Business Travel News
Business Travel News
  • SECTIONSOpen Menu
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
  • VOICESOpen Menu
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
  • RESEARCHOpen Menu
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
  • WEBINARS & FORUMSOpen Menu
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
  • EVENTSOpen Menu
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
  • RESOURCESOpen Menu
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
Business Travel News
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
  • SECTIONS
    • Distribution
    • Global
    • Lodging
    • Payment & Expense
    • Meetings
    • Sustainability
    • Technology
    • Transportation
    • Travel Management
    • VIEW ALL
    Managed Travel GuidesNEW! BTN ElevateNEW! BTN IntelligenceNEW! BTN Next
    Subscribe to NewslettersBTN DailyBTN EuropeBTN Elevate for SMEsBTN SustainabilityBTN Next for Tech & DistributionBTN IntelligenceBTN Weekend
  • VOICES
    • Expert Q&A
    • 5Qs
    • OpEds
    • Sponsored Content
    • Podcasts
    • What to Watch 2025
    HRS: AI Could Cut Corporate Travel Task Costs by 75 PercentHRS: AI Could Cut Corporate Travel Task Costs by 75 Percent
    Accor Looks to Bridge Sales-Revenue Divide to Align Corp. PricingAccor Looks to Bridge Sales-Revenue Divide to Align Corp. Pricing
    'Presence Premium' Amps Event Value'Presence Premium' Amps Event Value
  • RESEARCH
    • Participate in BTN Surveys
    • Corporate Travel 100
    • Corporate Travel Index
    • Salary Survey
    • Small & Midsize Enterprise
    • Strategic Meetings Report
    • VIEW ALL
    Annual Supplier Ratings• Car Rental Survey & Report• Hotel Survey & Report• Airline Survey & Report
    Special Reports• Meetings Tech Goes AI• Travel Payment Innovation 2026• BTN Intelligence's 2026 SME Report• BTN Intelligence's 2026 AI Report• Travel Risk Outlook 2026
  • WEBINARS & FORUMS
    • All BTN News Desks
    • BTN Communities
    • VIEW ALL WEBINARS
    Beyond the Budget: What Travel Spend Reveals About Business Growth

    Thurs., Nov. 12 at 8am PT / 11am ET

    Sponsored by: Emburse

    Why Travelers Bypass Your Travel Program and How to Win Them Back

    Thurs., Nov. 17 at 9am PT / 12pm ET

    Sponsored by: Direct Travel, Spotnana

    Meeting Business Traveler Expectations: Priorities for TMCs

    Wed., Nov. 11 at 9am PT / 12pm ET

    Sponsored by:Expedia

  • EVENTS
    • Webinars
    • Business Travel Show
    • Business Travel Trends Forecasts
    • Business Travel Tech Talk
    • Business Travel ESG Summit
    • Entertainment, Sports & Media Travel Summit
    • Strategic Meetings Summit
    • Government Travel Summit
    • Global Travel Risk Summit
    • Business Travel Lodging Summit
    • Business Travel Hall of Fame
    • Business Travel Awards Europe
    • Travel Manager of the Year
    • VIEW ALL EVENTS
    7th Annual Government Travel Summit

    Convene, Arlington, VA - October 26, 2026

    14th Annual Business Travel Trends and Forecasts Toronto

    Sheraton Centre Toronto - October 29, 2026

    3rd Annual Business Travel Tech Talk Boston

    Hyatt Regency Boston - November 5, 2026

    8th Annual Business Travel Lodging Summit Americas

    Conrad New York Downtown, November 5, 2026

  • RESOURCES
    • BTN Academy
    • BTN Communities
    • BTN Primers
    • BTN Weekend Archives
    • Business Travel Buyer's Handbook
    • Business Travel Buyer's Techbook
    • Corporate Travel Index
    • Data Sources: The Reference Guide
    • Industry Terms Glossary
    • Hotel Search
    • Influencers
    • Traveler Experience Index
    • Webinars
    • White Papers & Case Studies
    BTN's Business Travel Management Tool Box

    The BTN Group has a variety of resources for corporate travel managers to build and refine their program strategies. Not sure where to begin? Check out this starter pack.

