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B-189930 1 (1977-10-03)

handle is hein.gao/gaobadfea0001 and id is 1 raw text is: 







                                          THE  COMPTROLLER SENERAL
             DECIUION                     OF   THE UNITED ETATES
                                          WASHINGTON. 0          C. 2o!54



             FILE:                              DATE:    OCT   3 W1
e0                    R-189930
             MATTER OF:
                              Grand Travel, 1ew.

             DIGEST:
                         Official Ceveramnt passenger travel is procured
                         directly frot air aerriero and travel agoats ara
                         not  seed because (1) dirent procurement is more
                         efficient aAd amosutcall (2) reservattea,
                         cancellatises or chanaoe in travel schedulas eta
                         more readily effected with lese errors; (3) the
                         statutory audit and settlement of carrier accounts
                         is better facilitated sad overcharges more quickly
                         recovered.

                   In letter of August 16, 1977, Greed Travel, Ine., requests
              authorisatien to accept Governmet transportation requests and to
              Issue tickets for the air transportation of military recruits
              traveling from Billings, Heasna, to Butte, letana,  and Salt
              Lake CAty. Utah.

                   The corporactin advises that the cost to the traveler is the
              same whether the tickets are purchased directly from the air
              carriers or through a trual agency.  The corporation also aduices
              that the atrlnms  pay email comessions at travel purchused
              tbrouph a travwl agecy.

                   Initialy,  we put  out that travel agents are the aunts
              of the sirlins.   The airlines believe thAt these desigante4
              travel agaets should concentrate their efforts on the promotion
              and development of discretionary travel ratter than to the ieuance
              of trckats to persons who would travel regardless of whether chey
              dealt with the travel a2ants or with the air cariers.

                   The airlines pay comissious pursuant to sales agency
              agreements which are filed with the Civil Aeronatitics Board.
              Since 1940, however, the prineipal-agency agreements batnsan the
              airlines and their designated travel agescs have specifically
              provided that commissLons will not be paid on official Gvernment
              pasaenger travel.

                   The airlines thus have deterrined to serve 1ho Govelnament
              directly and to reduce their cosr by not peying coumissions to
              their travel agents on Government travel. It is the sirltwn-'

              *ca


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