August 25, 2011 - Attention all federal travelers – new per diem reimbursement rates for Fiscal Year 2012 go into effect October 1st, and GSA has all the tools and information you’ll need to plan your federal travel wisely.

Lodging, meals, and incidental reimbursement rates for federal employees are based on state, location, and zip code. These rates are available on GSA’s Per Diem web page. And just in case you’re on the road and need per diem rate information at your fingertips, don’t forget GSA’s new mobile phone application that allows you to look up this information on iPhone and Blackberry platforms.

Federal travelers will find that most per diem rates for FY 2012 are similar to the previous year and that most rates did not increase or decrease by more than $5.

The standard U.S. lodging rate, which applies to approximately 2,600 counties in the continental U.S., remains at $77. Additionally, the meals and incidental rate tiers of $46 – $71 remain the same in FY 2012 as the previous year.

FY 2012 Highlights

GSA establishes the per diem rates for the lower 48 continental United States (CONUS), which are the maximum allowances that federal employees are reimbursed for expenses incurred while on official travel.

The CONUS per diem rate for an area is actually three allowances: the lodging allowance, the meals allowance and the incidental expense allowance. Most of the CONUS (approximately 2600 counties) are covered by the standard CONUS per diem rate of $123 ($77 lodging, $46 meals and incidental expenses). In fiscal year (FY) 2012, there continue to be about 400 Non-Standard Areas (NSAs) that have per diem rates higher than the standard CONUS rate.

Since FY 2005, NSA rates have been based on Average Daily Rate (ADR) data from the lodging industry, which GSA obtains through a contract with a leading provider of lodging industry data. For more about how per diem rates are determined, visit Factors Influencing Lodging Rates. The ADR is a widely accepted lodging-industry measure based upon a property's room rental revenue divided by the number of rooms rented as reported by the hotel property to the contractor. This calculation provides us with the average rate that rooms rent in a given area.

As in previous years, GSA still uses:

• Only "fire safe" properties; GSA is required by law to use only properties that are certified as being in compliance with the Hotel & Motel Fire Safety Act of 1990.
• Properties that fall within the mid-price range. This range includes all properties from the lowest to the highest of the mid-price, upper and upper-upscale properties in an area;
• Data from the prior 12-month period. For FY 2012, this is from April 2010 through March 2011;
• Business travel week data (Monday through Thursday)

Agencies are reminded that the Federal Travel Regulation allows for actual expense reimbursement when per diem rates are insufficient to meet necessary expenses. Please see FTR §301-11.300 through 306 for more information.

FY 12 Results:

For FY 2012, ADR data indicate that the lodging industry has not returned to the ADR peaks realized prior to 2008. While some NSAs are showing signs of recovery, others have remained flat or continued to decrease below FY 2011 levels. Overall, the NSA rates are similar to FY 2011 as most rates did not increase or decrease more than $5. The six M&IE tiers will remain the same for FY 2012.

One location will be a new NSA in FY 2012: Alexandria / Leesville / Natchitoches, LA. The rate will apply to the parishes of Allen / Jefferson Davis / Natchitoches / Rapides / Vernon.

In FY 2011, 29 locations moved into the standard CONUS rate category. GSA pledged to review those specific locations and for FY 2012, eight (8) will return to NSA status:

Five (5) locations that were NSAs in FY 2011 will move into the standard CONUS rate in FY 2012. These areas are:

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