A corporate travel policy is a set of rules and procedures that govern how employees search, book and gain approval while traveling on behalf of the company. Corporate travel policies are typically set with a collaboration between the company’s travel manager, finance officer, and procurement professional. Also, HR managers are gaining a stake in defining what is included in a travel policy.
The policy seeks to ensure that the company does not pay more than it needs to after balancing traveler well-being, a duty of care, and using preferred suppliers.
Some travel policy rules cover what cabin class employees fly, how far in advance they should book, and the approval process in the employee’s reporting line. It will often include items such as how much employees can spend on food and other necessary expenses while away from home too.
While travel policies vary between companies, the most common provisions would include these:
- Efficiently booking business travel and identifying acceptable booking channels.
- Understanding the approval process for business travel, including procedures for exceeding normal cost parameters.
- Clarifying methods to designate travel as billable to a client.
- Addressing exceptions for destinations or routes with significantly higher costs, such as New York or London.
- Identifying preferred suppliers for hotels, air travel, and car rentals.
- Guidance on claiming associated costs of travel away from home.
- Distinguishing between expensable and non-expensable items.
- Providing information on travel insurance coverage.
- Procedures and contact information for handling disruptions during business travel.
- Travel policy clarification on the permissibility of extended leisure trips during business travel and which wellness activities may be expensed.
