Corporate Travel Policy- Steps to Create Business Travel Policy [Free Template Download]

Professionals in many fields have to go to different places to do their jobs, like meeting with clients, going to conferences, hiring staff, or keeping an eye on sites. A corporate travel policy will tell employees how to plan and book business trips, as well as which travel costs are covered by the company and their reimbursements.

When planning business travel, there are a lot of things to think about, so it stands to reason to have a strong corporate travel policy.  Therefore, for trips that they have paid for themselves, all employees are required to keep the receipts and other supporting materials so they can use them as proof when they return to work to request reimbursement. Setting out all the necessary steps will help you keep your staff safe while they work to cut down on your company’s travel costs.

Let’s dive into everything you should know about Corporate Travel and steps to create a policy!

Table of Contents

• What is a Corporate Travel Policy?
• Why is a Corporate Travel Policy Important?
• Steps to make a Corporate Travel Policy
• Best Practices for Drafting a Corporate Travel Policy
• Conclusion
• FAQs
• Corporate Travel Policy Free Template Download

What is a Corporate Travel Policy?

A corporate travel policy is simply a set of standards and instructions that a company creates to outline how its employees are to manage and plan business travel. It covers important topics including requests, charges, transport, accommodation, legal/medical expenses funding rules and planning for travel, making a corporate travel policy a manual for making the most efficient use of their time while on the move for business. This is what you need in a travel policy:

• Purpose and Scope: This is where you list what a travel policy is, why it is needed, who should follow it and when is it applicable.
• Approval Process: Once a travel is scheduled, the details are provided for what the process for approval process is and who is in charge of approving the travel.
• Booking Guidelines: These guidelines include who arranges the transportation, accommodation and other bookings for this travel, and other rules regarding bookings.
• Safety and Security: Once an employee is aware of their booking and travel duration, the health and safety rules are laid out.
• Transportation: The employee is then alerted on how the transportation mode should be selected, what should the booking process be, how the travel rates and decisions must be made.
• Accommodation: This section shows standards for the accommodation cost, process, rules, booking sources, budgets etc
• Meals and Entertainment: The meals and entertainment section shows what should the per diem rates be, what entertainment means off limits and more.
• Expense Management: This lists what expenses are eligible and how to get reimbursed.
• Advances and Settlements: An employee can know if they can request any additional advances before the trip and how post-trip settlement procedures work.
• Local Transportation: These guidelines list rules, timings, and policies for local travel reimbursement.
• Emergency and Medical Support: The employee is notifies on their access to emergency assistance, safety and health procedures and insurance policies.

Why is a Corporate Travel Policy Important?

It is essential for businesses to have a corporate travel policy since it provides employees with the ability to comprehend travel directions in full length. This document is extremely significant because it mostly determines the amount of time and money spent. Therefore, if we want to have a better control over the company’s travel expenses. It is vital to create a policy that is suited for the purpose and costs that are incurred by the company due to travel. It will also provide employees more control over their actions, which will result in increased levels of autonomy and mental clarity. 30% of employees would accept roles with a lower salary if the position offered more opportunities to travel.

Benefits for employees:

• Simple and clear Instructions: A corporate travel policy makes it simpler for employees to comprehend what is expected of them when traveling on work.
• Assurance of Safety: It guarantees the security of employees by tracking their locations and offering assistance while they are on the road.
• Hassle-free Booking: Makes travel planning easier and less confusing, therefore reducing stress.
• Fair Reimbursement: Guarantees employees won’t have to worry about money by paying them properly for the trips they take.

Benefits for the company

• Budget Management and Stability: By managing and controlling travel expenses, a corporate travel policy lowers unavoidable expenditure spikes and allows better financial planning.
• Simplified Expense Management: The reimbursement process runs more smoothly and effectively when there are clear rules about what counts as allowed spending. This avoids any disagreements and conflict.
• Time Savings: Minimizes administrative work and saves time for employees as well as the finance team by streamlining the booking and reimbursement process.
• Creates New Opportunities: By making more and new connections with company partners, clients, and prospects across borders, nationalities and even culturally open groups; corporate travel creates fresh possibilities for companies to expand.
• Improves Brand Image and Knowledge: Traveling employees act as brand ambassadors, raising awareness and reflecting a positive image of their company wherever they visit.

Steps to Make a Corporate Travel Policy

Before Drafting a Corporate Travel Policy

• Conduct Employee Surveys:

Since they are the main individuals affected by this policy, you might want to start with asking their opinions and suggestions. Get to know more about the challenges they face when they travel, their personal experiences and any additions they might want to make. This way you have an in-depth idea about how you want to draft your travel policy.

