Official International Travel – Use of the best fare of the day (RMG 405)

When undertaking official international travel, officials must select the International Best Fare (IBF), which is the lowest fare available on the day the travel is booked on a regular scheduled service (not a charter flight), that suits the practical business needs of the traveller and maximises overall value for money for the total cost of the trip.
 

Guidance

Value for Money

To maximise value for money for the cost of international air travel, officials are encouraged to consider the following in the IBF calculation. Value for money requires the use of Commonwealth resources in an efficient, effective, economical and ethical manner that is consistent with the policies of the Commonwealth, and is reinforced through competitive decision making.

Accordingly, when booking travel, officials must make decisions based on an impartial consideration of the fares available and not on a personal preference for a particular airline or aircraft type, access to airline lounges or accumulating airline reward and loyalty points (including status credits).

Necessity of Travel

International travel must only be undertaken where other communication tools, such as teleconferencing and videoconferencing, are ineffective. In approving travel, the delegate (the official approving international air travel) must be satisfied that there is a demonstrated business need for the travel.

Safety

Under no circumstances is this guide to be read as requiring officials to use airlines with a poor industry reputation for safety. Information on aviation safety and security is available from the Department of Foreign Affairs and Trade's (DFAT) Smartraveller website.

Approval of the need to travel

Officials should refer to their entity’s internal controls (for example, Accountable Authority Instructions) for the approval requirements that apply to international travel.

Class of Travel

In booking flights for inbound and outbound international travel and travel within an international country, officials are required to select a business class or equivalent class or lower class airfare.
 

Value for Money

To maximise value for money for the cost of international air travel, officials are encouraged to consider in the IBF calculation:

• the value of any baggage allowances, and complimentary inclusions such as chauffeur/coach drive services or pre-departure accommodation offered by airlines
• any additional costs for accommodation, meals, ground transport, baggage and incidentals associated with the 24-hour window
• the cost of lost employee wages associated with lost work time where appropriate
• for outbound flights, the cost of flights that leave within a 24-hour window before the latest possible departure flight (that is, the latest flight that will enable the traveller to meet their overseas commitments)
• for inbound flights, the cost of flights that leave within a 24-hour window after the earliest practical return flight.

The 24-hour window is not intended to restrict or limit the use of fares outside of this timeframe that may maximise value for money.

Where entity controls allow for rest periods, these rest periods should be incorporated within the 24-hour window to the extent possible.

To assist entity officials in internal reporting against use of the IBF, the Travel Management Company (TMC) contracted under the Whole of Australian Government (WoAG) Travel Arrangements applies the 24-hour window to the booked flight time from the point of departure to monitor whether the international best fare has been selected. This reporting is available to entities through the TMC.

TMC transaction fees 

TMC transaction fees and WoAG administration fees are not to be included in the estimated cost of travel submitted for approval of the IBF calculation.
 

Airlines 

A panel of international airlines has been contracted under the WoAG Travel Arrangements. These airlines offer highly competitive fares, increased baggage allowances, reduced or removed fees for changes to fares, more flexible fare conditions, and some complimentary fare inclusions.
 

Airfare quotes 

Unless a limited number of airlines (that is, 1 or 2) service a particular route, officials are to obtain 3 quotes for airfares from at least 2 different airlines for the same or equivalent fare class. Officials are encouraged to use the contracted airlines on a value for money basis however, officials are not restricted to using these airlines.

Booking strategies 

Strategies that can be considered to optimise value for money in booking airfares include booking as far in advance as possible, being flexible with times, using less flexible tickets, and looking at different routes to the final destination. Officials are encouraged to advise the WoAG TMC of key business needs, for example, direct routing or excess baggage requirements.

Lounge memberships 

Airline lounge membership is not to be considered in applying the IBF.

Accommodation 

Officials are encouraged to book any accommodation associated with international travel through the WoAG TMC using the Diners Club payment facility, (the virtual account and/or the in-hand Diners card or MasterCard). The most cost effective accommodation is to be selected that is, a room rather than a suite.

Unused credits

Where travel is not taken and unused credits exist, officials must consider selecting the IBF for any subsequent bookings and then apply any unused credits to reduce the fare price.

Reward and loyalty points (including status credits) 

Implementation of the WoAG Travel Arrangements on 1 July 2010 ceased the accrual of reward and loyalty points (such as frequent flyer points); this requirement continues, and status credits may still be accrued. Where officials have retained previously accrued reward and loyalty points, these are to be used to reduce the cost of future flights required for official travel. It is Government policy that such points, where awarded for official travel, are not to be used for private purposes or to upgrade the class of official air travel.

Personal Travel 

The WoAG Travel Arrangements must not be used for stand-alone personal or leisure travel. Where personal or leisure travel is attached to official travel, officials are to refer to their entity’s internal controls for the requirements that apply.
 

Health and safety

Where considered necessary, officials are encouraged to seek personal medical advice before undertaking international travel. Vaccinations may be necessary for some destinations. Officials are encouraged to also familiarise themselves with any internal entity policies regarding health and safety while on official business. 

Further advice on health and safety, including country specific advice, is available from DFAT's Smartraveller. 

Officials are advised to also refer to the travel cover policy in the Comcover Statement of Cover.

‘Through’ fares

Officials are encouraged to book ‘through’ fares rather than separate domestic and international tickets. 

Selecting ‘through’ fares allows baggage to be checked through to the final destination, provides the TMC and relevant airlines with oversight of connections for the entire trip, and generally results in better value for money outcomes.

Register the trip

Prior to leaving Australia, officials are encouraged to register the details of their official international travel with DFAT.
 

When booking official international air travel, officials must identify the reason a fare is selected using the IBF Booking Codes in the table below. IBF Booking Codes 1 to 6 are compliant with the IBF policy.

The IBF Booking Codes

Officials are responsible for managing compliance with the IBF policy in accordance with their entity's internal processes. 

Below are 4 examples of how to choose the International Best Fare (IBF).

It is mandatory that an IBF Booking Code be provided at the time of booking official international air travel (see above).