As you may have noticed, domestic airlines have been conducting a high profile advertising campaign promoting bonus schemes for frequent flyers. These schemes offer benefits such as free travel, consumer goods and holidays to those who accumulate bonus points by flying with the airline concerned or by the use of nominated hotels, car rental firms or credit cards.

Following discussions between my Department and Traveland Government Travel, it has been agreed that individual frequent flyer cards will not be accepted to earn bonus points when bookings are made on government warrants. Traveland staff are advising Government employees making bookings of these conditions. The Manager of Traveland Government Travel will liaise with Premier's Department when any discrepancies arise so that Chief Executives can be advised and may take appropriate action.

Further to my Memorandum to all Ministers (No. 91/20) of 4 September, 1991, I advise that Traveland Government Travel has also been negotiating on behalf of the Government with all domestic airlines the possibility of discounted airfares to the major interstate destinations, without advance purchase or cancellation fee conditions. During the last six months there has been an increase in "special" airfares to all major interstate destinations and Traveland staff are endeavouring to meet department's needs to travel on these discounted airfares. On many occasions the "special" airfares have limited availability for the travel dates and times requested, or have strict advance purchase and severe cancellation fees up to 100% which can nullify any cost saving to the Department. When these situations occur, Traveland staff will recommend the next most economical airfare available.

For example, the domestic airlines have released extra seat capacity during the peak travel time of a 20% discounted fare to all interstate destinations. Traveland negotiated successfully for these airfares to be accepted on Government warrants as they have no advance booking or cancellation fee conditions. Traveland staff are making bookings at these fares on all occasions when available and, of course, will recommend any cheaper airfare which conforms to the traveller's needs.

The Manager, Traveland Government Travel and National Manager Business Travel are in constant touch with Premier's Department and the NSW Tourism Commission to monitor any developments in airfares or airline incentives or complaints from Departments regarding the service provided by Traveland Government Travel.

Please bring this information to the notice of relevant staff in your organisation.

R. G. Humphry,
Director-General.

Branch: Support Services
Date: 30th September 1991