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B-103315 1 (1975-08-08)

handle is hein.gao/gaobadixw0001 and id is 1 raw text is:                               THE COMPTROLL=R GENERAL
,  D     IB ECISION (  _o1... .) OF THE    UNITED       STATES
                            0                           q
                               WASHINGTON, [D.C. 20548




  FILE:                               DATE: AUG 8     1975
           B-103315
  MATTER OF:
                    X Y Z Corporation                           7,


  DIGEST:
               Official Government passenger travel is procured
               directly from carriers and travel agents are not
               used because (1) direct procurement is more efficient
               and economical; (2) reservations, cancellations or
               changes in travel schedules are more readily effected
               with less errors; (3) the statutory audit and settle-
               ment of carrier accounts is better facilitated and
               overcharges more quickly recovered.

        Mr. D. B. James, President of X Y Z Corporation, advises
    that his con.pany ouns end operates seven travel agency offices,
    six of which are located in cities Vaich do not have either
    airports or airline ticket offices. lie reports that bis com.,pany
    frequently acceots Goverwient Trinsportaticn Fequests in exchange
    for airline tichets, but that his company is denied co:.issions
    on the airline tickets because of the Governnent's policy of
    purchasing official passenger travel directly from the air
    carriers.

        Mr. James urges that the Government regulations be amended
    to authorize the use of travel agents in the procurement oi
    official travel. 1.e believes that this proposed change in the
    regulations would enable travel agents to render beneficial
    services to the Governnent and would at the stne time pernit
    travel agents to be paid commissionts on Governnenit travel. Ile
    notes that the Government is the biggest customer for travel in
    the country and directs attention to the promotional advertising
    sponsored by the airlines which encourages the travelint, public
    to engage the services of travel ageuts in planning their trips.

        Initially, we point out that travel agents act as sales
    agents for the airlines. For the airlines, the essential role
    for the travel agents is the promotion and the development of
    new traffic. The airlines believe that their designated travel
    agents should concentrate their efforts to the promotion of
    discretionary travel rather than to the issuance of tickets to
    persons who would travel regardless of whether they dealt with
    the travel agents or with the air carriers.

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