• Research Against Industry Standards on Travel Policies:

Looking around other travel policies; either from other companies or even other industries, is a smart move. Once you know what is missing in your policy you can make better decisions.

• Speak with Key Stakeholders:

Organizing meetings with HR, finance, department heads, managers and possibly any legal advisors too can help you get insights on the necessities of your travel policy. This way you can make sure that your company’s travel policy aligns with the law as well as with the company’s practical and financial goals.

• Specify Goals:

Now that you have had a word with your company’s top talent, address why this policy is needed. Here you will need to mention your company’s objectives; it could be cost reduction, better employee safety, streamlined travel etc.

Drafting a Corporate Travel Policy

• Outline the Introduction :

The foundation for the whole travel policy will be simplifies in the introduction. It explains the goals of the policy, its purpose, and the people to whom it applies. The major objective is to give the company and it’s people a methodical and transparent approach to managing business travel. In this you will find:

1. Purpose: This section clearly describes the key purposes of the travel policy. This includes any of the company’s goals like making sure that travel plans are affordable, encouraging safety, and supporting company principles like environmental responsibility.
2. Scope: Here you will be specifying which departments or jobs are covered as well as all employees, including contract and part-time workers.

• Write the Pre-Travel Approval Process:

Any planned business travel requires prior permission. This could be either from an HR, manager, or other higher subordinate. Here’s how a structured pre-approval process looks like:

1. Complete a travel request form, including the itinerary and expected expenses.
2. At least 2/3 weeks before your trip, turn in the form to your manager or HR.
3. Manager reviews request for need and compatibility with the budget.
4. Higher-cost requests are forwarded to top management if necessary.
5. Get an email notification of approval or disapproval.
6. If accepted, make reservations using the specified channels and the authorized spending limit.

• Create Booking Procedures:

A simple but clearly defined booking procedure is needed to make sure that all employee travel arrangements are under the company’s budget and guidelines. This is done via 3 ways:

1. Authorized Channels: Employees are required to use the company’s approved travel agency or designated online booking tool to make all travel arrangements, including flights, lodging, and ground transportation. Usually in India, companies have a tie up with channels like MakeMyTrip, Thomas Cook India, Cleartrip, Taj Hotels Corporate Booking etc. This helps manage expenses and preserve consistency by guaranteeing that travel reservations stick to company-negotiated rates and standards.
2. Advance Bookings: Employees are advised to book their travel well in advance, preferably a few weeks prior to the departure date, in order to benefit from reduced rates. Early reservations support availability and lower costs, both of which are in line with the business’s cost-cutting objectives.
3. Travel Documentation: Prior to departure, employees are in charge of obtaining any and all required travel documentation, including passports, visas, and immunization records. The trip coordinator of the organization is accessible to offer support and materials, ensuring that all documentation needs are fulfilled on schedule.

• Mention the Measures for Security and Safety During Travel:

In today’s environment, unexpected emergencies and safety risks can arise at any moment, so the responsibility of the safety and security of employees falls solely on the company. This is why providing necessary support, guidance, and resources become very important. Here’s how a company can include safety measures in their corporate travel policy:

1. The policy requires comprehensive travel insurance to protect employees’ health and belongings. This coverage helps with unexpected medical expenses, lost property, and other travel risks.
2. Employees have access to 24/7 support through phone hotlines and online chat, ensuring help is always available.
3. To keep employees safe, they must share their itinerary and agree to location tracking through secure channels, allowing the company to monitor their safety while respecting their privacy.
4. With more women traveling for business, the policy includes special safety measures for female travelers, such as choosing hotels in safe areas and offering additional support in high-risk locations.

• Find out Legal and Regulatory Mandates for a Corporate Travel Policy in India:

As of now there are no laws or Acts pertaining to corporate travel, but this section makes sure employees follow basic legal and regulatory requirements during their business travel. It talks about which valid legal documents like passports, visas, and work permits an employee needs to carry during their travel, rules of conduct based on their travel location and how they need to protect company data by following security protocols.

• Provide a Set of General Transportation Guidelines:

Next section talks about what standards are to be followed while making transportation decisions. This means choosing the most economical transportation in means of time, distance and amount of people. It is also important to choose the right travel and transportation insurance providers to confirm that all the chosen options are covered under the company’s policies for complete financial protection.

