How to Write a Travel Policy

Technology and telecommunications have changed the speed and ease with which individuals can interact with clients and associates around the world, but there are still many occasions in which face-to-face meetings and presentations are still the most effective. To ensure that business travel is justified as well as cost-conscious, it's essential that companies develop and monitor a clear set of policy directives regarding transportation, accommodations and per diem allowances for staff members whose assignments may require them to go out of town.

Instructions

1

Determine the scope and frequency of business travel in your organization. Even if you have a handful of employees who only travel within the state once or twice a year, the precedent of a written policy regarding allowable conditions and expenditures is still required. While common sense should prevail that it's inappropriate to buy rounds of drinks for strangers or bring your family along on the company's tab, a written directive holds up better in court than an unspoken assumption.

2

Define how business travel will be categorized as "necessary" as well as the number of employees that will be allowed on the same trip. Considerations include whether a meeting can be conducted via phone or video conferencing, how much time will be spent traveling to and from the meeting location, how the employees' workload at headquarters will be accommodated during their absence and what short-term and long-term benefits will be derived from face-time interactions.

3

Identify commercial air carriers and hotels that offer the best rates and discounts for business travelers. This is accomplished by working with a travel agent who is well versed in corporate travel needs or by making calls to the customer relations reps of the individual airlines and accommodations to do your own comparison shopping. Research which airports serve the regions your staff will be visiting as well as the frequency of flights and the availability of shuttles, public transportation and rental car facilities. Establish policies regarding overnight stays versus day trips based on the accessibility of flights and the scheduling of meetings.

4

Articulate how travel-related expenses will be reimbursed as well as the allowable amounts for meals, taxi fare, phone calls, etc. One method is to require employees to submit a travel expense claim upon their return along with original receipts for out-of-pocket costs. If they travel a lot, the claim could reflect multiple trips and be submitted at the end of each month. Another method is to provide employees with corporate credit cards. A third option is a travel advance in which employees are given the estimated funds upfront to cover the expenses of an impending trip. Whatever is not used is then paid back to the company.

5

Specify whether employees are allowed to keep the frequent flyer miles or hotel rewards they accrue on business travel or whether these need to be surrendered to the company. It's also important to clarify in writing that, unless otherwise approved in advance, the company will only reimburse the expenses of the employee. An exception to this would be if the purpose of the travel is to wine and dine a prospective client. In that case, the client's meals and entertainment would be paid for by the company.