In response to the U.S. Treasury Department's interim final rule on TARP Standards for Compensation and Corporate Governance, the National Business Travel Association has filed comments urging the government to adopt travel industry guidelines for managing corporate travel and meetings.
Because TARP standards require corporations that have received government assistance to develop a policy addressing excessive expenditures—including, possibly, corporate travel, transportation and events—a consortium of travel industry associations, including NBTA, earlier this year developed a list of
guidelines for managing "excessive or luxury" travel and event expenditures. NBTA is encouraging the government to officially endorse and adopt that list.
"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," NBTA President and CEO Kevin Maguire, CCTE, GLP, said in a statement. "To ensure the integrity of necessary corporate functions, NBTA is hopeful the Treasury Department will comment favorably on business travel that is important to economic growth and financial stability."
In its comments, filed with the government last week, NBTA urged the Treasury Department to take the following measures:
1. Consider the Importance of Business Travel and Meetings to the Economy and CorporationsNBTA 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 travel industry, it said, 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 ExpendituresNBTA believes the Treasury Department's support of the travel industry's
"Model Board Policy Regarding Excessive or Luxury Expenditures for Events" would provide detailed guidance to TARP recipient companies and the broader U.S. business community in effectively curbing luxury expenses.
3. Urge Corporations to Use the Industry Guidelines to Develop a Travel Management ProgramNBTA urged the Treasury Department to encourage use of the travel industry's 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."
4. Consider the Travel Manager's Evolving RoleNBTA offered the Treasury Department insight into the evolving role of the travel manager due to the volatile complexities of the industry. Its comments highlight a travel manager's goals to implement cost savings initiatives and ensure the safety and security of travelers.
To read NBTA's TARP comments, you can download its filing in its entirety at
www.nbta.org.