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Travel Policy > Transportation

Transportation

Choice of Transportation
Air Travel
Rail
Local Subway/Metro/Bus
Taxis and Shuttles
Guidelines Applicable to All Drivers
University-Owned Vehicles (Departmentally Owned or Fleet)
Rental Vehicles - Not Through Fleet Services
Contract Car Rental Agency - National
Alternative Agency for Rental Vehicles - Enterprise
Alamo, Avis, Budget, Dollar, Hertz, Thrifty
Personal Vehicles
Charter Travel

Transportation must be arranged at the least possible cost to meet the business purpose of the trip. University travelers are required to comply with the rules of a number of sponsoring agencies, and transportation is a particular focus of those regulations.

Choice of Transportation

The choice of flying versus driving is influenced by distance, time, cost, and one's preference. When flying is the economical choice but one chooses to drive, the reimbursement may not exceed the cost of the lowest available air transport for the same points of origin and destination. The traveler must provide appropriate price quotes from either Travel Services Online or from one of the contract travel agencies to document the appropriate airfare for comparison.

When travel by car or train rather than flying extends the length of travel, one night's lodging and one day of per diem, equivalent to a reasonable travel day, may be reimbursed for the trip in each direction. If circumstances warrant additional reimbursement, the traveler should discuss the situation with the responsible Budget Administrator and Financial Officer. The goal of this provision in the policy is not to require travelers to fly against their will, but to ensure that expenses for the longer trip are not incurred unnecessarily. If the traveler is unable or unwilling to fly, then special arrangements must be negotiated.
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Air Travel

Airfare is to be purchased at the lowest available commercial economy fare that meets the business purpose of the trip. Where multiple coach fares exist, the lowest available commercial economy fare must be selected. The purchase of upgraded business or first-class airfare requires written approval from the Corporate Controller in advance of the purchase. If the traveler has doubts about the suitability of his or her plans, advice must be sought from the Financial Officer before purchasing the tickets.

Booking Airfare with a Designated Travel Source

The University has designated travel sources for booking travel, all of which comply with the required standards of OMB Circular A-21 (see section 53).

Designated travel sources for air transportation based upon their contractual obligation to provide the traveler with lowest available airfare can be found on the contact us page.

Booking Airfare with a Nondesignated Travel Source

University employees are permitted to purchase the lowest available commercial economy airfare from sources other than the designated travel sources if a lower cost is found. To take advantage of this flexibility, one must first consult Travel Services Online or an approved travel agency, which will serve as the benchmark for comparing prices for comparable itineraries.

Note: When booking airfare through a nondesignated travel source, Travel Services will not have access or authorization to assist with any changes in flight times, destination, or adjustments to the ticket in any manner. Use of nondesignated travel sources is discouraged unless the available savings are truly significant.

When a traveler purchases a ticket from a nondesignated travel source, price comparison must be made before booking the trip, and the burden of proof resides with the traveler to show best pricing. The traveler must provide printed documentation from either Travel Services Online or from one of the contract travel agencies to document the appropriate airfare for comparison. Comparisons must be made on the same day at roughly the same time to ensure a fair comparison. This comparison is necessary to ensure University expenditures comply with federal travel regulations. The documentation must accompany the request for travel settlement. Failure to follow this procedure will require review by the Corporate Controller, which may delay reimbursement and may result in denial of the claim.

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Travel Packages

There may be occasions when a travel package consisting of airfare and hotel will result in a lower overall cost than booking each item separately. When a traveler purchases a ticket from a nondesignated travel source, price comparison must be made before booking the trip, and the burden of proof resides with the traveler to show best pricing. The traveler must provide printed documentation from either Travel Services Online or from one of the contract travel agencies to document the appropriate airfare and other components for comparison. Comparisons must be made on the same day at roughly the same time to ensure a fair comparison. This comparison is necessary to ensure that University expenditures comply with federal travel regulations. The documentation must accompany the request for travel settlement. Failure to follow this procedure will require review by the Corporate Controller, which may delay reimbursement and may result in denial of the claim.

When a travel package includes a rental car, there must be a demonstrated need for the car, and the car rental agreement must meet the insurance requirements of our car rental policy.

Consolidator Tickets

A consolidator ticket is an international ticket sold by a wholesaler at below-tariff costs. Consolidator tickets may only be purchased through Travel Services or through one of the contract travel agencies.

