Because he is a senior executive, Jean-Pierre’s firm allows him to travel business class, particularly for international travel. The firm wants its executives to be well rested and ready for business when they reach their destination. Jean-Pierre seeks your advice regarding the appropriate amount to allocate toward reimbursable expenses.
a. Jean-Pierre recently took a trip for which the business class airfare is $5,000. The airline offered a deal whereby Jean-Pierre could obtain a second business class ticket for the price of a coach ticket, which is $1,800. Jean-Pierre used the offer to have his wife travel with him.
b. Consider the setting in (a) above. Assume the airline offers a “companions fly free” program, which Jean-Pierre frequently uses to take his wife with him. However, the program requires companions to have the same travel itinerary. Jean-Pierre’s wife wanted to spend an extra day at the foreign locale. Consequently, Jean-Pierre stayed a day longer than he would have stayed if he had traveled alone. The hotel costs $450 per night, and Jean-Pierre can (and usually does) charge his firm up to $200 per day for meals.
c. Consider the setting in (a) above. Assume the airline is willing to swap one business class ticket for two tickets in coach class. Jean-Pierre and his wife took advantage of the offer. Jean-Pierre extended his stay by another day, and enjoyed a wonderful weekend getaway.

Required:
Discuss the appropriate course of action for each of the three settings.