Alexandria, VA | The National Business Travel Association (NBTA) today filed comments in response to the U.S. Department of Treasury’s interim final rule on TARP Standards for Compensation and Corporate Governance, which requires corporations that have received government assistance to develop a policy regarding excessive expenditures that may include entertainment, events, aviation and other transportation services. NBTA stressed the importance of a well-managed travel program, urging the Treasury Department to adopt event guidelines for TARP recipients.

Kevin Maguire, CCTE, GLP, NBTA President & CEO, said, “NBTA believes a well-managed corporate travel program ensures companies are following policies that include competitive bidding, expense reporting, and cost containment – exactly the type of transparency and accountability the Obama Administration has sought.” In its filing, NBTA urges the Treasury Department to take the following measures:

• 1. Consider the Importance of Business Travel and Meetings to the Economy and Corporations
  
  NBTA encouraged the Treasury Department to promote responsible travel for U.S. businesses in order to assist in the recovery efforts of the U.S. economy. The association commented that the travel industry supports 2.4 million jobs and accounts for $240 billion in spending, with the average meeting or event traveler spending about $1000 per trip.
  
  
• 2. Adopt Industry Developed Guidelines to Manage Excessive Travel Expenditures
  
  NBTA and other travel industry associations earlier this year developed a list of guidelines for managing excessive or luxury travel and event expenditures. The association believes the Treasury Department’s support of the policies would provide detailed guidance to TARP recipient companies and the broader U.S. business community in effectively curbing luxury expenses. See Guidelines.
  
  
• 3. Urge Corporations to Use the Industry Guidelines to Develop a Travel Management Program
  
  NBTA urged the Treasury Department to encourage use of the industry guidelines as a basis for the development of a company’s managed travel program, stressing that a “company’s ability to control its business travel expenditures is critical to sound business practices.” The association believes that a first-rate travel management program should aim to improve service to the traveler, better control traveler expenses, cost-effectively purchase travel, and effectively manage of all aspects of the travel services program.
  
  
• 4. Consider the Travel Manager’s Evolving Role
  
  NBTA offered the Treasury Department insight into the evolving role of the travel manager due to the volatile complexities of the industry. The comments highlight a travel manager’s goals to implement cost savings initiatives and ensure the safety and security of travelers.

Maguire continued, “After irresponsible behavior displayed by some TARP recipients earlier this year, the outcry and media stories of frivolous spending rocked the industry, and companies that hadn’t accepted assistance began to cancel meetings and events for fear of being labeled wasteful. To ensure the integrity of necessary corporate functions, NBTA is hopeful the Treasure Department will comment favorably on business travel that is important to economic growth and financial stability.”

View a copy of the NBTA comments.