employee crew book travel & expense policy (servicenow.com)

Install Employee Travel Safety

You can install Employee Travel Safety if you have the admin\n role.

• ServiceNow® \n Employee Readiness Core
• ServiceNow® \n COVID-19 Global Health Data Set

The ServiceNow® \n Employee Health Screening and ServiceNow® \n Emergency Outreach applications can optionally be installed to have\n employees complete a daily health verification before and during travel.

The ServiceNow® \n Contact Tracing and Emergency Outreach applications\n can optionally be installed to have employees complete a daily contact log during\n travel.

Role required: admin

• Emergency Outreach (sn_imt_checkin)
• Employee Health Screening (sn_imt_monitoring)
• Workplace PPE Inventory Management (sn_imt_ppe)
• Employee Readiness Surveys (sn_imt_readiness)
• COVID-19 Global Health Data Set (sn_imt_c19datafeed)
• Contact Tracing (sn_imt_tracing)
• Emergency Self Report (sn_imt_quarantine)
• Workplace Safety Management (sn_wsd_core)
• Safe Workplace Dashboard (sn_imt_dashboard)
• Emergency Response Management for Now Mobile (sn_imt_mobile)
• Employee Travel Safety (sn_imt_travel)
• Health and Safety Testing \n (sn_imt_health_test)
• Vaccination Status \n (sn_imt_vaccine)
• \n Navigate to System Applications > All Available Applications > All . \n
• \n Search for Employee Travel Safety. \n

The Application installation dialog box opens.

• \n Click Activate . \n

Components installed with Employee Travel Safety

Several types of components are installed with Employee Travel Safety ,\n including user roles and tables.

Roles installed

Tables installed.

The complete guide to corporate travel policies 

The business travel policy guide you’ve been waiting for .

Creating a business travel policy for employees can feel really daunting. You don’t want to just throw something together and hope for the best, but it feels impossible to anticipate every possible scenario. The truth is your policy serves as more than a rule book; it's a guide to better decision-making about your corporate travel program and can save you a world of headaches down the road. 

Introduction

What is a travel policy .

• Why do you need a travel policy?
• How to create a travel policy

What to include in a travel policy 

• Travel policy best practices
• How to promote travel policy compliance
• How to market your travel policy

When to review and update your travel policy

• Final thoughts

When it comes to company travel, a travel policy brings it all to one place. It acts as an influencer for travelers to make the most cost-effective choices, an important visibility tool for your managers and HR department, and it protects your people if it’s done right. 

If you’re new to business travel or haven’t looked at your travel policy in a while, we’ll start with the basics and then move into the nitty gritty of corporate travel policies. We’ll touch on a few best practices for writing a travel policy, what to include, and offer plenty of resources along the way. 

Ready to get cracking? Let’s go! 

A travel policy is a guide for business travelers to follow that outlines: 

• How, where, and when to book 
• Approved technology for travel management 
• Preferred suppliers for air travel, land travel, and accommodations 
• Approvals process for out-of-policy bookings 
• Trip extensions and personal travel 
• Expenses and what is covered or not covered 
• Reimbursement processes 
• Business travel insurance information 
• Emergency procedures and contacts 

Your company’s travel policy should reflect your company culture and values, be supportive of your travelers and their needs, and protect your company from unforeseen circumstances. It acts as a central document that guides your team to the processes of embarking on company business travel, from start to finish! 

While you might hear a few grumbles and groans around the words “policy” or “process,” don’t worry! A travel policy does not need to be rigid and inflexible. 

Do your travelers prefer to book on their own? Don’t take away their autonomy. They can still self-book, you’ll just provide them with a better tool and way to do it more efficiently. 

Do your people feel prepared for any event that can cause a travel hiccup? With a travel policy, you can give them clarity and help them feel more prepared when traveling for business purposes. 

Why do you need a travel policy? 

Your travel policy is an extension of your travel program and company culture. It’s the glue that holds your travel program together – from approvals, expenses, booking processes, and emergency contacts. 

Having a travel policy helps you: 

• Control travel costs 
• Determine how reimbursement works 
• Compile a list of trusted and approved travel vendors 
• Manage an employee’s travel experience and safety 
• Cut rogue bookings – and simplify approvals 
• Budget, report on travel expenses and activity and reconcile bookings 

It’s a roadmap or guidebook that your travelers can reference when they’re booking their own travel if they run into a tricky situation abroad, and it helps provide clarity around processes. 

As a company though, your travel policy helps centralize your travel program, makes data and tracking more accurate and easier to navigate, and it saves time and money (including on expense management). Plus, if you take the time to craft your policy in an intentional and inclusive way, you’ll have a policy your travelers are happier to follow. 

How to create a travel policy for employees 

• Determine business travel guidelines 
• Create a travel policy that puts your people first 
• Set reasonable budget limits 
• Simplify the process of expense claims 
• Adopt a user-friendly all-in-one travel platform 

Once you’ve read through our tips, be sure to download our free  travel policy template  so you can get started on creating a travel policy of your own! 

1) Determine corporate travel guidelines 

When you take the time to create a policy that meets the needs of your business, you are making sure that your travelers are safe, costs are controlled, and you’ve made every business trip count. 

Start by looking at what types of travel are allowed and the reason for each trip. 

If you have team members traveling all over the globe, you might want to set some extra safety measures. You should also decide if there will be restrictions on the type of ground transportation used or where employees can stay. 

