TOPICS
TOPICS
Agencies cut back on travel
In February, President Obama cited the Agriculture Department's money-saving decision to cut back on travel to conferences as a worthy example of efficiency. But even before Obama sent that message, agencies were cutting back. Federal spending on travel fell from $14.8 billion in 2007 to $13.8 billion in 2008, as spending on hotels and cash outlays for travel declined. And smaller alternative airlines and car rental companies saw spikes in business while spending on some more expensive vendors declined.
Defense Department employees were once again the top travelers in 2008, spending $9.1 billion on airfare, hotels, rental cars and meals, according to data from the Office of Management and Budget. OMB expects that figure to rise to $9.3 billion in 2009, and then fall to $8.7 billion in 2010, most likely as military operations in Iraq wind down. The Homeland Security Department was the second-biggest spender, devoting $1.3 billion to travel expenses. The Veterans Affairs Department was third, spending $596 million on travel in 2008, and the Justice Department, the third-largest spender in 2007, fell to fourth place in 2008, paying out $406 million.
According to data from the General Services Administration, between 2007 and 2008 agencies experienced a 39 percent drop in cash outlays for travel expenses, from $485 million to $296 million, and a 20.8 percent decrease in spending on hotel rooms, from $2.5 billion to $1.9 billion. Spending on car rentals rose 6.3 percent, from $410 million to $437 million, during the same period. Buoyed by rising airline ticket prices, spending on flights rose 14.2 percent, from $3.5 billion to nearly $4 billion.
There were some big changes at the top of the airline vendors list, however. America West disappeared as a result of its merger with U.S. Airways; the latter's business correspondingly rose sharply. Northwest Airlines saw a 21 percent drop in federal business, from $235 million to $184 million. In the latter part of 2008, the company finalized its merger with Delta, which saw a modest increase in federal business last year.
Meanwhile, purchases on smaller airlines more than doubled.
Spending on car rental companies other than major vendors rose 24 percent in 2008, from $411 million in 2007 to $437 million. Enterprise Rent-A-Car saw a 23 percent rise in business, while Budget had a 12 percent increase. Other vendors saw only minor fluctuations.
There were some changes in the allocation of hotel spending in 2008. Dollars credited to the extended-stay chain AmeriSuites fell dramatically, as new parent company Global Hyatt phased out the brand. Bookings at Wyndham Hotels and Resorts fell 26 percent, from $11.3 million to $8.4 million. The Crowne Plaza Hotels and Resorts saw the largest increase of any hotel chain, with spending there rising from $33.3 million in 2007 to $41.2 million in 2008. Marriott Hotels led chains with $195 million in federal bookings, followed by the Residence Inns by Marriott with $182.2 million, and Holiday Inn Hotels and Resorts with $168 million.
COMMENTS
- My agency would save a ton of money by eliminating GovTrip and it's ridiculous fees for a system that barely works. They could also do with cutting some of the management's travel and pump that money into travel for staff so we can complete duties. Andy Neilsen Posted September 9, 2009 9:10 AM
- For the past 15 months the USDA and other agencies that have tried to adopt GOV-TRIP - the online federal employee travel software which uses SATO- are very frustrated. GOV TRIP not only causes us to spend considerably more cost on air fare it is a huge time waster for the federal employee traveler. It is non-intuitive and it is very buggy as a software. The Government has lost millions of dollars of labor inputing data into this program. It is a program for bean counters who are not the primary users but it is an insidiously wasteful program for the intended user and taxpayer. In 2008 Grumman past on this very poor GOVTRIP software, trouble prone, program that heaps gravy for the developers every time you execute a travel voucher but lousy for the taxpayer and employee. That's just the way it is. Do we want to save money on travel? Get rid of this program and talk to the likes of competitive private sector software developers that built travel programs like expedia, travelocity, and others. They have to rely on excellent user interface to be successful-now that is a concept worth adapting to. They could efficiently write software tapered to the requirements of government accounting but have the principle user in mind. With over thirty years of government service I can confidently say, "GOV TRIP is a loss for taxpayers and conscientious federal employees- both." William Posted September 8, 2009 12:35 PM
- My agency could save millions per yearby getting rid of their travel agency. We are mandated to use SATO travel for all hotel and airline bookings. SATO has no stake in saving money because they recieve their fee no matter what. A no-frills coach ticket from Detroit to Budapest through SATO was over 2700 dollars. The same flight booked through the airline website, first class, fully refundable was over 600 dollars cheaper. Until government agencies get with the program and allow employees to save money by booking in thehe least expensive way possible, you will continue to see the fleecing occur. DHS Fed-Up Posted September 5, 2009 7:45 PM
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