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Benefits of Having a Corporate Travel Policy

Key elements of a corporate travel policy, creating a corporate travel policy, best practices for implementing a corporate travel policy, ensuring compliance with a corporate travel policy, sample corporate travel policy, what is a corporate travel policy, and why is it important, what should be included in a corporate travel policy, how can organizations create an effective corporate travel policy, the bottom line.

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How to Set a Corporate Travel Policy: Key Elements, Best Practices, and Compliance

A corporate travel policy is a set of guidelines and best practices that govern employee travel. Organizations that have corporate travel policies use them to ensure that all employees follow the proper protocols when booking business-related travel and logging expenses.

While travel policies are often standard for large corporations, smaller businesses can also benefit from instituting them.

Key Takeaways

• A corporate travel policy is essential for organizations to manage travel expenses, ensure compliance, and streamline processes.
• Key elements of a corporate travel policy include travel booking procedures, expense reimbursement guidelines, travel safety measures, and approval processes.
• Best practices for implementing a corporate travel policy include effective communication, employee training, and regular policy review and updates.

Having a corporate travel policy can yield a range of benefits, both for business owners and their employees.

From the perspective of business owners, a corporate travel policy can allow you to:

• Monitor employee travel expenses to ensure accuracy and detect possible instances of fraud
• Establish guidelines for which hotels, airlines, and other travel organizations that employees may book through
• Ensure that employees understand which travel expenses may be submitted for reimbursement
• Organize expense data accurately and quickly
• Remain compliant with Internal Revenue Service (IRS) tax rules and regulations regarding business travel
• Minimize waste and streamline your accounting systems

On the employee side, having a standard corporate travel policy in place can help employees avoid a scenario where they may be waiting weeks or months to be reimbursed for expenses they’ve paid out of pocket because the company can’t verify what they spent.

Employers should take care to understand which business travel expenses are deductible and which ones are not under the Internal Revenue Code (IRC) .

There’s no one-size-fits-all corporate travel policy template or blueprint that businesses can follow. That’s an advantage, however, as it allows you to create a travel policy that fits your business’s needs.

Generally speaking, a corporate travel policy should cover rules and guidelines for the following:

• Airline, hotel, and rental car reservations
• Other transportation expenses , such as rail travel or ride-sharing
• Employee spending, as it pertains to meals, entertainment, phone calls, and other necessary expenses
• Parking fees and toll passes
• Acceptance of gifts when meeting with clients, or expensing of gifts presented to clients
• Medical care and travel insurance
• Currency exchange fees and international banking
• Employee submissions of receipts for reimbursement
• Review, approval, and payment of submitted expenses
• Personal safety of employees
• Security of business equipment or documents

When in doubt, it’s better for a corporate travel policy to cover more ground rather than less. Making your organization’s travel policy as comprehensive as possible can help to avoid confusion with regard to which expenses are acceptable and when employees can expect to be reimbursed.

Creating a corporate travel policy is a multistep process. Breaking each step down can make it easier to manage and create a policy that’s tailored to your business’s needs.

Investopedia / Julie Bang

Identify Your Objectives

First, consider what you need a corporate travel policy to do for you. Are you primarily interested in minimizing costs or preventing abuse? Do you want to ensure that employees are booking with approved organizations and taking steps to remain safe while they’re traveling? Considering your top three objectives can offer a good starting point for developing your corporate travel policy.

You can use those insights to draft a purpose statement outlining the policy’s intentions. This doesn’t need to be lengthy, but it should convey what the policy is designed to do.

Get Your Team Involved

A corporate travel policy is only as good as its ability to meet the needs of those who are expected to adhere to it. Asking some questions about your team and your business’s travel activities can help you pin down what your policy should cover.

For example, ask yourself the following:

• Do any employees require special accommodations for travel related to a health condition or disability?
• Are there any destinations that the business travels to regularly?
• Are there any preferred hotels, airlines, or rental car companies that the business likes to use?
• Is there a preferred process for booking trips or answering questions?
• Who will be responsible for approving bookings, answering employee questions, approving expenses, and submitting them for payment?
• How will employees pay for expenses they book?
• If employees are using corporate credit cards , what rules are they expected to follow?
• How will they submit those expenses for reimbursement, and what information will they need to provide?

Polling your employees can further inform your decision making. For example, an employee who travels frequently may know which hotels are better than others or which airlines offer the best rates. Your employees may appreciate being given a chance to share their insights and opinions on what the company’s travel policy should look like.

If you’re considering corporate credit cards for employees, look for one that allows you to set individual spending controls for each card.

Draft the Policy, and Review It Carefully

Once you’ve collected all the feedback you think you’ll need, you can get to work on fleshing out your corporate travel policy. Again, you want to be thorough in detailing the policies and procedures that you expect employees to follow.

After you’ve written out the first draft, go through your policy a second time. Is there anything that could be explained more clearly? Any areas that may cause confusion for employees? Anything you’ve left out entirely?

You may need to review your travel policy several times to make sure you’re covering all of the most important bases. Once you have the language down, you can review it one final time to check for spelling and grammar errors.

Share the Policy with Your Staff

The final step after creating a corporate travel policy is conveying it to everyone in the company who’s affected by it. If employees don’t know what’s in the policy, it’ll be very difficult for them to adhere to it.

Remember that you’ll need to repeat this step anytime you make changes to the policy. If you add something new or take something away, it’s your duty to convey that to your employees so they’re aware of the changes.

Once you’ve created a corporate travel policy, you’ll need to implement it. These tips can help with introducing your company’s travel policy and enforcing it.

• Ensure that employees know who they can direct questions to regarding business travel bookings, expense reporting, and reimbursement.
• Set a specific time frame for submitting expenses for reimbursement and processing payments to employees.
• Consider scheduling an employee meeting or workshop to walk through the details of the travel policy and answer any questions that might arise.
• Ensure that all new hires get a copy of the travel policy.
• Regularly review and update your travel policy if necessary.
• Conduct monthly reviews or audits of travel expenditures to check for errors and potentially detect fraud or abuse.

It’s also important to specify what consequences, if any, employees may face if they’re found to be noncompliant with the policy. That may include having travel privileges restricted or, in a worst-case scenario, dismissal if evidence of fraud is found.

Ensuring compliance with your company’s corporate travel policy is important from a cost perspective, as you don’t want to blow your travel budget. There are different tactics you can use to maintain compliance across all stakeholders .

• Update your policy regularly to reflect the company’s latest practices and guidelines.
• Simplify the policy if necessary to avoid confusion.
• Clearly communicate compliance expectations, as well as the consequences of noncompliance, to all employees.
• Ensure that the policy is detailed thoroughly during the onboarding process for new hires.
• Conduct regular reviews and audits of travel expenses to look for any signs of noncompliance.
• Consider using a business travel management tool or software to keep track of bookings and expense reporting.

You may also place safeguards on travel bookings to prevent employees from straying outside the boundaries of the policy. For example, if you use a corporate travel agency, you might direct the agency to automatically reject any attempted bookings that don’t involve a preferred travel partner.

Corporate travel policies are common across a variety of industries, from finance to retail to the government. Examples of organizations that maintain corporate travel policies include:

• JPMorgan Chase & Co.
• Columbia University
• U.S. Department of the Interior

All of these sample policies have similar characteristics, in that they outline the purpose of the policy, specify the rules that apply to booking accommodations, and offer detailed instructions to employees on how to submit expense reports for reimbursement. It may take some time to work out your travel policy, but reviewing examples like these can give you an idea of what to add.

If writing a detailed corporate travel policy yourself seems daunting, you may consider outsourcing this task to a consultant who’s experienced in compliance.

A corporate travel policy establishes the guidelines for booking travel expenses and submitting them for reimbursement. Travel policies can also extend to things like personal safety and security of business equipment or documents. Having a corporate travel policy is important for minimizing fraud and abuse, while ensuring more accurate record-keeping.

At a minimum, a corporate travel policy should outline approved practices for booking airfare, hotels, rental cars, and other necessary travel expenses. It should also detail the process for submitting expenses for reimbursement, including how expenses are approved and when employees can expect to be paid.

The first step in creating an effective corporate travel policy is understanding what your business needs. Forecasting your budget for business travel and setting proper limits on which expenses are acceptable are the next steps. Organizations must also ensure that all employees are aware of the corporate travel policy and understand how to adhere to it.

A corporate travel policy may be a necessity if your employees take regular business trips to meet with clients or prospective clients, attend professional conferences or seminars, or participate in career training. If you don’t yet have a policy in place, you may want to set that as a priority for your business. Having a clear policy to follow leaves little room for misunderstandings and mismanagement of travel privileges.

Internal Revenue Service. “ Understanding Business Travel Deductions .”

JPMorgan Chase & Co. “ JPMorgan Chase Bank N.A. Supplier Travel and Expense Policy .”

Best Buy Partner Portal. “ Vendor Travel and Expense Reimbursement Policy .”

Columbia University, University Policies. “ Travel Expense Policy .”

U.S. Department of the Interior. “ Travel .”

Starbucks. “ Non-Partner Travel and Business Expense Standard—U.S. and Canada .”

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Blog / Business Travel / How to Create a Corporate Travel Policy & Implement it Correctly

Business Travel

How to create a corporate travel policy & implement it correctly.

A strong corporate travel policy is the unsung hero in business travel.

A corporate travel policy is a company’s comprehensive set of guidelines to manage business travel. It covers travel costs, meal expenses, business travel accommodation , and ground transportation. The primary goal is to streamline travel arrangements, control expenses, and ensure employee safety during business trips. A well-defined corporate travel policy benefits both employees and the organization by providing clear guidelines on travel expenses, booking processes, and reimbursement procedures.

Business travel managers play a pivotal role in implementing these travel policies — they ensure compliance with the company’s travel policy, manage costs effectively, and oversee the entire travel program. It is a nuanced role that involves negotiating with preferred suppliers, handling emergencies, and keeping abreast of cultural differences in various locations. But, following a few tips can make a big difference in supporting company culture and ensuring business travelers' safety, productivity, and comfort.

Why Having a Corporate Travel Policy is Essential

A corporate travel policy is essential for all types of business travel for several reasons. Firstly, it sets clear guidelines for employees, detailing what is covered under travel expenses and helping them select air travel, a rental car, and hotel accommodations. This clarity helps manage corporate travel more efficiently and prevents confusion regarding expense claims.

For the organization, a corporate travel policy helps control costs and ensures that employees use company money judiciously. It also facilitates compliance with a finance team and other documentation requirements, like submitting expenses within a set time frame or adhering to daily allowances. Additionally, such policies are crucial for managing risks associated with business travel. The approach keeps employees safe during their travels by defining travel insurance requirements, emergency contacts, and procedures for different situations.

A corporate travel policy is much more than a document — it’s a crucial tool for managing business travel effectively, keeping employees safe, and controlling travel-related expenses. 

Benefits for Your Company

The 2023 Corporate Travel Study from Deloitte Insights found that about half of respondents report that employees’ expectations of luxury services and the need for flexible or last-minute bookings are pushing costs up in 2023. Implementing a corporate travel policy helps manage and control travel costs effectively. It ensures employees follow set guidelines for expenses like air travel, accommodation, and ground transportation, leading to significant savings. Here are more of the benefits that a travel policy provides:

• Risk Management: A well-defined travel policy includes corporate travel risk management software , which minimizes risks associated with business trips and keeps company assets safe.
• Policy Compliance: A corporate travel policy improves compliance with internal and external company rules, reducing the likelihood of legal or financial issues and points travelers to certain suppliers.
• Streamlined Processes: Clear travel policies streamline the booking process, expense reporting, and reimbursement process, making managing corporate travel more efficient.
• Employee Safety: Ensures employee safety during travel through guidelines on travel insurance, emergency contacts, and medical expenses.
• Enhanced Travel Program Management: Allows travel managers to work closely with preferred suppliers, negotiate better rates, and manage the overall travel program more effectively.
• Consistency Across Locations: Ensures consistency in travel arrangements and policies across different locations, fostering a unified company culture.
• Data and Reporting: Facilitates accurate tracking and reporting of travel expenses, helping the finance team budget and forecast.

Benefits for Your Employees

With a well-defined travel policy, employees understand what expenses are covered, such as business class flights, rental cars, and meal expenses, leading to fewer misunderstandings and disputes. Employees can make travel arrangements within the policy framework, offering them a sense of autonomy. Business travel has many benefits, from professional development and entertaining clients to cultural exposure, and a fair and well-managed travel policy opens the door to all of these opportunities, increasing employee loyalty and reflecting the company’s commitment to their well-being.

The travel policy also includes provisions for comfortable travel arrangements, like corporate housing , and accounts for their safety with emergency contacts and travel insurance provisions ensuring their safety and peace of mind while traveling.

