TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved.1 Travel Policy Revisited Barry Rogers, Senior Consultant / Engagement Manager, TCG Consulting Detroit, Michigan – October 13, 2006

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 2 Agenda Introduction Best practices – brief presentation Discussion – everybody participates Summary

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 3 Introduction to TCG Consulting Taras Consulting Group established in 1994 – privately held –Changed name to TCG Consulting – 1999 –Headquartered in Charlotte, North Carolina –Offices: Chicago, Los Angeles, Detroit, Orlando –Dedicated Resources: Europe, Asia-Pacific, Latin America Services: –Assessment and Benchmarking –Sourcing –Implementation –Compliance management Categories –Travel –Payment Systems –Expense Management No conflicts of interest –No ties to agencies or suppliers, no revenue from agencies or suppliers Proprietary and market leading technology Project experience in 68 countries on 6 continents – at last count Milliken & Company - Global Supplier of the Year

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 4 Travel Program – Consulting Perspective Assessment Strategy Arrangements Air Travel Lodging Ground Payment Meals & Entertainment Reimbursement Travel Program Sourcing Implementation Management POLICYPOLICY

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 5 Best Practices – Travel Policy Overview Travel policy can be more difficult to enforce than other policies Travel policy should be introduced by CEO or other senior executive The message should be clear The audience should be clear The policy should be available –Intranet –Employee manual –Integrated into self-booking tool –In the hands of travel agents

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 6 Best Practices – Travel Policy Language Be clear Criteria  Requirements  Consequences “ From time-to-time employees will be required to travel on company business. In order to be reimbursed for any expenditures made on behalf of the company, employees are required to adhere to the following policies and procedures.”

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 7 Best Practices – Pre-trip Approval Strongly encouraged –By level Should be equivalent to other signing authority Should be done pre-booking Should relate to purpose of trip –For a typical company, 70% of all travel is for employees going to meet with other employees Should actually be performed –Don’t set up a rubber-stamp approval process

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 8 Best Practices – Travel Arrangements “Employees are required to make all travel arrangements, including air, car and hotel, through one of the following channels: “For domestic travel involving a round trip, employees are required to make arrangements using. “For international travel, and travel involving multiple destinations, employees are encouraged, but not required, to make arrangements using. Travel arrangements may be made by calling our designated travel agency at. “No reimbursement will be made for travel arranged through other means except in an emergency (see policy on emergency bookings below).”

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 9 Best Practices – Air Travel “Employees are required to book domestic travel in economy class at the lowest logical airfare (defined below). Officers (including the Chairman, President and Executive Vice presidents) may book domestic travel in first class.” “Employees are required to book international travel in economy class at the lowest logical airfare (defined below). Business class may be booked on a particular segment if that segment involves six or more hours from scheduled departure to scheduled arrival and a discounted, negotiated fare is available. Officers may book international travel in business class whether a discount is available or not. In no cases may employees book international travel in first class.”

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 10 Best Practices – Air Travel “Lowest Logical Airfare: Least expensive fare for non-stop travel on a designated preferred airline at times that allow the employee to achieve their business objective. Connecting service must be utilized if the round trip fare is $200 or more below the least expensive non-stop fare. “Non-preferred airlines must be utilized if the round trip fare is $200 or more below the least expensive fare on a preferred airline.”

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 11 Best Practices – Ground Transportation Taxis –Major area of abuse –Define criteria for using taxis –Disallow where hotel shuttles are available –Make “self filled” receipts an exception –Define limits for tips Rental cars –Disallow where hotel shuttles are available –Disallow at-counter upgrades –Require employees to refill if returning more than one hour before departure

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 12 Best Practices – Ground Transportation Parking –Define criteria for airport parking (must be less than alternate transportation to/from airport). –Define criteria for hotel parking (is car sitting in a hotel garage or parking lot for four days at $20 per day?)

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 13 Best Practices – Meals / Entertainment Alcohol –If you don’t deal with it, you could be liable –Be very restrictive in your policy –Allow it in limited quantity while entertaining clients –Disallow it for employee meals (particularly lunch) –Specifically disallow drinking and driving One-day trips –Define criteria for reimbursement Bottled water / Coffee / Miscellaneous –Increasing spend on these items

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 14 Best Practices – Post-trip Approval Should include all information –If approver sees electronic expense report without receipts, cannot evaluate expenses Should actually be performed –Don’t set up a rubber-stamp approval process Be specific on consequences –Reminders –Delay in reimbursement –Non-reimbursement –Employee files –Require pre-trip approvals –Termination Electronic expense vendors are offering audit services

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved.15 Drivers for Change Group Participation Time

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 16 Drivers for Change in Travel Policy Sarbanes-Oxley Security Concerns Economic Impact Travel Industry Dynamics Corporate Experience Technological Advances Globalization Progress

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 17 Sarbanes-Oxley Requires transparency Executive “perks” –Non-business items –Spousal travel –Vacation travel – agency fees Requires certification of financials

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 18 Security Concerns Role of corporate security has increased within travel –Terrorism, natural disasters, health risks –Post 9/11 Requirement to book through agency Requirement to book international hotels through agency – or at least notify agency of 3 rd -party booking Requirement to make all changes through agency –Impacted by interface to iJet (and other) services

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 19 Economic Impact Companies are looking to reduce operating expenses Define financial objectives and work them into the policy –Understand what you’re trying to achieve Many areas of opportunity –Airfare –Ground transportation –Hotel –Other, miscellaneous items Alternatives to travel are becoming increasingly realistic

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 20 Travel Industry Dynamics Airline discounts are increasing –Because fares are going up –But so are market share requirements Dynamic pricing in the hotel industry Are making clear cut rules more difficult

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 21 Corporate Experience Areas of abuse –Taxis and tips – remain the leaders Areas of education –Coffee and bottled water –Parking –Car upgrades –Hotel upgrades –Refueling – when returning a car 2 hours before flight?

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 22 Technological Advances Pre-trip Approval has become easier Tie booking to expenses to reimbursement Maybe well look at pre-approved smart cards someday “GetThere … announced today that 35 percent of its UK customers are now mandating use of corporate self-booking tools. The company predicts that by 2007 the figure will have reached 50 percent”

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 23 Globalization Rationalize policies across borders Look for consistency – where appropriate Look to set up minimum standards across the company –With cultural and business practice sensitivity on a country-by-country basis

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved. 24 Progress Also known as Constant Improvement Make travel policy a living document –Update it regularly, but not constantly –Review your entire policy annually –People need to be able to absorb change Make sure the policy makes sense Make sure employees are aware of it –Highlight changes or areas of concern in a cover memo

TCG CONSULTING © Copyright 2006, TCG Consulting, LLP. All rights reserved.25 SummarySummary Thank you