In the wake of its own spending scandal, the U.S. General Services Administration
is about to overhaul its methodology for calculating federal per-diem rates. The changes could be bad news for buyers and suppliers alike.
The GSA is looking at a number of potential options that would result in per-diem decreases in most markets. While the agency maintains it is looking to responsibly trim budget costs just as any corporation would, some hoteliers fear dramatic per-diem decreases would cripple business and come with a bevy of unintended consequences.
Multiple sources said the GSA expects to announce its changes in methodology within three weeks. According to sources, the following options are on the table: freeze current per-diem rates and keep them the same for fiscal year 2013; eliminate a 25 percent flexibility federal employees have when they can’t find a room at the per-diem rate; and changing the per-diem rate calculation equation by eliminating upper-upscale hotels from the formula.
In a presentation to members of the hotel industry prepared by the GSA, an example of the new methodology showed the federal standard per-diem rate decreasing from $136 to $107. For the full story, click here
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Courtesy of hotelnewsnow.com