Business travel is essential for organizations but requires careful management to gain the most value while minimizing risks and costs. Effective travel policies and guidelines lay the groundwork for success by establishing expectations, parameters, and procedures for employee business trips. The critical elements of a well-structured policy include expense management and approvals, mode of transportation guidance, accommodation selection criteria, travel insurance coverage, and incident response plans. These allow organizations to streamline processes, control costs, safeguard employee well-being, and facilitate productive business travel management.

Here are the key elements that the policy should require:

Travel authorization

Establishing a transparent travel authorization process is critical for effective business travel management. Key aspects of travel authorization include:

• Designating appropriate individuals to approve travel requests based on employee role and trip specifics. Typically, department heads authorize local trips while senior executives agree on international travel.
• Setting objective criteria for determining the business necessity of requested travel versus alternatives like video conferencing. Only authorized travel is deemed essential to achieving business goals.
• Requiring employees to submit complete trip details, including itinerary, expenses estimate, and meeting objectives for management review before departure.
• Approved travel authorization proves that business trips adhere to company policies and budgets, aiding in expense report auditing and compliance.

Booking Procedures

Booking cost-saving travel arrangements is vital to effective expense management. Employees should book travel through a corporate travel agency or online booking software for effective business travel management. Bookings should be made at least two weeks before departure to take advantage of available discounts. The policy must contain guidelines for employees to choose the lowest logical fare for air travel that considers flight times, connecting flights, and layovers. Employees should opt for economy or discount fares, minimize checked baggage fees, accumulate frequent flyer miles, and use any available electronic receipts or paperless options when possible.

Travel Expenses and Reimbursement

To qualify for reimbursement, all travel expenses must be reasonable and justified by the nature of the business purpose. Reimbursable travel expenses typically include airfare, accommodation, meals, ground transportation like taxis, rental cars, and parking, as well as incidental costs like internet access and luggage handling. Generally, there are proven set daily limits for meals and incidentals. Employees must submit original itemized receipts through travel management software for lodging and expenses over a specific limit.  A brief written explanation of the nature and purpose is required for expenses under a particular limit without a receipt. All reimbursement requests should be submitted within 30 days of travel completion.

Travel Budgeting

Companies should establish an estimated travel budget for approval before booking any trips. The policy should require employees to take cost-control measures to minimize expenses and stay within the approved budget. This includes booking travel arrangements as early as possible to get the lowest fares, choosing reasonably priced accommodation options, using public transportation instead of taxis, purchasing discounted multi-day transport passes, requesting corporate rates from hotels, and avoiding premium hotel amenities. Employees should monitor their budgets throughout extended travel and notify approvers of necessary adjustments. Unapproved expenses over the budget may be declined reimbursement.

Policy compliance

All employees are expected to comply fully with these travel policies and guidelines. They can follow the policies, including obtaining required approvals or submitting expenses promptly, to ensure reimbursement is allowed. Intentional misrepresentation of expenses or falsifying receipts to obtain undeserved refunds will be considered fraud, resulting in disciplinary action up to and including possible termination. The policy must mandate that employees confirming travel plans review all relevant travel and expense policies before finalizing any bookings. Strict compliance helps ensure expense management software captures accurate data to manage business travel costs effectively.

Safety and security of employees

Employee safety is a top priority. Travel to high-risk destinations may require additional approvals. Company Owners should be aware of current state department warnings and alerts from the Centers for Disease Control for all travel. Employees should follow recommended security precautions, avoid high crime areas, and enroll in travel health insurance that covers emergency medical evacuation. Employees should provide their manager with an emergency contact and travel itinerary before departing. In emergencies, employees should immediately contact their manager and follow any protocols outlined in the company emergency action plan. Resources on security measures, travel advisories, and country profiles are available through the travel administrator. Strict compliance with safety guidelines helps ensure employees can travel responsibly and return home safely.

Traveler Support

Travelers have access to comprehensive support services. A 24/7 travel assistance hotline is available for medical or legal referrals, emergency ticket reissues, and emergency cash advances when required. Designated travel coordinators can assist with itinerary changes, flight and hotel booking modifications, trip cancellations, and any travel-related emergencies during or after business hours. Any expenses incurred due to changes or interruptions to approved itineraries must be approved by management by expense policies. Travelers are encouraged to always have travel coordinator contact information handy during trips in case of unpredictable changes or emergencies. Robust traveler support helps ensure trips go smoothly and business travelers receive assistance.

Health and wellness

Employee health is a priority while traveling domestically and internationally. For international travel, employees are advised to consult with a physician regarding recommended vaccinations and prophylactic medications based on their destination. Employees should ensure adequate medical insurance covering costs associated with illness, injury, or emergency hospitalization abroad. While traveling on company business, employees are expected to maintain a healthy lifestyle and exercise good judgment to remain productive and minimize health risks. Using compression stockings and walking the airplane aisle frequently for longer trips can help prevent deep vein thrombosis. After returning from travel, employees should consult a physician if experiencing any prolonged or concerning symptoms. Adhering to these health and wellness practices while traveling can help minimize risks and maximize employee productivity.

Communication and Documentation

Proper documentation and communication are essential for travel on company business. At least two weeks before departure, travelers must obtain passports, visas, medical inoculation records, and international driving permits. Before leaving, travelers must provide their manager and administrator with a copy of their final itinerary, including emergency contact numbers. While traveling, employees should communicate any changes to their itinerary or delays to their manager as soon as possible. After return, the traveler must submit all required receipts and expense reports within 30 days. Regular communication between travelers, their managers, and travel administrators helps ensure trips stay on track, safety and security protocols are followed, and expense reporting complies with company policy. Timely documentation and submission of receipts and reports are required for appropriate reimbursements.

Continuous Improvement

These travel policies and guidelines are intended to evolve with changing business needs, best practices, and regulatory requirements. Employees should provide honest feedback and suggestions to identify areas for improvement. Enhancements to travel technologies, processes, and policies may be considered continuously. Regular audits of expense reports, voucher approvals, and reimbursement requests will assess compliance and inform necessary changes to enhance guidance. Updates to global security threats, travel advisories, and medical recommendations will determine when travel restrictions or additional support for travelers in high-risk areas is warranted. The travel program will be reviewed at least annually to ensure policies maximize savings, support business objectives and minimize risks for travelers. Employees are strongly encouraged to contribute recommendations to ensure the travel program meets the organization’s current and future needs.

Conclusion

These guidelines provide a good starting point. Each company has unique needs that require tailoring the specifics of its policies for optimal results. The key is developing policies that balance enabling necessary trips with cost control, compliance, and employee care. Reviewing expense reports and listening to employee feedback will ensure your travel program stays applicable over time. Flexible policies that evolve with technological advances, security risks, and cost structures will help strike the right balance for your business. With the right mix of structure, adaptability, and continual improvement, your customized travel policies can enhance business travel management, save money and mitigate risks while supporting your company’s goals. The most important thing is developing policies that work for you.