Unused Tickets

When a trip is postponed or cancelled, the passenger receipt identifying the unused transactions must be submitted to the Financial Officer of the unit paying for the ticket to be retained for future travel.

Note: Airline tickets are valid for reissue by the same-ticketed traveler from DATE OF ISSUE, not date of departure. Reservations must be canceled before the date and time of departure to permit future use of the unused tickets. If the reservation is not canceled, the ticket will have NO future value.

A totally unused nonrefundable ticket may be rewritten for that same-ticketed traveler for another University business trip, if the request is made within the time frames established by the airline. A partially unused ticket (e.g., half of a round trip) is nonrefundable and may not be applied to the purchase of a new ticket. However, the carrier may permit the unused portion to be reissued for a later date, to the same-ticketed traveler, on the same one-way routing.

The charge to the University general funds budget from the initial transaction will stand when a ticket is not used. If the charge is to a restricted account, special terms and conditions may apply, and should be discussed with the Financial Officer or Research Administrator to determine allowability.

If the ticket is eventually used for another trip, a reissue fee and any increase in airfare will be charged. Unused refundable tickets may be fully refunded, or reissued at the current applicable fare.

This policy addresses the standard rules of cancellation and reissue. Travelers must consult Travel Services or the contract travel agencies; whichever was the source of purchase, for any unique rules that apply to their particular transaction.

For unused tickets purchased outside of the designated travel sources, the traveler will need to consult with the Budget Administrator and Financial Officer to determine if reimbursement to the traveler is permitted.
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Rail

The University will reimburse the cost of train fare. Receipts are required. Reservations may be made at the option of the traveler. Should a sleeper car be requested, the Budget Executive must provide approval, since the sleeper car is considered an upgrade in travel accommodations.

Local Subway/Metro/Bus

Use of local transportation, such as subways, metro, and buses, is often economical, but receipts are not generally available given the use of electronic cards, tokens, and debit cards. Receipts are not required for use of local transportation, and the expense is not to be considered as a miscellaneous expense.

Taxis and Shuttles

Taxis and shuttles used for business purposes are eligible for reimbursement, and receipts are generally available. If receipts are not provided, then the expense must be itemized as miscellaneous and subject to the $5 per day provision for miscellaneous expenses.
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Guidelines Applicable to All Drivers

Any vehicle used in the commission of University business may only be driven by a University employee, regardless if the vehicle is owned by a University department, University Fleet Services, a commercial car rental agency, or an individual. All drivers must be 21 years or older, and hold a valid driver's license issued by a state of the United States or by a province of Canada. Students (including college work-study students) are normally not permitted to drive University-owned vehicles; however, they as well as family members may act as relief drivers when accompanying a faculty or staff member on a long trip. In the case of a rental vehicle, the relief driver must be properly insured for the vehicle being driven.

Accident Reporting

When an accident occurs while on University business, regardless of the vehicle driven, the driver must notify the Department of Risk Management no matter how minor the accident. A University Vehicle Accident Report form must be promptly submitted. Any lawsuit or letter of representation from an attorney must be reported immediately to the Department of Risk Management.

If the driver is involved in an accident in which someone is injured or killed, or if any vehicle is damaged to the extent it cannot be driven, the driver must immediately notify the local or state police.

Should an accident occur when driving a rental vehicle on University business, the driver must notify the rental agency, the police, and the Department of Risk Management, no matter how minor the accident.

Parking

Parking fees will be reimbursed if receipts are provided. If no receipts are provided, parking expenses must be itemized as miscellaneous subject to the $5 per day provision for miscellaneous expenses.

Hotel Parking

Many hotels charge separately for parking. Valet parking is often the only option offered and is also the safest choice to the person unfamiliar with the city. It is not recommended that the traveler attempt to find alternative city parking to avoid hotel rates or valet parking. The traveler is asked to use judgment to assess his or her choices, and determine the best choice available factoring in safety, security, and convenience.

Tolls

Tolls are eligible for reimbursement, and receipts are not required. The traveler may be required to provide an explanation of the tolls incurred.

Traffic Violations, Parking Fines, and Towing

All fines and penalties resulting from operation of a vehicle are the responsibility of the driver. No reimbursement will be made for payment of fines and citations, or resulting towing expense.
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University-Owned Vehicles (Departmentally Owned or Fleet)

Eligibility to Drive a University-Owned Vehicle (Departmentally Owned or Fleet)

University-owned vehicles may be driven only by University employees. Students (including college work-study students) are normally not permitted to drive University-owned vehicles; however, they as well as family members may act as relief drivers when accompanying a faculty or staff member on a long trip. All drivers must be 21 years or older, and hold a valid driver's license issued by a state of the United States or by a province of Canada.