Create a process for booking flights, hotels, and other ground transportation needs. How far in advance should they be booking? Do different rules apply based on the traveler’s position? Who is the point of contact for bookings and other travel questions? 

Making sure to include your company’s travel insurance info is also important. Make sure to note if your policy covers medical expenses and/or any losses due to cancellations or delays in transportation services due to factors outside an employee’s control. 

Do you have a policy for reporting and documenting expenses? This includes having a system in place for claims (like meal expenses) and a reimbursement process, so your team can easily get their money! 

2) Create a travel policy that puts your people first

You’ve heard the term “duty of care” before, so it’s important to create a corporate travel policy that puts traveler safety and accessibility needs first. You’ll need to define and assign the roles and responsibilities of everyone involved, including a travel manager, if you have one. 

Set up an emergency plan and provide access to traveler safety information. Determine who is the emergency contact (your TMC?) and how to get in touch. Do they have 24/7 emergency support available by phone or chat? What about email support? 

Invite your HR department, the travelers themselves, and your DE&I manager into a discussion to find out what needs your team has as individuals, what hiccups they face when traveling, and what holes exist in your travel program that make it difficult to navigate. 

Working with a TMC is a great way to ensure travelers are kept safe before and during their trip.  

3) Set reasonable budget limits for business travel

You have a budget you need to adhere to, but is it realistic? Setting reasonable budget limits is key to an effective policy. 

Your budget should account for all travel-related expenses, including airfare, accommodation, meals, and ground transportation. And once you’ve set your budget, you can determine reasonable costs for hotels and accommodation, ground transport, flights, and more. Build these caps into your  travel booking software  to help travelers stay within the set parameters, which will later help with accountability. 

It's important to set clear rules on what the company can pay back and what types of expenses are out-of-pocket. 

If you’ve set a maximum daily rate for meals on work trips, it's crucial that travelers understand the limit before racking up additional charges. Requiring receipts can also help keep track of employee spending and make sure they're not going over budget. 

By working with a  travel management company  like Corporate Traveler, you can review your previous year’s expenses and find where you can optimize or make changes based on market changes. 

4) Simplify the process of expense claims 

If you're unfamiliar with how to write a travel expense policy, creating a simple process for claiming expenses is key to getting your team on the same page. Do you have access to a payment system that pays for the majority of expenses at the time of booking? This could be a good way to save time and stress down the road.  

The more you can pay for before your travelers get to their destination, the easier everything is to reconcile after they get home.  

If you have a person in charge of reviewing expense reports and watching pre-trip approvals, make sure to set criteria for claim approvals and look at automating processes to make approvals simple! 

5) Adopt a user-friendly all-in-one travel platform  

Finding the right  corporate travel platform  is essential. The right booking platform can provide travelers with an easy-to-use experience, giving them access to the best fares and availability. 

For example, at Corporate Traveler, we use Melon . It’s a booking tool, reporting suite, travel policy pusher, traveler profile manager, and so much more. Melon features a “recommended spend” function, which helps keep travelers booking in policy. Hello, visual guilt! 

Melon’s simple user interface, combined with dedicated travel consultants and expert 24/7 support, makes it simple to book, manage, and keep track of your business travel. You’ll be able to access Melon-exclusive deals and perks (alongside many negotiated contracts and online deals) and take care of all your travel needs from one place. 

From the get-go, you’ll be able to work closely with our team to ensure that all of your needs are met. We'll help you customize your travel program to meet specific business needs, build your travel policy into the platform, and offer training to staff to help them along the way.   

Putting it all together  

Wow! You’ve reached the end and should have a better idea of how to write a corporate travel policy. High five! Now it’s time to put it all together and get it on paper.  

Maybe you already have something in place that needs some work or an entire overhaul. Check out our easy-to-use template and start checking those boxes! 

Grab our corporate travel policy template builder

Not sure where to start? No worries! We’ve got you. Here’s how to streamline your process with a travel policy template! 

While there’s no one-size-fits-all travel policy for every company, following the set guidelines helps you nail a perfect-for-you policy that can see you through an ever-changing travel climate. 

Travel policy template  

When you’re crafting your business travel policy, there are so many considerations to be made. Things might come up that you never even thought of, but not to worry. We have loads of resources to help you see this through. 

Starting out, it might be looking a little drab and wordy, but depending on your travel program size, a visual travel policy might be just what you need. You can search for examples online or take a look at an example of a visual travel policy we’ve created.  

When building your policy, it’s important to include: 

1. International or foreign travel policies  

When you’ve got travelers all over the globe, you need to build out a policy for international or foreign travel. This is a protects them (and you) on anything from travel safety, to expenses, and everywhere in between. 

Whether your travelers are individuals or entire teams, your international travel policy needs to cover: 

• How and where to book – is that with a travel manager, online booking tool, a travel management company (TMC) ? 
• Travel insurance coverages and contact info – international numbers and policy information 
• Emergency contacts – how to reach them and the process of in-destination emergencies 
• Travel expenses – limits and how to file for reimbursement 
• Travel documentation – who to contact with questions 
• Advance booking timelines – when should they be booking for international travel? 
• Travel extensions – are these allowed and what are travelers expected to cover if they choose to extend their trip for leisure? 

By outlining all of this information in your policy, you’ll streamline the process for your finance teams, travel managers, and your travelers. And really, who doesn’t want to make travel a smoother experience? 

2. Corporate travel policy for business class travel 

Does your corporate travel program have different rules, limits, or allowances for different levels of seniority? Are some junior members expected to travel in economy class, while some executives are allowed to book in business class? 

