Skip to content

Search

Latest Stories

USTA presses for freeze on government per diem rates

Proposed legislation would keep rates at the current level for two years

AS THE LEISURE travel crowds of summer begin to wane and commercial travel remains elusive, hotels will look for other sources of revenue, including government worker travel. While the U.S. General Services Administration has released its fiscal year 2021 per diem rates for federal government travelers, the U.S. Travel Association is pressing for legislation to freeze those rates where they are.

The freeze is necessary because GSA sets the per diem rates according to hotels’ ADR, and because that has dropped precipitously since the beginning of the COVID-19 pandemic it skews the GSA’s rates, according to USTA. In response, GSA agreed to base fiscal year 2021’s per diem rate on the ADR from March 2019 through February 2020.


Roger Dow, USTA president and CEO, and Fred Dixon, president and CEO of NYC & Co. and co-chair of the Meetings Mean Business Coalition, want a more lasting solution in the form of legislation in the House that would freeze federal per diem rates for at least the next two years.

Florida Reps. Charlie Crist, a Democrat, and Republican Bill Posey introduced the bill, H.R. 6995, in May.

“Freezing the per diem rate would provide much-needed consistency to all segments of the travel industry over the next few years as we work to recover from this crisis,” Dixon and Dow said. “This is crucial, as USTA economists estimate a staggering $109 billion in business travel spending has been lost since early March, a 71 percent decline from the same period last year. The revival of the business travel sector—which is supported, in part, by federal workers—is a critical component of America’s overall recovery efforts.”

Under the new rates, which will take effect in October, the standard continental U.S. lodging rate will remain unchanged at $96 and the meal and incidental expense per diem tiers also will stay at $55 to $76, according to GSA. The maximum lodging allowance for 319 Non-Standard Areas will receive a higher than the standard allowance.

The American Hotel & Lodging Association welcomed the new rates.

“The reality is, due to the devastating impact of COVID-19, 2020 is projected to be the worst year on record for hotel occupancy. Industry experts estimate it will be early 2023 before hotels return to their previous occupancy, rate and revenue levels,” said Chip Rogers, AHLA president and CEO. “We appreciate the GSA’s work to ensure fair and reasonable per diem rates for FY2021, and we look forward to welcoming back our government guests as travel resumes.”

More for you

Peachtree picked to manage six hotels
Photo credit: Peachtree Group

Peachtree picked to manage six hotels

Summary:

  • Peachtree adds six hotels to third-party platform.
  • Five are owned by La Posada Group, one by Decatur Properties.
  • Third-party portfolio totals 42 hotels.

PEACHTREE GROUP’S HOSPITALITY management division added six hotels to its third-party management platform. Five are owned by La Posada Group LLC and one by Decatur Properties Holdings.

Keep ReadingShow less
AHLA Foundation awards $710K in scholarships

AHLA Foundation awards $710K in scholarships

Summary:

  • AHLA Foundation distributed $710,000 in scholarships to 246 students.
  • Nearly 90 percent of recipients come from underrepresented communities.
  • The foundation funds students pursuing education and careers in the lodging sector.

AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.

Keep ReadingShow less
Congressional deadlock shutters government
Photo by Kevin Dietsch/Getty Images

Congressional deadlock shutters government

Summary:

  • The U.S. government shut down at midnight after Congress failed to agree on funding.
  • About 750,000 federal employees will be furloughed daily, costing $400 million.
  • Key immigration and labor programs are halted.

THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.

Keep ReadingShow less
WTTC travel report

WTTC: U.S. tops travel sector with $2.6T GDP

Summary:

  • The U.S. led global travel and tourism in 2024 with $2.6 trillion in GDP, WTTC reported.
  • India retained ninth place with $249.3 billion in GDP.
  • The sector supported 357 million jobs in 2024, rising to 371 million in 2025.

THE U.S. LED global travel and tourism in 2024, contributing $2.6 trillion to GDP, mainly from domestic demand, according to the World Travel & Tourism Council. Europe accounted for five of the top 10 destinations, while India ranked 9th.

Keep ReadingShow less