RevMax Hospitality Consulting Services
Practical Strategies to Maximize Profits
August 26, 2011
Greetings!

Federal Per Diems are now posted - a little earlier than in prior years, it seems.
Based on the trends with transient rate in markets, it may well be that there is more room on rate than is evident by the per diems: you could consider the following options to manage rate if the per diem is lower than your transient potential:
  • limit the inventory allocated to this SRP for Mons, Tues and Weds
  • implement length of stay restrictions to pick up shoulder stays
  • limit room types

 In many cases, you'll have to make exceptions, of course: this is still better than offering a larger inventory. Also, many departments will allow higher rates for many of their staff, despite telling you otherwise - I see many staying in more expensive rooms and, I would hazard, are not paying for the difference on their own. Offer value in terms of small F&B items to compensate for your regular rate charges - you'll be surpirsed how far that will go.

 

Remember, it's a year to push for rate - good luck!
WASHINGTON-

 

These new rates, announced today by the U.S. General Services Administration (GSA), are for non-standard areas (NSAs) of the continental United States, and are in effect October 1, 2011, through September 30, 2012.

 

The complete FY2012 rates can be viewed at the GSA per diem Website.

http://www.gsa.gov/portal/category/21287

 

Highlights
 

· The standard continental United States (CONUS) per diem rate for lodging applies to destinations that are not listed as specific destinations remains at $77 per night. 
 

· GSA noted that its data shows that the ADR for hotel rooms has not yet returned to its pre-2008 levels and that while some areas have increased, others have remained flat or fallen below FY2011 levels.
 

· Of the NSA rates that did change from FY2011, most rates did not increase or decrease more than $5. 

 

Snapshot of Per Diem Increases
Charleston, SC -  from $132 to $137
Chicago, IL -  from $166 to $171 (early summer season)
Cincinnati, OH - from $115 to $118
Colorado Springs, CO - from $84 to $88
Las Vegas, NV - from $93 to $99
Los Angeles, CA - from $123 to $125
Mackinac Island, MI - $77 to $80 (CONUS rate; upcoming high season)
Miami, FL for the Miami-Dade area - from $151 to $152 (mid-season)
New York City (Manhattan), NY - from $269 to $295 (fall season)

 

GSA establishes federal per diem rates by using market data provided by Smith Travel Research in order to establish rates reflective of the market where those rates apply.   

 

Objections and Modifications
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 to look to these helpful suggestions.  
 

 
Thank You

Sincerely,


Nagib Lakhani
RevMax Hospitality Consulting Services
Nagib@RevenueMaxConsulting.com
www.RevenueMaxConsulting.com

(425)677-7866