GSA #10106

September 10, 2004
Contact: Viki Reath (202) 501-1231
viki.reath@gsa.gov

WASHINGTON --Fiscal year 2005 per diem rates for federal employees on official travel in the continental United States (CONUS) take effect Oct.1, the U.S. General Services Administration, which sets the rates, announced today.

The CONUS per diem rates cover lodging, meals and incidental expenses. GSA sets a standard CONUS rate and separate rates for 420 designated locations, as requested by agencies whose employees cannot find lodging in those locations at the standard CONUS rate.

The 2005 CONUS rates in the 420 designated locations were calculated using a standard lodging industry measure known as the Average Daily Rate (ADR). Average daily rates are calculated by dividing actual revenues earned by actual number of rooms rented. The ADR data used were from properties deemed fire safe by the Federal Emergency Management Agency (FEMA). 

The use of ADRs in the 420 designated CONUS locations was recommended by the federal and industry travel experts on the Governmentwide Per Diem Advisory Board. The travel experts’ recommendation to base federal lodging rates on actual rates, provided by industry, produces the most accurate lodging rate information available. The board's full report is available line by clicking on the “Library” link at  www.gsa.gov/travelpolicy. 

The market-based, rate-setting methodology has resulted in increases and decreases in many locations. Key factors in generating the market-based ADRs include:

• Location or geographical area
• Price category
• FEMA approval
• Occupancy levels in many seasonal locations.

The 2005 Standard CONUS per diem rate will increase from $55 to $60 per night, based on data from the U.S. Consumer Price Index Lodging Away from Home. All CONUS per diem rates are listed online at www.gsa.gov/perdiem

CONUS per diem rate information is available through the GSA’s Travel Management Policy Office in Washington, D.C., (202) 501-1538.

Travel per diem rates for locations outside the continental United States -- Alaska, Hawaii, and the U.S. territories and possessions -- are set by the Department of Defense. Rates for international travel are set by the Department of State.

GSA is a centralized federal procurement and property management agency with 13,000 associates. Congress created GSA to help agencies improve efficiency and better serve the public. Today, GSA provides government-wide policy, and, on behalf of federal agencies, acquires office space, equipment, telecommunications, information technology, supplies and services for more than one million federal workers in more than 8,000 buildings in 2,000 U.S. communities.