Vans for 15 or More Passengers

An employee driver must be at least 25 years of age (exceptions can be made by Transportation Services for those individuals 21-24 who have completed a "hands-on" van-driving course or who hold a Commercial Driver's License). The driver must have successfully completed a Web-based training and testing module on van operation from Transportation Services.

Overnight Use of University Vehicles

University vehicles are not to be parked at an employee's home overnight. Exceptions may be granted if the vehicle will be used for an early departure (prior to 7:00 a.m.) or a late return (after 7:00 p.m.) and/or the individual would reduce driving time to or from the final destination by taking the vehicle home the evening before or returning it the next day. Exceptions must be approved by the Budget Administrator whose budget will incur the University-owned vehicle charge (or the Budget Administrator's immediate supervisor if the Budget Administrator is the one using the vehicle). Even if an exception is granted, the vehicle cannot be used for personal use.

Insurance for University-Owned Vehicles

The University maintains supplemental liability insurance on its vehicles that includes departmental-, college-, and campus-licensed motor vehicles as required by the Pennsylvania Financial Responsibility Act. Vehicles are covered while operated in the United States and Canada.

Rental Vehicles - Not Through Fleet Services

Rental vehicles may be used when the overall cost of the rental is less than the cost of other reasonably convenient means of transportation, such as taxi or airport shuttle, or when there is no other means of transportation
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Contract Car Rental Agency - National - Code 5160279

The University has negotiated a sole source contract for rental vehicles, which is currently with National Car Rental. Use of National Car Rental is advised due to the superior insurance provided by the negotiated Big Ten contract, and the history of positive claim settlement with National Car Rental in the event of an accident. When accidents occur in other states, it has proven to be a significant benefit to partner with National Car Rental in resolving legal issues. Loss Damage Waiver (LDW) coverage is provided by National Car Rental for the full value of the car both domestically and internationally. Supplemental liability insurance is included in the contract provider's rental price for domestic rentals only, and insures the driver for injury to passengers or others involved in an accident. Workers' compensation covers University employees for injuries sustained while engaged in University work. Price comparisons are not required when booking with National.

Alternative Agency for Rental Vehicles - Enterprise

If National Car Rental is not available at the traveler's destination, then the University has negotiated a supplemental contract with Enterprise for locations where National is not available, such as at some of the Penn State campuses. The negotiated Enterprise contract also provides full insurance for Penn State travelers.

If National Car Rental or Enterprise is not available, the traveler must select from one of the other reputable nationally known rental agencies listed below. The traveler must provide a written explanation of why the alternative rental car agency was used.
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Alamo, Avis, Budget, Dollar, Hertz, Thrifty

In the event that an alternative car rental agency is sought, for whatever reason, the University traveler must select from one of these nationally known reputable agencies. This requirement is stipulated by the Department of Risk Management and is to ensure that any vehicles rented can be deemed safe, and that any resulting insurance issues can be addressed with a reputable nationally known corporation.

Comparing Car Rental Prices

If the traveler chooses to compare rental prices, the cost of adding both Loss Damage Waiver (collision) and supplemental liability insurance must be added to the alternative rental rate before determining which is cheaper. After comparing prices (including both Loss Damage Waiver and supplemental liability insurance), if the traveler can justify the alternative and selects an alternative reputable nationally known rental car agency, the traveler MUST provide printed documentation to accompany the request for travel reimbursement. The National Car Rental rates can be obtained from Travel Services or from one of the contract travel agencies. In the event that an alternative rental agency is used and the rate for the alternative rental exceeds the National Car Rental rate, the traveler will only be reimbursed an amount equivalent to the applicable National Car Rental rate. Should the traveler select another car rental agency, it is incumbent upon the traveler to be fully insured and purchase both Loss Damage Waiver coverage for collision and supplemental liability insurance. The traveler will be reimbursed for the cost of the insurance provided the fully insured rental does not exceed the cost of renting from National Car Rental.