Key Elements of a Thorough Corporate Travel Policy

Incorporating these elements into your corporate travel policy will clarify the travel process and business purpose and ensure compliance and efficiency in managing business travel. By addressing these key areas, businesses can create a travel policy that meets their specific needs and objectives while keeping their employees informed and prepared for their business trips.

A Clearly Defined Purpose Statement 

The purpose statement establishes the overall objectives and goals of the corporate travel policy. It communicates the company’s approach towards business travel. This statement is a reference point for all policy decisions, ensuring they align with the company’s values and travel objectives.

• To ensure safe, cost-effective, and efficient travel arrangements for all employees.
• To align travel practices with the company’s ethical standards and sustainability goals.
• To provide clear guidelines on allowable expenses and travel procedures.

Process For Gaining Permissions & Booking Trips

The travel policy outlines employees' steps to approve their business trips, ensuring transparency and consistency in the decision-making process. It provides specific directives on how far in advance employees should book their trips, what booking tools to use, and the preferred suppliers.

• Employees must submit travel requests via the company’s booking tool at least two weeks in advance.
• Approval from direct supervisors and the travel manager is required for all international travel.
• Use of preferred suppliers for booking flights, accommodations, and ground transportation

Accommodation Booking Guidelines 

The travel policy establishes what procedures to follow when booking accommodations for business travel, including the use of preferred suppliers, a booking window that falls at least two weeks in advance to secure the best rates and availability, and adherence within the allocated budget for accommodation, considering factors like location, safety, and amenities.

• Use the company’s booking tool for all hotel reservations.
• Choose corporate housing options that meet the company’s safety and quality standards.
• Prioritize accommodations that offer essential amenities for business travelers.

Use of Alternative Transportation

The Deloitte study found that four in 10 European companies and a third of US companies say they need to reduce travel per employee by more than 20% to meet their 2030 sustainability targets. But it doesn't have to be that way: Corporate travel policies can optimize sustainable decision-making, encourage business travelers to select electric rental cars, and consider carbon emissions when choosing a flight. Of course, they'll need to keep cost and safety in mind.

• Opt for rail travel, which is more economical or efficient than air travel.
• Use ride-sharing services for short distances instead of renting cars.
• Employ eco-friendly transportation options, such as bicycles or electric scooters, for short commutes.

Expense Guidelines 

The corporate travel policy outlines specific per diem costs and allowances for items such as food and lodging. A per diem sets a daily allowance that covers meal expenses, with adjustments based on the cost of living in the travel location, and includes minor, necessary expenses such as tips and public transportation fees. The all-in-one travel and expense management platform Navan highlights how having a modern expense management tool can streamline these processes and make the policy accessible at the time of swipe.

• Allocating a daily meal allowance based on the city or country of travel.
• Capping hotel expenses at a predetermined rate per night.
• Reimbursing for minor, incidental expenses with proper documentation.

Guidelines for Travel Safety 

For travel safety, the policy should include specific guidelines for employees traveling alone, focusing on staying in secure locations and maintaining regular contact with the company, and clear instructions for handling emergencies, including contact details for local embassies and medical facilities.

• Mandatory safety briefings for solo travelers.
• Providing a list of emergency contacts and medical facilities in the travel destination.
• Choosing AltoVita accommodations that meet rigorous safety standards.

Reimbursement Procedures 

To claim and get company money reimbursed for business travel expenses, employees should submit expense reports within a specified time frame after the completion of the trip and provide all necessary receipts and documentation for expenses incurred during the trip. Expense claims must be approved, often involving the direct supervisor and the finance team.

• Using a designated expense reporting tool to file all claims.
• Keeping all meal, lodging, and transportation receipts for submission.
• Adhering to the company’s guidelines on the maximum limits for various expense categories.

How to Implement Your Corporate Travel Policy

Implementing a corporate travel policy effectively involves several key strategies, each designed to ensure that the policy is not only understood and accepted but also adhered to by all employees. 

• Communication Strategy: Keep employees informed of any policy updates or changes. Considering that corporate travel spend is projected to surpass half of 2019 levels in the first half of 2023, it's vital to keep everyone updated on the evolving travel landscape​​. Leverage various communication platforms like emails, intranet, and meetings to reach all employees effectively.
• Policy Documentation and Accessibility: Ensure the travel policy is accessible to all employees. With international trips growing and accounting for a significant share of travel costs, having a readily accessible policy is crucial for informing employees about international travel guidelines​​. Create a user-friendly policy document clearly outlining corporate travel's do's and don'ts.
• Approval Workflows: Develop a transparent and efficient process for travel approvals. This is important as about half of the companies report increasing costs due to the need for flexible or last-minute bookings​​. Implement digital tools for quicker and more transparent approval workflows.
• Employee Support and Assistance: Offer support services, such as a 24/7 helpline, especially for international travel, which is increasing in frequency​​. Conduct training sessions to educate employees about travel policies, focusing on areas like sustainable travel, a growing concern for many businesses​​.
• Monitoring and Enforcement: Continuously monitor travel activities to ensure adherence to the policy. Almost half, or 45%, of companies, limit travel frequency to control costs, indicating the importance of monitoring to manage expenses​​. It shouldn’t be this way! Establish clear consequences for non-compliance to maintain the integrity of the travel policy.
• Feedback Mechanisms: Regularly collect employee feedback to understand their needs and challenges. This is crucial as employees’ expectations of services and flexible bookings influence travel costs​​. Use the feedback to refine and improve the travel policy continually.

Best Practices for Business Travel Managers: A Checklist

Follow this checklist of best practices to enhance your business-class corporate travel policy's effectiveness significantly: 

Regularly Update and Review the Policy

Travel managers must ensure that the company’s corporate travel policy stays current and reflects the ever-changing business travel landscape, which includes adapting to new travel trends, regulatory changes, and company needs. A regular review schedule is crucial.

• Review Frequency: Conduct semi-annual or annual reviews of the travel policy.
• Stay Informed: Keep abreast of industry changes, such as new travel technologies or shifts in travel costs.
• Engage Stakeholders: Involve various departments in the review process, such as finance, HR, and operations, to get diverse perspectives.

Use Clear Communication

Transparent communication is vital when implementing policy changes. Travel managers should use clear, concise language and diverse channels to ensure all employees understand the travel policy.

• Multi-Channel Communication: Use emails, company intranet, meetings, and newsletters to communicate changes.
• Feedback Mechanism: Encourage feedback from employees to gauge understanding and gather suggestions.
• Regular Reminders: Send out periodic reminders about critical aspects of the travel policy.

Create Employee Awareness

Educating employees about the travel policy is as important as the policy itself. Travel managers should develop strategies to ensure employees understand the travel policy best practices well.

• Training Sessions: Organize regular training sessions to walk employees through the travel policy.
• Informational Materials: Develop easy-to-understand guides, FAQs, and policy summaries.
• Accessibility: Ensure the travel policy is accessible to all employees, possibly through the company’s internal portal.

Nurture Supplier Relationships

Building strong relationships with travel suppliers can lead to better deals, enhanced service, and a more personalized travel experience. This aspect ties back to AltoVita’s emphasis on customer support and personalization for business travelers.

• Regular Communication: Keep in constant touch with suppliers to stay updated on new offerings and negotiate better terms.
• Feedback and Improvement: Share input from employees with suppliers to improve the services offered.
• Strategic Partnerships: Look for opportunities to turn suppliers into strategic partners, aligning their services with your company’s travel needs.

Adapting Travel Policies to Industry-Specific Legal Requirements

Corporate travel policies must align with stringent legal and regulatory requirements for industries like finance and healthcare. Many businesses in these sectors face unique compliance challenges, making an effective travel policy their best friend. Here’s a complete guide to navigating these complexities:

• Address Specific Compliance Challenges: Some industries require employees to follow different rules, especially during business trips. A corporate travel policy document should clearly articulate these requirements. For instance, in finance, the policy should address handling sensitive information on a business trip, while healthcare might focus on transporting medical equipment.
• Customized Policy Elements: Travel policies in these sectors should include elements that address these unique requirements. For instance, finance companies might need guidelines for handling confidential client information on the go. In contrast, healthcare organizations might need to consider the transport of medical equipment or samples.
• International and Industry-Specific Requirements: It makes sense to include clear communication of international legal requirements in your company travel policy. Traveling to other locations might involve additional expenses, such as specific insurance or vaccinations. Industry-specific legal requirements should also be a crucial part of your business travel policy, requiring employees to adhere to specific guidelines when they fly business class or use rental cars.
• Documenting and Reporting: To meet audit and regulatory requirements, implement thorough documentation and reporting procedures for travel-related expenses. This might include detailed expense reports and the necessity to use certain approved suppliers.

Key Takeaway

For effective travel policy compliance, it’s essential to consider the unique needs of your business. This includes everything from managing costs of business expenses, like entertainment expenses and alcoholic beverages, to ensuring that all travel expense policy elements are in place. An expense report should be easy to submit, and the booking process for flights and car rentals should align with your expense policy. 

A well-communicated and thoroughly understood corporate travel policy is not just a document — it’s a tool to improve travel policy compliance across many businesses, making company travel a smoother and more enjoyable experience for every business traveler.

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Table of contents

What Is a Travel Policy For Employees?

Definition and purpose, objectives of an employee travel policy, reason why should organizations have a travel policy, compliance and cost control, employee satisfaction and retention, domestic travel policy, international travel policy, 1. cultural diversity and sensitivity, 2. cultural awareness training:, 3. client engagement:, 1. regional compliance:, 2. taxation:, 3. legal implications:, sample travel policy for employees.

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Crafting an Effective Travel Policy Template: The Complete Guide

• travel policy template free
• October 24, 2023

Travel policies are an integral part of any organization’s HR toolkit, and they play a important role in regulating and facilitating employee travel. But what exactly is a travel policy, and why is it so significant for modern businesses in the HRMS software industry?

A travel policy is a comprehensive set of guidelines, rules, and principles that govern how employees conduct and manage their business-related travel activities. It serves as a guiding framework that outlines the dos and don’ts, expectations, and procedures when employees are on the move for work purposes.

Note: You can download directly from here and edit as per your need.

A travel policy is a set of guidelines and rules governing employee travel and expenses incurred during business trips. Its primary purpose is to ensure that employees adhere to company standards while travelling for work, promoting cost control and compliance.

A well-structured travel policy aims to achieve several key objectives:

Cost Control: Managing travel expenses efficiently to minimize financial impact.

Compliance: Ensuring that employees adhere to company regulations and industry standards.

Employee Satisfaction: Creating a clear and fair travel framework contributes to employee satisfaction.

Risk Management: Mitigating potential risks associated with travel.

Company travel policy for employees are essential for organizations in the HRMS software industry, serving many purposes that benefit the company and its employees.

Implementing a travel policy ensures compliance with relevant regulations and standards. This is essential, particularly in a field where meticulous record-keeping and compliance are paramount. It also enables effective cost control, which is crucial in managing expense related to employee travel.

A well-structured HR policy, aligned with industry standards, ensures that your organization doesn’t face financial or legal penalties. Additionally, it reduces the risk of fraudulent expense claims, which can substantially impact your budget.

Employee satisfaction is directly tied to how well an organization handles its travel policies. A well organized travel policy, which aligns with employee needs and preferences, can significantly boost job satisfaction and ultimately lead to higher employee retention.

Employees are more likely to feel valued and appreciated when they see that their company has policies to support their travel needs. This can enhance their overall job satisfaction and reduce turnover rates.

Moreover, a travel policy clearly defining the reimbursement process and timeframes can contribute to employee satisfaction. Employees want to be assured that their out-of-pocket expenses will be reimbursed promptly and fairly.

Types of Employee Travel Policies

Depending on the nature of an organization and its global footprint, different types of travel policies may be needed.

Domestic travel policies are designed for employees who primarily undertake business trips within the country. Travel and expense policy addresses expenses and procedures relevant to domestic travel.

A well-structured domestic travel policy is crucial, especially for all companies with various clients and projects in the country. This policy should provide detailed guidelines on booking accommodations, transportation, and meal expenses for domestic trips.

Moreover, it should outline the approval process, expense reporting requirements, and reimbursement procedures for employees travelling within the country.

On the other hand, international travel policies are tailored to employees who travel internationally for work. They encompass broader considerations, including visas, foreign currency expenses, and international regulations.

An international travel policy is important for all IT companies with a global presence. It should cover visa requirements, cultural sensitivity training, travel insurance, and international tax implications. Additionally, the policy should provide guidance on handling emergencies abroad and obtaining consular services.

Furthermore, it should clearly outline the procedures for converting foreign currency, handling international expenses, and seeking reimbursement for expenses incurred during international trips.

Read more : Why Providing Employee Transport Services is Need of the Hour?