If some certain exceptions and situations might allow for an employee to book business class, regardless of their position, you should include that in your policy as well. 

Making this as clear as possible will avoid an approvals nightmare down the road. 

3. Corporate meal allowance policy 

It’s great if you’ve already centralized most of your business travel expenses like flights, accommodation, transportation, and car rentals, but your people gotta eat! It’s super important to include a meal allowance policy that clearly outlines which meals (and how much) you’ll cover. 

Some of your team might be traveling with corporate credit cards, while others might need to be reimbursed. The guidelines and procedures for submitting expenses or asking for reimbursement need to be crystal clear! 

Make sure to outline if you have a corporate travel policy for alcohol, too! You don’t want murky policies when it comes to footing the bill for drinks. 

Some things to consider for your meal allowance and alcohol travel policy: 

• Which meals are covered and for how much? 
• Who is footing the bill for an alcoholic beverage with dinner? 
• If entertaining clients, what is the budget, and how flexible is it? 
• What is the process of submitting company card expenses? 
• What is the process for requesting reimbursement? 

Your team will always have questions about the policy on food and drinks, so make sure they can find the info easily and have a point of contact for whoever can offer more clarity. 

4. Executive travel policy 

We briefly touched on executive travel when we talked about traveling in business class, but there is certainly more to the top dogs traveling. 

Executive travel can be a touchy subject if there are more lenient policies in place than there is for less senior team members. Your executives also may need to know the guidelines in place for their own travel, so they don’t accidently go overboard, which could be an accounting nightmare! 

You’ll need to make sure you deliver a guide for approvals, procedures, booking deadlines, meals, accommodation, basically everything. 

Lay it all out. Make your policy as digestible as possible, and for a busy exec, consider bullet points and titles in bold so they can easily skim to the areas they need to know. 

5. Natural disaster or COVID-19 business travel policy  

We can all agree that COVID-19 caused business travel to come to a screeching halt. Across most industries, the pandemic impacted client relationships, the ability to gain new clients and caused budgets to get slashed pretty dramatically.  

While this was only one event, many businesses have begun to consider the “what-ifs” of their travel programs should another outbreak of COVID or something else happen. Crossing our fingers and toes doesn’t cut it, unfortunately. 

There is also the chance of their travel being impacted by a natural disaster. We’ve seen it before – earthquakes, tsunamis, volcano eruptions, hurricanes. Do you have a plan or policy to aid your team and guide them through the unthinkable? 

In 2022, we surveyed 120 employees across various industries and businesses. More than half, 51% of respondents said their companies didn’t provide resources or tips for safety on their trips. Duty of care isn’t something to put on the back burner, it’s your legal obligation to make sure your team is informed. 

So, what’s the solution, you ask? 

Working with a TMC gives you the backup you need if anything ever happens and you have people traveling abroad. At Corporate Traveler, our travel management software, Melon, is a central place to house your policy for quick and easy access. Plus, our travel experts can help you paint the big picture of what to do, who to call, and how to get your team home safely as quickly as possible. 

Is there anything missing from your travel policy? 

Let’s break it down. If you think of your policy like a sandwich, it should include: 

The bread and butter  

• Where and why: Are there any restrictions on who travels domestically or internationally? Or guidelines around reasons for travel? 
• When: Are there any restrictions on when business travel is a no-no, like during an auditing period or financial downturn? 
• How? How should travel arrangements be booked? Through your corporate travel booking software or with a preferred Travel Management Company (TMC)? How far in advance should domestic and international trips be booked? 
• Preferred suppliers: Do you have preferred partners for air travel, accommodation, ground transport or travel insurance? 
• Approvals: Who’s responsible for giving the green light on trips? 
• Show me the money: What’s the process for managing/submitting expenses, paying for travel and reimbursements? 
• Uh-oh: How will you prevent or deal with non-compliance to the travel policy? 
• Noise level: Getting loads of ‘noise’ and questions about things in your policy? This means it’s not clear and it’s time to review why and where the stumbling block is for travelers (or your finance team!) 

 The filling  

• Classy, baby: Who gets to fly business class, book 5-star properties or order UberLUX? And how does your business handle upgrades or airport lounge access for long-haul flights? 
• All work, some play: What are the conditions if someone wants to extend their business trip to take personal leave? Are you happy for them to enjoy a bleisure trip, and if so, who foots the bill and for what? 
• Loyalty: Are there any travel rewards or business loyalty programs that can be used during booking? 
• Spending money: Do your business travelers have a daily allowance for meals, snacks, and drinks? How much is it, what does it include – and what’s not covered? Can they order room service, drink from the mini-bar, or use the in-house laundry service? 

The not-so-secret sauce  

• Safety first: your policy should support air, accommodation and ground transport suppliers that have been safety and security vetted. Guidelines or information on travel insurance for work trips is also helpful. 
• Now what: What’s the plan of action in the case of Acts of God or Force Majeure events? Does your team know who to call for help? 
• What’s next: Who is responsible for updating and reviewing your travel policy, and how often? 

Corporate travel policy best practices

• Write for skim readers
• Guide travelers to the right resources
• Automate your policies
• Stipulate a timeframe for expense claims
• Be prepared for the unexpected

1. Write for skim readers  

One of the first steps towards writing a people-first travel policy is understanding how your travelers will read it. And the truth is…  

They probably won’t.   

