A good travel policy controls cost without making life miserable for travellers. These are the elements that matter, and how to keep the policy practical.
Many companies write their first travel policy only after a surprising expense claim or a difficult incident. By then, habits have formed and the policy feels like a set of restrictions imposed after the fact. A well-designed policy does the opposite: it gives travellers clarity, protects them, and helps the organisation spend wisely.
1. Start with principles, not just rules
Open the policy with a short statement of intent — for example, that the company wants employees to travel safely, comfortably enough to do their jobs well, and in a way that represents good value. Principles help people make sensible decisions in situations the rules do not cover.
2. Define who approves what
Set out clearly which trips need pre-approval, who approves them and how quickly. Domestic day trips might need only a line manager's sign-off, while international travel or high-cost itineraries may need a department head. Approval workflows should be simple enough that travellers do not try to work around them.
3. Air travel rules
- Class of travel — economy as the default, with clear criteria for premium economy or business (for example, flights over a certain duration, or for specific grades).
- Advance purchase — a target booking window, such as 14 days for domestic and 21 days for international, with flexibility for genuine urgency.
- Lowest logical fare — the cheapest reasonable option within a defined time window, rather than the cheapest fare at any cost.
- Baggage and seats — what is reimbursable and what is not.
4. Hotels and accommodation
City-wise rate caps work better than a single national limit, because a fair rate in Mumbai or Singapore is very different from one in a smaller city. Preferred hotels with negotiated rates simplify decisions and often include breakfast and Wi-Fi. Consider safety and location, not just price — a cheaper hotel far from the client's office may cost more in taxis and lost time.
5. Ground transport
Specify when cabs, app-based rides, rental cars or rail are appropriate. For late-night arrivals and unfamiliar cities, pre-booked transfers are usually the safest choice and worth making the default.
6. Meals and daily allowances
Decide whether you will reimburse actuals up to a cap or pay a per diem. Per diems are simpler to administer; actuals can be fairer for expensive cities. Either way, be explicit about alcohol, client entertainment and tips.
7. Duty of care
Your policy should describe how the company keeps travellers safe: booking through approved channels so that the company knows where people are, travel insurance, emergency contacts, and what travellers should do if something goes wrong. This section matters as much as any cost control.
8. Booking channel
Require bookings to be made through your travel management company or approved tool. This is not about control for its own sake; it is what makes traveller tracking, consolidated billing and reliable reporting possible.
9. Expenses and reconciliation
Define deadlines for expense claims, receipt requirements and GST invoice rules. Consolidated billing from your travel partner removes much of this burden for flights and hotels.
10. Review it regularly
Revisit the policy at least annually using real data: where are travellers going, how far in advance are they booking, and where are exceptions happening most? Small adjustments based on evidence are far more effective than a complete rewrite every few years.
Keep it readable
The best policies fit on a few pages, use plain language and include a one-page summary. If travellers cannot find the answer to a common question within a minute, the policy is too complicated.
If you are drafting or refreshing a travel policy, our corporate travel team can share practical templates and help you configure it into your booking process.
