Management of State Government Airfare Purchases, General Services Division, Department of Administration State Agencies And the University System : Performance Audit 2003

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Management of State Government Airfare Purchases, General Services Division, Department of Administration State Agencies And the University System : Performance Audit 2003
Wilcox, Kent
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Developments in the Internet and e-commerce in the last decade have significantly changed airfare purchasing options. Historically, most airfares were purchased from travel agencies. Consumers can now purchase airfares on the Internet directly from airlines and airfare brokers, often at reduced prices.
Audit work indicated state agencies primarily use two methods for purchasing airfares: travel agency purchases and e-commerce purchases (discount ticket brokers or directly from airlines using In
...ternet websites). Table 4 presents the results from our review of state agency airfare purchases.
Table 4 Average State Government Costs for Domestic Airfare Purchases Fiscal Year 2002 Number of Purchases Average Cost per Airfare Average Service Fee Average Total Cost Per Airfare Percent of Total Airfare Expenditures Sampled Airfare Purchases 85 $461.01 $21.60 $482.61 1 00% Travel Agent Purchases 56 $491.54 $25.73 $517.26 66% Discount Broker or Direct Airline Purchase 20 $330.89 $8.74 $339.63 24% Vendor Type Unknown 9 $597.68 Not Available $597.68 10% Source: Compiled by the Legislative Audit Division from agency files.


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