Research has shown that  adults get distracted every 47 seconds . So if a business traveler is looking at your policy, they’re most likely just searching for a specific answer – and they want it fast. So what can you do?  

First, make sure the document is easy to navigate. That means including things like:   

• A table of contents  
• Visual elements to help guide the eye toward crucial information, like flow charts and tables  
• Clear headings and important details in bold  
• Bulleted lists (see what we did here?) 

And even though it’s a technical document, don’t make it sound like one. An effective travel policy should be clear, concise, and easily comprehended. So skip the long, complex sentence structures and technical jargon, and write in plain, simple English. It helps to pretend like you’re writing it so an eighth-grader can understand it.   

2. Guide travelers to the right resources  

Remember when we said travelers will only read your policy to find a solution for a specific need? Whether it’s a link, a phone number, or a step-by-step tutorial – a well-managed travel policy should provide them with the right resources.  

Instead of treating a travel policy as a list of rules, treat it like a resource sheet. Here are some key pieces of information travelers might need to pull up easily:  

Your approved online booking tool (and steps on how to use it)  

• QR codes to download your  mobile travel app   
• Preferred airlines, including class, budgets, and other limits  
• Permissible hotels, including guidelines on star-class and incidental expenses  
• Guidelines on ground transportation (trains, ride-sharing services, rental cars, and personal car usage)  
• How to get travel support  
• Travel insurance carrier  
• Clarification on the reimbursement process (more on this later)  

You can also include other factors specific to your company, but this should at least be the necessary groundwork to help employees make the right choices on their own.  

3. Automate your policies  

Let’s face it: even with the best communication efforts, there’s always a chance that an employee may violate policy, even unintentionally. So, what can you do?  

Build policy into booking.  

By building your travel policy into your travel management software, it becomes unavoidably embedded in the booking process, so even the most easily confused employees end up following by default.   

Automation tools can sound the alarm on out-of-policy bookings and even provide an audit trail. This can be especially helpful for employees who may struggle to remember procedures and policies, especially after big changes to your travel program.  

4. Stipulate a timeframe for expense claims  

No one wants to get stuck waiting on the money they’re owed – or worse – find out they’re not getting reimbursed for an expenditure they thought would be covered.  

Having a clear and well-defined expense claim process is critical in any travel policy. Employees need to know how to claim their travel expenses, how soon they need to submit an expense report, and when to expect reimbursement.   

The policy should also be clear about what expenses are and are not reimbursable, including any limits or exceptions. For example, if an employee needs to book a different seat class to  accommodate a disability , the policy should include the process for requesting and approving this expense.   

Plus, a submission deadline reduces cash flow issues and provides more accurate and complete expense data for that period (your finance team will thank you later).  

5. Be prepared for the unexpected  

As a company, you have a duty-of-care responsibility. When it comes to business trips, you need to be prepared for the unexpected. No matter how much effort you put into planning, there will always be a few hiccups along the way.   

For instance, lost luggage, canceled or delayed flights, and sudden weather or political emergencies in unfamiliar destinations could all leave your employee stranded.   

“Companies need to be prepared to plan for the particular, not just the universal. Every aspect of the travel program needs to be able to fit each of your travelers like a glove, from adaptable plans and experts on call, to technology that makes the journey seamless.” - Emese Graham, DE&I Manager @ FCTG  

Don’t let unexpected situations blindside you. Have processes in place to ensure travel safety and security. Make sure they know what to do, where to go, and who to get a hold of if something goes wrong. Taking a proactive and prepared approach to your policy can minimize the impact of emergencies and take care of your team’s well-being while they’re on the road.  

BONUS TIP: Update your policy regularly  

Here’s a free business travel policy best practice just for you! It isn’t just a “one and done” deal – it’s a living document.  

What’s that mean? As your company grows and travel conditions change, so should your travel policy. Revisit your expense policy at least once a year to keep it relevant and effective – and lead you towards new cost-saving solutions.    

Data is going to be your best friend here. Here are a few key factors you should look into when updating your travel policy:  

• Analyze travel spend patterns – are you throwing a lot of company money at certain suppliers? You might want to see if you can negotiate a new deal or find better rates elsewhere.  
• Identify areas of overspending or inefficiency – are employees accruing high parking or travel costs? See if you can get season tickets or other accommodations.  
• Evaluate the overall performance of your policy – are you still compliant with any new regulations that have come into play since the policy was established? How can traveler experience be improved?  

You may even want to consider enlisting the help of professionals, such as a travel management company with experience in expense management, to give advice on how to optimize your travel policy to better meet the needs of your employees and your business as a whole.   

Building a travel policy that's good for business and travelers and meets their needs is no small feat. But whether you're looking to retain your team, attract new talent, or make life a little easier for your travelers, investing in a well-designed travel policy is definitely worth the effort and great for company culture.  

By following these travel policy best practices and ensuring your policy meets all travelers' needs, you’ll be on your way to smoother, safer, and more enjoyable travel experiences for all.  

How to promote travel policy compliance  

Whether compliance is a big or small issue in your company, it takes a little bit of investigating to figure out why it’s an issue at all. 

Maybe your policy meets the needs of only a few of your team members. Maybe it’s too difficult to navigate your policy. Or maybe, your policy is written in legalese and makes your travelers vision blur before they go rogue and book how they want. 

It could be that your travelers prefer a bit of freedom in booking and would rather do it on their own. Or, maybe they have specific needs that aren’t being met by the options provided. 

Whatever their reasons, it’s your job to figure out why they aren’t following and what you can do to build better compliance. 

