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.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.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. ?)
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