Cutting business costs is at the top of almost every executive’s to-do list, but reducing travel expenses? That’s a tricky one. Corporate travel is vital to building partnerships, expanding markets, and keeping business relationships strong. It’s hard to cut back without compromising results.
That’s where a smart travel policy for employees comes into play. A well-crafted travel policy doesn’t just establish guidelines—it equips your team with resources, automates compliance, and ensures everyone stays on the same page without micromanagement.
In this article, we’ll explore the best practices to create a travel policy that helps reduce expenses, empowers employees, and keeps everyone stress-free.
Write Your Travel Policy for Skim Readers
Fact check this for yourself—when was the last time you read an internal document from start to finish? Don’t worry, you’re not alone. Studies show adults get distracted every 47 seconds on average. If your travel policy looks like a long block of gray text, employees will glaze over it faster than a jet taxiing on a runway.
Here’s the solution: write it for skim readers. Use these tactics to make even the busiest of travelers find what they need quickly:
- Create a table of contents: Include clickable links for quick navigation.
- Use bold, headings, and bullet points: Break up dense text so it’s easier to skim and understand.
- Add visual aids: Flow charts and tables can spell out complex policies with clarity.
Finally, use plain, simple English that feels approachable. Keep sentences short, direct, and easy to digest—imagine explaining it to someone in 8th grade. Travelers are more likely to follow policies they understand.
Guide Employees to the Right Resources
Most people don’t read travel policies to learn the rules—they’re looking for solutions. Frame your travel guide as a resource toolkit instead of a rule book. Make sure employees can find exactly what they need, when they need it.
Here are the essentials to include in your guide for easy access to resources like:
- Your approved online booking tool with clear instructions for use.
- QR codes to quickly download your mobile travel app.
- Preferred airlines or hotels and expense guidelines (class limits, star ratings, incidentals, etc.).
- Reimbursement steps so there’s zero confusion on how employees can claim expenses.
- Your travel insurance carrier and 24/7 support contact details in case of emergencies.
The goal here is to empower employees with a one-stop roadmap. Cutting through confusion leads to smarter, more efficient travel decisions, which ultimately saves your business money.
Build Automation into Your Policy
Even with a written travel policy, mistakes can still happen—some accidental, some… not so much. Automating certain aspects of your travel policy helps eliminate human error while keeping employees on track without unnecessary hand-holding.
Travel management software allows you to build rules into the booking process automatically—think pre-approved hotels and alerts for any out-of-policy requests. Employees essentially comply with the policy by default, reducing missteps and saving your team’s time while providing an audit trail for expense tracking.
Not only does this improve adoption rates, but it also gives finance teams deeper insights into travel trends, expense patterns, and areas ripe for cost-saving opportunities.
Set Clear Expense Claim Deadlines
Nobody enjoys waiting months for reimbursement, only to learn later the expense wasn’t covered. A clear, enforceable timeline for submitting expenses keeps the process efficient, ensures timely reimbursements, and eliminates unnecessary back-and-forth between employees and accounting.
When drafting your travel policy for employees, make sure to specify the following in no uncertain terms:
- The timeframe for submitting expense claims post-travel (e.g., within 14 days).
- What qualifies as reimbursable, with detailed guidelines for exceptions (like accommodating a disability or urgent last-minute bookings).
- A stated timeline for reimbursements.
Having a fair and transparent system fosters trust—and accurate reporting helps the financial team manage cash flow effectively.
Plan for the Unexpected
You can map out every detail of a corporate trip, but life loves to throw unexpected curveballs. Airlines cancel flights. Luggage takes detours. Strange weather or political unrest can leave employees stranded.
A robust travel policy incorporates duty-of-care planning that prioritizes traveler safety. This means creating contingency plans so employees know exactly who to call and where to turn when things go wrong. Consider adding these protocols to your guide:
- Emergency contacts, including HR, insurance providers, and embassy details for international trips.
- Backup financial arrangements like corporate cards for emergencies.
- Guidance on how to rebook travel, extend stays, or find nearby lodging.
Being proactive with these policies minimizes disruptions and reassures employees that their safety is a top priority, no matter what comes their way.
Don’t Forget Regular Updates
Travel conditions are always evolving. From changes in business regulations to shifting market conditions, it’s crucial to treat your travel policy as a living document. Revisit it yearly to ensure it evolves alongside your company’s goals and ongoing challenges.
Use these checkpoints as a guide for revisions:
- Review travel spending trends: Are you constantly overspending on a certain airline or vendor? Time to renegotiate or compare better deals.
- Identify inefficiencies: If travel habits (e.g., ride-sharing costs) are eating into your budget, it could be time to bulk purchase season passes or discounts.
- Improve traveler experience: Are employees following policies but still struggling with logistics? Look for opportunities to simplify processes.
Making these updates ensures the policy stays relevant—and keeps employees (and the finance team) happy.
Creating a Travel Policy That Saves Money and Supports Employees
A thoughtful travel policy for employees isn’t just about laying down rules. It’s a strategic tool to streamline expenses, promote smarter decisions, and create better experiences for everyone in your organization.
By following these best practices, businesses can implement a policy that saves time, cuts costs, and supports employees no matter where they travel.
