THE U.S. GENERAL Services Administration announced Wednesday a raise in its standard permissible per diem rates for federal travelers, reaching $166 for fiscal year 2024. This adjustment stems from a year-on-year increment of $9 in the lodging allowance, now set at $107.
The rate will be applicable from Oct. 1 to Sept. 30, 2024, GSA said.
The per diem guidelines regulate the reimbursement of federal employees' lodging and meal expenses for official government travel. These guidelines involve a $9 increase to the continental U.S. lodging rate, as well as significant rate hikes in multiple non-standard areas.
“GSA bases the maximum lodging allowances on historical ADR data, less 5 percent. However, the COVID-19 pandemic led to unprecedented declines in ADR, followed by a volatile hotel industry recovery,” GSA said in a statement. “The ADR data available to establish fiscal year 2024 rates was from before the COVID-19 Public Health Emergency expired on May 11. Similar to the approach for fiscal year 2023, GSA made upward adjustments to ensure that maximum lodging allowances for federal travelers are sufficient in fiscal year 2024.”
The American Hotel and Lodging Association said the per diem rate increase is welcome news for hotels.
"The per diem rates GSA announced today follow AHLA's months of dedicated lobbying on behalf of hoteliers nationwide," said Chip Rogers, AHLA president and CEO. "These rates encompass a $9 rise in the CONUS lodging rate, along with substantial increases in rates for NSAs. This represents a positive stride for hoteliers throughout the nation, given that government travel contributes billions to travel spending, and many private-sector entities also align their travel reimbursements with federal per diem rates."
In fiscal 2024, there will be a total of 302 non-standard areas, with each area having a lodging rate equal to or surpassing the levels of 2023.
GSA sets per diem rates to reimburse federal employees' lodging and meal expenses for official continental U.S. travel every year, and AHLA collaborates closely with GSA each year to ensure equitable rates that benefit both hoteliers and the government.
The GSA calculates per diems by considering the average daily rate (ADR) from the past 12 months, reduced by five percent. The CONUS per diem rate stands at $166 for FY2024, encompassing $107 for lodging (up from $98) and $59 for meals (remaining unchanged).
The rates for FY2024 are presently accessible on the GSA website.
"We appreciate GSA's work in ensuring fair compensation for hotels due to the quality services they provide government travelers consistently," Rogers said. "Our collaboration with GSA will continue as we push for lodging and meal rate increases aligned with market conditions."
In 2021, AHLA and AAHOA supported legislation requiring the General Services Administration to consider the economic impact of the coronavirus when determining future per diem rates for federal travel.