    BTN CTI Calculator - New Q1 2026 Data Added

    Filter in or out as many as 200 cities, as well as hotel and car rental class and meals of the day and watch as the per-diem calculator automatically adjusts per diems to your program. Drill down into cost breakdowns and export the results.

  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Lodging

Industry Groups Encouraged By GSA Reception To Per-Diem Talks

By Michael B. Baker / August 03, 2012 / Contact Reporter
Business Travel News on X

Potential cuts to the General Services Administration's per diem rates concern several travel industry lobbying groups, but officials said they are making progress in communicating to government officials the potential harm of such a move.

"I'm encouraged by the amount of support we've received and am somewhat encouraged by receptive meetings with the GSA," said Shawn McBurney, senior vice president of governmental affairs for the American Hotel & Lodging Association. "There are thousands of hoteliers throughout the country that are really concerned about this, and people are really agitated. The outreach has been unprecedented."

The policy under proposal, McBurney said, would change the way GSA calculates its per diem rates, including its standard rates and its higher rates for most primary and secondary markets. Currently, GSA uses the average hotel rate for each market, excluding the luxury and economy tiers, to calculate its per diem rate. The new method also would exclude rates from the upper upscale tier— Marriott's and Hilton's flagship brands, for example—from the equation, effectively pricing those brands out for anyone staying on government business.

The implications run far beyond government travel, as companies that contract with the government often must adhere to the GSA rates, and some travel buyers use them as benchmarking tools.

"Government contractors are just about the largest corporations in the United States, so this spills over to the corporate business," said Omega World Travel executive vice president Goran Gligorovic. "This may affect pricing of hotels for the next year."

Although GSA is under a directive to curtail next year's agency travel by 30 percent compared with fiscal year 2010, the message AH&LA, the U.S. Travel Association and other advocacy groups have sent to Washington is that altering the per diem calculation actually could increase travel costs. City centers in Washington, New York, Chicago, San Francisco and other major destinations generally have a higher concentration of upper upscale hotels than those in other tiers, so travelers might be unable to find a room and have to stay well outside of the city, adding extra transportation costs, McBurney said. Similarly, policies allow federal travelers to pay several times the per diem rate for mission-critical travel, and such travelers unable to find rooms outside of the newly restricted tier would be more likely to apply for that exception and book an upper upscale property at a cost beyond even previously acceptable rates, he said.

Starwood Hotels & Resorts Worldwide vice president of North America divisional sales Betty Wilson said her company has been heavily engaged in the issue, via lobbyists, AH&LA and U.S. Travel, and she is "cautiously optimistic" about the results.

"We're more optimistic that all of the pieces are being considered," she said. "We all get why the government needs to reduce spending, but let's not have all of these unintended consequences."

Per diems are just one area of potential savings GSA is considering, particularly following widespread criticism of lavishly expensive events such as its 2010 awards ceremony, which cost almost $270,000. In a U.S. House Transportation Committee update on Wednesday regarding the ongoing investigation, chairman John Mica (R-Fla.) noted that more than 70 conferences and award ceremonies are under review.

Gligorovic said it's clear why the per diems have emerged as a cost-cutting target, however. GSA a few years ago tried to simply reduce travel by 20 percent, but it proved impractical.

"Most of the government travel is not conventions but are trips for educational purposes or disaster recovery," he said. "The Centers for Disease Control guys have to go to Africa, or if a hurricane hits, FEMA needs to go rescue people. If 20 percent of trips are cut, it would start impacting missions."

The government also has excellent deals in place for air travel costs, so it would be difficult to find savings there, Gligorovic said.

GSA likely will issue per diem rates in the coming weeks, as the new rates take effect in October, the beginning of its fiscal year. McBurney said AH&LA is not against GSA reducing travel costs or even eventually changing per-diem policies but would like GSA first to take a more meticulous look at it.

