MEMORANDUM
TO: University Travelers

FROM: Charles M. Peccolo, Vice President and Treasurer

SUBJECT: Designated Travel Agency Program

Over the last several months, the travel industry has experienced many
changes.  Airlines seeking to reduce their ticket distribution costs have
eliminated all commissions paid to travel agencies for the sale of their
tickets. Accordingly, with the elimination of travel agencies primary
revenue source, agencies have started charging a fee for issuing airline
tickets.

Effective immediately, for each ticket issued, no commission rebate will be
available and a reimbursable service fee of twenty dollars will be charged
by World Travel Services, Inc. (World Travel).  University employees should
continue to seek the best pricing when making air travel arrangements and
are encouraged to continue pricing their travel through World Travel. World
Travel is the only agency authorized to access discounted fares negotiated
between the University and Delta, Northwest, and American Airlines.  Those
airline agreements have produced over $500,000 annually in point of sale
discounts to the University.

With these changes, the University is no longer reducing travel
reimbursement requests for employees not using World Travel to book their
airline reservations.  Similarly, no comparisons are required to document
using other travel service providers.  However, as noted above, the
discounted fares for university travel negotiated with airlines is only
available through one agency, World Travel.

Within the next few weeks, the University will review the marketplace and
begin to develop strategies to reposition its travel management program. An
advisory group with representation from the faculty, treasurer's office,
purchasing, and internal audit will direct this review. The first step will
be to initiate a competitive travel agency request for proposal (RFP). As
the travel industry changes, the pursuit of direct relationships with
travel services suppliers will become more important than ever before.
Once the final contracts are negotiated and new procedures defined, a
follow-up notice will be sent to all University travelers. World Travel
Services, Inc. will continue to facilitate the University's corporate
airline agreements during this review process.

Please do not hesitate to call Carol Baker (865-974-4724) if you have any
questions.