From per diem rates to city-pair fares, see how this travel year is shaping up.

The 2001 ceiling for travel spending held stable in 43 percent of locations. Rates increased in 30 percent of locations and fell in 27 percent. The standard rate for those areas not listed in GSA's per diem guide-$55 a night for lodging and $30 for meals and incidental expenses-also didn't change.

Travelers to New Orleans will be allowed to spend more this year; the lodging rate shot up to $139, from $88 last year. The rate for San Francisco, another

hot destination, rose $20, from $139 to

$159. In these two cities, as in five others, traveler complaints about difficulty finding a place to stay at the government rate were key in getting big boosts in the per diem for lodging, according to GSA. In other cities, however, rates changed only slightly. The Washington per diem increased by only $1, from $118 to $119. The rate for Chicago also remained flat.

"We've seen a softening of the market," says Bill Rivers, travel management policy director at GSA. "It used to be more of a seller's market, but there's more construction now and more availability of rooms, which is part of why only 30 percent of the rates are going up."

Calendar Shift

GSA moved the rates to coincide with the

government's fiscal year for several reasons.

The new arrangement will help federal conference planners, travel arrangers and others whose budgets are affected by business travel to plan their spending, says Rivers. The new timetable also will benefit hotels, because it coincides with their rate-setting schedule.

GSA didn't make any other structural changes to the per diem program this year, but it is working on a contract-lodging program for the top 75 federal destinations, which account for 80 percent of all federal travel nights. Under the program, GSA will contract with hotels and motels to guarantee that a certain number of rooms will be available within the per diem in specific

geographical areas. A successful pilot version of the program has been in place in Boston since January, Rivers says. GSA hopes to have the expanded program up and running by the end of 2001.

The per diem rates are available at www.govexec.com/travel. Travelers who have trouble finding a room at per diem can let GSA know at

www.policyworks.gov/org/main/mt/homepage/mtt/perdiem/travel.shtml
(click on the "No Vacancy" sign).

Top 10 Federal Destinations

Per diem lodging rates increased an average of 2.2 percent nationwide from 2000 to 2001. Travel industry experts expect boosts in lodging costs ranging from 2 percent to 5 percent (Rosenbluth International), 4 percent to 6 percent (American Express), and 8 percent (Runzheimer International)-proving once again that forecasting costs is an inexact art.

City-Pair Contracts Awarded

This fiscal year, federal travelers' plane tickets will cost an average of 69 percent less than unrestricted coach fare tickets. But due to heavy air traffic, some city pairs didn't fare as well.

Each year, the General Services Administration's Federal Supply Service awards contracts for air transportation for federal employees on official government travel. The awards are competitive, based on the best overall value to the government. The best-value decision takes into consideration the type, distribution and number of flights, average flight time and airline prices.

Discounted rates in fiscal 2001 include $40 one-way from New York's LaGuardia Airport to Reagan National in Washington (down from $43 in 2000); $52 from Chicago's O'Hare to National; and $70 from Boston Logan to National.

Markets Heating Up

Prices went way up in certain markets, however, because the economy is hot and airlines are flying at or near capacity. As a result, airlines can afford to make less competitive bids, according to GSA. Among the fares that increased are Orlando, Fla., to Washington (up $51 from $172 to $223).

In a few markets, competition drove prices down. Rates between Albany, N.Y., and Washington Dulles, for example, dropped $74, from $239 to $165. In 95 percent of the cases where nonstop flights were offered, GSA awarded the contract to the nonstop carrier. That amounted to about 1,500 of the 4,990 routes awarded. But prices were driven up so much in certain hot areas, including Houston, Newark and Cleveland, that federal employees will find themselves changing planes or making stops where they didn't have to before.

City-pair tickets don't require advance purchase, minimum or maximum stays, travel time limits, charges for cancellations or blackout periods. They are available only to federal employees traveling on official business.

To see the city-pair rates, go to http://www.fss.gsa.gov/citypairs.
-Katy Saldarini contributed to this report.

Government's Use of Airlines

Federal workers will spend an estimated $1.3 billion with city-pair airfares for official business in fiscal 2001, saving the government some $2.8 billion. They will find themselves most often on Delta, U.S. Airways or United.

Did You Know?

• 57 percent of business travelers say they don't get enough sleep while on the road; 12 percent say they drink too much alcohol.
• 95 percent of business travelers say they don't make work a priority while en route; less than 35 percent turn on their laptops while in the air.
• 38 percent of business travelers say they use electronic tickets to avoid long lines.
• Despite complaints about crowded planes, long lines and canceled flights, 84 percent of business travelers say they are satisfied with their experience flying for business.

Sources: Yesawich Pepperdine & Brown/Yankelovich Partners; Harris Interactive/Delta Air Lines