Here are a few tips to improve travel policy compliance: 

• Make your policy easy to navigate, understand, and find 
• Use an online booking tool (OBT) for travelers who prefer to self-book 
• Allow a bit of flexibility so travelers feel they have some autonomy 
•  Include a category for last-minute bookings so it doesn’t mess up your data 
• Understand your traveler needs and build an inclusive policy 

Read the full guide:

You've researched, gathered the necessary resources, and communicated your travel and expense (T&E) policy to your employees. But now, you're not so sure they're actually following it.  

Read the full guide:  How to Improve Corporate Travel Policy Compliance

How to market your corporate travel policy internally?

Corporate travel might be off the radar for most employees, especially those outside of customer-facing positions. The first step in promoting successful corporate travel policies is awareness. 

Do employees know about the policy? Where can they find information and updates on business travel? Clear communication at pivotal points and frequent intervals can help keep everyone aware.

Review common and expected challenges

Business trip policies might be ineffective if they don't meet the needs of some business travellers. You can get ahead of challenges by understanding that last-minute travel can be necessary or that different travellers have unique needs. 

Inclusive policies plan for employee safety and comfort on a range of business trips, paying attention to details such as arrival and departure times, car rentals, ground transportation, and noise levels.  

Communicate business travel policies effectively

Travel managers can use best practices to ensure all employees are aware of and understand travel programs. Visual policies, internal documents, and guides all work well. People learn differently, so it’s a good idea to have key information in both visual and text formats. 

A yearly update is also beneficial, as well as communication on any major changes, like new technology or changes in the approval process or submitting expenses. An internal FAQ page can increase understanding of corporate travel guidelines, as well as prompt new questions.

Book a demo of Melon , the all-in-one travel platform. 

Increase employee engagement 

Highlight areas of company travel that offer flexibility, to show what’s possible for different preferences. Talk about benefits like an online booking tool vs. working directly with a TCM.

Developing interactive content, like employee surveys, can show if traveller satisfaction is achieved. It also helps identify travel arrangements that are unnecessary for cost savings.

Find internal champions for the business travel program 

Travel policies cross paths with a lot of different departments, from sales to the finance team. Identifying key people and keeping them involved in developing the travel program means getting buy-in and internal support.

Corporate Traveler has a long history of travel management and is ready to join forces as an external member of your travel planning team. Let’s make booking a breeze , together.  

Case studies: effectively marketing your corporate travel program

A travel manager should match your company culture for the best fit. Find out how these companies successfully targeted the right mix of technology and service to meet employee expectations and business goals.

Flipp Travel Case Study

Streamlining global travel for Eliquent Life Sciences

Beyond Energy Case Study

If the last time you reviewed or upgraded your travel policy was more than a year ago, it’s outdated and needs a refresher. If your company is small and has low turnover, you could probably get away with making small tweaks and optimizations. 

But if you have a larger company with multiple departments and higher turnover, you probably need to do an overhaul and review it more regularly. We’re not saying you have to change it every time someone is hired or leaves the company, but making sure it’s relevant to the people who are there and are traveling matters! 

Corporate Traveler conducted a survey in 2022, which showed that 48% of respondents didn’t know if their company had resources for specific traveler profiles, while 41% said their company didn’t provide resources for specific traveler profiles. This really goes to show that there’s room for improvement in how policies are built to support their people and their businesses. 

A people-first travel program and policy have become necessary as the world grows and begins to understand neurodiversity, disabilities, and cultural differences. When we learn about our team members’ diverse needs, we can better understand how to support them when they venture abroad for our businesses. 

GUIDE: Download the How to design a people-first travel program guide 

We recommend policy reviews every 3-6 months, but at the minimum, once per year. 

Final thoughts 

Business travel is so unpredictable, as we’ve seen in recent years. There will always be circumstances you can’t avoid as a company, but making sure that you have the necessary checks and balances in place can help to make things just a little easier. If you have groups traveling, VIPS, or people heading to high-risk destinations, it’s important that your policy is relevant. 

Don’t forget that travel policies shouldn’t be written and forgotten about – these are living documents that must be regularly updated to make sure they best protect your people. 

Remember these best practices when writing your travel policy: 

• Keep it simple and make it pop with visuals, bullet points, and bold headings. 
• Answer any and every question possible – think of all the eventualities 
• Always put your people first 
• Implement a quick and simple approval process 
• Automate as much as you can 
• Use technology that’s supports your policy 
• Be flexible with due reason 
• Be clear about what’s not allowed 
• Update your travel policy at least once a year 
• Keep it somewhere easy to find  

And finally, it doesn’t hurt to have a couple of different formats. Consider a visual version and an extended version so the message is delivered best depending on the person reading. For some, it might be easier to digest one over the other. 

Looking for a policy review? We’d be happy to work with you. 

Let’s chat .

• Switch to French

Building a better travel & expense (T&E) policy: step by step 

A travel and expense policy (T&E) is a dynamic set of rules regulating how employees book travel. From setting budgets on flights and accommodations to standardizing the process for expense reports, your T&E should answer any (and all) questions about company travel, so you don’t have to. 

But whatever the scope of your policy, its main purpose is to control spending. Defining specific guidelines makes it much easier to predict how much individual travellers will spend – and determine if you need to get that number down.  

Plus, with a corporate travel expense policy in place, there’s no room for ambiguity. An expense is either authorized, or it’s not. Say bye-bye fraud. 

What happens without a Travel and Expense policy? 

