As the hospitality sector rebuilds itself in the wake of the global pandemic, having a robust travel policy will stand you in good stead. Yet, according to Finance Online, only 60 per cent of companies actually have one.
A business policy can be considered as a set of guidelines and procedures around business travel. This tends to cover the process for; making bookings, expense management, the authorization process, and overall guidelines when travelling for work.
If your organisation conducts business travel of any kind, a corporate travel policy forms an important part of your duty of care. It can also help to streamline costs, enhance brand reputation, and provide essential information for employees.
Still need convincing? Here’s seven good reasons why every business should have a strong travel policy in place.
TL;DR: Why your business needs a strong travel policy
- Workplace travellers need clear rules on expenses, cancellations, and more, reducing misunderstandings and liabilities.
- Post-COVID, cancellations and late bookings are more frequent. You can adapt to last-minute changes with a structured policy, ensuring smooth bookings and minimal disruptions.
- You’ll attract and retain top talent, boost your brand reputation, and ensure you’re complying with industry legislation.
- A travel policy helps you efficiently manage expenses and bookings to cut unnecessary spending.
1. Provides clear guidance
As a workplace traveller, work travel can be a minefield of do’s and don’ts. Colleagues may wonder what expenses they can claim, how to make last-minute cancellations, and what to do in the event of illness. Having a robust policy that’s easy to access allows employees to find information when they need it.
With it being such an unsettling time in travel, it’s important to lay out the company’s policy on travel expectations, with no room for misinterpretation. As a business, this can also protect you from certain liabilities.
2. Enhances your duty of care
As a business, it’s your responsibility to consider the welfare of employees, whether they are office based or working remotely. With remote working on the rise, it can be challenging to know where your colleagues are based at any given time. With wellbeing and employee care more important than ever, having a well-considered and up-to-date corporate travel policy, that includes duty of care, will enhance your overall brand. Not only does duty of care form part of general legislation, it also enhances your proposition as a company that employees are proud to work for. The Roomex platform provides a personalized real-time duty of care map so it's easy to check on employees domestically and globally. This can prove highly beneficial if colleagues need to be notified about important events or news, or as part of overall ‘track and trace’ compliance.
3. Supports the challenges of flexible travel
In the current climate, businesses need to be sympathetic to flexible traveling, last-minute cancellations, and late bookings. Having a strong business travel policy allows you to forward plan for such eventualities, with a structure in place for employees to manage bookings and cancellations with ease. This also means that office workers aren’t disturbed out of hours.
4. Reduces deviations from corporate policy
With a robust travel policy, supported by an online booking system in place, it’s less likely that employees will deviate from company policies.
In 2023, only 69 per cent of employees said they complied with business travel policies, usually because a compliant hotel is deemed too far away, or they have found a better option in budget.
Encouraging staff to stay on policy can help with cost savings and potential HR issues. One of the many benefits of the Roomex platform is that business travel policies show up directly in hotel search results, indicating whether a booking will be in or out of company policy. Overall company compliance can then be measured using RoomexAnalytics.
5. Attracts and retains talent
In such competitive times, being able to attract and retain talent is key, so brand reputation is important. A detailed and considered travel policy may have a number of ‘perks’ that employees can benefit from. This all forms part of your overall brand perception, helping to bring in new talent and prevent expensive labor turnover.
Gen Z, in particular, are most likely to be motivated by company culture - with research from Concur highlighting that 96 per cent are likely to turn down a trip that doesn’t align with their values. A robust travel policy that meets the expectations of younger workers will help you future-proof your business travel needs.
6. Meets the needs of your workforce
On that note, a considered travel policy also demonstrates employee care, putting people at the heart of your business. If you can, involve and invite colleagues to provide feedback and constantly review and update your policy. This will continue to strengthen employee satisfaction levels.
7. Helps with cost savings
There’s no question that one of the greatest benefits of a robust travel policy is the cost-savings it brings. By managing and controlling spend and providing clear guidelines on expenses and the booking process, your business can prevent unnecessary spend and make savings at the same time.
Summary
So, there you have it, seven good reasons why your business needs a solid corporate travel policy, and how it brings a number of benefits with it.
Use a travel management platform like Roomex to make it easy for your employees to book within your travel policy, take advantage of negotiated rates, and manage their expenses.
FAQs
What is a travel policy?
A travel policy is a set of guidelines and procedures that governs business travel within an organisation. It typically covers aspects such as booking procedures, expense management, authorisation processes, and general guidelines for employees travelling for work.
How has COVID impacted business travel?
Post-COVID-19, we’ve entered a hybrid working world where virtual meetings are commonplace. However, over 90% of businesses recognize the importance of in-person meetings for building relationships and sharing knowledge. Virtual meetings don't fully replace the value of face-to-face interactions and business travel will remain an important factor in corporate operations.
How do you create an effective travel policy?
To write an effective travel policy, follow these steps:
- Assess needs: Understand the travel requirements and objectives of your organisation.
- Set clear guidelines: Define rules for booking, expenses, approvals, and travel conduct.
- Prioritise safety: Include measures for employee well-being and duty of care.
- Consider flexibility: Account for flexible travel arrangements and last-minute changes.
- Involve stakeholders: Gather input from relevant departments and employees to ensure buy-in.
- Communicate clearly: Make the policy easily accessible and understandable to all employees.
- Review and update: Regularly adapt to changing needs and regulations.
