LODGING PER DIEM RATES UPDATE
GENERAL SERVICES ADMINISTRATION RELEASES FEDERAL PER DIEM RATES
The General Services Administration (GSA) has released federal per diem rates for FY 2019 that will go into effect on October 1,2018.
Federal per diem rates, which establish the maximum amount government travelers may pay for hotel rooms, are established each year based on actual market data compiled and provided by STR. AHLA works with GSA and the Administration to ensure that the lodging per diem rates align with current market conditions.
Over-all, we are pleased with the rates for FY 2019 as most areas in Illinois reflect an increase. There also was an increase to the standard continental United States (CONUS) rate from $93 per night for lodging to a new rate of $94.
To view the new rates for FY 2019 for Illinois,
click here.
CONGRESS REACHES AGREEMENT ON NATIONAL DEFENSE AUTHORIZATION ACT
In July, Congress reached an agreement on the final version of the National Defense Authorization Act. This Act is an annual bill that sets policy for the U. S. Department of Defense (DoD) that includes a provision to reverse drastic per diem rate cuts for long-term travel.
Throughout the United States, the federal government is a major purchaser of hotel rooms, and DoD is the largest agency within the federal government. In 2014, DoD instituted a 25% rate cut when employees were traveling for more than 30 days and a 45% cut when traveling more than 180 days. For the past three years, the House of Representatives voted to roll back the per diem cuts, but they stayed in place due to opposition in the Senate.
A repeal of these cuts will be extremely helpful to hotel properties that receive a significant amount of business from DoD and it also advances the objective to maintain per diem rates across government that are market-based and fair to the industry.
Once the bill is signed into law, which AHLA is anticipating to be soon, hotels will again be able to collect the full per diem rate from long-term government guests.
IHLA CONTINUES EFFORTS TO INCREASE THE STATE PER DIEM RATE
IHLA continues to work with the Illinois Governor's Travel Control Board to increase the state lodging per diem rates. These rates have not been increased in many years and, as set, do not accurately reflect the current marketing conditions. Many hotels have just not been able to accommodate government travelers at these low rates.
IHLA has lobbied each member of the Board, as well as Members of the Illinois General Assembly. Unfortunately, with no state budget for a number of years and tough economic times, our efforts - although appreciated and understood - have been unsuccessful.
The Board is scheduled to meet again in December 2018 and IHLA will be intensifying our efforts to obtain an increase in the state lodging per diem rate.
If you have any questions and/or need more information on this Lodging Per Diem Rate Update, please contact:
