for lodging (increased from $96) and $59 for meals (unchanged). The FY23 rates are currently available on the GSA website.