IRS Increases Vehicle Reimbursement RateThe Internal Revenue Service last week issued a 2007 allowable vehicle reimbursement rate of 48.5 cents per mile, despite a moderation in gas prices compared with the volatile post-Hurricane Katrina prices last autumn. The 2007 rate is an increase from the 2006 rate of 44.5 cents per mile. It also is back on the same level as the rate enacted in September 2005, a rare midyear adjustment to accommodate for the surging fuel costs following Katrina
(BTNonline, Sept. 12, 2005). The higher rate this year stems from overall higher prices for vehicles and fuel for the year ending in October, according to the IRS. Not counting the drop in 2006, following the post-Katrina adjustment, IRS mileage rates have climbed continually during the past few years. The rate was 40.5 cents per mile in 2005 and was 37.5 cents in 2004. Although it is not mandatory for companies to follow the IRS safe-harbor rate, most use it as guidance for reimbursement of employees using personal vehicles for business travel. More than 80 percent of 171 respondents in Business Travel News' third annual Expense Managers Survey said they used the 2006 rate of 44.5 cents for reimbursement.
Hoteliers Push Minimum-Night Stays In NegotiationsSome buyers are facing minimum-night stay restrictions as they negotiate their hotel program in high-demand markets. Such restrictions have been in the hoteliers' arsenal for years, but they are implemented only as market conditions allow, said Denise Lodridge-Kover, vice president of business travel sales and strategic partnership accounts for Hilton Hotels Corp. "We saw some of that last year, and we're seeing more of it this year," said Maria Chevalier, vice president of global business intelligence for BCD Travel's Advito consulting division. "It isn't a huge jump, but it's one of the things that creep into high-demand markets." Lodridge-Kover said it sometimes is a point of confusion that length-of-stay restrictions would apply to both retail and corporate negotiated rates, and even last-room availability does not supersede minimum-stay requirements.
EU Airports Relax Liquid BanThe European Union today is enacting new rules for all EU airports, which also apply to airports in the United Kingdom, Albania, Kosovo, Switzerland, Norway and Iceland, which allow travelers to carry on limited quantities of liquids. The rules, similar to those adopted by the Transportation Security Administration in September, let passengers move through security checkpoints with liquids packaged in individual containers not exceeding 100 milliliters on the condition they can fit into a clear plastic bag with a maximum one-quart capacity. Allowable items include shampoo, creams, hair gel, hair spray, suntan lotions, toothpaste, liquid or aerosol deodorants, perfumes and such cosmetics as mascara and lip gloss. TSA in late September relaxed security rules put in place following the thwarting of an alleged U.K. bomb plot in August.
CWT Enhances Productivity ProductCarlson Wagonlit Travel later this year formally will announce a wave of enhancements to its existing Freedom product, which delivers itinerary information to a traveler's desktop calendar application and mobile device. Compatible with any global distribution system or online booking tool, Freedom's features include flight confirmation, seat numbers and departure and arrival times, as well as alternative flight options. The tool also offers weather forecasts, driving directions and the locations of business and personal services, such as nearby FedEx Kinko's and Starbucks Coffee. The travel management company claims Freedom increases productivity, on average saving travelers 15 minutes per trip.
Candlewood Suites Details Int'l Expansion PlansCandlewood Suites, part of the InterContinental Hotels Group, is beginning its international expansion with locations in Montreal and Toronto, the company announced last month. The international properties are part of more than 100 in the Americas pipeline, 50 of which are scheduled to open during 2007. Those properties also include the first midprice extended stay property in New York. The growth plan positions Candlewood Suites to become the largest brand within the midprice extended-stay segment, according to the company.
TRX Earnings Show Revenue Decline, Income GrowthTRX last week released its third-quarter 2006 earning results, showing an 8.5 percent drop in total revenue, as well as a 4 percent decrease in revenues from transaction processing services from last year. Total revenues excluding client reimbursements for the third quarter equaled $26.8 million compared with $29.3 million in third-quarter 2005. However, net income through Sept. 30 was $6 million, compared with a net loss of $7 million for the period in 2005.