Up, Up and Away

Federal agencies increased their travel spending by almost $2 billion in fiscal 2003, the second significant jump in as many years. Travel expenditures totaled $11.9 billion, up from $10 billion in fiscal 2002. Travel spending shot up almost 12 percent between fiscal 2001 and 2002.

The top five places on the list of most-traveled agencies were unchanged from fiscal 2002. The Defense Department remained at the top by far, accounting for more than $8.3 billion of the total. Pentagon officials had predicted their travel expenses would drop after fiscal 2002, but spending actually increased by $1.7 billion.

The Homeland Security Department was the second-highest traveler, with $730 million in travel expenditures-more than 17 percent higher than the agencies that merged to form the department spent in 2002. DHS agencies spent $620 million that year and projected a 6.5 percent increase in travel costs, underestimating the amount of new spending by a wide margin.

The Justice Department was the third-largest spender, at $390 million. Justice officials anticipated a jump in travel spending in 2003, and a $23 million increase proved them right. The Department of Agriculture-$356 million-and the Veterans Affairs Department-$299 million-rounded out the top five.

Several agencies actually lowered their travel spending in fiscal 2003, including the Transportation, Treasury, Interior, and Health and Human Services departments. Transportation officials shed the largest amount of money, dropping their travel budget from $260 million to $213 million. Much of that decrease, and Treasury's drop, is attributable to the shift of agencies to Homeland Security.

Despite a history of steadily increasing travel spending, Defense has again predicted a drop in spending in fiscal 2004. It expects to spend $2.2 billion less on travel this year than in fiscal 2003. Several other top spenders, however, have forecast increased travel spending. DHS officials predict their costs will approach $900 million, and the Justice Department projects $416 million in fiscal 2004 spending.

The rankings of top hotel, rental car and airline contractors-based on purchases made using government charge cards-remained fairly consistent with previous years.

Federal employees spent more money at Holiday Inn than at any other chain of hotels, according to information provided by the General Services Administration. The hotel chain, part of the InterContinental Hotels Group, received 7 percent of federal business-more than $130 million. Holiday Inn led the field the previous year as well, but its market share fell from 8 percent in fiscal 2002.

Marriott International was the second hotel of choice for federal travelers, with 6.3 percent of the market, totaling almost $120 million. A little more than 5 percent of agencies' business went to Residence Inn by Marriott, at $96.3 million. No other hotel chain earned more than 4 percent of the federal market.

The Hertz Corp. again led the field of car rental companies, with more than 18 percent market share-an increase from last year's 15.8 percent. Avis Rent a Car System and Enterprise Rent-a-Car were neck and neck for second place, with each gaining almost 14 percent of the market.

Delta Air Lines was the top airline used by federal travelers, displacing United Air Lines from the top spot. Agencies spent more than $567 million on Delta flights, giving the airline 21.7 percent of the market. United was second with 21.4 percent market share, or $559 million. In fiscal 2002, United took more than 25 percent of all money spent on federal airline travel. American Airlines was the third most popular airline, with 16.8 percent of the federal market and more than $440 million in ticket sales.