What Is a Travel Policy?

A travel policy is a set of guidelines that regulate how employees book and expense travel for business purposes. It ensures corporate travel is cost-effective, policy-compliant, and aligned with company objectives. A well-structured policy helps businesses control costs, streamline approvals, and enhance traveler safety while also maintaining flexibility for frequent travellers.

What Does a Travel Policy Cover?

• Booking procedures – Defines whether employees must book through a travel management company (TMC), online travel agency, or have flexibility with open booking.

• Expense guidelines – Sets per diem allowances, meal reimbursement policies, and spending limits for flights, hotels, ground transportation, and other expenses.

• Preferred suppliers and negotiated rates – Establishes which airlines, hotels, and car rental companies employees should use to take advantage of corporate discounts.

• Class of travel – Outlines who qualifies for economy, premium economy, business class, or first class based on trip length, job level, or budget.

• Approval process – Determines who must approve travel requests and under what conditions to ensure cost control and policy adherence.

• Duty of care and risk management – Includes traveler safety measures such as real-time tracking, emergency support, and travel insurance requirements.

• Reimbursement and payment methods – Specifies whether employees must use a corporate credit card, lodge card, or personal funds and how expense claims are submitted.

Why Is a Travel Policy Important?

A well-enforced travel policy helps businesses reduce travel costs by minimizing unnecessary spending and leveraging supplier agreements. It improves compliance by ensuring employees follow approved booking and expense procedures. It also enhances traveler safety by integrating risk management protocols and emergency response services. Automating expense tracking, approvals, and reporting further increases efficiency, making corporate travel easier to manage.

For companies with frequent travel needs, a clear and well-structured travel policy ensures consistency, cost savings, and a better travel experience for employees.