Let’s just say, what can go wrong, will probably go wrong.  

At the end of the day, a travel and expenses policy aims to streamline business processes, save costs, and eliminate fraud. If these factors go unaddressed, you leave yourself vulnerable to:  

• Overspending due to hidden costs if expenses are not under constant supervision. 
• Expense reports arriving late or without essential information if employees are unaware or unsure of specific guidelines. 
• A rise in fraudulent expense claims in the form of duplicate, exaggerated, and misreported business expense claims. 
• Without guidelines, fraudulent behavior cannot be controlled or addressed, and, therefore, encouraged further. 
• Without a fixed way of recording and storing expense data, you’re left with no insights into spending trends and patterns.    

T&E is not one-size-fits-all 

No two companies are the same, so naturally, not every company’s travel and expense policy is going to look the same. For example, some companies will need to reimburse incidentals, but that won’t really apply for others. Some provide per diem allowances while others only reimburse actual expenses. You get the picture. 

The key to creating an effective and dynamic travel expense policy is to first figure out your organization’s specific needs from a control and spend perspective. And to figure out what you need, you’ll need to analyze your current expenses. Here’s some key factors to consider:  

• How much does an average business trip cost? 
• What percentage of your employee’s travel? 
• How often do they travel? To where? 
• What is your return-on-investment (ROI)? This can be easy or difficult to measure depending on the nature of the trips.  

(Pssst! All that data sound like a daunting task? Don’t worry – travel management software   can make this process so much easier. 

Defining the scope of your T&E policy 

Now that you know what you need, it’s time to set your guidelines.  

Keep in mind: T&E policies are meant to manage and regulate the process for submitting an expense report. As you create it, here are a few expense categories to keep in mind:   

1) Transportation 

Transportation expenses can include airfare, train or bus tickets, car rentals, and taxi or ride-sharing services. A comprehensive travel and expense policy should clearly state which modes of transportation are allowed and what limits are in place for each. 

For example, team members may be allowed to rent a car for up to a certain cost per-day or only use a ride-sharing service for trips under a certain distance. Are your employees flying first or business class? The policy should clearly state which class of flight bookings will be applicable for reimbursements.  

2) Lodging 

Accommodations are another important aspect of business travel. The policy should state the hotels or hotel chains your employees are allowed to stay and what the maximum per-night rate is – and be sure to consider the discounted rates your travel management company  can offer you. 

If hotels aren’t being booked through your OBT or dedicated travel consultant, make sure you drive travellers to your preferred booking solution. This way you can define capping amounts for hotel bookings and are not overpaying for hotels or other accommodations. 

3) Meals and Per Diems 

When defining a corporate travel expense policy, remember not to overlook meals and incidentals. The per diem – also known as a subsistence allowance – should cover these expenses, including meals, snacks, incidentals (such as laundry or tips), and even entertainment expenses. It should also provide guidance on what types of meals are covered and what limits are in place. 

For example, employees may be allowed to expense a certain amount for lunch and dinner, but not breakfast or alcoholic beverages. Most importantly, set clear boundaries not to mingle personal and business expenses. So even though your policy does cover a few drinks with clients during a sales pitch, team members shouldn’t use it as an excuse to turn up at happy hour on the company dime. 

4) Corporate credit card expenses 

These cards are typically issued to employees who frequently travel for business, allowing them to charge expenses directly to your company. Not every organization implements corporate credit cards for travel, but if you’re one of the companies that do, you’ll need to lay some ground rules.  

The expense policy should outline what types of expenses are allowed to be charged to the card (like airfare, hotel rooms, and meals), who can use one, and what limits are in place. Just as with per diems, discourage employees from using this card for non-business purposes by emphasizing the consequences for violating policy.   

Creating an effective T&E policy 

Every organization requires rules and regulations to perform its day-to-day operations smoothly. As such, you’ll need to think beyond the basics and deeply consider the current state of your travel expenses. 

A well-written and well-communicated travel and expense policy streamlines travel expense management for the company and simplifies the employee process. 

And trust us: you don’t want to get stuck scrambling for receipts when employees return from a training event or leave them in the dark while waiting for expense reimbursements (talk about a hit to employee morale). 

But the work doesn’t end after successfully writing your first draft. Like any operation, an efficient T&E policy is enforced and consistently refined.  

Communicate your policy to your employees. And if they try to claim excess reimbursement? Stand by your policy. Afterall, it’s there for a reason. 

If your policy says it won’t pay for extra luggage fees, don’t pay them. If it sets a maximum mileage rate, don’t pay above that. The easier you make it to comply, the more your employees will guide themselves. 

Phew – that was a lot. If the thought of building a business travel expense policy for your organization from scratch has you running for the nearest exit, don’t fret. Check out our travel policy  template  to guide the first draft of your policy.  

Utilizing ServiceNow Employee Center Pro for Intranet

Jan 8, 2024 | Employee Experience (HR) , ServiceNow Best Practices

Corporate Travel and Entertainment Policy Best Practices

Traveling employees often incur significant expenses on company-funded trips. But how much is too much? According to recent statistics, businesses spend approximately $799 per person per day on a business trip. Expenses can quickly add up if not carefully watched over.  A travel and entertainment policy outlines what expenses are eligible, how much employees (and sometimes senior management) can spend on business-related travel and the specific terms for reimbursement.

In this article, we’ll explore what a travel and entertainment policy entails and how to make the most out of your business travel resources.

