The complete guide to corporate travel policies

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How to write a travel policy

With budget airlines gaining traction, managing business travel costs may have become easier. However, booking cheaper flights is only part of the equation and does not replace the need for a solid corporate travel policy.
A great travel policy isn’t just about what employees can buy on the company credit card or how much they can spend on flights or accommodation. It’s your way of streamlining business travel management workflows to help your administrative team become more efficient and productive.
A well-crafted travel policy empowers employees to effectively achieve business purposes while ensuring safety and cost-efficiency. It balances flexibility with accountability, providing clear guidelines for travel arrangements and expenses.
Let’s explore how to write a company travel policy that makes a difference.
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How to build an easy-to-follow travel policy for employees

Your travel policy should have your employees' backs. By putting their needs first, you create a policy that's not just followed but embraced.
Here are two important ways to put that into action:
  • Include information that employees need (like reimbursement and safety). If employees need to refer to your policy, then they’re more likely to become familiar with it. 
Easy access to your travel and expense policy is key. Include clear guidelines on reimbursements and procedures, working closely with your finance team. Don't forget to cover essential topics like travel insurance and emergency protocols.
  • Clearly state the approved travel booking tool with built-in policies. You shouldn’t expect that employees will remember the allowed rate per night in 100 different cities for all their travel arrangements. 
Use your travel policy to remind employees what the approved travel booking tool is. This platform should include pre-set budgets, approval workflows, and clear guidelines for air travel, personal travel, and business class bookings.

How to write a travel policy step by step

To build a travel policy that truly works, start by defining your goals, gathering input from key stakeholders, and analyzing your current policy's strengths and weaknesses.

Review your current policy or practices

Do you have an existing travel policy? If so, is it up-to-date and effective? If not, you will start from scratch. Either way, involve key stakeholders in evaluating your current processes during your initial meeting.

Set goals and priorities

Determine the top two or three goals for updating your policy, such as meeting the needs of a growing team. Define the business purposes behind employee travel so that everyone is clear on how and why they might be expected to go.
Here are example goals for updating your corporate travel policy:
  • Booking Process: Simplify the booking process with user-friendly tools, offer preferred travel vendors, and provide clear guidelines for booking accommodations, flights, and transportation.
  • Business Expenses: Implement easy expense reporting procedures, including clear guidelines for what’s eligible to go on the company credit card, receipt requirements, per diem rates, and reimbursement timelines.
  • Travel Safety: Prioritize employee safety with emergency contact information, travel insurance requirements, and guidelines for destinations that are high-risk.
  • Wellbeing: Outline responsibilities for employee wellbeing, including emergency procedures.
  • Policy Communication: Develop clear communication channels to ensure employees understand the policy. Consider using a digital platform.

Involve stakeholders

The size and organization of your company will determine who needs to approve your new travel policy template. Here’s who should either help write the company travel policy, or approve the final version:
  • Travel manager – Brings insight into traveler behavior, goals for the policy, and all the details on travel vendors, negotiated rates for international and domestic travel, and so much more.
  • Office manager – Brings insight into issues with the travel booking process and travel support, and helps set goals for improving the policy and procedures.
  • CEO (in the case of small companies) – Brings business-related insight into goals for compliance and cost savings. Will also have ideas for streamlining expense reporting procedures
  • COO – Helps set goals for streamlining processes and saving time, as well as improving duty of care and compliance.
  • Frequent travelers – Know what works and what doesn’t with the current travel policy.
  • HRUnderstands employee demands and expectations.
To minimize disruption to everyone’s regular responsibilities, hold a kick-off meeting to establish goals, then work independently to complete the template customizations. 
You can reach out to individual stakeholders for help on certain sections when needed. Afterward, hold a final meeting with everyone involved to review the policy before rolling it out.
Company Travel Policy Template

Get a head start on creating your own business travel policy. Try our free, comprehensive template today.

Choose a travel management style and level of strictness

Before you start writing your policy, you’ll also want to decide on your travel management style and level of strictness. Knowing these will make other decisions easier.
  • Travel management style – Will employees book for themselves using your corporate travel software? Or will an administrator/manager still handle the booking? How much freedom and autonomy do you want to offer them? Will they be able to mix official travel with trips for personal reasons?
  • Level of strictness – Decide how much control you want over employee bookings. Will your tool strictly enforce policy, requiring approval for all out-of-policy trips? Or do you prefer a more flexible approach, allowing bookings outside policy but notifying managers? Ultimately, the level of strictness depends on your company's risk tolerance and desired level of control.
If stakeholders still disagree on the travel management style, it’s challenging to properly write a policy or configure the approval process inside of your business travel booking tool.

Decide what to include in your policy

Your travel expenses policy is your employee's guide to a business trip. It should be clear, concise, and easy to understand.
Here's a breakdown of essential elements:
  • Policy Overview: Explain the policy's purpose and importance.
  • Booking Processes: Outline preferred booking tools, the approval process, cancellations, and the time frame to make bookings.
  • Reimbursable Expenses: Clearly define what travel reimbursement costs are covered, whether it’s business meals, incidental expenses lodging expenses, dry cleaning, registration fees, or upgrades. Be exhaustive and specific.
  • Non-Reimbursable Expenses: Specify the items that are not covered by the policy. This could be things like alcoholic beverages, vouchers, entertainment expenses, and phone calls.
  • Travel: Provide detailed guidelines for airfare, ground transportation, and rental cars.
  • Expenditures: Explain the process for submitting and processing expenses.
  • Emergencies: Provide contact information for travel support, insurance, and emergency assistance.
Remember, the level of detail will vary depending on your company's size and nature of business.

Set up an automated travel policy with TravelPerk

Once your travel policy is finalized, it’s time to digitize it. Automate your travel policy with TravelPerk to ensure your employees have the travel guidance and booking assistance they need around the clock. 

TravelPerk helps you put your travel policy on autopilot while keeping expenses and cancellation fees in check.

When you book your business travel through TravelPerk, your travel policy is seamlessly integrated into our platform. This gives your employees better visibility of what's in policy and helps them make more informed choices when booking their trips. Plus, you can set up automated approvals giving more control and peace of mind for your finance team too!
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Set clear parameters like maximum costs for flights or approved routes and TravelPerk will automatically flag or approve the booking accordingly. 
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