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Challenges in Implementing a Travel Policy in India

Implementing a travel policy in India can be particularly challenging due to cultural diversity and regulatory variations across different states. Companies operating in India must address these challenges effectively.

Cultural and Regulatory Diversity

India’s cultural diversity can impact employees’ perception of and follow the travel expense policy. Sensitivity to various cultures and customs is vital in maintaining employee satisfaction and adherence to the policy.

India is a melting pot of cultures, languages, traditions, and beliefs. With many diverse backgrounds and customs, it’s crucial to consider the cultural dimension of travel policy implementation.

To navigate the intricate web of cultural nuances, company travel policy must consider providing cultural awareness training to their employees. Understanding and respecting various cultural practices and etiquettes is essential, as it can significantly impact business relationships and overall success. This awareness enhances the travel experience and promotes a positive image of the company that respects and values cultural diversity.

HRMS software companies often engage with clients from various backgrounds. This makes cultural sensitivity even more vital. Employees should have the knowledge and skills to adapt to cultural expectations during client interactions, ultimately fostering better client relationships.

Regulatory Variations Across States

India’s federal structure gives rise to regulatory variations across different states, complicating travel policy implementation.

Companies operating in multiple Indian states need to be well-versed in the intricacies of regional regulations. Each state may have different rules concerning taxation, permits, and other aspects of travel, which should be incorporated into this policy to ensure compliance.

Tax laws can vary significantly between states, impacting expenses and reimbursements. A well-crafted business travel policy should address these variations and provide clear guidelines for employees.

Failure to adhere to regional regulations can lead to legal complications. As such, HRMS software companies should work closely with legal experts to ensure that their policy aligns with the specific requirements of each state they operate in.

In conclusion, an effective travel policy is a crucial tool for all organizations, helping them manage employee travel efficiently, maintain compliance, and enhance employee satisfaction. Companies can create policies that meet their specific needs and promote successful business travel by understanding the types of travel policies, addressing unique challenges, and utilizing sample templates.

With Superworks’ free travel policy template, organizations can streamline their operations, reduce costs, and ensure the satisfaction and retention of their valued employees.

Also, See: Data Retention Policy

Written By :

Alpesh Vaghasiya

The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.

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Company Travel Policy: The Complete Guide + A Free Template

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Traveling on business has become the norm in our busy, work-oriented society, and so is a company travel policy with this trend.

Despite all the technological advancements, getting a chance to talk to clients face to face or pitch a business project in person still beats sometimes messy communications apps. 

Since travel is neither cheap nor easy, it's best to set clear expectations and rules ahead of time. A company travel policy will outline the procedures for employees on company-paid trips to avoid any issues that might arise in the process.

Our comprehensive guide to company travel policies will give you an idea about the kind of information and provisions the Policy should include. 

We'll also provide you with a free template that you can use to quickly deploy a company travel policy of your own.

What Is Travel Policy?

A company travel policy, also known as a corporate travel policy, is an  internal document that outlines how business-related expenses are handled within the company . 

It covers everything from defining what a business-related expense is and isn't to how to remain safe if traveling alone and everything in between. Most importantly, it makes it clear who's in charge of approving expenses and reimbursements and who takes care of the actual booking.

Among other things, a travel policy can include:

• Booking responsibilities and the choice of company-approved travel agencies
• Total budget (lodging, travel, daily meals, etc.)
• Company-paid and out-of-pocket expenses
• The approval process and the person in charge of it
• The approval of reimbursements
• Preferred company vendors and partners
• Travel debriefing process
• Travel insurance carrier
• Exceptions to rules for any reason

As you can see, a travel policy is about much more than just saying whether an employee can fly business or not.  Instead, a corporate travel policy is about foreseeing all the situations that can arise from business trips and staying on top of them .

Why Do Companies Need a Travel Policy?

Streamlining processes saves companies a lot of time and money in the long run. Be it onboarding new employees, paying out bonuses, or organizing business trips,  having a system in place will make the process more efficient and reliable .

More importantly, rules and  policies protect both parties from unexpected events and expenses  that could arise from misunderstandings.

A travel policy will help employees manage both business and personal expenses more reliably while also giving them the freedom to book and organize trips how they please.

When employees have strict guidelines, they'll always know what's coming out of their pocket and what expenses the company will incur. 

On the other hand, companies will reduce unnecessary overheads by making it clear what is reimbursable and what isn't. An employee on a business trip with a business card in their wallet can quickly lose sight of the purchases they're making. Your Policy should clearly say what the limit to such expenditures is and draw a line.

A company travel policy will also contribute to fairness and positive company culture as there will be the same set of rules that applies to everyone.

Approving and reimbursing expenses won't be left to the whims of individuals — instead, everyone will abide by the same guidelines.

Another important point needs to be clarified when we're talking about company travel policy. What exactly falls under the category of business travel? We'll address that issue in the section below.

What Counts as Traveling on Business?

Any international or domestic journey that the employee undertakes for the company constitutes traveling on business .

In some cases, companies might try and define what a business trip is depending on the distance that the employee has to travel, but in essence, it should all fall under traveling on business.

It shouldn't matter whether a company is reimbursing its employee for just a bit of gas or a transoceanic flight — if the employee was traveling at the company's behest, all their expenses should be covered.

Of course, this goes only for the expenses mentioned in a company travel policy, which is yet another reason to have such a document in the first place.

How Do You Write a Business Travel Policy?

Now that we've gotten the "what" and "why" out of the way, it's time to address a frequent question:  how do you write a business travel policy?

Writing any Policy can feel daunting since there is a lot to cover and keep in mind. We'll help you write an effective travel policy, step by step. First and most importantly - let's see what you need to include in this document.

What Should Be Included in a Travel Policy?

When you want to create a company travel policy for employees, it's important to include information they really need. For example,  reimbursement is vital for your team , so it should be properly addressed. 

Your employees need to understand what they can get reimbursed for and how to claim those expenses. The reimbursement procedure must be a part of a comprehensive corporate travel policy.

And, of course,  safety is a crucial component  of travel policy for companies. You want this document to have value for your team and to add a layer of protection, so it needs to include travel insurance and emergency procedures too. This is especially important nowadays, given the fact that both Coronavirus and Monkeypox are circulating the globe. 

The list below will give you an idea of the basics that are usually included in the company travel policy for employees:

• The introductory part  that explains what will the travel policy cover and why it is important for the employees
• The travel booking procedure  and business travel booking tool - are both approved by you. This section should also contain exact timeframes for booking and approvals
• Expense categories  include details on what's reimbursable in each one. Your Policy should clearly state whether items like meal expenses are included. 
• Non-reimbursable purchases . This part of the travel policy is important, as it cites what isn't covered and therefore must be paid by the employee if they want it.
• Expense reports and reimbursement requests  - how to submit them
• Travel support and emergency procedures , including travel insurance and duty of care vendors 

These are the essential elements that are usually listed in a corporate travel policy. Still, you are free to expand it or tailor it in any other way, so it suits your business needs.

Pro tip:  Before you make your corporate travel policy official, reach out to one or more frequent travelers for feedback. They'll be able to fill any gaps and assess whether it's clear and to the point.

Avoid Common Company Travel Policy Mistakes

The most frequent mistake companies make when creating their travel policies is making the document  too challenging to understand . This means that the Policy is either too loosely and unprofessionally written or that it's too strict and bureaucratic.

Both of these extremes make understanding travel policies unlikely.

Give your policy structure and decide on a tone of voice you'd like to use throughout the document. Then, try to be as consistent as you possibly can. The tone can be serious and official, but it doesn't have to be robotic. If your employees need a lawyer to make heads or tails of your Policy, you haven't done a good job.

Another common mistake is  not using technology to your full advantage .  Tracking mileage , employee expenses, and  their location  and then aggregating that data can help you manage travel budgets accordingly. Without tech-based solutions, you'll have to record every receipt and every tiny detail of the employee's trip. It's time-consuming, ineffective, and annoying at best.

Read our article on the best GPS employee tracker apps and find out which solution is right for your business.

Get Your Free Company Travel Policy Template Now

Now that you've learned how to create an effective and comprehensive corporate travel policy, we'll provide you with more guidance on the matter:  a sample company travel policy for employees in a PDF format . You can download and print it or use it as a foundation for your internal document.

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Company Travel Policy

A company travel policy is designed to outline a business's travel arrangement procedures and guidelines, stipulating which travel expenses are paid for by the company and how to manage the reimbursement process. A company travel policy should include a purpose statement, scope, authorization and reimbursement section, and travel arrangement processes.

Creating a detailed company travel policy will help ensure all business trips run smoothly, are secured ahead of time, and adhere to all company requirements.

Company Travel Policy - Free Template

Download this company travel policy template in Microsoft Word format.

Company Travel Policy Template:

Introduction..

When employees travel for company-related purposes, it is [ company name's ] responsibility to provide safe and reliable travel arrangements. This company travel policy serves to clarify the conditions and parameters of a company-paid trip.

The purpose of this company travel policy is to (a) outline the authorization and reimbursement process for travel arrangements and expenses; (b) list the company-paid travel expenses; and (c) establish protocols that oversee the travel arrangement process.

This company travel policy applies to all employees under contract at [ company name ], including paid interns, contractors, as well as seasonal, part-time, and full-time employees. [ Company name ] sees traveling out of the city, state, and/or country as a fully paid business trip, as well as one-day trips that are [ number of hours ] hours away from the office.

Authorization and Reimbursements.

All company travel arrangements must be authorized by senior employees at least [ number of weeks/months ] before the expected travel date, depending on the circumstances and the required travel arrangement period. Employees are not permitted to authorize their own travel arrangements.

Employees are expected to submit a Travel Expense Report at least [ number of days/weeks ] after the first business day back at work. On the Travel Expense Report, employees must include all company-paid expenses and personal expenses. The finance department is responsible for examining the Travel Expense Report and finalizing reimbursement payments.

Travel Arrangement:

All travel arrangements must be reserved at least [ number of weeks ] weeks before the travel date. The finance department is responsible for the booking and payment of all transportation, accommodation, and travel-related expenses.

Travel Expenses.

[ Company name ] employees are entitled to a company-paid travel ticket for any means of transportation the employee(s) require, including a [ type of class ] return plane, boat, train, and/or coach ticket, [ number of meals ] meals, and [ number of luggage ] luggage.

While traveling, employees can use a company-paid taxi service from and to the airport, hotel, and business location. If an employee wishes to travel for personal reasons, they will be financially responsible for the travel fare.

Accommodation.

[ Company name ] employees are permitted to stay in a [ number of stars ][ type of accommodation ] while traveling for company purposes. The finance manager is responsible for securing the [ type of accommodation ] room and paying for an employee's stay.

Other Expenses.

[ Company employees ] will be reimbursed for [ number of meals ] lunch(s) and [ number of meals ] dinner(s) for a maximum of [ $/meal amount ] per meal. If an employee is hosting a client of [ company name ], the entire meal will be reimbursed.

In addition, if an employee requires a meeting, boardroom, or conference room while traveling, [ company name ] will book the room and make payment.

Personal Travel.

[ Company name ] will not be financially responsible for any personal expenses and travel arrangements. If an employee chooses to travel with a partner, [ company name ] is not responsible for their partner's accommodation, leisure, and/or travel expenses. An employee is required to submit this information on the Travel Expense Report and produce payslips for their expenses only.

International Travel.

If employees are required to travel out of the country for business, [ company name ] is financially responsible for all travel arrangements, including accommodation, transportation, visas, travel insurance, and medical expenses. International business trips must be authorized at least [ number of months ] before the expected travel date.

The finance department is required to submit a Travel Expense Report before and after the trip. Both reports must be signed off by at least two senior officials before and after the trip.

Company Credit Card Policy

What should be included in a travel policy?

• Introduction .
• Purpose statement .
• Authorization and reimbursements .
• Travel arrangement (both business-related and personal) .

What is corporate travel policy?

A corporate travel policy is a formal document that details the procedures and rules of business-related trips. The policy mainly focuses on the arrangements, expenses, and authorization processes.

How do you write a travel expense policy?

Use our free, customizable company travel policy template in Word format.

What is a travel and expense policy?

A travel and expense policy is an alternative name for a company travel policy, which outlines the travel arrangements and expenses required on a company-paid business trip.

Related Articles:

Employee handbook, expense reimbursement form, conflict of interest policy, code of ethics, professional code of conduct.

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The complete guide to corporate travel policies

How to write a travel policy.

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How to build an easy-to-follow travel policy for employees.

• 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. 
• 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. 

How to write a travel policy step by step

Review your current policy or practices, set goals and priorities.

• 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

• 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.
• HR – Understands employee demands and expectations.

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.

• 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.

Decide what to include in your policy

• 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.

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Travel and Expense

8 corporate travel policy best practices.

Corporate travel policies need to address some of the most complex and important issues related to business travel. 

When written well, corporate travel policies provide both employees and employers with clarity and answers to common questions and scenarios. 

Developing, reviewing, and revising corporate travel policies is an ongoing process, one that should consider multiple perspectives and needs and evaluate data. A business travel policy for employees should also adapt to changing patterns of travel, employee needs, and practical considerations. 

Best Practices in Corporate Travel Policies 

Here is a closer look at some corporate travel policy best practices to consider. It can help your organization decide what should be included in a travel policy and your business travel guidelines. 

1. Involve Key Stakeholders 

Your travel policy will touch nearly every employee and department within your organization. Involving key stakeholders in human resources, payroll, finance and operations ensures that the policy reflects their unique perspectives and needs. If there are departments that are frequent travelers, they too should be included in conversations. 

Bringing together the major players allows for better collaboration and discussion of complex or controversial elements of the policy. Regular meetings among the stakeholders allows for a well-rounded policy and can ease the process of review and revisions when necessary. 

2. Track Expenses for Reporting and Analysis 

Your organization needs systems that will collect, report on, and analyze data related to your corporate travel program. These data points help leaders understand what’s working and not working within the program and provide insights that can guide revisions to the policy. 

Having the  right tools and applications  provide those in charge of the policy with information necessary to make important decisions. The company needs a standardized system for completing expenses to avoid data duplication and creating a consistent reporting process for all employees. 

Accurate expense reporting helps to develop the true return on investment of your corporate travel program. 

When developing your systems, consider integrating your policy with your travel management software. Doing so creates automated enforcement of certain policy elements, makes it easier for employees and managers to remain in compliance with the policy and helps accelerate processing and approval. 

3. Factor in Employee Satisfaction, with a Focus on Communication 

For travelers, a policy can generate lots of emotions and feelings, especially if policy changes force changes in the way people travel for business. For example, some employees prefer certain hotel or airline brands. A change to mandated providers can create significant ill-will. 

The key is to communicate regularly about the process by which the policy is created, evaluated, and modified. There may be generational or departmental differences in how employees prefer to travel and any changes can become problematic. 

Remember to emphasize why a corporate travel policy is necessary and important. The policy itself should be clear and easy to understand, using subheadings, bullet points, examples, and short paragraphs to make it more readable. 

4. Provide Resources 

A good corporate travel policy does more than just list do’s and don’ts. It can also be an effective resource that employees and managers turn to. Among the resources to include are: 

Links to your travel management and booking platform 

Forms for expense reporting 

Travel insurance coverage with a link to your carrier 

Lists of purchases that are and are not allowed 

What to do in case of an emergency 

Key phone numbers – human resources, finance, corporate travel office (if applicable) 

5. Set Clear Policies for Booking and Costs 

Your policy can clear up many gray areas around corporate travel. Be sure that the policy addresses some of the following areas that can cause concern for travelers and administrators: 

Whether travelers must use a corporate travel agency or website 

Expected turnaround times for expense reports and reimbursements 

Budgetary guidelines for airfare, hotel and ground transportation, including whether there are mandatory vendors 

Guidance on bleisure ( combining business and leisure travel ), including whether it’s allowed and cost-sharing guidance 

Procedures for handling rejected expense submissions or requests 

6. Understand Duty of Care and Reflect in the Policy 

Employers are responsible for duty of care , the legal obligation to research and develop a plan that reduces the risk for employers traveling on behalf of their employers. 

The policy should explain what duty of care is and the employer’s commitment to its employees and how far that extends. 

Begin by discussing any necessary changes to the policy with travelers who regularly must complete high-risk business travel and their managers. Examine global risk trends, discuss past experiences, and draft initial guidelines. 

Your policy needs a pre-travel process and a standardized risk assessment report, especially when traveling to high-risk areas. Incorporate travel alerts into the itinerary and ensure that the company has access to employee contact information and health records, if applicable. 

The policy needs to have multiple contingency plans detailed and ready to implement if needed. Be sure that employees have access to technology that can help them if problems occur while traveling. 

7. Include Travel Risk Management Considerations 

Travel risk management is the practice of anticipating, preventing, and reacting to issues that may arise while employees are traveling. The risk can run the gamut from weather issues and natural disasters to social unrest and terrorism. 

The goal of travel risk management is to identify and prepare for potential risks and decrease the risk of those threats materializing, if possible. If threats do materialize, the risk management also develops the plans to address with them. 

Travel risk management and duty of care are interrelated and often overlap. Both are critical to keeping employees safe. 

8. Practice Continuous Improvement 

Keeping corporate travel policies up to date requires diligent scrutiny of the policy itself and the supporting data. Factoring in employee safety, costs, and compliance requires regular review of the policy. Doing so allows your company to have policies that continue to benefit the organization and employees alike. 

Why Are Corporate Travel Policies Important?  

A well-constructed corporate travel policy  is a powerful tool. It can help shape employee engagement, recruitment and retention. 

By engaging key stakeholders, communicating regularly, gathering data, integrating systems and focusing on safety, your corporate travel policy will serve all employees well. 

At SAP Concur, we help businesses seamlessly integrate business travel, expense and invoice management. Our solutions simplify and automate travel mechanics, integrating real-time data and artificial intelligence to drive efficiency and accuracy. 

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How to write an effective corporate travel policy

Everything you need to do business travel right.

Writing an effective corporate travel policy

There’s a lot to consider when arranging business travel, so it makes sense to have a robust corporate travel policy in place. Setting out all the relevant procedures will help keep your employees safe while working to reduce your business’s travel spend. Some of the key steps to creating your ideal company travel policy include:

• Defining your objectives. These could include keeping costs down, ensuring employees are safe and comfortable and helping them make decisions on their travel.
• Ensuring your travel policy reflects travelers’ needs. Consider the most common destinations for your business travelers and the best way to get to them, are there specific needs or considerations related to your company’s activities?
• Giving your employees options. Everyone likes to have a choice, so try to give your employees a selection of hotels or airlines. You can keep costs down by capping the hotel star rating or class of airline ticket.
• Setting clear guidelines for all aspects of travel and more. Your travel policy needs to be all-encompassing so it leaves no room for doubt – that includes everything from airline booking rules to the policy on areas such as additional expenses and the acceptance of gifts.
• Making sure everyone knows what the travel policy is. All relevant documents need to be readily available to everyone within your company whether via the intranet or a travel platform. The policy needs to be clearly communicated to all, including line managers so they can enforce it.

Corporate travel policy best practices

When writing a corporate travel policy document, one size doesn’t fit all. You should start by thinking about the nature of your organization – is it pretty strict or relaxed? Make sure your travel policy follows the same tone.

Highlight how important it is that your employees read the document, not least for their own safety, and clarify what they need to do in an emergency situation, as well as who they’d need to contact.

Other information you should include is how business travelers should get to and from airports, and to what extent they’re permitted to combine their business travel with their own leisure.

Empower your employees by giving them a choice of hotels while capping the star rating or cost per room. Impress upon them the fact that complying with your travel policy will ensure the smooth and easy reimbursement of additional expenses. Finally, keep reviewing your corporate travel policy. Flexibility is key, and your travel policy and procedures should be open to the changing requirements of your employees and your business.

Remind your senior leaders that this is for them as well as business travelers –if everyone follows the policy it will help your company offer more effective support to its strategic partners, as well as allow better management of its expenses budget.

What to include in your corporate travel policy

There are many aspects of business travel to consider before writing your corporate travel policy. While your policy should reflect the unique needs of your business and employees, you’ll need to establish policies for these fundamental areas:

• Airline, rail, hotel and rental car reservations.
• The use of other transportation, such as taxi cabs.
• Rules for on-site spending, including meals, entertainment and phone calls.
• Security relating to travel – both in terms of personal safety and work materials.
• The rules around gifts and favors that may be bought or received during business travel.
• The approval process that employees and managers need to follow.
• The system for the payment of any expenses incurred during travel.

Laying out your travel expense policy

Establishing a clear and fair expenses policy is vital to the health of your business – poor management of travel expenses costs your business money. Here’s how we’d recommend your policy approaches a range of key expenses:

Additional travel State that travel costs will cover the purposes of business travel only – whether to events, meetings or training – and that non-business or leisure travel comes out of the employee’s pocket. You should also encourage business travelers to use the most cost-effective mode of transport, taking expected journey time into account. Accommodation Empower your business travelers by giving them control over their own spending – capping their budgets by hotel star rating or amount per room. You could provide average room rates in each location, and ask them to stay within that range. Specify that standard rooms should be the required room type, and clearly outline whether your business will cover minibar charges, Wi-Fi costs, etc. Meals Depending on your company culture, you can be as explicit as you like with your meal policy. Many companies find it easier to offer a daily allowance that covers breakfast, lunch and dinner, but your policy should include a statement about alcoholic beverages – usually to clarify that they will be at the employee’s cost, unless they’re with a client. Tips Many corporate travel policies cover tips to 20 percent, but only when it’s already been included in the bill as a service charge. If a business traveler decides to add a tip for anything else it should be out of their own pocket, or at a manager’s discretion. Entertainment Entertainment can cover eating, drinking or any other hospitality. The most effective way to manage entertainment expenses is by setting a limit or range, and advising that managerial approval will be required for any reimbursement above and beyond this amount.

How to forecast your budget

Using data on traveler behavior and previous expenses is key to setting intelligent forecasts for your annual expenses budget. Different employees will travel in different ways, to different locations, and at different frequencies. However, having data on the average flight cost per mile, as well as the nightly hotel, average meal and ground transportation costs, will mean you can accurately predict and anticipate your expenses budget for the year ahead.

Setting expense limits

For the most part, business travelers want to do what’s right for their company – and many companies find that giving employees control over their own spend can actually reduce overspending. Find a happy middle ground by giving employees control while setting key limits.

For example, meal expenses can be set as an overall allowance per day, giving the employee the choice of how much to spend individually on breakfast, lunch and dinner.

When it comes to booking accommodation, give employees the choice of a standard room in any hotel of a certain star rating or a maximum price per night.

For ground transportation, a corporate travel policy should clearly advise employees to choose the most cost-effective method considering the journey time. Most business travelers will accept being restricted to flying economy on short-haul trips.

Handling expense claims

It’s important that business travelers have a clearly defined method of claiming back their expenses. Ask them to fill out an expense report for the date, amount, category, location and business purpose of their claim – and decide whether you’d like them to file receipts for all their expenses, or just ones that exceed a certain amount.

Give your employees a time frame for submitting expenses – this will help your business maintain a stable and accurate cash flow. Similarly, let them know when they can expect money to be credited back into their accounts. Depending on the amount spent, it might be a good idea to clarify who will approve their expenses in each case.

Setting up your guidelines and procedures

There is no one, uniform corporate travel policy. If your policy doesn’t fit with the nature of your organization, it’s unlikely to ever meet the expectations of your stakeholders. Fundamentally, your travel policy and procedures must be adapted to your business’s culture, and be flexible around the needs of your employees, industry and economy. They also need to be widely circulated and understood.

Your guidelines and procedures will help your business travelers make decisions within the framework of your corporate travel policy. They should include procedures for all bookings – after all, it’s important that employees are clear on what is expected of them at every point of their business trip.

It might also be necessary to include a section about the consequences of not following the set guidelines and procedures.

Considering safety and security procedures

The safety, security and well-being of employees must be at the heart of every corporate travel policy. While they’re engaged in business travel, your employees are your responsibility, so it’s crucial your policy has procedures in place that can ably respond to personal risk, severe weather or political unrest in a foreign country.

Highlight how important it is that your employees read your corporate travel policy document for their own safety, and clarify what they need to do in an emergency situation and who to contact. If your employees are regularly flying out to high-risk countries, organize additional travel safety and security training. We work closely with International SOS to offer enhanced medical and security assistance, and keep your employees safe on the road.

Take a look at how else we’ll support your employees at every stage of their journey.

Delivering the travel policy to employees

Once you’ve written your corporate travel policy, you need to make sure your employees read and understand it. Whether you choose to deliver the policy in a printed document, via intranet or in an email, there are some general ways to make sure it’s communicated as effectively as possible.

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How to Build A Travel Policy Template [FREE TEMPLATE]

Do you shudder at the thought of building a business travel policy from scratch? Does the mere mention of "policy" have you running for the hills? If so, you’re not alone.  

Building a comprehensive travel policy for your company can be a daunting task – especially if you’re starting from the ground up. 

From setting clear goals to prioritizing traveler safety, we’ll cover everything you need to know to create a travel policy that works for you. So take a deep breath, grab a cup of coffee, and let's dive in.  

DOWNLOAD TRAVEL POLICY TEMPLATE

First things first – what are the goals of your travel policy? 

Writing a travel policy is kind of like playing a game of darts. You need to know what you’re aiming for in order to hit the bullseye.  