Travel and Entertainment Policy Definition

A travel and entertainment (T&E) policy is a set of regulations that govern business-related travel and entertainment expenses. It sets clear parameters regarding what is acceptable in an employee’s spending of company resources and reimbursement procedures. The policy also highlights acceptable activities for employees while traveling on company business; for instance, meetings and conferences.

Why Do You Need a Company Travel and Entertainment Policy ?

For starters, the primary goal of establishing a clearly defined T&E policy is to ensure that employees clearly understand what is expected of them when it comes to spending company funds on work-related trips. It also sets out the guidelines for hosting or entertaining clients for business purposes. 

The travel and entertainment policy also enables management to mitigate risks associated with misuse of funds and identify potential incidents of fraud, alongside non-compliance with legal requirements. 

With that said, here’s a more detailed breakdown of the main objectives of a travel and entertainment policy :

Fraud Prevention

Unfortunately, deliberate and unintentional fraudulent activity in corporate travel still plagues businesses, leading to significant losses in the long run. In fact, it is estimated that companies lose $125,000 to fraud on average. Although the causes and impact of fraud in business vary by department, traveling employees may contribute to fraudulent activity knowingly or unknowingly.  

This arises from the fact that employee and business goals for travel don’t always align. Occasionally, some employees will seek to benefit themselves at the expense of the company. A comprehensive policy prevents fraud by imposing strict procedures for the use of company resources and submission of the expense reports.

>> Related: 5 Ways FinTech Reduces Fraud <<

Better Resource Management

A well-thought-out travel and entertainment policy ensures that employees only adhere to activities that are acceptable and beneficial for the company’s objectives. For instance, paying for a client lunch meeting may be considered acceptable if it helps in solidifying mutually beneficial working relationships.

With a clear policy in place, businesses can ensure that their employees make the most of their allocated travel and entertainment expenses while avoiding overspending and poor management of company resources.

Cost Savings

As mentioned earlier, corporate travel expenses can pile up as a direct result of poor expense management and fraudulent activity. A corporate travel and entertainment policy shields businesses from such issues. This can be achieved by ensuring that spending on business trips, events, and other related activities is done in accordance with the expenses limited by the policy.

The policy also helps companies save money by ensuring that all expenses are properly accounted for and that the company is getting the best value for its money.

Elements of a Company Travel and Entertainment Policy

Different companies set out different policies that reflect their values and culture. Such elements should be tailored to the specific needs of the organization after taking into consideration its size, budget, regulations, and culture. 

Key elements of a T&E policy include:

The Scope of the Policy

First of all, how a company decides on its travel and entertainment policies does not just revolve around booking flights and hotels. There are regulations and guidelines that govern the spending of the company.

The scope of corporate travel and entertainment policies covers vital details such as: 

• The person/people responsible for authorizing travel.
• Who the policy applies to (junior or senior employees?).
• Possible risks.
• Expense reporting procedures.
• Reimbursement procedures.

The list goes on. In essence, the scope of the policy covers all the expectations for employees when traveling on behalf of the company or attending events.

>> Related: The Importance of Well-Defined Travel and Expense Policies for Businesses <<

Travel Approval/Authorization

All travel expenses, routes, and destinations should be authorized by appropriate managers and supervisors before they are incurred. Authorized expenses ensure that the trip is necessary for business, and will be covered by the company’s travel budget. Additionally, an authorization requirement will further help to prevent fraudulent expenses from being submitted for reimbursement.

Travel Budgeting Limits

While each company will have different budget limits, it is important for employees to stay within the budgeted amount so that expenses are kept under control.

Some key considerations for effective budget limits include:

• The number of days an employee will be expected to be away from work.
• The total cost of the trip.
• The number of people allowed to accompany an employee on a business trip.
• The types of travel that are approved (airfare, car rental, public transport, etc.).
• Spending on meals or entertainment during a business trip.

Once the total cost of the trip is determined, an appropriate limit can be set for how much money an employee can spend. This limit may be based on the number of people traveling with the employee, among other factors.

Travel Risk Management

Travel risk management involves assessing, monitoring, and controlling any risks associated with employee travel. The goal is to protect employees and the organization’s assets from risk by carefully anticipating these risks and adequately planning to mitigate them. 

A risk management plan may include:

• Establishing safety protocols for the use of local transport.
• Using approved agencies, suppliers, and companies to ensure quality services and avoid potential scams when booking flights or hotels.
• Creating a checklist for employees to complete prior to their departure. This checklist can include items such as passport and visa requirements, medical insurance, emergency contacts, etc.
• Employing tracking technology, such as GPS-enabled devices and applications to monitor an employee’s location during travel.
• Developing a communication plan for traveling employees so they can keep in touch with the company.
• Offering security training and advice to employees prior to their departure.
• Establishing an emergency contact list for traveling employees, in case of any incidents or emergencies.
• Ensuring that employees are familiar with local laws and customs before they leave.

By taking proactive steps to manage risks, businesses can ensure the safety of their employees while traveling.

>> Related: 10 Questions to Audit and Update Your Business Travel Policy <<

Travel Expense Reporting & Auditing

While T&E policies aim to provide clear travel guidelines for employees, it is important to point out that properly documenting and tracking employee expenses is essential for a company to manage its resources effectively.

Regular auditing further keeps the business compliant with tax regulation policies, and within budget.

When it comes to reporting and auditing travel expenses, there are several measures you can take to ensure accuracy and transparency. 

