07
News
www.asianhospitality.com
September 2025 | Issue 240
he U.S. General Services
Administration will keep
standard per diem rates for
federal travelers at 2025 levels for fiscal
year 2026. The American Hotel and
Lodging Association raised concerns
that the decision affects government
travel, a key economic driver for the
hotel industry.
The standard lodging rate remains
$110 and the meals and incidental
allowance is $68 for fiscal year 2026,
unchanged from 2025, GSA said in a
statement.
“Government travel is a vital
economic driver for the hotel industry
and the broader travel economy,” said
Rosanna Maietta, AHLA’s president
and CEO. “That’s why it’s so important
for government per diem rates to
keep pace with rising costs across the
economy. The GSA’s decision to keep
per diem rates flat will place a strain
on the hospitality industry as well as
government travelers seeking lodging.
A strong economy requires a thriving
hospitality sector. We will continue to
advocate with the GSA and members of
Congress for per diem rates that reflect
hotels’ rising costs of doing business.”
GSA sets per diem rates to reimburse
federal employees’ lodging and meal
expenses for official travel within the
continental U.S., based on the trailing
12-month ADR for lodging and meals
minus 5 percent. This is the first year in
five that GSA has not raised the rates.
The federal administration said
the decision reflects the federal
government’s commitment to using
taxpayer funds appropriately and for
core mission activities. The steady per
diem rates are enabled by the reduction
in inflationary pressures from the
previous administration.
“GSA's decision ensures cost-
effective travel reimbursement while
supporting the mission-critical
mobility of the federal workforce,” said
Larry Allen, associate administrator, GSA
Office of Government-wide Policy.
The rate applies to federal travelers
and those on government-contracted
business for all U.S. locations not
designated as “non-standard areas,”
which have higher per diems. For fiscal
year 2026, GSA will keep the number of
non-standard areas at 296, unchanged
from 2025.
Federal per diem rates stay
flat for FY 2026
This is the first year in five that GSA has not raised the rates
The U.S. General Services Administration will keep
standard per diem rates flat for federal travelers in
fiscal year 2026.
he hospitality sector saw
the largest decline in job
openings of any industry
in June, according to the U.S.
Bureau of Labor Statistics.
Accommodation and food services
fell by 308,000 positions from the
previous month.
The “BLS Job Openings and
Labor Turnover Survey” found
the drop occurred despite
overall U.S. openings holding at
7.4 million, a 4.4 percent rate.
The hospitality category, which
includes accommodation and
food services, has been a major
driver of labor demand in recent
years but continues to face
volatility in hiring needs and high
turnover.
Nationally, the number of quits
remained unchanged at 3.1 million, a 2
percent rate, the report said. However,
hospitality continues to experience quit
rates well above the national average,
reflecting persistent retention
challenges.
While industries such as
retail trade and information saw
increases in openings in June,
the contraction in hospitality
suggests a recalibration in staffing
needs ahead of the second half
of 2025. The next JOLTS report,
covering July 2025, will be
released on September 3 and will
indicate whether the downturn in
hospitality job openings is a short-
term adjustment or the start of a
longer trend.
A survey by Expert Market found
48 percent of accommodation
businesses view staffing as their
top risk for the year, followed by labor
costs at 34 percent and maintenance at
27 percent.
Survey: Hospitality drops most jobs in June
The sector’s quit rates remain above the national average
The hospitality sector dropped the most job openings in June,
down 308,000, according to the U.S. Bureau of Labor Statistics.