General Services Administration Will Not Alter Calculating Method for Lodging Per Diems

August 13, 2012

In good news for the travel industry, the U.S. General Services Administration has decided to not change the calculating method for lodging per diems that the U.S. Travel Association said would cost the industry $885 million in revenue and thousands of American jobs.

In a statement released by USTA, Roger Dow, the association’s president and CEO, said,
“Thanks to the joint advocacy efforts of travel industry associations, local hotel owners, national lodging chains, destination marketing organizations and many others, we were able to defend against a policy proposal that would have cut federal lodging per diem rates by roughly 30 percent.”

He added, “The GSA was considering this drastic change as part of a government-wide initiative to reduce federal conference and travel spending.  Instead, the GSA decided to freeze lodging per diem rates at current levels for the upcoming fiscal year.”

USTA worked with the American Hotel & Lodging Association and the U.S. Chamber of Commerce, among others, to send letters to Capitol Hill and meet with members of the administration to express concerns about the proposed change in lodging per diem calculations.

The proposed change in per diems were likely a direct result of a GSA scandal earlier this year that involved spending more than $800,000 on an event in Las Vegas.

Congress demanded answers and there were subsequent calls to severely limit the amount of events government employees could attend that would have a dramatic impact on the travel and meetings industry.

As a result, USTA, as well as other industry associations such as the American Society of Association Executives, sent out calls to action for people within the industry to contact their local congressperson.

In addition, according to Dow, state travel associations and destination marketing organizations from across the nation hosted roundtables with government officials to discuss the importance of federal travel.

All of these efforts worked that led to the freeze on the lodging per diem, but Dow said there were more challenges ahead.

“Federal agencies face 30 percent cuts to their travel budgets and government conferences remain under intense scrutiny,” he added.

Dow said, “But the per diem debate provides a valuable lesson on what we can accomplish when we speak with one voice.”

Add new comment

Partner Voices
Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact