How to create a business travel policy

Business travel is one of the most complex aspects to manage for a company, but also for an employee. The main difficulties arise because there is often a lack of clarity about what is possible: for example, the “rules” for booking a transfer, the available budget, the expenses included in the trip.

There is one tool that can answer all these questions and remove the biggest doubts about travel: the business travel policy.

Creating a travel policy is useful to understand, step by step, what is included in the trip, how to book it and how to manage the approvals for the trip. Let’s look at how to create one together.

What is a travel policy?

A travel policy is a set of guidelines that defines how a company and its employees should manage business travel. It is a document that sets out the rules for booking travel, the budgets available, the expenses covered and the approval processes, so that you always have a clear picture of how to manage each trip in an organised and effective way.

Contrary to what you might think, the policy is not just an administrative tool, but a real reference point to avoid misunderstandings and inefficiencies. 

More specifically:

• For employees, a travel policy eliminates confusion about what is allowed by clearly outlining the steps to take to organise travel. This allows them to concentrate on their objectives without stress;
• For the company, the policy ensures cost control, reduces the risk of unnecessary expense and improves overall travel management.

What information should be included in a corporate travel policy?

To be effective, a corporate travel policy must be comprehensive and contain all the necessary elements to ensure organised, safe and cost-effective travel. Key information to include in a travel policy includes:

• Transportation policy: state which modes of travel are allowed, such as air, rail or car hire, and any preferred partners or booking platforms;
• Reimbursement policy: clearly define which expenses are reimbursable and which are not. For example, you can set rules for reimbursement of travel tickets, meals, accommodation, local transport and per diems;
• Security policy: a comprehensive travel policy will always include a security section to ensure the wellbeing of employees while travelling. This can include information on travel insurance, emergency assistance and destination risk assessments;
• Duty of care policy: this section deals with the company’s duty of care to ensure the safety of its employees while travelling. In particular, it includes procedures for tracking travellers in case of need, emergency protocols and contact information for 24/7 support;
• Booking procedures: specify how bookings should be made, with references to approved platforms, corporate travel agencies and internal approvers;
• Travel risk management: includes travel risk management strategies such as employee training on security protocols, destination monitoring and access to in-country support services;
• Accommodation and meals policy: define guidelines for hotel selection, spending limits per night and coverage of any extras such as laundry or room service. Also set a daily budget for meals and other incidental expenses;
• Compliance procedures: include in the policy the mechanisms for verifying that employees are following the rules, such as expense reporting and travel audits.

How do you write a travel policy?

A corporate travel policy must be designed and built around the needs and travel habits of the company. For this reason, it is very difficult to set rules that apply to everyone, but there are elements in every policy.

To avoid confusion, the first step is to establish detailed guidelines on how travel should be booked and what expenses can be covered. 

• Booking procedures and all “approved” platforms and active partnerships with hotels and mobility services;
• Approval criteria: indicate which trips require manager approval and which can be booked independently;
• Expense categories covered: outline reimbursable expenses (air, hotel, meals, local transport) and their limits. For example, you could set a daily limit for meals or an economy class for flights;
• Rules for exceptional trips: include rules for trips to expensive destinations or long trips, such as the possibility of booking higher category hotels.

In addition to these elements, you should always include anything related to:

• Emergency management: make contingency plans in the event of flight cancellations, bad weather or health problems. Include contact numbers for immediate assistance;
• Tracking travellers: integrate tracking systems to know where employees are at all times;
• Insurance coverage: safety is a key factor when travelling. Ensure that all travellers are covered by insurance for medical emergencies, travel disruptions and loss of baggage.

Guidelines for drafting your travel policy

We have said that a well-structured travel policy is an essential tool for any company that regularly sends employees on business trips. To maximise efficiency and reduce costs, it is essential that your policy is:

• Clear and concise: avoid ambiguity and clearly define rules, procedures and spending limits;
• Flexible: an effective policy must adapt to business needs and market conditions;
• Employee-centric: a travel policy should be a facilitator, not an additional source of stress. Write an employee-centric policy: give them the information and tools they need to make their travel arrangements simple and secure;
• Aligned with business objectives: ensure that your policy contributes to your organisation’s cost, efficiency and compliance objectives.

What can LimoLane do for your travel policy?

If you are looking for a partner to manage corporate mobility, LimoLane is a strategic ally to simplify every aspect of your travel policy. With our platform, companies can automate and streamline complex processes, ensuring a great experience for travellers and complete control of the trip for managers.

Here’s how LimoLane supports your travel policy:

• Our platform allows you to know transfer prices in advance, so you can control your budget and comply with corporate policies;
• Maximum flexibility: you can choose any type of vehicle, from limousines to vans, and manage every aspect of scheduling;
• Our team is available 24/7 to answer questions, solve problems and manage changes in your language;
• Employees no longer need to pre-pay for travel: we manage centralised payments and automate reporting processes to eliminate bureaucracy.

Use LimoLane’s technology and expertise to simplify your travel policy management: find out more by emailing [email protected].