The ultimate guide to creating a smooth, efficient travel policy

Synonymous with business opportunities, business trips are an opportunity for employees to combine business with pleasure. But this good experience can quickly turn into a disaster, for both the employee and the company, if events don't go according to plan. The former may have to put up with less-than-ideal living conditions, and in the worst-case scenario, see his or her safety compromised, while the latter may have to bear an explosion in operational expenses.

The best way to regulate all this? Build and deploy a travel policy that imposes a clear framework, so that everyone wins.

This document needs to incorporate a number of elements, and there are a number of best practices you need to be aware of, if you are to ensure that your new guidelines are fully understood and adopted.

That's where our article comes in handy, along with our PDF travel policy template below.

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What is a travel policy?

Generally put in place by the travel manager, or management and HR for smaller organizations, the travel policy (PVE) defines the rules and processes put in place to frame employee business travel.

It sets out various aspects:

• authorized modes of transport ;
• choice of accommodation (types and categories) ;
• the reservation and validation process;
• budget ceilings by type of expense;
• conditions for reimbursing expenses;
• travel safety rules;
• use of reservation tools;
• expected traveler behavior.

💡 The travel policy also makes it possible to set up negotiated framework contracts, in order to obtain the best conditions and discounts from service providers such as hotels or airlines. This type of agreement helps optimize costs while standardizing bookings.

Why is it important to define a corporate travel policy?

The primary objective of a travel policy? To establish clear rules for all aspects of travel, from transport bookings and choice of accommodation to management of associated expenses. This way, everyone has the same level of information, knows what procedure to adopt, and enjoys the smoothest possible experience. The result: much less time spent on organization, for travel managers and employees alike. ✅

Of course, the budgetary aspect also comes into the equation. With a good travel and expense policy, you can keep a tighter rein on related expenses. Not only will you reduce excessive costs, but you'll also know more or less in advance what your annual business travel budget will be.

Last but not least, by imposing a common framework of transparency and fairness, you're helping to foster good relations with your employees. In particular, you avoid conflicts such as "Why did so-and-so get better accommodation than I did? ". What's more, travel policies generally include a whole section devoted to the safety of travellers (insurance, reimbursement of medical expenses, preventive measures, etc.).

What's in a company travel policy?

Every company has its own travel policy, depending on its needs. However, the content remains more or less the same from one organization to another.

👉 Here are the elements traditionally found:

Annual budget and spending limits

• transportation (plane tickets, trains, rental cars, etc.) ;
• accommodation (hotels or rentals);
• meals, i.e. catering costs;
• other expenses (miscellaneous, cabs, parking, etc.).

💡 Spending limits are often set for each category to avoid excesses. These include:

• maximum amounts for airline tickets or hotels ;
• limits for daily meals.

Authorized modes of transport (according to precise criteria, such as trip duration and destination)

• public transport ;
• rental car, for short trips or when public transport is not available;
• air travel, depending on the distance and duration of the trip (economy class for short trips, business class for long trips, etc.);
• other options, such as carpooling, cab, VTC, etc.

Rules governing accommodation and meals

• types of accommodation (hotels, apartments or other types of accommodation) ;
• ceiling per night for each category of hotel;
• meals, with maximum amounts, depending on destinations (restaurant meals, business meals, etc.).

💡 The policy can also define whether meals are to be taken with a customer or colleague, or whether they are personal.

Traveler safety

• travel insurance (what coverage in case of accident, illness or trip cancellation) ;
• emergency protocols, i.e. actions to be taken in the event of unforeseen circumstances (strikes, accidents, natural disasters, etc.);
• health safety, advice on vaccinations, protective equipment, etc. ;
• emergency numbers and contacts.

Booking and refund procedures

• booking tools (platform, dedicated agency, etc.) ;
• reimbursement procedure ;
• supporting documents (invoices, receipts, etc.).

Sustainability and ecological responsibility

• eco-responsible travel: preference for train rather than plane, use of public transport, etc. ;
• selection of eco-responsible hotels.

Examples of special cases

We advise you, for your travel policy, to plan for special scenarios that don't necessarily fit into the standard categories.

For example:

• What if an employee extends his or her stay for personal reasons?
• What if a trip is cancelled at the last minute?
• What are the criteria for choosing a hotel based on location?
• What should I do if an employee wishes to stay with a relative on site?

How do you establish your travel policy?

1 - Define the objectives of your travel policy

As with any project, the development of a travel policy begins with the definition of clear objectives.

Is it to reduce the budget devoted to business travel?

Or to reduce the time spent organizing trips? ⏱️

Take the time to clearly identify your objectives in order to guide your decisions. For example, if your priority is to control operating costs, then you'll focus on negotiating preferential rates with suppliers.

2 - Analyze your business needs

At the same time, it's important to fully understand your company's real business travel needs.

Start by identifying frequently visited destinations, whether local or international, as well as the most common types of travel (meetings, seminars, sales visits, etc.).

Also assess the current costs associated with these trips, looking at transportation, accommodation and incidental expenses.

This will help you identify areas where savings are most likely to be made.

3 - Draw up a budget

The travel budget is one of the cornerstones of any policy. It's important to establish it realistically, based on the company's needs, but also on the objectives previously set.

First of all, calculate how much you can allocate to business travel each year, taking into account all expenditure items. Of course, the overall estimate can be refined according to the type of trip, as some trips require more resources than others (international trips, conferences, etc.).

Cost control also involves setting spending ceilings for each category. For example, what is the maximum budget per night for a hotel? How much is acceptable for a plane ticket?

☝️ All limits must be set with market standards in mind!

