U.S. per diem rates for lodging increase to $77 per night

The U.S. General Services Administration announced the new Fiscal Year 2011 federal per diem rates, which take effect October 1, 2010, and run through September 30, 2011.

The standard Continental United States (CONUS) per diem rate for lodging applies to destinations that are not listed as specific destinations. That rate, which is reviewed every three years, increased to $77 per night. GSA noted that with the increase in the standard CONUS lodging rate, several areas that had previously been non-standard areas obtained the standard CONUS rate of $77 for lodging in FY2011. The last adjustment to the standard CONUS rate was made in fiscal year 2008, establishing the nightly lodging rate at $70, which has been in effect since 2005. Despite the increase in the standard CONUS rate, GSA noted that its data on average daily rate (ADR) for hotel rooms clearly indicates the deep negative impact the economic downturn has taken on the lodging industry, showing a 5.73% decrease of the estimated lodging costs as compared to FY2010. In contrast, FY2010 had a slight increase of 0.6% over the previous year, while FY2007-09 had an estimated average increase in lodging costs of 6.8%.

Some examples of non-standard area lodging rate changes for FY2011 include:

* New York City (Manhattan) fall high season: reduced to $269 from FY2010 $340
* Colorado Springs: reduced to $84 from FY2010 $88
* Las Vegas: three seasons reduced to one, rates down from FY2010 high of $118 to $93
* Miami, Fla., for the Miami-Dade area mid-season: down to $151 from FY2010 $152
* Chicago, Ill., early summer area high season: reduced to $166 from FY2010 $211
* Charleston, SC: down to $132 from FY2010 $142
* Los Angeles, Calif.: reduced to $123 from FY10 $135
* Kansas City, Mo: down to $99 from FY2010 $107
* Cincinnati, Ohio: unchanged from FY2010 at $115
* Seattle, Wash: reduced to $139 from FY2010 $159

GSA establishes federal per diem rates by using market data provided by Smith Travel Research in order to establish rates that reflect the market where those rates apply. Although federal per diem rates cannot formally be appealed by business representatives, GSA does have the ability to review and modify the rates. AH&LA is advising members who believe their localities may be undervalued in the FY2011 per diem rate schedule with a number of helpful suggestions that can be found within this past AH&LA Advisory. The complete FY2011 rates can be viewed at the GSA per diem Website, www.gsa.gov/perdiem.