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Should I Save or Splurge?
Power Trip · May 2, 2004

Before Stephen Paliska became a sales engineer for an aerospace company in Connecticut, a manager pulled him aside and explained that when it came to travel, cheaper wasn't necessarily better. The manager added that "where I stayed and ate was a reflection on the company," Paliska remembers.

It's an attitude that served him well as an up-and-coming road warrior. Now that Paliska runs his own engineering consulting firm, he expects the same from his employees. "They must travel on major airlines, stay in major hotel chains, not rent subcompact cars, speak correct English, and otherwise conduct themselves as professional persons," he says.

Interestingly enough, Paliska is vastly outnumbered these days. A 2004 survey by Harris Interactive for the Web site Orbitz found that 83% of business travelers feel more obligated to save their company money when traveling for business.

The same survey also suggested that corporate travelers favor an Internet site to make travel arrangements by a 2-to-1 margin — meaning that a lot of employees are firing up their Web browsers to save a few bucks. What's the big deal with that? Well, it's much tougher for a company to enforce its travel policy when road warriors are unleashed on the Web.

Nevertheless, since 2001, business travel and cost-cutting have practically been synonymous. Have we taken the cuts too far? Are corporate travelers cramming themselves into economy-class cabins in order to lower their expenses, but then losing out on productive work time? Are they eating so much fast food (and saving a little money) only to suffer the long-term health consequences of too many burger-and-fries meals?

Maybe we have taken the cuts too far.

But achieving balance in your business travels is perhaps the most difficult — and elusive — task for any frequent flier, as I pointed out in a previous column. Needless to say, if you're obsessed with cutting costs, it may be difficult to find the right balance. Difficult, but not impossible.

Here are five scenarios when you should consider saving — or splurging.

For domestic flights: Book a ticket on an airline with a one-class configuration. That's right — try Southwest, Song, Ted, or one of the other low-fare airlines. There's a fierce battle for customers among these no-frills airlines at the moment. In fact, it isn't really fair to call them "no frills," because they offer first-class amenities for the price of economy class. Your productivity won't suffer because there's usually plenty of legroom in these one-class cabins, as opposed to two- and three-class configurations, where everyone in the back suffers in "cattle class." Bottom line: Save.

For international flights: Use your miles to upgrade to business class. Especially on a longer haul, you're more likely to regret booking yourself in the back of the plane. Go business class, but use your frequent-flier miles to pay for the upgrade. That way, you won't pay the exorbitant prices for full-fare ticket upfront. It sounds easy, but it isn't. Why not spend the miles on a free ticket? That's something Larry Slavin, an information technology consultant from Baltimore, struggles with. "After all," he says, "you get to the destination at the same time whether you are in first class or coach." True, but can you do business after being wedged into a seat with no legroom for eight hours? Bottom line: Splurge.

For hotels: Go midrange. Remember the story of Goldilocks and the three bears — the porridge was too cold, too hot, and then just right? The Goldilocks rule applies to hotels, too. Don't go for too cheap or too expensive. Many midrange properties offer all the amenities that you need without giving your expense account a workout. "A midpriced hotel such as the Hilton Garden Inn works best for me, particularly if I'm meeting clients," says Carver Clark Farrow, an attorney in San Jose, Calif. "It's great because it has a free business center that allows me to get work done." At the same time, Farrow is able to collect Hilton loyalty points with every stay and doesn't have to deal with the stares he'd get if he booked himself into a budget hotel. Bottom line: A little of both.

For rental cars: Pick a trusted brand and a generous size. The cost of a rental car represents about one-tenth of your trip expenses — and it's usually an afterthought. But it can end up being the place you spend most of your time when you're out of the office. Leisure travelers like to reserve subcompact vehicles from the cheapest car rental company in the hopes that the franchisee will run out of the matchbox cars and have to upgrade them. That may work for vacationers, but not always for business travelers. Get a decent car, from a decent car-rental company. That's what Tom Dunaway, a business consultant in Harrisonburg, Va., does. He rents from a major brand, usually Hertz, because it's "convenient and efficient." Bottom line: Splurge.

For travel agents: Find the right one and pay her (or him) what they're worth. A competent travel counselor is almost always a sound business investment. When should you not hire an agent? If you're planning a lot of simple trips, such as commuting between Los Angeles and San Francisco a few times a week, for example, an agent may be overkill. But if you get out a lot and travel great distances, a good travel professional can help you find ways to save money. A travel pro also can improve your travel-and-entertainment expense reporting and generally make your trip run smoother. The best travel agents demand (and deserve) a high fee for what they do. But they will work to make sure you have the best travel experience possible. Bottom line: Splurge.

Notice a trend? Yes, in my book, there are more reasons to splurge than to save when it comes to business travel. And that's before factoring in the value to your image of not staying at the no-tell motel, driving a shoebox from a no-name rental company, and trying to book the whole mess by yourself. Don't even get me started on the food. That's a whole other column.

Christopher Elliott is a travel commentator based in Key Largo, Fla. All e-mailed questions may be edited, condensed or republished at the site's discretion.

Get a look behind the scenes at Power Trip. Check out Elliott's Travel Notes blog.