This month we discuss branded fares & ancillary fees and why your travel policy should address these trends.
            
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MacNair Travel's InFlight Newsletter

Hello there,

Welcome back to InFlight. I hope everyone had a great time celebrating July Fourth!

This month we're discussing branded fares. If you haven’t already addressed branded fares and ancillary fees in your travel policy, doing so is an important first step to providing more visibility for traveler expectations, enforcing spending limits and accurate reporting. Be sure to check out the full article below.

Continue reading for a T&E Management process summary and our recent blog posts for additional travel information, which can also be found at blog.macnairtravel.com.

We continue to add new tools to our website. Please visit often to get the most up-to-date information to help you manage your travel program effectively and efficiently. As always - contact us with any questions you may have while reading.

Mike MacNair

Hope your week is productive and warm!

sig_mike

Mike MacNair
Owner & CEO

What Are Branded Fares and What do They Mean for Your Managed Travel Program?

What Are Branded Fares and What do They Mean for Your Managed Travel Program?

Branded fares aren’t new to the airline travel industry but they are most often discussed in a manner of: 1) how they benefit carriers and 2) how they benefit individual travelers. But what are branded fares really and how can we understand them in the context of managed travel?

Branded fares are the bundling of optional services that airlines historically charged for a la carte – in addition to the base fare – or provided on a complimentary basis. We refer to these in industry terms as ancillary services and ancillary fees. These service offerings fall into the following categories:

  • Onboard sales of food and beverages
  • Checking of baggage and excess baggage
  • Assigned seats, preferred seats (window or aisle) or seats with additional leg room
  • Call center support for reservations
  • Fees charge for purchases made with credit cards
  • Priority check-in and screening
  • Early boarding benefits
  • Onboard entertainment systems
  • Wireless internet access

READ MORE

Managed Travel Needs Assessment Checklist

Stay Tuned for Upcoming Whitepaper: The Essential T&E Management Process Guide

Process_Map.pngWe are excited to be releasing our comprehensive guide to T&E Management (TEM) processes in July. The inspiration for this upcoming whitepaper came from our clients and new customers who, upon initial engagement, had very different ideas about the functionality, key components and value of managed travel.

Although it’s often the second largest expense for most companies, T&E is not just a single line-item on a budget. In approaching this guide, we hoped to create something that our readers and customers would find to be useful, informative and perhaps even enlightening. With over 25 years of experience in the industry, we think it’s fair to say that we’ve “seen it all” when it comes to travel programs – from non-existent to complete chaos and from somewhat managed to entirely streamlined processes.

In our paper, we describe and illustrate three starkly different types of travel programs:

  • The Unaware T&E Process: Describes an instance we come across quite often when business travelers and their management imagine T&E to be a simple transactional process of booking a trip, taking a trip and getting reimbursed for out of pocket expenses – when in fact there’s so much more to it.
  • The Unmanaged T&E Process: Explains each phase of the T&E process, details and illustrates the pitfalls of an entirely unmanaged program.
  • The Managed T&E Process: Provides a comprehensive look at what an automated and streamlined managed travel program can look like, along with tips and guidance on how to help transform your unmanaged chaos to a successful managed travel program.

This paper and its accompanying infographics will help you to better understand our industry terms, visualize your entire travel program, and demonstrate how and why transforming from costly and inefficient practices to an end-to-end Managed T&E Process will improve your organization’s overall productivity and bottom line.

Check out the addition of this piece in our Resource Center next week!

U.S. Travel Association Finds Business Travel Showing Signs of Life After a Yearlong Slump 

Travelers Say They Want to Book Everything on One Platform but Don't do SoA recent U.S. Travel Association Travel Trends Index (TTI) report found that U.S. travel is expected to grow at around two percent through October 2016. Even more newsworthy was that the study found that April, at long last, signaled the first month of growth for domestic business travel in 13 months. The last time the business travel segment witnessed growth was in March 2015.

It’ll be interesting to watch for any impacts the Brexit vote might have on incoming and outgoing international business travel, but for now it seems that the numbers will continue to steadily climb through Q3. A strong dollar exchange rate had for some time deterred some international travel to the U.S. but USTA’s April index established the 76th consecutive month of growth across the board and might indicate a rebound for both inbound travelers and domestic business travel. There’s no indication as to how long this trend might last but USTA believes that the travel industry will continue to experience overall growth.

To read more click here.

From The Travel Leadership Blog

5 Considerations for Corporate Travel Expense Programs

Expense_program.jpg

If you’re like many organizations with automated expense reporting, you are well aware of the advantages of improved visibility into travel expenses. Automated expense solutions not only provide insight, but also save valuable time for your travelers and finance team. No more keeping up with paper receipts!

Now you may be ready to expand on your existing solution. After all, how do you leverage all that data to move the needle and increase your ROI even more? As you contemplate next steps, take these five symbiotic considerations as starting points.

1. Taking it Global

Are you considering going global? If so, you’re probably aware that you will need to take a different and more sophisticated approach to your business practices.

One place to start is with your existing ERP software. Will it continue to meet your needs on a global scale? For example, an online booking tool that your team is happily using at headquarters, may not be widely used overseas which means foreign workers may need additional training. Your current booking tool might also not have the specific features you need overseas, as not every booking system shows all of your hotel and airline options or allows you to make changes within it. 

In addition, different countries have unique IT and data security standards. You’ll need to review legal requirements such as cyber security, tax compliance and local labor laws with your expansion team and get input from each department to ensure you’re asking the right questions.

READ MORE

Tax Compliance Implications of Business Travel

Tax Compliance Implications of Business Travel

Did you know your business travelers could be liable for double income tax while they’re working in another country? Did you know it’s possible to inadvertently expose the company to a corporate tax liability by engaging in certain types of business while traveling?

Chances are, neither your travel managers nor your business travelers are thinking of the potential tax implications for business travel. Yet, technically, if one of your employees spends a week in another country (or state) they owe income taxes to that entity under the Pay-As-You-Earn type taxes for the amount of time they’re there.

However, you may be aware that many countries agree to suspend taxation of each other’s citizens up to a specified amount of time - usually 183 days in a tax year. Nonetheless, there are stipulations around who is paying for travel and business expenses that is contingent upon where the business is located and other considerations.

READ MORE

How to Create an Effective T&E Policy Workbook