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Every company needs a business travel policy to ensure that travel arrangements are made seamlessly, expenses are kept in check, and employee safety is prioritised. At TravelManor, we’ve helped countless companies streamline their company travel policies by offering strategic insights and expert advice. Whether you’re just starting or refining an existing policy, our experience can help you craft a travel plan that ticks all the right boxes.

What Is A Business Travel Policy?

A business travel policy is a document that outlines guidelines and procedures for how employees book, pay for, and report on business travel. It serves as a framework to manage corporate travel effectively, ensuring that trips are cost-efficient, compliant with company regulations, and safe for employees.

Reasons Why Your Company Needs A Travel Policy

Having a clearly defined company travel policy for employees saves time and money, minimises confusion, and ensures compliance with corporate guidelines. Here are some of the key reasons every business needs a robust policy in place:

  • Cost control: Avoid excessive spending by setting limits on travel-related costs.
  • Streamlined Processes: Employees know exactly where to book, how to pay, and how to report expenses.
  • Improved Safety: A well-structured corporate travel safety policy template ensures employees are safe and protected.
  • Legal Compliance: Ensure your corporate travel policy aligns with the legal and insurance requirements in your country and abroad.

Also see: Redefining Corporate Travel For Today’s Young Professionals

Essential Components Of A Corporate Travel Policy

When designing your company travel policy, there are several critical elements to cover. The best policies provide clear instructions and are easy to follow, which reduces misunderstandings and non-compliance.

  • Booking Guidelines

    Clearly outline how and where employees should book their travel. Decide if bookings will be managed through a travel management company (TMC) or via a company booking platform. Your policy should address the following:

    • Approved booking methods: Will employees use a TMC or a corporate portal, or are they responsible for their own bookings?
    • Pre-approval process: Who is responsible for approving travel? Can certain employees self-book, or must all trips receive management sign-off?
    • Preferred suppliers: List approved airlines, hotels, and car hire companies. For example, some companies may want employees to prioritise eco-friendly options, creating a sustainable business travel policy.
    • Last-minute changes: Define how last-minute itinerary changes will be handled, who to contact, and how approvals are granted.
    Travel Expenses And Reimbursements

    To avoid confusion and overspending, your business travel and expense policy should define what expenses are covered and how employees will be reimbursed. Key details to include:

    • Flights: Clearly state whether employees should book economy, premium economy, or business class. Include guidelines for both domestic and international travel.
    • Accommodation: Specify maximum nightly rates for hotels and which amenities (e.g. breakfast, parking, and Wi-Fi) will be reimbursed.
    • Ground transport: Define when employees can rent cars versus using public transport or ridesharing services like Uber. Also, include preferred car hire suppliers.
    • Meals: Some companies offer a daily per diem for meals; others cover meal expenses directly. Outline which option your company chooses, and set daily limits if applicable.
    • Expense reporting: Set expectations on how employees should submit their expenses and within what timeframe. Be sure to detail what receipts or documentation are needed for reimbursement.

    Learn more: How Business Travel Boosts Social Capital And How This Helps Your Company

  • Transportation Guidelines

    Clearly define the rules around which modes of transport employees are allowed to use for business trips. This not only helps manage expenses but also ensures travel remains efficient. Some key points to include are:

    • Domestic flights: Identify the preferred domestic airlines, booking processes, and airfare classes allowed.
    • International flights: Provide specific guidelines for international travel, including preferred airlines and policies around class upgrades, baggage, and amenities.
    • Car hire: Specify if employees are allowed to rent cars, what type of vehicle they may choose, and whether they are responsible for fuel.
    • Ride-sharing: Define whether employees should use Uber, Bolt, or traditional taxis for ground transportation.
    Employee Safety And Duty Of Care

    A major component of any corporate travel policy is to ensure the safety of employees while they are travelling. This aspect of your policy should cover:

    • Travel insurance: Define whether the company provides corporate travel insurance policy coverage and what’s included (e.g., medical expenses, trip cancellations).
    • Emergency contacts: Provide a list of key contacts that employees can reach out to in case of an emergency, including local embassy numbers, insurance providers, and corporate travel risk management policy contacts.
    • Travel health advice: Offer health and safety tips, especially for international trips. This could include recommended vaccines, tips for avoiding foodborne illnesses, and emergency numbers.
  • Bleisure Travel

    The rising trend of bleisure travel (mixing business with leisure) is something many companies are beginning to address. If your company allows employees to extend their business trips for personal travel, be clear about:

    • Who covers the additional cost: If an employee chooses to stay longer, they should be responsible for extra accommodation and meals.
    • Insurance coverage: Ensure employees know whether their corporate travel insurance policy covers them during leisure activities.
    • Company resources: Define which company resources (e.g., car hire, credit cards) employees may or may not use during the leisure portion of their trip.
    Sustainable Travel Practices

    An increasing number of companies are adopting a sustainable business travel policy to minimise their environmental footprint. You can include guidelines such as:

    • Eco-friendly transport: Prioritise airlines with lower carbon emissions, and encourage using public transport over private car hire.
    • Sustainable accommodation: Select hotels that follow sustainable practices, such as energy efficiency and waste reduction.
  • Business Travel Allowances

    Set clear expectations for the daily allowances provided during business trips. Your business trip allowance policy might include:

    • Daily per diems: A set amount employees can claim per day for meals, transportation, and other incidentals.
    • Hotel allowances: Maximum hotel rates based on the destination city.
    • Additional costs: Outline whether employees can claim additional expenses, such as Wi-Fi charges or laundry services.
    Reporting And Compliance

    Your business travel policy should include processes for monitoring travel compliance. This ensures the policy is being followed and allows for regular reviews of travel spend:

    • Expense tracking: Encourage the use of expense-tracking tools to ensure real-time visibility of travel costs.
    • Reporting: Set expectations for employees to submit post-trip reports, particularly for more significant international or long-haul travel.
    • Audits: Schedule regular reviews of travel expenses to identify areas for cost-saving and compliance issues.

Best Practices For A Successful Corporate Travel Policy

Incorporating corporate travel policy best practices can ensure your policy remains up-to-date, efficient, and relevant:

  • Flexibility: While it's essential to maintain control over expenses, a flexible policy that allows for emergency situations or last-minute changes can improve compliance.
  • Collaboration: Work closely with HR, finance, and frequent travellers to create a policy that balances financial control with the needs of travellers.
  • Clarity: Ensure your policy is written in simple, clear language so all employees can easily understand it.
  • Training: Offer ongoing education about the travel policy to ensure everyone knows how to follow it properly.

Get The Best Help With Your Corporate Travel Policy

Creating and managing a successful business travel policy is no small task, but at TravelManor, we're here to help. Our team of experts has years of experience assisting businesses in developing efficient, cost-effective, and safe corporate travel policies.

Whether you need help drafting a new policy or optimising your current one, we’re ready to provide the guidance you need. Contact TravelManor today to learn more about how we can assist in creating a company travel policy that fits your business’s needs perfectly.

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