Government Per Diem Tips and Tricks

 

Don’t forget to look forward and get your hotel set up for success for 2021! The new Government per diem rates for 2021 came out last week and you want to make sure that your market didn’t make any big changes. If rates have changed and you did not check the new rate structure, you could be missing tons of potential business ,and you don’t want to miss out on potential government room nights, especially with COVID still around.

The new per diem rates start on October 1st; here is the website to check your hotel’s rates. https://www.gsa.gov/travel/plan-book/per-diem-rates

The rate you choose to put out there for Government employees is not one size fit all. Be sure to shop the comp set first and see what they are selling, and then decide what rate you want to offer. If your hotel is a 2, or 3-star hotel, and a 5-Star hotel in your compset is also offering the same per diem, you may not be able to compete! Consider dynamic pricing and/or Day of Week pricing to best suit your hotel’s needs and to best position your hotel in the market.

 

Also, make sure that you enforce proper identification to make sure the per-diem rate is only offered to those who qualify. You likely won’t want to turn down military families, retired service members, and government contractors, but make sure that you are capturing them with the appropriate rate codes and discounts, and not giving out the per-diem to just anyone.

 

Here’s to a successful 2021 filled with lots of government business!

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