So, before you start building or revamping your travel policy , take a moment to determine your top two or three goals for doing so. Do you want to reduce business travel costs so your organization can splurge on fancy new desktops for the whole office? Or maybe you’re tired of sorting through piles of receipts and want to improve expense tracking.  

Whatever your end game is, adding those goals to the top of your corporate travel policy template will help ensure that your policy is set up to meet your targets.  

What to include in your travel policy 

Now that you know what you want from your policy, let’s talk about what one should look like. 

A well-planned travel policy answers all questions about company travel, including everything you want employees to know AND be accountable for. Without this framework (and great travel management software to support it), business travel can quickly spiral into a free-for-all mess. 

A starter travel policy could include basic instructions on: 

• Booking information 
• Domestic flights 
• International travel 
• Car rental/transport 
• Accommodation 
• Internal communication 
• Traveler safety and wellbeing 

Capture your instructions for each of these expense categories in a document (like a business travel policy template) that can be shared and developed with a travel management company . It’s also a good idea to share this document internally and potentially with one or two regular travelers in your organization to sense check. 

1. Booking information 

When it comes to creating a travel policy, it's important to outline the entire booking process – and yes, we mean the entire process. Your policy should cover everything from approved technology for booking and steps for change requests, to the importance of tracking and recording all travel bookings. And don’t forget the details!  

Make sure your employees keep their information up to date, and know what information needs to be included with their profiles, such as their job number or department. This help with budgeting and cost control, but it also makes it simple to manage changes or cancellations. 

2. Transportation 

Transportation expenses can include air travel, train or bus tickets, car rentals, and taxi or ride-sharing services. A comprehensive travel and expense policy should be clear about which types of transportation are allowed and what limits are in place.  

For example, team members may be allowed to rent a car for up to a certain cost per-day or only use a ride-sharing service for a business trip under a certain distance. Are your employees flying economy class or business class?  

The policy should clearly state which class of flight bookings are applicable for expense reimbursement. 

3. Accommodation 

Do you have a policy on which hotels your employees are allowed to stay in and what the maximum per-night rate is? And if your employees don't book through an agent, are you driving them to your OBT and defining capping amounts for hotel bookings? Be clear so you're not overpaying for hotel rooms or other accommodations.  

You can also define what extra costs your organization isn't willing to pay for. For example, does your budget include parking fees? What about room service and entertainment expenses? Define these business travel expenses now so you don’t have to dispute them later. 

4. Traveler safety and wellbeing 

As a travel manager, your duty of care is to prioritize the safety and well-being of your travelers. Putting people at the heart of your travel policy means taking strategies to ensure their safety and comfort. This includes using a traveler tracking function (find one in our corporate travel platform , Melon!), providing emergency protocols and resources, and ensuring that liability and insurance considerations are covered.  

But duty-of-care doesn’t just stop at general safety concerns. Building inclusive policies is essential to making all employees feel comfortable and welcome while traveling. When filling out your company travel policy template, make extra considerations for people who are more at risk for discrimination, such as people of color, LGBTQ+ individuals, and travelers with accessibility needs.  

Remember: your goal should be to create a policy that naturally accommodates your employees' needs rather than one that requires them to need personal accommodations. 

Read more about traveller safety & wellbeing:

• How to build a proactive travel risk management policy
• The 5 pillars of travel risk management software

5. Internal communication 

So, you've written your travel policy? Congrats! Now, how are you going to get your employees to care about it?  

It's important to consider how you'll get the word out about your policy before it's finalized. Think about training sessions or a communication channel to keep everyone is aware of the policy and its contents.  

You'll also make sure you communicate the policy to the business leaders in finance or human resources. Once your policy is in place, set up a timeline for review and revision (we recommend you check back at least annually). And when updates are made, be sure to communicate those changes clearly to your employees.  

Build a foundation and review your policy as your company grows to make sure your program runs efficiently and keeps on budget long term. 

Ready to level up your business travel?

Download this template of travel questions to guide the first draft of your policy. Then connect with one of our travel specialists directly, to help you roll the policy out to your business.

Company travel policy guidelines and topics to include

If you’re wondering what to include in your company travel policy, don’t worry, we’ve laid it out for you here. There’s a number of travel-related expenses to consider as well as policies and procedures needed to make the travel and expense process seamless for the employer and employee. Read on to learn about employee travel management best practices and how to create a comprehensive travel policy.

Why do you need a company travel policy?

In some industries, business travel accounts for a large portion of business’ expenses and employee time.

Even if you don’t think you’ll need a travel policy because your staff does not travel frequently, consider things like annual industry conferences, company meetings or events, and training or collaboration with other offices or worksites. This policy may only be used once a year for some companies, but if you don’t at least have the procedures clearly recorded it can create a huge amount of hassle and confusion.

Having clear policies in place simplifies the process for both parties. Employees understand how to go about booking travel and submitting for reimbursement of travel expenses. Employers can ensure that travel arrangements are made in a cost-effective manner and that proper expense reporting occurs.

Having set guidelines for travel also makes the travel management process transparent and fair to all staff. Employees should all receive the same travel budget, aside from adjustments made due to differences in location costs or business needs. Without clear guidelines, one employee may be booking first class seats and five star hotels while another books economy and low budget accommodations. It’s best for your company culture to provide equitable travel experiences across the board where possible.

Travel approval

Define your policy and approval process for business travel authorization.

How far in advance should employees request approval for business travel? In some industries and job roles, advance notice may be limited. However, in many cases business travel can be planned out several weeks or a month in advance. Planning ahead will usually allow for the company or employee to book air travel and accommodations at lower rates.

Also be sure to include who travel requests should be submitted to and what needs to be included. Some employers ask for expense estimates prior to authorizing a trip.

Depending on your industry, you may want a separate policy for conference attendance authorization and trip planning. Trips for trade shows, trainings, and conferences can be planned further in advance, but you’ll want to ensure that attendance will be worthwhile. Some businesses have a set budget or allowance for employees to travel to attend industry conferences or training.

Travel booking

Clarify your company’s travel management style and booking process. Are employees allowed to book their own travel or is there an administrator in charge of all travel bookings?

If travel is something that members of your organization will be doing frequently, it’s usually easiest to allow employees to book their own rooms, flights, and rental cars. However, it’s a good idea to put some guidelines in place on costs, upgrades, and expense reimbursement procedures.

Large employers with frequent business travel sometimes use a travel booking tool to help employees book travel in one central place and within the constraints of the company’s travel policy. These tools can be helpful, but if you don’t have one yet it’s not a problem – not every company will need a booking tool. Sites like Expedia or Priceline work just fine for the average travel booker.

Lastly, some employees do prefer to book travel for their employees. Often an administrative staff member will help with booking or department heads can book for their department. This gives the employer more control over managing travel expenses and ensuring that travel policies are followed. However, it is generally preferable to give employees some input as it tends to improve their experience and morale. If an employee has a particular preference on airline, flight times, or hotel it’s a good idea to accommodate those preferences if they don’t add too much to the cost or interfere with planned business activities.

Meal reimbursements or per diems

Employees need to eat while they’re traveling, and it is customary for employers to cover those costs within reason.

You have three solid options to choose from in terms of employee travel meal expenses.

Offer a Per Diem

A per diem is a fixed daily amount that employees are reimbursed for food or incidental expenses during their business trip. Lodging is also sometimes handled with per diems. Sometimes per diems are paid prior to the trip so that staff do not need to pay out of pocket and wait for reimbursement for expenses. This method is used by the federal government but also some private employers. It can make the expense process simpler as individual receipts don’t need to be saved and submitted and the company can accurately estimate the cost of a proposed business trip. Businesses should still have employees fill out a general expense report with the dates, business purpose of the expense, and amount for tax purposes (per diems are not taxed as long as they are properly accounted for and used for business purposes). It varies by individual company policy whether employees can keep or be reimbursed for per diems that they did not fully spend while on the trip.

Reimburse meal expenses

The classic option is to allow employees to buy their own food while traveling and submit their receipts upon return for reimbursement. Employers often set spending limits and many do not allow alcohol purchased with meals to qualify for reimbursement.

Provide a company credit card

A company credit card allows employees to avoid having to pay up front and wait for reimbursement. This is a good idea for employees that travel frequently and do not wish to constantly have personal funds tied up in hotel room deposits and reimbursable meal expenses. If your staff will be entertaining others on trips such as clientele or prospects, a company card is a must. It’s reasonable to have employees buy their own meals, but asking them to regularly buy clients dinner on their personal cards is a bit excessive. However, you should definitely have a company credit card policy in place prior to providing a card.

Employees should sign an agreement taking responsibility for reporting a lost or stolen card or suspicious charges immediately. They should also agree that the card is for business use only and to reimburse the company for any personal expenses placed on the card in error.

Many of us do not enjoy flying, but it is a large component of most business trips. Be sure to lay out any policies or restrictions on airfare or flight options.

Can employees book seats in business class? Most companies steer their staff towards economy class plane tickets, but be sure to list any applicable exceptions. For instance, at off-peak travel times, business class may occasionally be cheaper or the same price as economy class once things like in-flight wi-fi and baggage fees are factored in. Some companies also allow employees to book premium seats for unusually long flights such as international travel.

You can also include whether employees can use things like frequent flyer miles or other rewards accumulated through business travel for personal use. Ultimately it is the employee doing the travel even if the employer is footing the bill, and air travel can be grueling, so it’s generally worth providing this small benefit to employees rather than accumulating rewards for the business.

Hotels and accomodations

If business trips are a frequent occurrence at your organization, you may want to partner with a specific hotel chain or vendor. Often you can negotiate a discounted room rate if you book with the hotel for enough nights per year. This can cut down on accommodation costs and makes the hotel booking process simpler. Inform employees to check for rooms at the partnered hotel chain for each of their business travel destinations. This also adds consistency, as all employees receive approximately the same room quality and experience.

Generally employees are directed to book a standard room, meaning no suites or upgrades. This cuts down costs and makes it fairer for everyone. Of course, accessible rooms (sometimes marked as ADA rooms) may be selected for disabled employees needing them. These are offered by most hotels and shouldn’t cost extra to book.

You may also specify whether extra charges will be reimbursed or considered personal expenses. Are employees allowed to raid the mini-bar or order a pay per view movie on the hotel television? If there is an entertainment budget or meal/incidental per diem offered these charges may fall under those categories. Wi-fi and hotel parking are generally considered reimbursable expenses.

Transportation expenses

Most business travelers will require a rental car. Employees should choose an economy option unless they need an upgraded rental card to transport large materials or drive clients. In some circumstances, other transportation methods may be used and expenses should be tracked by the employee. For example, it may be more cost effective for an employee visiting New York City to use taxis, rideshare, or the subway to get around as parking in the city may be excessively expensive and impractical.

Many businesses also reimburse public transportation or ride share costs to and from the airport.

Travel insurance

Specify whether or not employees should buy travel insurance. Some companies outright prohibit staff from opting in to extra insurance on flights and travel costs. However, if there is a possibility of trip cancellation, the insurance could come in handy. If the trip is to meet a client or prospective client, consider the client’s industry and prior track record to determine the likelihood that they need to reschedule.

Also check whether staff should pay extra to participate in rental car insurance programs. Your company’s auto insurance policy may cover employees traveling on business. Their personal coverage may also cover them while using a rental car.

Entertainment and other expenses

If employees will be entertaining clients on these trips, specify the budget and what is allowed to be expensed. This may be a scenario where expensing alcohol is allowed, even if it is not generally expensable under your meal policy.

Personal entertainment expenses such as site-seeing or going to bars/events alone after work are generally not reimbursable. Sometimes dry cleaning and personal expenses necessary for professional appearance at important meetings or conferences are reimbursable. Your company can decide what personal expenses, if any, will be eligible for reimbursement.

Also be clear on how personal travel will be handled. Occasionally, employees may request to stay in a business trip location over the weekend to explore the city. This is generally reasonable as long as additional hotel nights or rental car days are paid for by the employee and the change in return dates does not lead to a large increase in airfare costs. Set clear expectations and understandings with the employee prior to approving a trip extension for personal travel.

Expense reimbursement procedure

We’ve talked about the expenses covered for business travel, now it’s time to craft your most important travel policy and let employees know how to submit their expense reports from their business trips.

Give employees a deadline. If expenses are not submitted promptly, the likelihood of a receipt being lost or an expense being forgotten increases. A one week deadline is reasonable. Use your expense reimbursement cycle to guide this policy. Some businesses process expenses monthly and only request monthly reports while others process them weekly or biweekly.

If employees will be traveling and expensing frequently, consider using an expense management app such as Expensify to allow them to upload receipts and expenses as they go from their mobile devices. This can help everyone stay organized and streamline the reimbursement process. A mobile app system is especially useful if you are providing a company card, as employees may be less motivated to submit expenses or save receipts when they are not seeking personal reimbursement.