	National Car Rental utilizing group contract 5160279	Other Reputable Rental Agency
Travel within the United States	Loss Damage Waiver provided Supplemental liability insurance provided	Required to purchase Loss Damage Waiver Required to purchase supplemental liability insurance

Insurance and Additional Drivers

Loss Damage Waiver coverage and supplemental liability insurance are provided for all University employees when driving a National Car Rental vehicle within the United States. Non-University employees, including spouses, partners, and guests, are not covered as drivers but are covered as passengers. It is very important that special arrangements are made with the alternative reputable rental agencies if there will be additional drivers other than the traveler who rents the vehicle. Additional costs are likely to be associated with additional drivers. The University will only reimburse these additional costs if the additional driver is required for the performance of University business. All drivers of any vehicle rented outside the continental 48 United States, no matter what rental agency is used, must be registered with the rental car agency.

In the event an employee can justify using a rental company other than the contract agency, the employee is encouraged to pay for the rental with the University's Diners Club/MasterCard. Diners Club/MasterCard provides Loss Damage Waiver coverage for the full value of the car worldwide. It does not provide supplemental liability coverage, so supplemental liability coverage should always be selected.

International Rentals

When renting from National Car Rental internationally, the supplemental liability insurance coverage MUST be selected since it is not covered with the contract agreement. The University will reimburse the traveler for this added expense. All employees contracting with a rental car agency other than National Car Rental outside the United States MUST purchase the Loss Damage Waiver and supplemental liability insurance.

Loss Damage Waiver (LDW) coverage is provided by National Car Rental for the full value of the car both domestically and internationally. Supplemental liability insurance is included in the contract provider's rental price for domestic rentals only, and insures the driver for injury to passengers or others involved in an accident. Collision or Loss Damage Waiver coverage is also provided for the full value of the rental car. Workers' compensation covers University employees for injuries sustained while engaged in University work.

	National Car Rental utilizing group contract 5160279	Other Reputable Rental Agency
Travel outside the United States	Loss Damage Waiver provided Supplemental liability insurance is not provided and must be purchased	Required to purchase Loss Damage Waiver Required to purchase supplemental liability insurance

The University's Corporate Diners Club/MasterCard provides Loss Damage Waiver coverage for the full value of the car worldwide. It does not provide supplemental liability coverage.

Personal Vehicles

Mileage

Use of personal vehicles is reimbursed on an actual mileage basis for the business portion of the trip. Reasonable mileage must be calculated for the most direct route plus the required business travel while at the business site. The mileage rate is set in accordance with that established by the federal government. The mileage rate currently in force is found at www.travel.psu.edu/reimbursement.shtml. Mileage allowances cover all operating costs, including repairs, insurance, fuel, depreciation, towing, and other auto-related expenses. The reimbursement rate includes a component for liability and collision insurance, and therefore the University will not reimburse employees for the deductible incurred in an accident on University business.
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When flying is the economical choice but one chooses to drive, the reimbursement may not exceed the cost of the lowest available air transport for the same points of origin and destination. The traveler must provide appropriate price quotes from either Travel Services Online or from one of the contract travel agencies to document the appropriate airfare for comparison.
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Insurance

When an employee's personal vehicle is driven on University business and the vehicle is involved in an accident, the vehicle owner's insurance policy will be primary, and the University's auto liability coverage will be secondary, if the accident is serious enough to exhaust the primary coverage. Employees driving personal vehicles on University business are responsible for reporting all accidents to their insurer, since there are serious coverage consequences for failure to report an accident.

Charter Travel

When commercial transportation does not accommodate the specific schedule and needs of a group of travelers, there are approved methods and vendors to be used to secure charter transportation. The Department of Risk Management, Travel Services, and Procurement Services are all involved in ensuring that requirements concerning insurance, safety, and reliability are met. More information is available at the Risk Management Web site.

Air Charters

The charter of any non-University owned aircraft presents serious liability issues to the University. All aircraft charters must be coordinated through Travel Services. Federal aviation regulations must be met in addition to University requirements concerning safety, insurance, and reliability. The Department of Risk Management must give final approval for all aircraft charters. For additional information, see Aircraft Charters/Contracting/Hiring.

Bus Charters

Bus companies are reviewed by the Department of Risk Management to certify that the carrier has adequate insurance, and the approved companies are listed on the Risk Management Web site. Only bus companies on this list are approved for University use.

Ship and Boat Charters

The chartering of boats and ships is excluded from the University's general liability insurance, and therefore all requests for use of such vessels, excluding small watercraft such as canoes and rowboats must be submitted to the Department of Risk Management, as instructed in Boat/Ship Charters.

Privately Owned Aircraft

No University employees are permitted to fly privately owned aircraft, unless approval is obtained from the Department of Risk Management.

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