Hotel Online
News for the Hospitality Executive



advertisement



AH & LA Urges GSA to Keep Current Methodology for Calculating
Per Diem Rates for Government Travel

Requesting that Members Contact Congress to Prevent Possible Per Diem Rate Reduction


June 28, 2012 - The General Services Administration (GSA) is seeking to reduce travel costs by changing the way it calculates per diem rates (GSA sets hotel per diem rates for the federal government).  

Smith Travel Research (STR) provides GSA with room rate data from hotels throughout the United States. GSA determines hotel average daily rates (ADR) by including rates from hotels in the “mid-price range.” Those rates are gathered from independent, midscale, upscale, upper upscale properties. GSA omits rates from economy and luxury hotels from the data as it considers them outside the mid-price range (too low and too high, respectively).

After determining ADR for locations throughout the US, GSA then reduces those rates by 5% and establishes per diem rates at that discounted level.

GSA may include only lower hotel rates in the mid-price range when calculating ADR. If GSA does so, it will be intentionally reducing room rates rather than reflecting average room rates.

We need you to contact your members of Congress today and urge them to prevent GSA from artificially reducing per diem rates.

Click here to visit our grassroots website, hotelLOBBY at http://www.ahla.com/hotellobby/. You can quickly send your legislators a short message with a prewritten letter than can be customized asking that they oppose per diem rate manipulation.

Please contact the GSA office for your state

In addition, to contacting members of Congress, hoteliers should contact their local GSA offices.  GSA is divided into regions that are led by politically-appointed regional administrators and they are very strong voices within the agency.  Those regional administrators are from the areas their regions cover and are extremely sensitive to issues impacting those within their regions.

When those regional administrators are contacted about certain issues, they communicate those concerns internally.  GSA headquarters needs to hear from every regional administrator that there is strong opposition to this proposed change in per diem methodology.

Points to make when speaking with local GSA offices:
  • GSA is considering policies that will effectively punish hotels and their workers.
  • Existing per diem methodology was established in 2003 after an 8-month study by the Government-wide Per Diem Advisory Board.
  • Per diem rates are intended to reflect, not establish, average room rates in markets throughout the country.
  • GSA incorporates average daily rates from the “mid-price range” which are rates from independent, midscale, upscale, upper upscale properties.  GSA omits rates from economy and luxury hotels from the data as it considers them outside the mid-price range (too low and too high, respectively).
  • The existing methodology already sets per diem rates 5-15% below actual market rates, creating a significant discount for the government already.
  • The current methodology creates artificially low room rate data by including highly-discounted rates paid by online travel companies like Expedia and not the actual retail prices paid hotel guests.
  • The data includes group room rates and treats those rates as standard room rates.
  • If GSA establishes unrealistic per diem rates, government employees will not be able to find rooms offered at that rate in areas where they travel.
  • Government employees will have to stay miles away from their meeting locations, driving costs up by having to pay for transportation.
  • In addition to government, private businesses often base the rates they are willing to pay on federal per diem rates – manipulating the methodology will have a massive negative impact on the lodging industry.
Please find the name and contact information for the regional administrators below listed by the states they cover:

Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont
Robert Zarnetske, Regional Administrator
(617) 565-5860
[email protected]

New York, New Jersey
Denise Pease, Regional Administrator
(212) 264-2600
[email protected]

Delaware, Pennsylvania, southern New Jersey, West Virginia, Maryland (except Montgomery and Prince George's counties) and Virginia (except the cities of Alexandria and Falls Church, and Arlington, Fairfax, Loudoun, and Prince William counties)
Sara Manzano-Diaz, Regional Administrator
(215) 446-4900
[email protected]

Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee
Shyam Reddy, Regional Administrator
(404) 331-3200
[email protected]

Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin
Ann Kalayil, Regional Administrator
(312) 353-5395
[email protected]

Nebraska, Iowa, Missouri and Kansas
Jason Klumb, Regional Administrator
(816) 926-7201
[email protected]

Texas, Louisiana, Arkansas, Oklahoma, and New Mexico
J.D. Salinas, III, Regional Administrator
(817) 978-2321
[email protected]

Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming
Susan Damour, Regional Administrator
(303) 236-7329
[email protected]

Arizona, California, Hawaii, and Nevada
Ruth Cox, Regional Administrator
(415) 522-3001
[email protected]

Alaska, Idaho, Oregon and Washington
George Northcroft, Regional Administrator
(253) 931-7100
[email protected]

Washington, DC, Maryland (Montgomery and Prince George's counties), and Virginia (the cities of Alexandria and Falls Church, and Arlington, Fairfax, Loudoun, and Prince William counties)
Julia Hudson, Regional Administrator
(202) 708-9100
[email protected]