Let them know the procedures for submitting and receiving reimbursement. Do expense reports go to their department head, human resources, or accounting? What is the submission and payout schedule? Some employers provide reimbursement on employee’s regularly scheduled paychecks while others use a separate system for expenses. Employees want to know when they can expect to receive these funds, so be detailed in order to avoid any questions or confusion. If there’s no set schedule, or you are giving employees a deadline from the date of their return, let employees know what the turn around time will be for processing reimbursements.

Employee conduct

It should go without saying that professional conduct is expected on business trips, but it never hurts to reiterate your company’s policies and expectations.

Remind employees to follow your company’s Code of Conduct and applicable policies while traveling, including vehicle safety policies if driving on the trip. Alcohol consumption policies may be relaxed for business dinners or networking events, but most company policies should still apply while traveling. Employees are representing the company on these trips and should take that responsibility seriously.

Additional resource: Updating your handbooks and company policies? Check our guide to employee handbooks .

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How to write a corporate travel policy

Last updated: September 12, 2024

In today's fast-paced business environment, travel is an integral part of operations, whether your company is a startup or an established enterprise. Without proper guidelines, however, managing travel expenses can become challenging. This is where a corporate travel policy becomes invaluable. In this article, we’ll provide you with a comprehensive guide to creating an effective corporate travel policy that balances company needs with employee satisfaction, helping to ensure compliance and enhancing overall travel management.

What is a corporate travel policy?

A corporate travel policy is a set of guidelines that outline the rules and regulations for employee travel. It typically covers aspects such as travel bookings, accommodations, reimbursement procedures, and allowable expenses. A well-defined travel policy makes sure that all travel-related expenditures are managed effectively, stay within the company's budget, and provide clarity to employees on what is expected during business trips.

Why does your company need a travel policy?

Having a robust travel policy offers numerous benefits for employees and the company. It helps ensure compliance with company standards, improves safety, and enhances the overall travel experience for employees. A clear travel policy helps employees understand the company’s guidelines and recommendations for mitigating risks related to security and other incidents during travel. Moreover, a well-crafted policy can boost employee morale and satisfaction by setting clear expectations and offering support during business trips.

Uber for Business and GBTA explore business traveler priorities in-depth

Steps for writing your corporate travel policy.

Creating a travel policy might seem daunting, but with clear guidelines it becomes manageable. Here are the key steps to help you develop a comprehensive policy:

1. Identify your company’s travel needs

Start by determining the purpose of your travel policy. What are your primary goals? For example, you might aim to stay within the company budget, comply with safety and security regulations, or streamline travel management processes. Consider the types of travel your employees will undertake, including domestic or international trips, and the frequency of these travels. This information will guide you in developing a policy that addresses your company’s specific needs.

2. Set your guidelines

The next step is to establish the dos and don’ts for employees when booking travel. This includes identifying approved vendors and specifying reimbursement rates for each type of expense. Make sure these guidelines are straightforward and align with the company’s goals identified earlier.

3. Establish approval and reporting procedures

After defining the travel booking guidelines, it's crucial to establish approval and reporting processes. Clearly define who has the authority to approve travel requests and what criteria should be considered before approval. Additionally, outline the documentation employees must submit, such as receipts or invoices, to support each expense. Specify how long employees have to submit reimbursement requests and the timeline for receiving their funds.

4. Consider flexible options for your employees

Flexibility is key to creating an effective corporate travel policy. By offering a range of options and accommodating individual preferences, you can encourage adherence to the policy and increase employee satisfaction. Here are a few ideas to incorporate flexibility:

• Encourage local experiences. Support employees in exploring local businesses, such as restaurants and shops, that cater to their preferences.
• Include alternative lodging options. Offer choices like serviced apartments or co-living spaces for employees who prefer a home-like environment or require longer stays.
• Provide a travel allowance. This approach empowers employees to make their own decisions regarding certain travel-related expenses within a predefined budget.

5. Optimize policy format and accessibility

Make sure your travel policy is easy to understand and navigate. Consider creating a travel policy template with clear headings, bullet points, and other formatting elements to enhance readability. Additionally, make the policy accessible to all employees by providing it in print and digital formats.

Key topics to cover in your business travel policy

While there’s no one-size-fits-all approach to creating a corporate travel policy, certain topics are essential to address. Here are 3 key pillars to consider:

Travel arrangements

Clearly define acceptable modes of transportation and accommodations to avoid confusion. For example, you may require employees to stay in specific hotels or use preferred airlines. To streamline the booking process, consider using company-approved travel agents or online booking tools that meet your standards.

Expenses and reimbursement

Another critical component is outlining travel expense and reimbursement procedures. Setting clear per diems for common expenses such as lodging, airfare, car rentals, and meals can simplify tracking and reporting. Consider investing in resources like a mobile app or online platform, such as Uber for Business , to assist employees with expense reporting. These tools allow receipts to flow directly into your expense management system, streamlining the reimbursement process.

Safety and security

Safety and security should be a priority in your travel policy. Provide guidelines on what to do in case of emergencies and identify locations that are currently unsafe. Consider offering specific training and providing emergency contact information to make sure employees can travel safely.

7 common roadblocks when creating a comprehensive policy

Creating a corporate travel policy comes with its own set of challenges. Below are 7 common obstacles and tips to address them:

Balancing company needs with employee preferences: Striking a balance between cost efficiency and employee satisfaction is crucial for an effective policy.

Keeping up with travel regulations: Regularly check government and airline websites for the latest travel advisories, visa requirements, and health guidelines to help make sure your policy reflects current standards.

Ensuring consistency: Develop a system to monitor and enforce policy compliance across all departments.

Addressing unique travel needs: Consider accommodations for employees with specific needs, such as disabilities or medical conditions.

Communicating the policy effectively: Make sure all employees are aware of the travel policy and know where to find relevant information.

Auditing expenses: Assign a team to regularly monitor and report travel expenses to help keep spending within the budget.

Keeping the travel policy current: Routinely review and update the policy to reflect changes in technology and employee needs.

Managing the overall business travel experience doesn’t have to be complicated. By addressing critical elements like travel arrangements, expenses, and reimbursement, you can create a functional travel policy that caters to the needs of your company and your employees.

Are you looking for a way to simplify corporate travel with ease? Uber for Business offers a range of features to help companies enforce their travel policies. With Uber for Business, companies can set spending limits for employees, track expenses, and receive detailed reports on employee travel.

Frequently asked questions

The purpose of a company travel policy is to provide employees with guidelines for booking travel, managing expenses, and staying safe while traveling. A travel policy helps to ensure that all employees are following the same standards and procedures for travel, and it can help manage expenses and reduce risk for the company. By providing clear guidelines and resources for travel, a company travel policy can improve efficiency and reduce stress for employees who travel frequently.

A comprehensive travel policy should cover topics such as travel booking and arrangements, travel expenses and reimbursement, travel safety and security, and approval and reporting procedures. This includes guidelines for which modes of transportation are acceptable, which accommodations are approved, and the maximum amounts that can be reimbursed for meals, lodging, and transportation. It should also specify the process for obtaining approval for travel and for reporting expenses and submitting reimbursement requests.

Corporate travel policy best practices include investing the time needed to create a clear and comprehensive policy, prioritizing safety, leveraging technology, and continually reviewing and updating the policy. Together, these elements will help ensure that your travel policy remains relevant and effective.

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Corporate Travel and Entertainment Policy Best Practices

Traveling employees often incur significant expenses on company-funded trips. But how much is too much? According to recent statistics, businesses spend approximately $799 per person per day on a business trip. Expenses can quickly add up if not carefully watched over.  A travel and entertainment policy outlines what expenses are eligible, how much employees (and sometimes senior management) can spend on business-related travel and the specific terms for reimbursement.

In this article, we’ll explore what a travel and entertainment policy entails and how to make the most out of your business travel resources.

Travel and Entertainment Policy Definition

A travel and entertainment (T&E) policy is a set of regulations that govern business-related travel and entertainment expenses. It sets clear parameters regarding what is acceptable in an employee’s spending of company resources and reimbursement procedures. The policy also highlights acceptable activities for employees while traveling on company business; for instance, meetings and conferences.

Why Do You Need a Company Travel and Entertainment Policy ?

For starters, the primary goal of establishing a clearly defined T&E policy is to ensure that employees clearly understand what is expected of them when it comes to spending company funds on work-related trips. It also sets out the guidelines for hosting or entertaining clients for business purposes. 

The travel and entertainment policy also enables management to mitigate risks associated with misuse of funds and identify potential incidents of fraud, alongside non-compliance with legal requirements. 

With that said, here’s a more detailed breakdown of the main objectives of a travel and entertainment policy :

Fraud Prevention

Unfortunately, deliberate and unintentional fraudulent activity in corporate travel still plagues businesses, leading to significant losses in the long run. In fact, it is estimated that companies lose $125,000 to fraud on average. Although the causes and impact of fraud in business vary by department, traveling employees may contribute to fraudulent activity knowingly or unknowingly.  

This arises from the fact that employee and business goals for travel don’t always align. Occasionally, some employees will seek to benefit themselves at the expense of the company. A comprehensive policy prevents fraud by imposing strict procedures for the use of company resources and submission of the expense reports.

>> Related: 5 Ways FinTech Reduces Fraud <<

Better Resource Management

A well-thought-out travel and entertainment policy ensures that employees only adhere to activities that are acceptable and beneficial for the company’s objectives. For instance, paying for a client lunch meeting may be considered acceptable if it helps in solidifying mutually beneficial working relationships.

With a clear policy in place, businesses can ensure that their employees make the most of their allocated travel and entertainment expenses while avoiding overspending and poor management of company resources.

Cost Savings

As mentioned earlier, corporate travel expenses can pile up as a direct result of poor expense management and fraudulent activity. A corporate travel and entertainment policy shields businesses from such issues. This can be achieved by ensuring that spending on business trips, events, and other related activities is done in accordance with the expenses limited by the policy.

The policy also helps companies save money by ensuring that all expenses are properly accounted for and that the company is getting the best value for its money.

Elements of a Company Travel and Entertainment Policy

Different companies set out different policies that reflect their values and culture. Such elements should be tailored to the specific needs of the organization after taking into consideration its size, budget, regulations, and culture. 

Key elements of a T&E policy include:

The Scope of the Policy

First of all, how a company decides on its travel and entertainment policies does not just revolve around booking flights and hotels. There are regulations and guidelines that govern the spending of the company.

The scope of corporate travel and entertainment policies covers vital details such as: 

• The person/people responsible for authorizing travel.
• Who the policy applies to (junior or senior employees?).
• Possible risks.
• Expense reporting procedures.
• Reimbursement procedures.

The list goes on. In essence, the scope of the policy covers all the expectations for employees when traveling on behalf of the company or attending events.

>> Related: The Importance of Well-Defined Travel and Expense Policies for Businesses <<

Travel Approval/Authorization

All travel expenses, routes, and destinations should be authorized by appropriate managers and supervisors before they are incurred. Authorized expenses ensure that the trip is necessary for business, and will be covered by the company’s travel budget. Additionally, an authorization requirement will further help to prevent fraudulent expenses from being submitted for reimbursement.

Travel Budgeting Limits

While each company will have different budget limits, it is important for employees to stay within the budgeted amount so that expenses are kept under control.

Some key considerations for effective budget limits include:

• The number of days an employee will be expected to be away from work.
• The total cost of the trip.
• The number of people allowed to accompany an employee on a business trip.
• The types of travel that are approved (airfare, car rental, public transport, etc.).
• Spending on meals or entertainment during a business trip.

Once the total cost of the trip is determined, an appropriate limit can be set for how much money an employee can spend. This limit may be based on the number of people traveling with the employee, among other factors.

Travel Risk Management

Travel risk management involves assessing, monitoring, and controlling any risks associated with employee travel. The goal is to protect employees and the organization’s assets from risk by carefully anticipating these risks and adequately planning to mitigate them. 

A risk management plan may include:

• Establishing safety protocols for the use of local transport.
• Using approved agencies, suppliers, and companies to ensure quality services and avoid potential scams when booking flights or hotels.
• Creating a checklist for employees to complete prior to their departure. This checklist can include items such as passport and visa requirements, medical insurance, emergency contacts, etc.
• Employing tracking technology, such as GPS-enabled devices and applications to monitor an employee’s location during travel.
• Developing a communication plan for traveling employees so they can keep in touch with the company.
• Offering security training and advice to employees prior to their departure.
• Establishing an emergency contact list for traveling employees, in case of any incidents or emergencies.
• Ensuring that employees are familiar with local laws and customs before they leave.

By taking proactive steps to manage risks, businesses can ensure the safety of their employees while traveling.

