POLICY TYPES
Comprehensive
The least flexible policy for travelers, the
comprehensive policy is defined by strict
adherence to rules and requirements. A
tight travel policy requires employees to use
an established booking tool, with only pre-
approved suppliers. Pre-trip approval may
be required prior to completing a booking.
Managers can expect to see back-end
reporting to ensure compliance. The finance
department can refine the expense processes
and be able to make recommendations and
decisions based on the data. A company
with this type of policy typically has crisis
management protocols to ensure that
employees on company travel can quickly be
accounted for during an emergency.
PROS
A comprehensive policy allows maximum
visibility into the company’s spending, bulk
savings on all travel and the ability to
negotiate better perks and amenities based
on demonstrable revenues.
CONS
Restrictions that are too tight and inflexible
may erode morale and could exacerbate
out-of-compliance bookings, possibly
causing a loss of productivity during trips.
Medium Strength Permissive
Companies in this category have guidelines
rather than policies. There is more discretion
to design your own travel rather than use a
pool of pre-approved suppliers. Some may
use an agency that tracks spending and
offers limited online and mobile technology.
Employee travel likely requires manager
approval of transportation expenses with an
expense account on a corporate credit card.
With little visibility into where employees are
when on the road, the company could be
putting its most important assets at risk. It’s all about freedom of choice within
certain guidelines. With no active travel
management or uniform booking tool,
these companies use a receipt-based T&E
process or a flat per diem. This approach
has no preferred travel agency or supplier
programs and little to no usage of traveler
data. Employees are permitted to book via
any platform and are advised to keep total
trip spending below prescribed levels — as
long as they keep the travel department
informed of their plans.
PROS PROS
An in-house travel manager or administrator
can help the company manage their travelers
and related logistics. Preferred rates and
cost tracking could provide the company
significant savings. This type of travel policy may be what
employees view as a perk of the job. However,
you certainly don’t want employees to think
that travel cost control is not a company
priority. When travelers are allowed to directly
control more aspects of their journey, it may
result in employees choosing air and hotels for
convenience or elite status over cost savings.
CONS
Travel expenses are one of the easiest ways
to control company spending; but without a
clear idea of what’s being spent, it’s difficult
to accurately account for this line item on the
expense sheet. The opportunity to leverage
spending data to obtain volume discounts
is minimized. Purchases can’t be scrutinized
to ensure the best value has been secured.
YOU’RE NOT ALONE
Creating the right travel policy for your company may seem overwhelming, but
you don’t have to tackle this task alone. Travel Leaders can help you to not only
develop a customized travel policy that aligns with your company goals, but also
show you how much ROI can be gained.
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CONS
The company’s bottom line is the big loser in
this arrangement, with reduced purchasing
leverage and little visibility to travelers’
whereabouts. Employees may be more
inclined to purchase airline tickets or hotel
rooms based on rewards programs, even if
they come at a higher price. There are big
savings opportunities for companies that put
travel expenses under a microscope, or at
least a magnifying glass.