GSA Updates Agency Air Fare Deals to Save $2 Billion Yearly

The General Services Administration on Thursday released its updated governmentwide air travel contracts for 2015, touting prenegotiated discounts of 23 percent below corporate benchmark rates.

The City Pair program, which allows federal travelers flexibility in changing flights at no extra cost, is estimated to save the government $2.3 billion next year, GSA said. It also expanded its global reach by some 3,800 markets.

“By leveraging the government’s buying power, we are able to help federal agencies reduce travel costs and save billions of taxpayer dollars,” said Federal Acquisition Service Commissioner Tom Sharpe in a statement. He stressed GSA’s “data-driven approach” that has helped reduce the average cost of domestic one-way flights by 4 percent and international flights by 1 percent, even as commercial flight costs overall have risen by 6 percent this year.

Also contributing to the savings is the expansion of markets offering dual fares—lower rates for choosing advance bookings—availability of which doubled to 88 percent of the markets, GSA reported.

Eight major air carriers won contracts with GSA, based on availability of non-stop service, number of flights, flight times and price. The new rates take effect Oct. 1. Click here for more information.

(Image via B. Melo / Shutterstock.com)