>> Related: 10 Questions to Audit and Update Your Business Travel Policy <<

Travel Expense Reporting & Auditing

While T&E policies aim to provide clear travel guidelines for employees, it is important to point out that properly documenting and tracking employee expenses is essential for a company to manage its resources effectively.

Regular auditing further keeps the business compliant with tax regulation policies, and within budget.

When it comes to reporting and auditing travel expenses, there are several measures you can take to ensure accuracy and transparency. 

For starters, clear policies regarding acceptable expenses should be established and communicated to all employees. It should be clearly stated when these expenses must be reported, and more importantly, who is responsible for verifying them. If you’re in charge of a sizeable team, you may also want to consider using automated software systems to monitor and track employee spending in real-time. 

>> Related: Mapping the Travel Expense Accounting Process <<

Action Measures for Non-Compliance

Non-compliance with a company’s corporate travel and entertainment policy can lead to significant financial losses as well as potential legal issues. To ensure that all employees adhere to the rules, a clear action plan must be established for employees who do not comply.

First and foremost, any employee found guilty of violating the policy should receive a formal warning. The warning should be sent via email or letter and should include a detailed explanation of the violation.

If the violation persists, further action may be taken. This depends on company policy around fraud and could include disciplinary measures such as suspension, termination, or even legal action depending on the severity of the situation. 

Regardless, it is important to clearly define these consequences in the travel and entertainment policy so that employees are aware of the potential repercussions.

How to Create an Effective Corporate Travel and Entertainment Policy

Having a clear and effective corporate travel and entertainment (T&E) policy in place can help companies manage their expenses and set expectations for their employees. However, creating a policy that balances employee satisfaction and corporate cost control is no walk in the park.

A well-crafted T&E policy can help organizations save money on their travel and entertainment expenses while also ensuring that employees have a smooth and stress-free experience. 

Here are the key steps taken in developing an effective T&E policy:

Identify the Purpose of the Travel and Entertainment Policy

The purpose of a corporate travel and entertainment policy is to provide guidelines and regulations for traveling employees in their duty to the company. It ensures that company resources are used responsibly and ethically when traveling or entertaining on behalf of the company.

Establish Criteria for Travel

When creating a corporate travel policy, it is important to set clear criteria that determine who is eligible for business travel. Details such as the necessary qualifications, job title, and/or seniority level needed to be eligible for business travel can be outlined in the criteria. Additionally, the criteria for travel define the roles or responsibilities of each person traveling on behalf of the company.

Forecasting Your Budget

Forecasting the budget for business trips helps the company estimate how much money should be allocated for travel expenses and provides insight into which areas are likely to incur the most costs. Forecasting also allows you to set clear expense limits so that employees don’t overspend while on business trips. Some travel management platforms may even help you by calculating dynamic budgets based on real-time rates.

Setting Expense Limits

The policy should also specify which types of expenses are allowable and which are not. This will help employees understand what they can and cannot spend company funds on while traveling, as well as any limits that may apply.

Outlining Acceptable Expenses

It is important to list down what types of expenses are acceptable, as well as the limits on these expenses. 

When it comes to outlining acceptable expenses, there are several categories that should be addressed. Common examples of acceptable expenses in travel and entertainment policies may include transportation, accommodation, meals, and entertainment. It is equally important to specify what types of expenses are not allowed, for instance, personal purchases or services that are unrelated to business travel.

>> Related:  Highlights from the 2023 State of Business T&E Report <<

Handling Expense Claims

Another important aspect of a corporate travel and entertainment policy is to ensure that employees are submitting their expenses properly. To do this, employers should provide clear instructions on how to submit expense claims, as well as any documentation or receipts necessary to support the claim.

Establish a Timeline for Submitting Expense Claims

The company should set clear deadlines for submitting claims and require all claims to be approved before reimbursement is issued. By setting these expectations in advance, you can ensure that all employees are abiding by the same rules when it comes to filing travel and entertainment expenses.

Review All Receipts and Documentation

All receipts and documentation should be properly reviewed. This review should include an in-depth examination of both the original receipts and any accompanying documents. These may include itineraries, expense reports, or other forms of proof.

The purpose of this review is to ensure that any expenses incurred fall in line with the company’s budget. Additionally, the review provides an opportunity to check for any discrepancies or fraudulent activity. If a discrepancy is found, it should be reported to the appropriate supervisor/manager so that any necessary action can be taken.

Compare Expenses to Policy

It is important for businesses to compare employees’ actual expenses to the policy on a regular basis to ensure that all spending is compliant with company regulations.

A good way to compare expenses to policy is by using dedicated expense tracking software . These tools allow companies to track and review employee spending easily, as well as compare it against the policy.

Verify the Accuracy of Expenses

All expenses, no matter how minor, must be reported to the finance department. The responsible supervisor should then assess the accuracy of all expense reports before submitting them for reimbursement. In this process, you should provide a detailed review of individual expense items and overall accuracy of the report as a whole.

>> Related: Sample T&E Dashboards for Proactively Monitoring Compliance, Budget, and Anomalies <<

Follow-Up With Employees

Having a corporate travel and entertainment policy is essential for any business, but it’s just as important to ensure that the policy is being followed. To ensure compliance with company policies and regulations, managers should follow up with their employees regularly.

You should check in with your employees both before and after business trips to ensure that all expenses are properly documented and appropriate. Additionally, you should regularly review employee receipts and other expense documentation to ensure accuracy and compliance with the company’s travel policy.

Pay Approved Claims Promptly

As a business, it is important to pay any approved claims promptly. Doing so helps maintain a positive working relationship with employees and vendors.

When approving claims, ensure the total amount stated in the claim is accurate and all supporting documents are included. Supporting documents may include credit card statements, receipts, and other forms of proof. Additionally, it is important to confirm that the expenses are in line with corporate policy.

Creating a corporate travel and entertainment policy is an important part of a business expense management strategy. By establishing clear criteria for who is eligible for business travel, forecasting the budget, setting expense limits, specifying acceptable expenses, and monitoring spending, companies can ensure that their employee travel activities stay within budget.

What is a travel policy?

A travel policy can be defined as the rules and guidelines established by an organization for business travel matters. Such rules dictate who is eligible to travel, where, and how much they can spend on meals and accommodations. Other essential matters discussed in the policy include reimbursements for expenses.

Why create a business travel policy?

A well-constructed policy helps keep business travel safe, cost-effective, and compliant. The main reason for creating a business travel policy is to protect the organization from financial risks and potential legal issues associated with employee travel.

What should be included in a corporate travel policy?

A comprehensive corporate travel policy contains guidelines for employees and contractors to follow when handling both domestic and international travel expenses. Important matters to be included in the policy should cover reimbursement rates, allowable expenses, booking procedures and restrictions, and safety considerations.

What should you consider when creating a business travel policy?

Key considerations to keep in mind include the destinations and objectives of trips to be taken by employees. The size of the business should also be taken into consideration since startups often don’t have the same resources as established companies.

What’s included in a T&E expense report?

A T&E expense report typically includes details about the dates of travel, expenses incurred, the purpose of travel, and any other relevant information such as airline tickets purchased or hotel accommodation. The names of those attending can also be included along with the cost per person for all meals and entertainment activities.

What travel expenses are deductible?

Generally speaking, several business-related travel and entertainment expenses are deductible. Examples of deductible travel expenses may include transportation (airfare, car rentals, taxis, etc.), lodging (hotel stays), meals, and entertainment.

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Travel Policy for employees  

The following reasons explain the need of a Travel Policy for employees and these various reason to make this important to have travel policy in place for a company.

Sample Travel policy gives standardised rules and regulations which are to be followed while on travel.

It saves time of employees as with business Travel Policy in place processes and procedures are clearly mentioned so an employee’s time is not wasted in making arrangements.

Corporate Travel Policy

Corporate Travel Policy results in better analysis with the inputs received from employees review. Better analysis results in better decision making.

Travel policy helps in cost management.

Travel expense policy helps to keep an eye on the overall travel expense.

It determines do’s and don’ts of conduct/behaviour while travelling.

Travel policy for employees includes

Travel Guidelines for employees to be followed while travelling.

Complete travel policy format

Details of company travel policy & procedure

Details of boarding and lodging as per HR travel policy

Details of the process to be followed for travel arrangements and related aspects as per travel policy template

Arrangements for local conveyance in the city ,travel to be done

Entitlements details as per different levels.

Different categories of cities and how entitlement differs in these cities.

Per Diem details

Travel insurance while on international travel

Safety & security of employees

Corporate travel policy best practice

Disclaimer: The content prepared has been created with greatest care. These policies have been prepared for sample. However, for accuracy and completeness.

HRhelpboard.com cannot guarantee. The user is therefore requested to professionally check or to have professionally checked the suitability of all content for its use

               *******

Phase  1.

3. General guidelines to be followed in policy

4. The Company approved travel agency.

5. Travelling by air

a. Guidelines

b. Class to be chosen

c. Customized Air Ticket

d. Flight Insurance

e. Cancellation of travelling

f. Loss of airline ticket

g. Transportation from Home to airport

6. Road transportation

a. Car on rent

c. Use of personal cars

d. Sharing of Ride

7. Rail  transportation

Phase  3

a. Entitlement  for International travel

b. Classification of countries

c. Domestic travel entitlements

d. Per diem entitlements for international travel

e. Classification of cities as per domestic travel

f. Per diem entitlements for domestic travel

9. Meal expenses

10. Entertainment  Expenses

11. Process for expense reporting

b. Expense payment

c. Miscellaneous  expense

d. Medical emergency

e. Laundry charges

f. Spouse/ guests/ personal travel combined with business

1. Purpose: The Purpose of travel policy is to ensure that the travel expense of the company is controlled by establishing certain standards. Employees must control business travel expense by making the sound judgment with respect to use of company funds. Travel is an important aspect for carrying out the business, it is expected from employees that they will follow the "travel guidelines for employees “while travelling and would provide documentation in support of the same. It is also meant to reimburse the amount spent by an employee when on international or domestic travel.

2. Scope: The policy includes all the regular employees of the company. Non-adherence with policy while on business travel for company's business include stringent disciplinary action which may even lead to termination . 

3. General guidelines to be followed  in the policy 

1. A travel request must be approved before proceeding on any international or domestic travel. 

2. Any international or domestic travel request must be raised and followed as per the company travel policy and procedure.

3. If there is any change in the travel ( domestic or international) due to any reason and it is more costly then the approval that has already been taken, a fresh travel request need to be raised in this case.

4. The details on all exceptions with respect to the policy must be explained on the travel request form in case there is an exception and it needs to be approved by  HOD and director.

5. All employees are expected to travel to the countries which are allowed as per the company's guidelines. No exception in this regard will be entertained.

6. Any employee who requires travelling for the business purpose must get the approval in advance by the department head/ director. 

7. An email need to be sent to the finance department along with approval mail to get the travel advance.

8. Most economical mode of travel would be reimbursed.

9. All the tickets for any kind of travel international or domestic must be approved by the travel help desk.

10. Food expenses are allowed only as per the limit of entitlements.

11. No expense will be reimbursed for alcoholic beverages or cigarette etc.

12. In the case of business travel wherein food expenses are taken care of the client in such case only incidental expenses can be claimed.

13. In case an employee gets ill while on business travel the expenses occurred while taking the treatment will be reimbursed on actual bill and doctor’s prescription. However, if the illness is for more than 3 days special approval needs to be taken from director / HOD.

14. The expense report with travel request submitted to the finance department must consist of original boarding pass and travel -tickets, along with complete tour report maintained date wise. Any deviation from the tour programme shall be approved by the business head/director as applicable.

15. In case an employee wants to combine business stay with personal vacations, it must be duly approved by the director/HOD. It should be noted that no reimbursement would happen for any personal expense.

4. The Company  approved travel agency

All travel arrangements must be made through the travel agency which is approved by the organisation. Any arrangements if made by some other travel agency need to have approval from director/HOD. In case the travelling services are not provided by the organisation approved agency, in that case, any local agency can be contacted as per the Corporate travel policy .

5. Travelling by Air: 

A . Employees are expected to take the lowest airfare while travelling. By considering the lowest airfare common sense need to be applied as the expense must not exceed the amount mentioned in Travel Policy. The undermentioned guidelines to be followed while travelling by air for the company's business purpose. 

1. There should not be more than 1 stoppage in case of domestic travel and the stoppage must not exceed more than 2 times in the case of international travel.

2. It must not increase the travelling time for more than 2 hours in case of domestic travel and more than 4 hours when it comes to international travel.

3. It is advised to book only through the company approved travel agency as it provides savings in both domestic and international travel. Also, the benefit both for the company and employee lies with the fact that it will book a ticket with the lowest logical fare available with the air carrier.

4. As per the Company travel policy any exception need to have approval from the director and above.

5. Any kind of additional fee which is occurring due to any reason like seat up gradation etc. will not be reimbursed.

B. Class to be Chosen

1. While on air travel, organisation employees are expected to fly in the economy class which comes under the category of economical fare. Business class is allowed only for director level and above.