"The last time they looked at the methodology, they did it as a collaborative effort, and it took eight months," he said. "Rather than they make a rash decision, we'd prefer to talk with them about other ways they might be able to reduce costs."

More Lodging
Related
Hilton Adds Coordinator Tools to SME Platform

Hilton has launched new coordinator tools and enhancements, including the ability to book and manage...

Hilton Targets Nordic Expansion with Scandic Hotels Deal

Hilton has agreed to a deal with Scandic Hotels Group to add new properties across the Nordic markets...

Report: CEO, Execs Depart Kempinski

Kempinski Hotels CEO Barbara Muckermann reportedly has left her role at the European luxury hotel...

Sponsored Content

VIEW ALL
Redefining Corporate Travel Through Connectivity, Innovation and Value
Redefining Corporate Travel Through Connectivity, Innovation and ValueBy Qatar Airways
Business, beyond the usual
Business, beyond the usualBy Virgin Atlantic
The Cove at Atlantis Unveils a Visionary Transformation
The Cove at Atlantis Unveils a Visionary TransformationBy The Cove at Atlantis
5 Reasons Corporate Travel Professionals Trust Hahnair
5 Reasons Corporate Travel Professionals Trust HahnairBy Hahnair

More Lodging

Hilton Adds Coordinator Tools to SME Platform
Hilton Targets Nordic Expansion with Scandic Hotels Deal
Report: CEO, Execs Depart Kempinski
Buyers: Marriott Introduces Corporate Code Verification

VIEW ALL
Subscribe to Free

BTN Newsletters

pixel2

Click Here for our Terms and Conditions and Privacy Policy.

  • Most Read
  • Most Shared
  1. United to End Flight-Based MileagePlus Status Path
  2. Buyers: Marriott Introduces Corporate Code Verification
  3. BCD Building Flexibility Strategy Around Tripsource
  4. Delta to Enhance Delta One Premium-Cabin Product Offering
  5. Why the Future of Travel Management May Be Headless
  1. Southwest: Q3 Corp. Revenue, Passengers Increase
  2. JetBlue to Add BlueFirst Upgrades for Mosaic Members
  3. Accor Q3 RevPAR Rises as Middle East Impact Eases
  4. Serko.ai Moves Beyond Traveler Testing into an SMB Play
  5. Industrial Business Powers Wyndham Q3 RevPAR
Business Travel NewsBusiness Travel News
  • About Us
  • Contact Us
  • Advertise
  • Business Travel News on X
  • Business Travel News on LinkedIn
  • Business Travel News on Facebook
BUSINESS TRAVEL NEWS
NORTHSTAR TRAVEL GROUP
Business Travel News
  • About Us
  • Contact Us
  • Media Kit
  • Subscribe to Newsletters
  • Advertise
  • Editorial Guidelines
  • BTN Europe
  • Purchase Reprints
  • Privacy Policy
  • Terms & Conditions
  • Do Not Sell or Share My Data
Northstar Travel Group
  • Retail Travel
  • Travel Weekly
  • Travel Weekly Asia
  • TravelAge West
  • TravelPulse
  • TravelPulse Canada
  • TravelPulse Quebec

  • Hotel Investment
  • Burba Hotel Network

  • Travel Technology
  • Inntopia
  • Phocuswire
  • Phocuswright
  • Web In Travel
  • Meetings & Incentives
  • Northstar Meetings Group
  • Meetings & Conventions
  • Meetings & Conventions China
  • Meetings & Conventions Asia
  • Meeting News
  • Successful Meetings
  • Incentive
  • SportsTravel

  • Data Products
  • Agent Studio
  • AXUS Travel App
  • Intelliguide
  • travel42
BTNGroup
Business Travel NewsBusiness Travel News EuropeTravel ProcurementThe BeatBusiness Travel Show
Northstar Travel Group
Copyright ©2026 Northstar Travel Media LLC. All Rights Reserved. 301 Rte. 17N, Suite 1150, Rutherford, NJ 07070 USA | Telephone: (201) 902-2000
RRManagement rrtestprocurement