Hotel Revenue Glossary · Segmentation
Government Rate
A rate designated for government employees traveling on official business, often subject to per-diem ceilings set by government agencies. In the US, the General Services Administration (GSA) publishes maximum lodging rates by city, and hotels opt in to offer compliant rates.
Why it matters: Government rates provide predictable, year-round base business but at rigid, non-negotiable price points. Hotels near government offices or military bases may rely on this segment for midweek occupancy. The key is ensuring government rooms do not displace higher-rated demand.