2. All policy exception must be noted on the travel request form and must be approved in advance by the director and above level.

3. Baggage fee will be reimbursed.

4. In case any rebooking is done, it must be reimbursed in case of emergency only.

C. Customized  Air tickets

Following the Travel expense policy customization of the air ticket is not allowed. It can't be upgraded or downgraded and any expense occurred in case of up gradation will not be reimbursed by the company. On similar ground downgrading of air ticket is also not allowed. However, the air carrier itself downgrades the ticket for any reason the refund must be made to the organisation. For the employees who travel often the points accrued due to frequent flying by the employee can be used for personal purpose.

D. Flight Insurance

The business travel policy makes it clear that while purchasing the ticket from the company authorised agency, the employee is covered under the business travel accident insurance. In case an employee purchases some other insurance coverage it will not be reimbursed by the company.

E. Cancellation of Travelling:

In case of any cancellation done to the already planned business trip, the employee must inform the travel help desk who in turn will check from the agency as soon as possible. The ticket can be refunded if it is possible; the same need to be checked by the travel agency with the air carrier.

F. Loss of airline ticket:

If the paper air ticket has been issued but it is lost due to any unforeseen reasons in such case the travel agency must be contacted immediately so that they can check from the air carrier as well. Best practices in corporate air travel must be followed.

G. Transportation from home to airport

The most economical means of transportation must be chosen while commuting from home to the airport and vice versa.

6. Road  Transportation

A . Car on Rent: Like air travel, most effective and economical means must be chosen in case of ground transportation also. The various means of ground transportation means the use of alternative transportation before deciding on car rental.  Like travel agency, the organisation also has a tie-up with the most usable car rental company. 

B. The car on rent must be taken from the company booked vendor. In case vendor car is not available, the most economical vendor should be chosen. 

C. Any reservation to have a car on rent must be chosen from the travel agency approved by the organisation. 

D. The employee must ensure that proper and economical rate is charged at the time of rental.

E. The Car can be rented when there are no other means of transportation available, It is either more costly or impractical.

F. The employee is required to refill a car before returning it to the rental company.

1. In case of travelling to an international location as per the International travel policy for employees,  the expense for taxi must not be more than the cost of a car rental.

2. Use of taxi shall be done only in case no other means of transport is available. Generally, the use of a taxi is not encouraged as other services which are more economical are available. In most of the cases, public transport must be used.

C.Use of personal cars :

The employee can use the personal cars for business travel in case it is more economical than other means of transportation. The amount spent by the employee can be reimbursed on actual. However, before the start of travel, approval needs to be taken from HOD and immediate reporting manager.

D.Sharing of Ride

If 2 employees are travelling to the same location, they are advised to share the ride.  

7. Rail Transportation

Rail transportation can be available by the employee in case travel distance is less than 12 hours.

The rail travel fare is reimbursed as per the entitlement. However, like air class, Rail transportation must be done in the most economical way.

9. Meals Expenses :

1. The company policy states that expenditure occurred on meals ( breakfast, lunch or dinner) will be reimbursed while the employee is on business travel. This is defined under "Company travel policy and procedure".

2. Every 24 hours from the scheduled departure will be counted as a day.

3. In case food bills are claimed for any client or on entertainment per diem allowance will be reduced.

4. Meal expenses are reimbursable whenever the company business travel demand stays for overnight.

5. When the business travel is for 1 day, Meal expenses are reimbursable under the following conditions:

Breakfast : If the employee is required to leave home 3 hours early than the normal time.

 Dinner: If an employee cant return home within 3 hours or more after normal           working  hours.

10. Expenses  held on entertainment :

The company by solving the “ Purpose of travel policy “

However, it should be noted that only those reimbursement are allowed which is contributing towards the business purpose.

11. Process for Expense reporting:

A. guidelines followed as mentioned under “travel policy for employees”..

• All expenses report must be raised through a web-based expense system.
• All reports must be submitted within 15 days of return from a business trip.
• If reports are delayed for more than 15 days, it will be considered late.
• In case the business travel is for more than a month's time expense report must be submitted on a weekly basis through a web-based system.
• The expense report must have the following items:
• Travel request form.
• Actual expense bill related to the meal, transportation etc.
• If possible, the employee must try to submit expense bill on miscellaneous articles also.
• Any exception made to the employee must be attached to the expense report.
• Expense  Payment
• All the expense payment is made by the finance department.
• The expense report along with the bill is submitted to the finance department who in turn validate the bills and makes the payment to employee account.
• In case of international travel, employees are issued with the credit card./li>
• The application form for issuance of credit card can be obtained from the web portal.
• The credit card must be used only for the business purpose, in case it is used for the personal expense it must be indicated clearly in the expense report and payment must be made directly to the company.
• Miscellaneous  Expenses
• The company will reimburse calls made for business purpose while travelling. The calls made for the business purpose must be marked clearly in the expense report.
• The company also encourages the employee to be in touch with the family to maintain communication. So, it will reimburse reasonable personal calls made by the employee. However, before the start of business travel, the employee must submit a declaration with contact details which he/she will be calling while travelling.

      D . Medical Emergency

In case of any medical emergency while travelling for business purpose the organisation insurance carrier will provide referral and support service. The details on the same can be obtained from the travel desk.

      E . Laundary charges

The company will reimburse necessary laundary charges if stay in the location is for business purpose and is more than 7 days.

      F . Spouse/Guest/personal travel combined with business:

Any kind of travel expenses occurring for guest or family member will not be reimbursable.

Spouse/ guests can share the accommodation till the time there is no additional cost to the company.

Revision of the policy

• The company reserves the right to revise, modify any or all clauses of this policy depending upon the demand of business.

 Explanation of the policy 

• Corporate HR department will be the sole authority to interpret the content of this policy.                                

Template Sample - 2

Objective :   The objective of the Company travel policy is to lay down guidelines which are to be followed by an employee on domestic or international travel for official work and also to ensure that the travel of employees is effectively managed.

Purpose :  The purpose of travel policy is to make guidelines for travel related to business and to provide protection against any kind of misrepresentation and to ensure all reimbursement for the expense done on travel

Eligibility :   This policy applies to all the regular employees of the company and management trainees

Classification of Cities as per Domestic Travel Policy

​classification of countries as per international travel policy for employees, ​company travel policy and procedure.

As per the procedure followed in company travel policy, all business travel must be approved by immediate reporting manager and HOD as per the domestic travel policy. Also as per the HR travel policy any international travel made by employee must also be informed to Human Resource Department and an approval is must to be taken from immediate reporting manager, HOD and HR. All expenses in case of domestic and international travel are made as per the eligibility of expense made under travel expense policy.

NO CLAIM OVER AND ABOVE THE ELIGIBILTY CRITERIA 

Guidelines for travel policy for employees in india and international travel policy for employees.

All Travel request must be raised by an employee on HRMS tool. Request must be made 30 days prior to the start of travel. This  travel guidelines for employees is mandatory to be followed.

All guest house /Hotel facility will be made available by travel desk as per the entitlements mentioned in the Company Travel Policy.

As per travel policy Hotel /Company guest house arrangement will be done by travel desk once travel request has been raised and approved on HRMS tool depending upon the eligibility criterion. In case on urgent travel when bookings have not been made by travel desk an employee can book a hotel as per eligibility criterion and can later on claim the amount on actuals.

Airport pick and drop can be made by radio taxi/local conveyance depending upon the availability and the same can be reimbursed on submission of actual as per company travel policy & procedure.

The number of days will be counted from the time of departure till the time of arrival as  per business travel policy.

Any extension of stay due to personal reason will not be counted as official travel and no reimbursement for personal stay will be made.

All Claims must be raised on HRMS tool. Filling of Travel expense report is must even in case all expenses were made by company directly as per travel policy format.

As per Travel Policy All travel request must be duly approved by the approving authority. An automatic notification will reach employee and travel desk after approval. Once approved travel desk can make necessary arrangement after coordinating with employee.

All travel expense must be settled within 15 days of return from the tour. In case of delay from employee end/travel desk an escalation email will be sent to immediate reporting manager and HOD as per Travel expense policy.

Travel   advance, if any, to be paid to employee will be credited to employee account.

Any Travel expense not been used by employee on travel, such amount shall be returned to accounts department with a confirmation mail.

All reimbursement bills must be supported by original bills / receipts etc.

In case an employee is accompanying seniors from level above their own level on domestic travel arrangement in such case bookings will be done as per eligibility criterion only.

Employee cannot avail higher class facility then their own entitlements.

Any arrangement made over and above the eligibility criterion the same will be deducted from employee salary.

In case 2 or more employees travelling to the same destination up to level 2 & 3, twin sharing arrangement will be made. However separate arrangement will be made for level 1

Team entertainment expense will not be counted as part of travel expense claim.

In case employee is suppose to take client for dinner/Lunch, amount will be reimbursed on actual. However email approval to be taken from immediate reporting manager before any such event.

Cancellation of travel shall be duly informed to travel desk at least 2 days before the travelling date and must have a valid reason.

In case flight/ train missed by employee without any valid reason, the amount will be recovered from employee salary.

Leave can be allowed to an employee on tour on a case-to-case basis by the HOD. No other charges will be admissible for such period of leave.

If any company assets are lost while on tour the same should be informed to the concerned authority immediately. In case no action taken company reserves the right to recover the amount of lost assets from employee salary.

Food claim exclude Alcohol and tobacco.

In case an employee is using own vehicle /company leased car vehicle to an outstation city in such case reimbursement can be made at the rate of Rs. 9/KM . This clause is not applicable from office to home or vice versa.

For local travel in outstation city an employee can avail local transport/Taxi depending upon eligibility and availability of transport. This amount can be reimbursed on submission of actual.

Travel expense report in case found fake, serious disciplinary action will be taken against the employee. Such an act can lead to termination also.

All Air travel should be by economy class.

All arrangement for international travel shall be made by travel desk/admin. Department

International travel for an employee must be approved by immediate reporting manager, HOD, HR and director.

It is as per the corporate travel policy while on international travel it is the employee’s responsibility to control travel and meal expense.

In case arrangement for employee is made in company guest house in the country of travelling expenses for meals, refreshment and other expenses will be given as 20% of entitlement as mentioned in the corporate travel policy.

All payments while on international travel can be made by credit card, the amount can be reimbursed on submission of  actual. The points however earned by use of credit card can be used by an employee on personal use.

All claims which are made by foreign exchange / foreign currency can be settled with accounts department on submission of actual, upon return from travel. However all  foreign exchange must be drawn from an authorised agent. It is as per business travel policy.

Most economical preferably local transport must be availed for ground transportation.

In case employee is making own stay in such case an allowance is paid for $125 in lieu of hotel expense.

Travel Entitlements as per Travel policy for Employees in India

Travel Entitlements as per Travel expense Policy for International travel policy for employees

Per diem entitlement for international traveler.

I nsurance coverage :   Insurance coverage is provided by the company to its international traveler. The insurance cover is provided by the company

​Items which are not covered under Travel Expense Policy

The non reimbursable expenses which are not covered under the Corporate Travel Policy are as follows:

• Family Care items.
• Dry cleaning.
• Expenses for personal entertainment.
• Any change of airline class or change from economy to business class.

​Local conveyance expense and working on a holiday

Employees are encouraged to use public transportation wherever possible or the most economical means of transport. In case of emergency if an employee has to use some other means of transport in such case approval is required from immediate reporting manager & HOD.

Also if an employee has to work on holiday or weekend as per the need of hour while travelling to some international location, he/she will be paid 800 Rs. Per day.

​Process to be followed for domestic & International travel

The process to be followed by an employee while going on domestic/ international travel as per travel policy template is explained below. Generally the process to take pre approval is mandatory both in case of domestic as well as international travel however if any changes they are highlighted separately.

​Safety & Security of Employees While on travel (Domestic travel or International travel)

• One of the most important aspects of any business travel policy is to protect employees while on international or domestic travel. Some of the measures that are being taken is as follows:
• As per the travel policy format employee is suppose to inform travel desk & immediate reporting manager about their stay with the help of an itinerary.
• They are also suppose to provide their hotel contact number as soon as they reach the destination.
• Time to time intimation of their stay and plan of the day
• Insurance cover as provided by the company on international travel.
• The practices mentioned in the travel policy template are some of the best practices as they include:
• Employee friendly practices
• Details on reimbursable and non reimbursable items
• Clear and easy to follow process & procedure for travel.
• Information about safety and security
• Insurance Coverage.

Revision of the Travel policy

The company reserves the right to revise, modify any or all clauses of this policy depending upon demand of business.

Explanation of the Travel policy ​

Corporate HR department will be sole authority to interpret the content of this policy.

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