• Establish Transportation-Specific Corporate Travel Policies:

Now that you have laid out the standard ground rules for transportation that your travelling employees need to follow, it’s time to set the detailed rules. This helps in making sure there is uniformity and financial protection. Regardless of the modes of transport, it is necessary that the bookings are made only under the company’s designated booking period and from the selected channel. This is to ensure that the employee adheres to the company’s budget and safety standards. Here’s what should be included:

1. Air Travel Policy: For flight travel, you will need to detail the number of days in advance a booking should be made [for both national and international], type of class for travel and other rules. Usually, top management is permitted to fly business class if their flight is over 8 hours ;however this is not the case for other employees. Your employee’s air travel policy should include a list of authorized in-flight purchases and, if relevant, a list of your company’s preferred airlines. The most crucial part of your air travel policy is this one, since it enables your employees to verify that their reservations fit to the guidelines.
2. Bus/Car Travel Policy: Employees who use their own cars for work must make sure they are properly insured, in good working order, and follow to the company’s safety regulations. They also need need to have a currently updated driver’s license. Using your own vehicle for business travel requires prior authorization from the employer. To be reimbursed, employees have to submit receipts for their toll purchases and parking payments without which reimbursement would not be possible.
3. Train Travel Policy: In India, business travel is made both economical and efficient by the Employee Train Travel Policy. Senior management travels in First Class and middle management in AC 2 Tier or second class. Employees are required to purchase train tickets through authorized means or provide receipts if done manually via booking counters . Tickets, appropriate meals, and local transit charges are all reimbursable; but personal expenses are not. When traveling, employees are required to travel with a valid ID like Aadhar cards, stick to corporate policies, and act professionally.

• Outline the Basic Rules for Accommodation:

It is necessary that your corporate travel policy includes information regarding the conditions of your company’s hotel policy and accommodation expenses. Because each company has different requirements, it is vital to establish the accommodations standards for the corporate housing policy beforehand. You might ask them to stay within a certain range of the average nightly pricing for each place. State that standard rooms are the only available room type, and specify if your business will cover the cost of the minibar, Wi-Fi, etc.

Companies often set a maximum number of stars in a hotel or a nightly/room tariff that employees are not allowed to exceed for accommodation expenses. Basic hotel rooms are sometimes the only accommodations available to employees; “deluxe” suites or rooms are usually off-limits. Make it clear which additional expenses are covered by insurance, second. These can range from dry cleaning/laundry services (gym, swimming pool, sauna, etc.) to room service and valet parking.

• Specific Meal Plans for Each Day:

A meal allowance policy controls the maximum amount of money that employees are allowed to spend on meals when traveling for work. If there is a policy in place about lunch allowances, traveling for work is considerably easier and more comfortable. It also outlines the steps that employees can take to file an expense report. This will make it much simpler and easier for your company’s finance staff to precisely track these business expenses. In this you will need to add:

1. Create daily per diem costs according to the employee’s designation and location.
2. Allow further reimbursement in exceptional circumstances, based on necessary authorization.
3. Set explicit limits on spending on entertainment and booze.
4. Mention what is not refundable to prevent misunderstandings.
5. Review and modify per diem charges on a regular basis based on financial facts.
6. Consider and take into account employee input about meal allowances.

• List All Allowable and Ineligible Expenses:

This part of the travel policy indicates that employees should be aware of the expenses that the company will pay for when traveling on business as well as those that are considered unnecessary or personal and are not reimbursed. Here’s a list of expenses to be on the lookout for:

Eligible Expenses:

1. Transportation expenses include mileage for business trips, automobile rentals, rail tickets, and airfare.
2. Lodging costs within budgets agreed by the company.
3. Meals at approved actual expenses or at per diem rates.
4. Expenses for essential communication, such as business calls and internet.
5. Registration for the conference and any applicable costs.
6. Appropriate service fees and gratuities for business travel.

Non- Eligible Expenses:

1. Purchases of alcohol without authorization.
2. Personal amusement and travel expenses for family.
3. Penalties caused by individual acts, fines, and traffic citations.
4. Charges for minibar and room service above the daily allowance.
5. Excessive or luxurious spending.

• Provide the Documentation Requirements and the Reimbursement Process:

This part of the corporate travel policy describes how employees should file their expense reports, what paperwork they should bring, and how the approval and reimbursement procedures work. Employees usually have a deadline (such as seven or fourteen days) to turn in their expense reports following their work trip. They can submit their reports more easily when they can do so remotely or on the go by using digital copies of their receipts that are clear and easily understood.

In certain situations, further paperwork can be needed, such itineraries for trips, agendas for conferences, or emails approving any out-of-pocket spending. The policy should specify exactly how long—usually 7 to 14 days—employees should wait for compensation following approval.

