High-cost area TDY has gotten complicated with all the locality rate variations, Actual Expense Allowance authorization requirements, and advance booking necessities flying around. As someone who stayed at an overpriced conference hotel assuming the excess would just be reimbursed, then learned about Actual Expense Allowance on the day I submitted my voucher — after travel, when the authorization window was already closed — I learned exactly how to manage TDY to expensive cities. Today I will share it all with you.
High-Cost Areas Are Different by Design
Not every TDY location has the same per diem rates. GSA sets locality rates that reflect actual lodging and meal costs in specific cities and counties. High-cost areas — New York City, San Francisco, Washington D.C., Honolulu, coastal California, and others — have per diem rates substantially above the standard CONUS rate. Understanding which rate applies to your specific TDY location, and what to do if that rate isn’t enough to find lodging, is the foundation of managing travel to expensive cities.
Finding the Correct Locality Rate
The GSA per diem rate tool (available at gsa.gov/perdiem) lets you search by city, state, or zip code. The rate isn’t always the same for an entire metropolitan area — a TDY in Manhattan has a higher lodging rate than a TDY in New Jersey, even if the hotels are physically close. DTS uses the location entered in the authorization to pull the applicable rate; entering the correct city matters for getting the right ceiling.
That’s what makes the locality search endearing to experienced travelers — running the search before building the authorization in DTS catches rate discrepancies before they become voucher problems.
When the Rate Isn’t Enough
Major conferences, special events, and peak travel seasons can push hotel prices above even the elevated locality ceiling for high-cost areas. In those situations, Actual Expense Allowance may be authorized — up to 300% of the locality lodging rate — but it requires specific pre-travel authorization. The AEA request must be submitted before the travel begins and must document why lodging at the standard locality rate is not available for the specific dates. I’m apparently someone who assumed the excess would just be reimbursed and learned about AEA on the day I submitted my voucher — after travel, the authorization window is closed.
M&IE in High-Cost Areas
The M&IE component of per diem is also elevated in high-cost areas, though the increase is more modest than the lodging difference. The provided-meal deduction rules apply at the same percentages regardless of whether the locality rate is standard or high-cost.
Book Early and Document Your Search
Probably should have led with this for high-cost TDY locations: hotel availability at or below the locality ceiling in major cities frequently disappears weeks before the travel date. Booking early — and keeping documentation of the GSA-rate or government-rate hotel search in case the choice of property is questioned — protects you from the double problem of paying above the ceiling and having no record of why the cheaper options weren’t available.
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