AT LEAST $470 MILLION IS SPENT ANNUALLY FOR AIR TRAVEL BY FEDERAL AGENCIES, BUT THESE AGENCIES DO NOT KEEP ACCOUNTING RECORDS OF DISCOUNTS TAKEN, ANALYZE REASONS FOR DISCOUNTS NOT TAKEN, OR REGULARLY MONITOR TRAVEL EXPENDITURES TO MAKE SURE THAT DISCOUNT FARES ARE USED. ALTHOUGH FEDERAL TRAVEL REGULATIONS REQUIRE USE OF LOWEST AVAILABLE AIR FARES, MOST EMPLOYEES WHO QUALIFY FOR DISCOUNT FARES DO NOT OBTAIN THE EXCURSION, GROUP, AND OFF-PEAK AIR FARES WHICH ARE READILY AVAILABLE AND WOULD NOT INTERFERE WITH AGENCY BUSINESS. THESE DISCOUNTS SHOULD BE REVIEWED AND USED WHEREVER POSSIBLE. HEADS OF DEPARTMENTS AND AGENCIES SHOULD INFORM EMPLOYEES OF THE POTENTIAL FOR SAVINGS, ESTABLISH ADEQUATE ACCOUNTING FOR SAVINGS ON DISCOUNTS TAKEN AND PROCEDURES FOR RECORDING AND ANALYZING EXPLANATIONS FOR NOT TAKING DISCOUNTS, AND EVALUATE AUDIT PRIORITIES AND STAFF RESOURCES TO DETERMINE THE NEED FOR PERIODIC INTERNAL AUDITS TO THE USE OF DISCOUNT FARES. AGENCIES COULD ALSO SAVE ON TRAVEL PERSONNEL AND ADMINISTRATIVE COSTS BY USING THE TELETICKET MACHINES MORE EFFECTIVELY AND BY PURCHASING RATHER THAN LEASING THEM. USING THE MACHINES, AGENCIES COULD REDUCE THE PRICE OF PROCURING AIRLINE TICKETS, PROCESSING UNUSED TICKETS FOR REFUNDS, AND AUDITING TRAVEL EXPENDITURES. RECOMMENDATIONS ARE DETAILED FURTHER IN THE TEXT. APPENDIXES PROVIDE ADDITIONAL INFORMATION REGARDING THE REVIEW OF DISCOUNTS NOT USED, AGENCY SPECIFICATIONS, AND RELEVANT CORRESPONDENCE. (MHP)