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The Best Practice For A Travel Policy
Corporate travel policy plans protocols for business travel and provides a set of guidelines for employees to follow.
Typically, corporate travel policy will cover employee safety, streamline the booking process, and provide information on expense claim and reimbursements.
However, travel policies aren’t a one-size-fits-all situation. Your corporate travel policy should be created to fit the culture of your company, while also keeping business objects in mind.
We will highlight what you should focus on when developing your travel policy, the importance of effective budgeting, trip approvals, rewards and advanced booking requirements.
Developing Your Travel Policy
When it comes to creating your corporate travel policy, It’s essential to bring together key stakeholders from across your business.
This should include the finance team, human resources, executives, and of course, employees that represent your business on the road.
Bringing the cross-functional team together can help to ensure that the policy not only represents your business goals, budgets and also safety but also considers the needs of your travellers.
- The finance team will bring information on cost controls, expense claim, and budgets.
- man resources can provide expertise on the duty of care, employee engagements, and how to leverage the travel policy to attract and retain top talent. Executive team members will provide insight into business goals and company plans.
- Lastly, your travelling employees can bring their experience on the road as it pertains to the value of convenience, where you should avoid cutting corners to save a few bucks, tips to enhance productivity, and what loyalty programs they prefer.
As a team, review travel norms as a baseline, but then look at travel frequency, budgets, the duty of care, and reporting. We also suggest that you review a technology-enabled travel management company that will improve processes and support your corporate culture. From a tech perspective, you want an easy-to-use application that allows you to wrap policies directly into the platform. This functionality will help provide clarity for employees while also ensuring adoption.
All too often we’ve seen travel admins spend hours scouring the internet to find the average hotel cost for the cities frequented the most by their travellers.
They then use this price as the baseline for budget allocations.
We refer to this as static budgeting of the money saved, it creates a mindset of treating company money like their own. Additionally, the rewards are a nice perk that can be used for the services they use like
- Ntuc Fairprice Voucher
- Grab Voucher
- Ikea Voucher
- Sephora Gift cards
- The Wine Company
- Giant Voucher
- Best Denki Voucher
- Popular Voucher
EzBizTrip clients without rewards still experience savings, but not as high or as quickly.
If you aren’t incentivizing employees to save, they will stretch the budget all the way to stay within compliance, reducing company savings.
Your business travellers are likely to have favourite airlines and hotels.
Typically, the first objections travel managers will receive about a policy is if their preferred airline or hotel is unavailable.
It is essential to ensure that your travel policy isn’t too limited, which can result in a bad traveller experience and dissatisfied employees.
We suggest listening to your travellers and implementing a policy that supports traveller comfort, which in turn will result in happy and productive employees on the road.
Booking In Advanced
We understand that advanced booking isn’t always possible, however, the benefits of reserving flights and hotels at least two weeks in advance. This can improve availability, preferred seating, and an average savings of $200.
Princes increase significantly at the last minute, but business travel is unpredictable and at times, chaotic. Providing travellers with flexibility while still being cost-conscious is on the of the most difficult aspects of the corporate travel policy to figuring out.
To ensure advanced bookings when possible, educate and train your travellers and have a policy in place in the platform.
Anyone that has run a travel program or travelled for work is familiar with approval processes and the headaches that can result.
If you have a strict approval process, traveller frustration is likely high.
Approvals can be costly if they aren’t implemented properly. For instance, while waiting for sign-off, fares can increase or seating options may change.
The trip option may become unavailable entirely causing the traveller to book a flight the day before and costing an additional night in the hotel.
We see many different policy options as far as approvals are concerned, but at the end of the day have found that companies that implement technology-enabled managed travel with built-in approvals have the highest compliance rates, fewer frustrated travellers, and tend to beat their budgets.
EzBizTrip Clients will experience better business outcomes for employees, increased cost savings for the company, and a boost in employee morale while travelling.
Rewarding Your Team
Creating a policy that aligns with employees is far easier to adopt.
Rewards not only help with employee buy-in but also save the company money.
By incentivizing employees to make better business decisions, overall travel spend is reduced. EzBizTrip’s rewards program incentivizes employees to make better spending decisions.
Adopting a Corporate Travel Policy Where It Benefits Everyone
With business travel rates on the rise, companies are finding the need to create a set of guidelines for their business travellers to use to be more and more important.
A more complicated travel policy isn’t necessarily going to save you more money or increase compliance. Instead, focus on aligning your policy to your employees’ travel needs, incentivizing better behaviour and keeping employees happy and productive.