About the AH&LA

Serving the hospitality industry for a century, AH&LA is the sole national association representing all sectors and stakeholders in the lodging industry, including individual hotel property members, hotel companies, student and faculty members, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides members with national advocacy on Capitol Hill, public relations and image management, education, research and information, and other value-added services to provide bottom-line savings and ensure a positive business climate for the lodging industry. Partner state associations provide local representation and additional cost-saving benefits to members.
.
Contact:

Kathryn Potter
[email protected]

.
  Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here

To Learn More About Your News Being Published on Hotel-Online Inquire Here
 
Also See: Joe Martin, Owner and Operator of Stillwater Hospitality, Honored with AH&LA Lawson Odde Award / June 2012

AH&LA Secures Extension for Existing Pool and Spa Lift ADA Compliance Date to January 31, 2013 / May 2012

House Considers Stripping ADA Pool Lift Amendment Protection this Evening; AH&LA Members Urged to Contact Congress Supporting Carter Amendment / May 2012

Facing the Real Possibility that Hotels will Close Pools and Spas Under the Current ADA Pool Lift Requirement, AH&LA Testifies in Support of Reasonable Pool Entry / April 2012

AH&LA Urges DOJ to Retract the Jan. 31, 2012 Pool Lift Requirements Document, Stating that the DOJ Did Not Follow Proper Procedures when Altering the Requirements; Over 1,200 Comments Filed in Favor of Delay and Portable Lifts / April 2012

AH&LA Supports Legislation Providing a One Year Delay for the ADA Pool Lift Requirement; Additionally Will Allow Use of Portable Lifts and Sharing Lifts Between Pools / March 2012

AH&LA Secures Compromise on ADA Pool Lift Requirement; White House Responds to Lodging Industry’s Appeals with a 60-day Extension of Compliance Due Date / March 2012

AH&LA Launches Women in Lodging Connect Competition in Honor of National Women’s Month; WIL State Chapters Challenged to Rally the Most New Members by June 1, 2012 / March 2012

American Hotel & Lodging Association Presents 2012 John Whitaker Award to James G Weitkamp, Vice President, Harbor Linen, LLC,; State Leadership Awards Presented to Members of Each Partner State Association in Recognition of Their Assistance with AH&LA Programs / February 2012

AH&LA Recommendations on the Top Five Things You Should Know About the New 2010 Americans with Disabilities Act / February 2012

AH&LA Seeks Department of Justice Clarification on Swimming Pool Lift Requirements Under 2010 ADA Standards; Industry Requests Guidance on These Standards to Take Effect March 15, 2012 / November 2011

AH&LA Opposes Ban on Federal Employees Attending Events; Proposed Rule Stifles Exchange of Expertise by Restricting Government Employees from Accepting Free Invitations to Attend Conferences / October 2011

AH&LA Defends Value of Meetings for Federal Agencies; Cites Benefits of Meetings to U.S. Economy / October 2011

AH&LA Surveys Industry in Aftermath of Hurricane Irene; Hoteliers Share Lessons Learned and Stories Exemplifying Hospitality / September 2011

AH&LA Lodging Industry Profile (LIP) Charts Profits, Sales and International Arrivals for 2010 Which Indicate Slight Uptick in Profitability / August 2011

David Kong and Montine McNulty Receive AH&LA Lawson Odde Award / June 2011

Partner Lodging Associations Honored by AH&LA for Outstanding Leadership and Growth / June 2011

AH&LA Honors Outstanding Hotel Employees with Annual Stars of the Industry Awards / June 2011

AH&LA Honors Hotels With National Achievement Awards; Hotels with Innovative IT, Environmental, Service Programs Recognized / June 2011

American Hotel & Lodging Association Presents 2011 John Whitaker Award to David Goldstone and State Leadership Awards to Members of Each Partner State Association in Recognition of Their Assistance with AH&LA Programs / March 2011

American Hotel & Lodging Association Quizzes Hoteliers on Mandatory Americans with Disabilities Act 2010 Regulations; Deadline to Comply with ADA is March 15, 2011 / March 2011

Mayur Chheda Of Infinity Hotel Group Named To American Hotel & Lodging Association (AH&LA) Board Of Directors / February 2011

Joe Martin Takes Role of 2009 American Hotel & Lodging Association Chairman John Campbell Elected Secretary/treasurer, Will Serve as Chairman in 2011 / November 2008

The AH&LA Elects David Kong as 2008 Secretary/treasurer; The President and CEO of Best Western International Will Serve as the Association’s Chairman in 2010 / November 2007


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.