• Provide Information about Medical and Emergency Situations:

Every employee travelling for work deserves health and safety assurance. This is where this section comes in place to make sure employees are well prepared and safe. A company also covers an employee’s medical insurance that aligns with the company’s rules. Any medical emergency must be notified to the company as soon as possible to document the incident for proper processing.

• Policy Compliance and Enforcement:

As the policy comes to an end, you will need to make sure that your company’s travel policy has the appropriate procedure in place for regularly going over travel and expenditure reports and carrying out audits as needed. Depending on the significance of the violation, noncompliance with the travel policy could result in penalties like termination, loss of travel rights, or denial of reimbursement.

After Drafting a Corporate Travel Policy

• Explain the Policy to Staff Members:

Send out the travel policy to every employee by email, the company the corporate network, or have a meeting with everyone on the team. To make the instructions easier for employees to understand, use plain language and provide examples. Make certain that every employee has a copy of the policy. This essential step lowers the likelihood of non-compliance by making sure every employee is informed of the policies and procedures they need to stick to when traveling for work. Make use of a variety of communication platforms, including as webinars, training sessions, and presentations, to make sure that everyone is fully aware of the policy.

• Set Measures for Compliance and Monitoring:

To make sure the policy is being followed as you wish, conduct frequent reviews of the travel and expenditure reports. Also implement recurring audits to find any inconsistencies or irregularities. You can use software tools or assign a dedicated staff to keep an eye on compliance, spending, and identify any problems.

• Create a Procedure for Reporting Violations:

Set up an encrypted route so that employees can voice any violations of the travel policy without worrying about facing consequences. Provide an online form or dedicated email address for employees to use as an anonymous reporting method for issues they have. This increases responsibility and openness, helping the business to handle problems before they get out of hand.

Best Practices For Drafting A Corporate Travel Policy

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• Focus on Employees’ Needs

Produce a corporate travel policy that raises compliance rates by taking into consideration the preferences of your employees. Compliance will help in lowering the costs associated with business travel and ensuring the safety of its personnel. Their experience will be improved if, while they are ordering the tickets, you inform them about the policy.

• Keep it simple

It should not be difficult to comprehend or include the information that is most essential to the employees. When a policy is easy to understand, employees are more likely to comply with it. If not, they risk violating the terms of the policy by making a reservation. If your travel policy contains a lot of unfamiliar phrases, you might also want to include a glossary section.

• Include all details

It doesn’t matter how big or how small your company is. If you want it to expand in the future, engage in corporate travel that is clear, succinct, and explained completely. This is true regardless of the size of your company. This ensures that there is no misunderstanding between you and the employee that is working for you.

• Create a flexible policy

Sometimes, things don’t go as planned. So prepare for any such instances like flight cancellations, sickness, emergency situations, etc.

• Encourage and incorporate employee feedback

Since your employees will have a first hand experience, consult them. Their say matters too. Contributing to a higher rate of policy acceptance means including relevant stakeholders and employees in this process.

• Include your duty of care plan in the corporate travel policy

Emphasize your duty of care plan in the section on travel and support. Employees are then aware of all the actions you are taking to ensure their safe travel. This includes tracking people, providing support 24 hours a day, seven days a week, and an emergency helpline.

• Make sure your corporate travel policy is visible and easily accessible

If employees are unable to access the document, they might make travel reservations without referring to the policy. Check that your HR system or employee portal provides quick and easy access to the document for your staff.

In the second stage, check that the policy is not overly wordy and is understood quickly. When explaining the travel rules, try to avoid using too much legalese or jargon, and be as clear as possible. You might also think about separating the policy into several sections according to the different functions that employees play.

• Create a comprehensive FAQ

Even the most well-written travel policy won’t be able to cover every possible question that an employee may have. Any official record is certain to contain certain complexity, and answering those questions is an absolute requirement. In addition to that, record any alterations that you make to your travel policy. Establish an FAQ section so that travelers can easily access solutions.

• Delivering the corporate travel policy to employees

Now that you know how to create an effective corporate travel policy for your company, you need to make sure that you implement it through an automated T&E management solution that provides a positive user experience for your employees. Ensure that you achieve compliance without any additional effort on their part.

Conclusion

You might need to send some of your employees on business trips to take advantage of new opportunities. The establishment of a policy regarding travel for business purposes is highly recommended. A travel policy should be straightforward, comprehensive, and free of any complexities. Streamline all of the steps involved in taking a business trip for both the travelling employee and the employer. To make things easier, Smart Sales Kit has compiled for you a customizable and ready to use sample corporate travel policy template that will not only make this process faster but also avoid missing out on important details. Click here to get the free download link!

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Corporate Travel Policy Free Template Download