EnzoampsTurns out the family would need to come up with about $70,000.
Actually not really, the $70k can be paid for via a first lien / mortgage on the home since your obtaining the home debt free. In which case the poor person would have a $200k asset via only $70k debt. Additionally, part of the mortage payments and interest for the $70 would be written off each year. So the $200k asset could be had for far less than $70k in debt over the life of whatever term was choosen for the mortgage. Also, the IRS has payment plans as well, though they usually charge above market rates..........so mortgage would be a cheaper option. Now the question is, can they afford a $70k, 30 year fixed mortgage, and I would suspect some families can.
GrampDoes Amtrak have sales people like airlines do who develop travel accounts with corporate clients?
In order to get an Amtrak trip expensed the rule of thumb is to prove the ticket is the same or cheaper price than a comparable airline ticket. You do that at time of reservation by asking the travel agent to provide that computation on the itineary. Most companies will reimburse for Amtrak travel with that computation document on the travel itineary. The reason they do not require that for airline tickets is the contracted travel agency normally makes airline ticket reservations and Amtrak is considered a "travel exception" in most travel markets.
As a former business consultant I could use Philadelphia as the destination from Texas and get a cheaper airline ticket than one to NY or DC, then transfer to the Amtrak NEC via cab from Philly's airport for a cheaper overal price than if I just bought a direct ticket to NY or DC. Not always but in some cases where I had less than 2 weeks advance notice. Again I needed the travel agency to do the computation on the iternary showing it was cheaper or same price.
Gramp Does Amtrak have sales people like airlines do who develop travel accounts with corporate clients?
Does Amtrak have sales people like airlines do who develop travel accounts with corporate clients?
Yes, but it looks like it is a NE corridor only program.
https://www.amtrak.com/corporateprograms
An "expensive model collector"
n012944 Gramp Does Amtrak have sales people like airlines do who develop travel accounts with corporate clients? Yes, but it looks like it is a NE corridor only program. https://www.amtrak.com/corporateprograms
BackshopThat's because in business, time is money.
It's true for high paid executives, bill by hour consultants and marketing folks where they earn a commission on sales. Other parts of business not really. So if I am going on business to a trade show, to take an educational class/training/seminar, attend a remote business meeting or series of meetings. Those type of things do not have the same time pressure as would someone in marketing visiting multiple accounts in a day, trying to close deals to make money. Nor would they have the same time pressure as an Executive who has to justify a $300k Salary or higher. So yes time is money is a rule of thumb for some in business but not all business. Of course most people want to travel on the fastest way possible. However, when traveling on a department budget for training, seminar, meetings, etc. Business people will forgo a couple of hours to save travel money......there is some elasticity there. I have seen them forgo nonstop flights for cheaper multi-connect flights for example. As well as drive vs. fly. True not a lot take the train but I think they would if it was on a frequent schedule and ran between the city pairs they were traveling.
Also folks will drive less than and up to 350-400 miles instead of taking Amtrak because they do not have to rent a car on the other end of the trip which also saves money plus you get paid mileage for taking a car and that is more profitable to the individual. Depending on their speed of driving and what kind of vehicle they have. You get to pocket that fixed rate of money not spent. It is not a lot of money but for some people it is a motivator to drive vs. fly if they can show it is cheaper for the company.
My wife traveled for business 2-4 times a month before she retired. She wasn't a highly paid executive but she did travel to the 4 corners of the country. Under 300 miles she normally drove but over that, Delta got the nod. She could have 2-3 day trips instead of weeklong marathons.
And it's not always speed but reliability that matters. If I need to be in city X for a meeting the next morning at 10:00 and I take a train scheduled to arrive at 8:30, but is late by three hours, I'm not likely to be a repeat customer.
No normal business traveler is going to take a long overnight rail trip by coach so it can be assumed Amtrak business travelers would usually have the expense of a sleeping compartment. Now you are talking more $ [usually far more] than the coach airline ticket which is what the great majority of business travelers use. Since many larger corporations get good discounts on 1st class airfares, the train could even be significantly more expensive in that comparison.
alphasSince many larger corporations get good discounts on 1st class airfares, the train could even be significantly more expensive in that comparison.
Of all the companies I worked for, none of them paid for First Class Travel unless it was a very special circumstance (leaving a specific city in reasonable time and no coach seats available). Highest they will usually go is Business Class or Coach Class upgrade. What companies did you work for that gave out first class tickets?
Marketing and Business might get first class upgrades via frequent flyer awards but never really a ticket that could be expensed Senior executives fly chartered or corp business jets vs first class. Frito-Lay in Plano,TX you only need to be a regular VP (not Exec VP) to get access to the Corporate Lear Jet.
So the regular vps are in the chips!
Gramp So the regular vps are in the chips!
CMStPnP
I don't want to create a tangent so I leave it at this: My poor folks would become liable for a $70,000 debt. I assume most folks would take out a mortgage for the amouht, but that assumes said family could qualify for one. The single mom with three kids working at minimum wage would not.
York, my comment was not aimed at you, thanks for your kind thought. I was addressing the hostile remarks from Backshop.
Enzoamps CMStPnP I don't want to create a tangent so I leave it at this: My poor folks would become liable for a $70,000 debt. I assume most folks would take out a mortgage for the amouht, but that assumes said family could qualify for one. The single mom with three kids working at minimum wage would not. York, my comment was not aimed at you, thanks for your kind thought. I was addressing the hostile remarks from Backshop.
PS As regards your original post about Amtrak--if a person can't afford a hotel room, then they aren't the people that Amtrak is trying to attract. They wouldn't be going on vacation or taking trips anyway.
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