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Some business travelers may still believe quality hotel servicecan be found only in places, say, 26 stories high, with sparklingchandeliers and a doorman outside. But with limited-service hotels,such as Days Inn, beginning to provide a higher level of service inrecent years, many business travelers are discovering the joys ofthese more affordable accommodations. In fact, in a recent study byFrequent Flyer magazine, close to 92 percent of respondentssaid limited-service hotels offer everything they need.
"Originally, limited-service lodgings were thought of as'econo-boxes,' or kind of a cheap place to stay,"explains Karen Goodwin, editor in chief of Frequent Flyer."But now, they have really set out to upgrade their image. Thequality is pretty high, and business travelers are askingthemselves, Why pay more?"
Why, indeed, when limited-service hotels boast prices averaging$35 to $79 a night; clean, comfortable rooms; and, in many cases,extras such as free local calls, incoming fax service, continentalbreakfast and more?
Budgetel Inns, for instance, now offer free incoming faxservice, keyless door locks for extra safety, and continentalbreakfast delivered to your room. In addition, Budgetel hasequipped all rooms with large desks and dataport jacks for businesstravelers, and plans to debut its new business-class rooms incoming months.
Up In The Air
The IRS caused an uproar last November when it announcedfrequent-flier miles earned by employees traveling on businessmight be taxable. At present, it appears the IRS has backed awayfrom this controversial matter; it has no official plans to taxfrequent-flier benefits. However, tax experts agree that theprospect of a frequent-flier tax is an ongoing debate at theIRS.
"A frequent-flier tax is always a possibility,"insists Richard Janis, tax counsel with the Air TransportAssociation (ATA).
What's at stake? Typically, employers reimburse employeesfor business-related air travel costs and allow them to keepfrequent-flier miles for personal use. If frequent-flier miles wereto become taxable, says Janis, employees who travel on business andretain the frequent-flier mileage could be subject to taxes.
Exactly how a frequent-flier tax would work, if imposed, isanyone's guess. Myriad problems would need to be addressedconcerning how mileage is reported, as well as how to value miles,says Janis. Also, since many travelers pay for business andpersonal flights with the same credit card, difficulties wouldarise in distinguishing mileage usage. Ultimately, tax expertspredict such a tax would result in more paperwork for businesstravelers, airlines and the IRS itself.
With this issue still up in the air, only one thing is certain:Most business travelers strongly oppose a tax on airlinemileage.
Hoping to put an end to the debate, Rep. Barbara Kennelly (D-CT)has introduced a bill prohibiting taxation of frequent-flier miles.The bill, H.R. 3111, is in committee; Kennelly hopes it will go toa vote before the end of the congressional session on October4.
To share your opinion, visit the IRS' new Web page athttp://www.irs.ustreas.gov, orwrite your local congressional representative.
Pick A Card
Are your entertainment bills going through the roof? Scads ofdining cards have emerged recently that deliver deep discounts ondining out. They also aid business travelers in selectingappropriate restaurants in various locales.
Not all dining cards are created equal, however. Some programsinclude more restaurants in cities where you frequently dine. Andsome may include a slim range of cuisines, while others haveeateries catering to nearly every palate. Terms vary widely.
For example, In Good Taste (800-444-8872) members pay a $48annual fee, get 25 percent off meals (excluding tax and tip), andreceive a plastic card and booklet of approximately 3,000restaurants nationwide. Similarly, Transmedia (800-422-5090)cardholders pay no annual fee, receive 20 percent off the check(excluding tax and tip), and have a choice of more than 6,500restaurants.
Worried that discount cards may not impress clients? For a$49.95 annual membership, Dining à la Card (800-833-3463)registers up to three of your credit cards for use at participatingrestaurants. At month's end, the company mails you a check for20 percent off the total bill, including food, beverages, tax andtip-and your clients are none the wiser. "Being discreet andsaving money is extremely attractive to many businesstravelers," says Fanette Singer of The Signature Group'sDining à la Card. The downside? It's only good for thefirst visit to a given restaurant each month.
Most airlines also offer credit card programs that give membersfrequent-flier mileage for dining at participating restaurants.Whatever method you choose, be sure the plan is flexible enough tomeet your business's needs in a variety of travelsituations.
