by Allan Rubin, Vice President, Marketing
It’s time for your federal customers to dust off their backpacks, can openers, and camping tents. If they want to attend any trade shows or conferences next year, those “roughing-it” items will probably come in handy. The General Services Administration (GSA) just released its fiscal year 2014 travel per diem rates, and the news for federal marketers is not so good.
The Washington Post reported today that GSA “will raise its travel-reimbursement rates for federal employees this year but plans to end its conference-lodging allowance.” The standard lodging rate “for employees who travel for work will increase from $77 to $83 per day at the start of the new fiscal year on October 1, while the allowance for meals and other expenses will remain unchanged at $46 per day.”
The paper cited an August 30 memo by Anne Rung, GSA Associate Administrator of Government-Wide Policy, in which Rung says the government plans to “save an estimated $10 million by eliminating the Conference Lodging Allowance, which allowed federal travelers to spend 25 percent above per diem rates for conferences.”
How these changes will impact attendance at conferences and trade shows remains to be seen, but I don’t think the extra $6 per day increase will drive much in the way of positive change. Rung states that federal per diem rates were already five percent below average daily market rates. Without the Conference Lodging Allowance, travelers might have to choose between sleeping in their (sub-compact) rental cars and not going at all. Based upon recent history, the latter is probably more likely.
On the positive side, GSA does recognize that some travel is necessary. It recently announced the award of its cost-saving FY 2014 City Pair Program, which offers discounted and pre-negotiated commercial airfare pricing and an increase in the number of available routes for federal travelers. So getting there may be easier, but eating and sleeping are another story.
Rung cites savings of approximately $2 billion since the Administration took aggressive steps to cut travel and conference spending in recent years.
At immixGroup, we’re continuing to do our part to bring information directly to the government instead of asking government employees to travel. Our newest initiative is FedCity, a virtual conference platform we just announced in partnership with Federal Business Council. I encourage you to check it out as a new avenue to reach your customers, as I expect they’ll continue to look for new ways to avoid the campout scenario.