The City Pair program got high marks from the General Services Administration's inspector general in April.
"Airfares under this program average a 72 percent discount off comparable unrestricted coach fares, saving the federal government more than $2 billion annually," the IG's office said in its semiannual report to Congress.
City Pair prices are significantly lower than coach fares offered to the general public. If a seat is available on a plane, the airline must offer the City Pair fare to a government traveler. And unlike many commercial fares, the program offers fully refundable tickets and does not charge for cancellations or changes.
The Federal Supply Service's City Pair program has room for improvement, however, the IG said. Although the program offers unrestricted, fixed fares that "shield the government from the volatility of the market, FSS loses the opportunity to benefit from the frequently offered, deeply discounted commercial fares," the report said.
A "dual fare" pilot program launched in fiscal 2002 is a step in the right direction, according to the IG. The program offers both fixed City Pair fares and "capacity-controlled" discount fares to government travelers. The discount fares, which are available on a first-come, first-served basis, allow government travelers to save even more money than with City Pair fares when they book tickets early. Unlike the City Pair program, however, once seats in a capacity-controlled fare category sell out, the airline is not obligated to offer the fare to government travelers. Under the pilot program, the usual controlled fare restrictions on advance purchases and seat assignments are waived.
Discount fares in the pilot program average about 20 percent less than City Pair fares. Travelers in markets that are using the dual fare program are encouraged to look first for capacity-controlled fares, then City Pair fares. The program has been expanded to 2,400 markets, and 10 of the 14 airlines participating in the City Pair program are offering capacity-controlled fares.
The inspector general recommended that FSS take several steps to improve the City Pair program, including:
- Educate travel management center contractors and federal travelers on the benefits of using the dual fare program.
- Obtain complete, accurate and timely information from the airlines, banks participating in GSA's travel card program, and travel management centers to determine how to further improve the program.
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