By Keith L. Alexander
Tuesday, May 2, 2006; D01

Record fuel prices are forcing many businesses to curtail travel and have prompted some to begin adjusting their 2007 travel budgets, according to a survey of 1,700 corporate travel managers conducted by the National Business Travel Association.

Companies are looking for ways to reduce their travel expenses in the air and on the ground as airlines have jacked up fares and the costs of using car services and rental cars has risen.

"Every company approaches reaching these savings differently to reach their business goals as rates continue to go up," NBTA spokesman Caleb Tiller said.

More than half of the association's members with large travel budgets said their airline ticket prices have increased $51 to $100 in the past year. If airfares remain at the same level or increase, 43 percent of the travel managers surveyed said, they would have to adjust their travel budgets for 2007. One-third of companies said they were requiring less air travel.

Travel managers also are demanding that employees organize their trips more efficiently. Nearly 37 percent of respondents said they now require travelers to consolidate multiple trips into one.

Some nonprofit organizations also are struggling with higher travel expenses. Nicholas Lananna, UNICEF's chief of travel and general services, said the organization is paying $65 to $180 in fuel surcharges on international flights to Africa, Asia and the Middle East. Last year, he said, UNICEF paid $10 to $15 in surcharges on international flights.

Lananna said UNICEF is considering increasing its daily travel per diem for its staff on the road. The group's 200 or so travelers get $275 a day, which has to cover hotel, meals and other needs. UNICEF may have to increase the per diem by as much as 10 percent to cover rising costs, particularly in large cities such as Washington and New York. The organization then would have to solicit additional funds from donors since UNICEF receives most of its funding through donations.

"We can't raise our prices to cover our travel costs. We have to be creative where we can," Lananna said.

One creative solution for UNICEF could be more video conferencing. In the survey, nearly 30 percent of travel managers said they were urging people to use travel alternatives such as Internet conferencing.

Companies also are reducing the use of chauffeured private sedans for trips to the airport. Nearly 21 percent said they are using these cars less because they are more costly than taxis; 14 percent of managers said they are using taxis more than they had in the previous year.

Rental cars also were losing some favor with travel managers, with 17 percent saying they were using them less these days. With gasoline prices soaring, about 15 percent of respondents said they were pushing employees toward use of public transportation.

Depending on the destination, nearly 15 percent of travel managers are avoiding renting a car and are requiring their employees to use public transportation instead of renting a car.

· Delta Couture. Delta Air Lines may be in Chapter 11 bankruptcy protection, cutting millions of dollars in pilot salaries and raising ticket prices to cover record fuel prices, but the carrier isn't sparing any expense on clothing its employees.

The airline yesterday unveiled new uniforms created by top fashion designer Richard Tyler.

Tyler, who has designed for Diana Ross, Julia Roberts and Diane Keaton, designed suits for Delta's flight attendants, customer service agents and airport club employees. The outfits are centered around Delta's traditional colors, navy blue and red. Female employees are garbed in skirts or wrap dresses or pants along with peacoats, felt hats and silk scarves. The male employees are dressed in French-cuff shirts, blazers and reversible bucket hats.

Delta declined to reveal how much it is paying for the uniforms. Delta spokeswoman Gina Laughlin said the uniforms were part of the airline's effort to transform itself under its restructuring. "We want to have a new look that matches the new culture and new brand that Delta wants to become," she said. Laughlin added that Delta employees asked for the uniforms. "They wanted to feel good and look good going to work."

· Bonus Miles for American Passengers. American Airlines surprised passengers on 10 flights yesterday with 25,000 bonus frequent-flier miles. The lucky ones benefited from American's celebration of 25 years of its loyalty program, which was the first one launched in the industry.

The 25,000 miles -- enough for a free round-trip ticket anywhere in the continental United States, Alaska and Canada -- went to 148 passengers on Flight 1531 from Reagan National Airport to Dallas/Fort Worth.

"Washington, D.C., is a key market for us, so we wanted to do something big to thank our customers and kick off our 25th-anniversary celebration," said Kurt Stache, president of American's frequent-flier marketing program.

Getting the free miles is one thing; redeeming them these days quite another. Many frequent fliers on various carriers have complained about the difficulty of cashing in their miles for free trips. There are fewer award seats available lately because many airlines are flying fewer flights or smaller planes to fill the cabins.

But if you can't get a flight, why not use the miles on a magazine subscription -- one of the latest lures to get passengers to unload their miles without taking up a precious paying seat.