The ultimate guide to developing an effective travel policy without turbulence

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 poor living conditions and, in the worst cases, have their safety compromised, while the latter may have to bear an explosion in operating costs.

The best way to regulate all this? To draw up and implement a travel policy that imposes a clear framework within which everyone wins.

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

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

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What is a travel policy?

Generally put in place by the travel manager, or by management and HR in smaller organisations, the travel policy defines the rules and processes put in place to govern employees' business travel.

It sets out various aspects:

• authorised modes of transport ;
• the choice of accommodation (types and categories) ;
• the booking and approval process;
• budget ceilings by type of expense;
• conditions for reimbursement of expenses;
• safety rules for travel;
• the use of reservation tools;
• the behaviour expected of travellers.

💡 The travel policy also enables negotiated framework contracts to be put in place, in order to obtain the best terms and discounts from service providers such as hotels or airlines. This type of agreement helps to optimise costs while standardising bookings.

Why is it important to define a corporate travel policy?

The primary objective of a travel policy? To lay down clear rules for all aspects of travel, from transport bookings and choice of accommodation to the management of associated costs. This way, everyone has the same level of information, knows what procedure to adopt, and can enjoy the smoothest possible experience. The result: much less time spent on organisation, 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 the associated expenditure. 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.

Finally, by demonstrating transparency and fairness through the imposition of a framework common to all, you are working towards good relations with employees. In particular, you will 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 does a company's travel policy contain?

Each company will put in place its own travel policy, depending on its needs. However, the content remains more or less the same from one organisation to another.

👉 Here are the traditional elements:

The annual budget and spending limits

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

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

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

Authorised modes of transport (in accordance with specific criteria, such as the duration and destination of the trip)

• public transport ;
• hire car, for short journeys or when public transport is not available ;
• air travel, depending on the distance and duration of the journey (economy class for short journeys, business class for long journeys, etc.);
• other options, such as car pooling, taxi, VTC, etc.

Rules on accommodation and meals

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

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

Travellers' safety

• travel insurance (what cover in the event 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 to have in case of need.

Booking and refund procedures

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

Sustainability and ecological responsibilities

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

Examples of specific cases

For your travel policy, we advise you to plan for special scenarios that do not necessarily fit into the standard categories.

For example:

• What should you do if an employee extends their stay for personal reasons?
• What should you do 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 wants 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, drawing up a travel policy starts with defining clear objectives.

Is it to reduce the budget spent on business travel?

Or reducing the time spent organising 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 will concentrate on negotiating preferential rates with suppliers.

2 - Analyse the company's needs

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

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

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

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

3 - Draw up the budget

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

First of all, calculate how much you can allocate to business travel each year, taking into account all areas of expenditure. 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 deal 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!

This is made up of all the elements listed in the previous section, leaving no room for interpretation.

Be as clear as possible about every aspect of the policy, from authorised modes of transport to categories of accommodation 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: favour companies offering flexible conditions for last-minute cancellations or changes, 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, organise presentation sessions, webinars or information meetings, depending on the size and needs of your company. Ideally, you should opt for a centralised online document that employees can consult at any time.

7 - Update the document regularly

A good travel policy evolves over time, based on feedback from employees and changes in the market.

Updating the document involves analysing what is 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;
• if it is because of a "taste for luxury".

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

How can you successfully implement your business travel policy? 5 best practices to be aware of

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. 😬

Yet the aim is still 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 unforeseen circumstances, etc.

Of course, make sure you maintain optimum communication at all times. If, for example, an employee encounters difficulties on a point, they need to be able to count on someone to be available to lift the veil. And if necessary, don't hesitate to organise training sessions (in the use of booking platforms, for example).

2 - Personalise your travel policy by involving your 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 what a business trip to your company is like are undoubtedly the employees themselves. That's why it's important to involve them in drawing up the EVP, right from the start of the process, particularly 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 showing that their opinion counts!).

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

3 - Be flexible in your policy

Although it sets the framework, a travel policy should not be too rigid. For example, you can instruct employees not to exceed a certain budget, without imposing the choice of establishment (unless there are specific agreements).

If possible, you should also allow travellers a degree of autonomy. Why not let them make the bookings themselves, via platforms selected in advance and in accordance with your conditions?

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

4 - Align your travel policy with CSR

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

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

5 - Use the right tools

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

They promise many advantages for companies:

• Centralisation of 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: your software enables you to track expenses in real time and ensure that predefined ceilings are respected.
  
  
• Improve compliance: automatic alerts remind you of travel policy rules and flag up any exceptions requested.
  
  
• Negotiate preferential rates: by centralising bookings, you can negotiate better rates with suppliers (hotels, airlines, etc.).
  
  
• Improved traveller experience: employees benefit from an optimised booking process, with easy access to company-approved options. So they can enjoy 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 programmes. Your travel policy can be directly integrated into the solution, so that employees can make their own reservations, and you don't have to constantly monitor costs. All the information is centralised 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 model corporate travel policy

To help you draw up your own document, here's an example of a corporate travel policy in PDF format, which you can download free of charge.

Feel free to use it as inspiration!

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What should I remember about the travel policy?

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

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

And once this policy has been drawn up, you are encouraged to put in place good practices so that it can be 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! ✈️