Why your business needs a corporate travel policy
Without a documented travel policy, employees lack the resources or know-how to pick the best deal for the company. On average, employee overspending eats up a fifth to a third of total travel and expense budget, according to a survey by J.P. Morgan.
Lacking clear guidelines, employees may use inconsistent sites for booking or make last-minute reservations without proper care to compare prices or find cost efficiencies. What’s more, without pre-approved options, travelers may also encounter dissatisfying travel experiences, which could negatively affect their performance at a client meeting or overall job satisfaction.
Here are a few of the benefits a documented travel policy can bring to your business:
Stretch your travel budget
An effective travel policy for employees will outline what is and isn’t an acceptable way to spend company money. For example, mandating that employees should stay in single occupancy hotel rooms rather than suites could save the company hundreds of dollars a night. Setting clear rules eliminates confusion — and extravagant travel spending.
Speed up booking and increase productivity
Eighty-three percent of employees spend more than one hour booking a business trip — while almost half spend more than two hours of their work day. Instead of sifting through hundreds of choices across various sites, a company travel policy offers employees approved options helping to speed up the booking process, control costs, and avoid headaches. Eliminating the grey areas of booking travel empowers employees to make the right choices and gives them more time to focus on their work.
Improve the traveler experience
Nobody is at their best when they are uncomfortable or stressed. According to a recent Google Consumer Survey, 36% of travelers report experiencing difficulty sleeping while on a business trip. With pre-approved options, you can reduce the risk noisy or unsanitary accommodations, bad service, and safety concerns. Instead, be assured that your travelers will be well-rested and have a focused and productive trip.
Simplify expense reporting
Detailing parameters for meals, tips, entertainment, alcohol consumption, etc. will provide concrete guidelines for suitable spending limits and expense reporting. It can also mandate the use of an expense tool, helping the traveler to better manage receipts and improve reporting efficiency.
Accurately track spending and identify opportunities
With a centralized process, you’ll have full visibility into how and when employees are booking travel. Easily benchmark performance and identify areas for further cost savings with clear insight into your travel spend.