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Contributed by mm | June 21, 2005 11:39 AM PST
Nice price control by the government ... although it is not nimble enough.
From New York Times:
Mr. Shank and other government workers are finding that the General Services Administration's travel per diems are not keeping pace with rising hotel room rates. The government typically sets such rates annually - it adjusted rates in 17 locations in May by an average of $6 but did not increase rates for any large cities except Seattle, according to Kevin Maher, vice president for government affairs at the American Hotel and Lodging Association. Under the current rates, a traveler on government business is allotted $91 a day for domestic travel - $60 for a hotel room and $31 for meals and incidentals, according to the G.S.A.
About 420 designated cities have allowances that are higher than the standard per diem. For example, the per diem for Manhattan in the summer is $200 for a hotel room and $51 for meals and incidentals; in the fall, the rate drops to $177 a night for lodging and $51 for meals and incidentals. In Buffalo, the per diem is $81 for a hotel room and $43 for meals and incidentals. "When these rates were set, the lodging industry wasn't doing as well as it is now," Mr. Maher said.
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