Developing Effective Corporate Travel Policies for Your Business

Business travel is a catalyst for growth. But for organizations managing corporate travel needs ad hoc, growth can be more challenging. From last-minute bookings to surprise expenses, unmanaged travel can lead to budget bloat, compliance chaos, and unhappy travelers. 

Robust corporate travel policies can help solve these problems. These guidelines provide restrictions and guardrails that help make travel easier, more cost-effective, and better aligned with business goals.

This guide explores how to craft travel policies that meet compliance requirements while helping companies control costs and remain nimble in the ever-changing business world.

Why Corporate Travel Policies Matter: More Than Just Rules on Paper

Unstructured travel programs can become logistical nightmares and budget drains. That’s where corporate travel policies come in. They’re your company’s playbook for seamless, cost-effective, stress-free travel. Travel policies outline everything from booking flights to managing expenses and keeping employees safe.

Imagine a company without a structured travel policy, where employees book last-minute flights, opt for premium hotels, and submit expense reports with vague or excessive charges. The result is skyrocketing costs, compliance challenges, inconsistent travel experiences, and potential safety concerns. But a well-defined corporate travel policy eliminates this chaos by establishing simple guidelines. 

Elements of a Corporate Travel Policy

A corporate travel policy is the foundation for efficient business travel — when it includes the right elements. This section outlines what the essential elements of a corporate travel policy should be, so employees have the tools and information needed for smoother business trips.

1. Booking Procedures

Approved booking channels

A well-defined corporate travel policy outlines where employees should book flights, trains, hotels, and car rentals. Whether through corporate travel management software, online booking tools (OBTs), or designated travel management companies (TMCs), these platforms simplify booking, help secure corporate rates, keep trips compliant, and make expense tracking seamless.

Advance purchase requirements

Booking in advance is a cost-saving strategy that helps secure lower fares and better availability. For example, requiring flights to be booked at least 14 days in advance helps avoid last-minute price spikes and keeps budgets in check.

2. Expense Management

Reimbursable expenses

While a travel policy helps guide bookings, approvals, and compliance processes, an expense policy helps keep costs in check and safeguards financial accountability. Together, they create a well-balanced corporate travel program. Clear guidelines around what the company will pay for help control spending and eliminate guesswork. 

Covered costs often include airfare, lodging, meals, ground transportation, and business-related incidentals. Some companies also reimburse internet fees and baggage charges. Restrictions on luxury hotels or first-class travel help maintain financial accountability.

Per Diem rates

Implementing per diem allowances for meals and incidentals simplifies expense tracking. Employees receive a fixed daily amount based on the travel destination, eliminating the need to submit individual meal receipts. This streamlined approach keeps reporting simple, and companies can control costs using government rates or internal benchmarks.

Receipt submission protocols

For smooth reimbursement and auditing, employees need clear receipt submission guidelines. The travel policy should specify accepted formats (digital or paper), deadlines, and the approval process. Using expense management software can simplify compliance and cut down on administrative work.

3. Preferred Suppliers

Approved airlines, hotels, and car rental agencies

Building relationships with preferred travel vendors helps balance cost savings with service quality. Requiring employees to book with approved airlines, hotel chains, and car rental agencies can secure corporate rates, keep expenses predictable, and create a consistent travel experience.

4. Approval Processes

Guidelines for trip approvals

A structured approval process aligns business travel with company goals and budget limits. The travel policy should outline:

• Who is authorized to approve travel requests
• When pre-approval is required (e.g., for international travel)
• Any cost or purpose-based thresholds for automatic approval

For example, while economy-class flights may be approved automatically within a set budget, business-class tickets could require executive sign-off to control premium travel expenses.

Above: By integrating T&E policies into booking tools, Navan shows employees what’s within budget for hotels, cars, and flights, and streamlines pre-approvals for more considerable expenses.

Duty of Care

Safety measures

Employee safety during business travel is a top priority. The travel policy should outline essential safety measures, such as:

• Secure lodging recommendations
• Required travel insurance coverage
• Real-time safety alerts for high-risk destinations
• Guidelines for handling unexpected disruptions

Emergency contacts and protocols

In an emergency, employees should have access to a dedicated support system. The policy should provide:

• Emergency contact numbers for company representatives
• Procedures for medical emergencies, political unrest, or travel disruptions
• Access to travel assistance services or emergency evacuation plans

A Navan traveler enjoying chat support using the Navan app

Best Practices for Implementing Corporate Travel Policies

A corporate travel policy only works if employees understand and follow it. The key to success is making it strategic, practical, and adaptable to business goals and traveler needs. 

Modern travel management platforms offer policy integration, so employees don’t need to memorize travel policies and can focus on booking through pre-approved channels. This strategy keeps business travelers concentrated on their core job responsibilities rather than rules and regulations.  

Here’s what to keep in mind when implementing a corporate travel policy. 

Involve Key Stakeholders

A policy requires information from multiple departments to serve the business best. Get input from finance, HR, travel managers, and frequent flyers to strike the right balance. After all, finance keeps track of costs, HR handles duty of care, travel managers add best practices, and travelers point out real-world friction. Getting them all on board early can go a long way toward creating a policy that works.

Keep Policies Clear and Concise

Employees won’t follow a policy if it’s too confusing. Jargon and complicated rules lead to frustration and non-compliance. Keep it simple: practical language, easy-to-skim points, and real-world examples. A quick reference guide can help, too. When the rules are understandable, compliance is more likely to follow.

Regularly Update the Policy

As business needs and travel trends change, so should the policy. Regular reviews help catch inefficiencies, track spending, and stay in sync with market shifts. Employee feedback and compliance data highlight areas for improvement. Incorporating tech features simplifies the process, which can make policies even more effective. 

Leverage Technology

Manual processes for approvals, expense tracking, and policy enforcement lead to headaches for everyone. Travel management platforms automate approvals, provide real-time spending visibility, and direct travelers to in-policy options. Mobile access lets employees manage trips on the go, while integrated reporting simplifies reimbursement. 

A desktop view of a complete expense spend overview using the Navan app

Communicate the Policy Effectively

A travel policy is only helpful if employees know how to use it. One-time emails or squirreled-away documents won’t cut it. Integrating policy training into onboarding gets new hires quickly up to speed, while annual refreshers keep everyone updated. Make the policy accessible through a portal, app, or company wiki so travelers can find info when needed. Periodic reminders, updates, and visual aids keep it fresh and simple. The easier it is to understand, the more likely employees will follow it.

Meet Navan

Navan offers an integrated platform that simplifies travel booking and expense management. It seamlessly enforces company travel policies in a user-friendly app to streamline travel and enhance compliance and efficiency. 

Summary

A strong corporate travel policy is the backbone of a growth-oriented travel program. Assessing your organization’s travel patterns, budget constraints, and employee needs helps balance cost efficiency and traveler satisfaction. 

Ready to let Navan take your travel program to the next level? Try it today.