💡 Tip: allow a safety margin for the unexpected. That way, you'll be able to cope with price rises or exceptional situations without too much damage.

4 - Determine what the travel policy should contain

Now it's time to draw up the travel policy itself!

It's made up of all the elements listed in the previous section, leaving no room for interpretation.

Be as clear as possible on every aspect of the policy, from authorized modes of transport to accommodation categories and spending limits.

5 - Negotiate with service providers

Once the rules are in place, it's time to negotiate framework contracts with the various service providers, be they airlines, hotels or car rental agencies.

Why should you do this? Because with these agreements, you get preferential rates (in exchange for guaranteed volumes) and other advantageous conditions for the company.

💡 Tip: favor companies offering flexible conditions for last-minute cancellations or modifications, because the unexpected can always happen!

6 - Disseminate the travel policy

Once your travel policy has been drawn up, it's time to disseminate it and communicate the rules that have been put in place.

To do this, organize presentation sessions, webinars or information meetings, depending on the size and needs of your company. Ideally, you should opt for a centralized online document that employees can consult at any time.

7 - Update the document regularly

A good travel policy evolves over time, according to employee feedback and market changes.

Updating the document involves analyzing what' s working beforehand, but also identifying any sticking points. For example, if employees are not following established guidelines (e.g. exceeding the price for accommodation), you need to understand :

• whether this is because the framework imposed is not in line with the reality of needs and the market;
• whether this is due to a "taste for luxury".

☝️ A dynamic travel policy is one that continues to meet the company's changing needs.

5 best practices to be aware of when implementing a successful business travel policy

1 - Make things as clear and easy as possible

Often, the first pitfall travel managers and other business travel managers fall into is making their travel policy far too complex to understand. 😬

And yet, the aim is for employees to be able to refer to it without difficulty. They need to grasp at a glance :

• all information relating to accommodation, meals, travel, etc. ;
• the processes for approving or requesting approval in the event of a problem
• how to deal with the unexpected, etc.

Of course, you'll also need to maintain optimal communication at all times. If, for example, an employee encounters difficulties on a point, he or she must be able to count on a contact person available to lift the veil. And if necessary, don't hesitate to organize training sessions (in the use of reservation platforms, for example).

2 - Personalize your travel policy by involving employees

An effective travel policy is one that is tailored to your company's actual situation.

And the people in the best position to know how a business trip to your company works are undoubtedly the employees themselves. That's why it's important to involve them right from the start, especially during the needs analysis phase.

This way of doing things generates another benefit: by involving employees in the operation, you make it easier for them to buy into the change, especially if your new travel policy moves the lines quite a bit (you're demonstrating that their opinion counts!).

💡 Tip: don't gather employee feedback only when the travel policy is being built. Throughout, keep listening to them, so you can constantly improve the document and guidelines.

3 - Be flexible in your policy

A travel policy may set the framework, but it shouldn't be too rigid. For example, you can instruct employees not to exceed a certain budget, without imposing the choice of establishment (unless specific agreements have been reached).

It's also a good idea, if possible, to give travellers a certain amount of autonomy. Why not let them make their own reservations, via pre-selected platforms and in accordance with your terms and conditions?

This kind of initiative not only enhances the travel experience, but also saves you administrative time.

4 - Align travel policy with CSR

Aligning travel policy with CSR objectives demonstrates a company's commitment to sustainable and responsible practices. By integrating environmental criteria into travel management, it reduces its carbon footprint (favoring train journeys, encouraging travelers to use public transport, etc.).

🎯The aim, in addition to the climate emergency? To promote a positive corporate image, both internally with employees and externally with partners and customers.

5 - Use the right tools

What if the easiest way to deploy your company's travel policy was to use dedicated software?

They promise many advantages for companies:

• Centralized information: all bookings, expenses and information are grouped together in one place, making it easier to access and manage activities.
  
  
• Simplification of the booking process: employees can book their various services quickly and easily, while following the established travel policy.
  
  
• Track expenses: with your software, track expenses in real time and ensure compliance with predefined ceilings.
  
  
• Improved compliance: automatic alerts remind you of travel policy rules and notify you of any exceptions requested.
  
  
• Negotiate preferential rates: by centralizing reservations, you can negotiate better rates with suppliers (hotels, airlines, etc.).
  
  
• Enhanced traveler experience: employees benefit from an optimized booking process, with easy access to company-approved options. The result is a much smoother travel experience!

🛠️ Software example:

Navan is a business travel and expense management solution. Thanks to an extensive inventory, users have access to a multitude of offers, available at negotiated rates, while benefiting from advantageous loyalty programs. Your travel policy can be directly integrated into the solution, so that employees can book independently, and you don't have to constantly monitor costs. All information is centralized and accessible, making life easier for employees on the move. And in the event of a problem or emergency, they can count on 24/7 travel assistance.

Your corporate travel policy template

To help you draw up your own document, here's a sample corporate travel policy in PDF format, free to download.

Feel free to use it as inspiration!

See all software Expense Management

What's important in a travel policy?

If your company organizes a lot of business travel, it's important to have a clear, comprehensive travel policy. Its added value? It saves you time, secures your budget, and contributes to employee well-being.

But the effectiveness of your travel policy depends on how well it is drawn up, in line with your company's objectives and the realities on the ground. That's where employees are your greatest asset: by sharing their experience, they'll help you roll out truly relevant and viable guidelines.

And once the policy has been drawn up, you'll be encouraged to implement best practices to ensure that it is followed without difficulty. Here, technology will come to your rescue and help you enforce the framework. All your employees have to do is pack their suitcases and take off with peace of mind! ✈️