Playing It Safe
The plane crash deaths earlier this year of Commerce SecretaryRon Brown and several company CEOs on an international trademission brought home the risks a business takes when key executivestravel together. In case of an accident, your company could be leftwithout leadership.
Despite the dangers, however, a 1995 Runzheimer Internationalstudy found nearly three-fifths, or 59 percent, of U.S. companieshave no policy prohibiting key executives from traveling together.Worse, the study reveals small businesses are most at risk: 83percent of small companies have no policy of this kind.
One-Stop Shop
Where can business travelers purchase a Mont Blanc pen and renta computer for the day? Try Penfield's International Pen Shopsin hotels throughout Massachusetts and Rhode Island. The storescombine upscale gifts with a slew of services for businesstravelers.
"We saw an opportunity to package a retail store in ahotel, offering not only traditional items like stationery andhigh-end pens but also business services that were sorely missingin most hotels," explains Walt Krawczyk, Penfield's vicepresident of operations.
In July 1993, entrepreneurs Fred LaSelva, 48, Al Carvelli, 52,and Krawczyk, 45, opened the first Penfield's store inBoston's Westin Hotel. Since then, Penfield's outlets havesprung up in three more hotels on the East Coast: Copley Plazahotel in Boston and the Biltmore Hotel Grand Heritage and HolidayInn hotels in Providence, Rhode Island.
With many hotels outsourcing business services to focus ontraditional operations, stores like Penfield's are becomingmore common. Beyond just a way for hotels to boost efficiency,though, many such shops offer services business travelerscouldn't previously find at some hotels. For instance, atPenfield's, guests can rent cellular phones, computers andpagers; express ship documents; or use document translation,desktop publishing, secretarial, faxing and copying services.
So far, the formula appears to be working: Penfield'sexpects sales of $1.6 million this year, and Krawczyk expects toopen two additional stores by year-end.
ROAD NOTES
Brand-name gourmet coffees and beers are finding their way ontohotel and airline menus. Both United Airlines and most WestinHotels now serve only Starbuck's coffee, and ContinentalAirlines serves Pete's Wicked Ales as official in-flightspecialty beers.
Holiday Inn's "Europe for Less" summer rates arestill available through September 7; rates are $99 to $129 in mostmajor cities.
You can earn 500 Delta SkyMiles when booking a rental car fromAvis-but you must make advance reservations and show proof of aDelta flight within 24 hours.
Earn 500 miles per transaction by booking flights throughNorthwest's online reservation service, WorldNetwork, onCompuServe through March 31, 1997. Contact CompuServe at (800)621-1258 for free software.
US Air Frequent Travelers must now request award certificates bycalling the US Air reservations line (instead of the frequenttraveler service center). Travelers get tickets mailed directly tothem, instead of waiting for a certificate from the service centerand redeeming it for the ticket.
British Airways now offers passengers delayed in the UnitedStates a prepaid phone card good for a short call anywhere in theworld.
Continental Airlines has expanded its nonsmoking policy toinclude all flights other than those between Newark and Paris orMadrid, Houston and Paris, and Honolulu and Tokyo. Lufthansa hasgone smoke-free on intra-European flights of 90 minutes or less andall intra-German flights.
Contact Sources
Air Transport Association, 1301 Pennsylvania Ave. N.W., #1100,Washington, DC 20004;
Budgetel Inns Inc., (800) 4-BUDGET;
Frequent Flyer, (800) DIAL-OAG,(708) 574-6000;
Holiday Inn, (800) HOLIDAY;
IGT Services Inc., 1111 Lincoln Rd., Miami Beach, FL33139;
Rep. Barbara Kennelly, 201 Cannon Office Bldg.,Washington, DC 20515;
Penfield's International Pen Shops, c/o Westin Hotel,10 Huntington Ave., Boston, MA 02116, (800) 451-1447;
Runzheimer International, (800) 558-1702;
The Signature Group, 200 N. Martingale Rd., Schaumburg,IL 60173;
Transmedia Network Inc., P.O. Box 619400, Miami, FL33261-9965.