For starters, clear policies regarding acceptable expenses should be established and communicated to all employees. It should be clearly stated when these expenses must be reported, and more importantly, who is responsible for verifying them. If you’re in charge of a sizeable team, you may also want to consider using automated software systems to monitor and track employee spending in real-time. 

>> Related: Mapping the Travel Expense Accounting Process <<

Action Measures for Non-Compliance

Non-compliance with a company’s corporate travel and entertainment policy can lead to significant financial losses as well as potential legal issues. To ensure that all employees adhere to the rules, a clear action plan must be established for employees who do not comply.

First and foremost, any employee found guilty of violating the policy should receive a formal warning. The warning should be sent via email or letter and should include a detailed explanation of the violation.

If the violation persists, further action may be taken. This depends on company policy around fraud and could include disciplinary measures such as suspension, termination, or even legal action depending on the severity of the situation. 

Regardless, it is important to clearly define these consequences in the travel and entertainment policy so that employees are aware of the potential repercussions.

How to Create an Effective Corporate Travel and Entertainment Policy

Having a clear and effective corporate travel and entertainment (T&E) policy in place can help companies manage their expenses and set expectations for their employees. However, creating a policy that balances employee satisfaction and corporate cost control is no walk in the park.

A well-crafted T&E policy can help organizations save money on their travel and entertainment expenses while also ensuring that employees have a smooth and stress-free experience. 

Here are the key steps taken in developing an effective T&E policy:

Identify the Purpose of the Travel and Entertainment Policy

The purpose of a corporate travel and entertainment policy is to provide guidelines and regulations for traveling employees in their duty to the company. It ensures that company resources are used responsibly and ethically when traveling or entertaining on behalf of the company.

Establish Criteria for Travel

When creating a corporate travel policy, it is important to set clear criteria that determine who is eligible for business travel. Details such as the necessary qualifications, job title, and/or seniority level needed to be eligible for business travel can be outlined in the criteria. Additionally, the criteria for travel define the roles or responsibilities of each person traveling on behalf of the company.

Forecasting Your Budget

Forecasting the budget for business trips helps the company estimate how much money should be allocated for travel expenses and provides insight into which areas are likely to incur the most costs. Forecasting also allows you to set clear expense limits so that employees don’t overspend while on business trips. Some travel management platforms may even help you by calculating dynamic budgets based on real-time rates.

Setting Expense Limits

The policy should also specify which types of expenses are allowable and which are not. This will help employees understand what they can and cannot spend company funds on while traveling, as well as any limits that may apply.

Outlining Acceptable Expenses

It is important to list down what types of expenses are acceptable, as well as the limits on these expenses. 

When it comes to outlining acceptable expenses, there are several categories that should be addressed. Common examples of acceptable expenses in travel and entertainment policies may include transportation, accommodation, meals, and entertainment. It is equally important to specify what types of expenses are not allowed, for instance, personal purchases or services that are unrelated to business travel.

>> Related:  Highlights from the 2023 State of Business T&E Report <<

Handling Expense Claims

Another important aspect of a corporate travel and entertainment policy is to ensure that employees are submitting their expenses properly. To do this, employers should provide clear instructions on how to submit expense claims, as well as any documentation or receipts necessary to support the claim.

Establish a Timeline for Submitting Expense Claims

The company should set clear deadlines for submitting claims and require all claims to be approved before reimbursement is issued. By setting these expectations in advance, you can ensure that all employees are abiding by the same rules when it comes to filing travel and entertainment expenses.

Review All Receipts and Documentation

All receipts and documentation should be properly reviewed. This review should include an in-depth examination of both the original receipts and any accompanying documents. These may include itineraries, expense reports, or other forms of proof.

The purpose of this review is to ensure that any expenses incurred fall in line with the company’s budget. Additionally, the review provides an opportunity to check for any discrepancies or fraudulent activity. If a discrepancy is found, it should be reported to the appropriate supervisor/manager so that any necessary action can be taken.

Compare Expenses to Policy

It is important for businesses to compare employees’ actual expenses to the policy on a regular basis to ensure that all spending is compliant with company regulations.

A good way to compare expenses to policy is by using dedicated expense tracking software . These tools allow companies to track and review employee spending easily, as well as compare it against the policy.

Verify the Accuracy of Expenses

All expenses, no matter how minor, must be reported to the finance department. The responsible supervisor should then assess the accuracy of all expense reports before submitting them for reimbursement. In this process, you should provide a detailed review of individual expense items and overall accuracy of the report as a whole.

>> Related: Sample T&E Dashboards for Proactively Monitoring Compliance, Budget, and Anomalies <<

Follow-Up With Employees

Having a corporate travel and entertainment policy is essential for any business, but it’s just as important to ensure that the policy is being followed. To ensure compliance with company policies and regulations, managers should follow up with their employees regularly.

You should check in with your employees both before and after business trips to ensure that all expenses are properly documented and appropriate. Additionally, you should regularly review employee receipts and other expense documentation to ensure accuracy and compliance with the company’s travel policy.

Pay Approved Claims Promptly

As a business, it is important to pay any approved claims promptly. Doing so helps maintain a positive working relationship with employees and vendors.

When approving claims, ensure the total amount stated in the claim is accurate and all supporting documents are included. Supporting documents may include credit card statements, receipts, and other forms of proof. Additionally, it is important to confirm that the expenses are in line with corporate policy.

Creating a corporate travel and entertainment policy is an important part of a business expense management strategy. By establishing clear criteria for who is eligible for business travel, forecasting the budget, setting expense limits, specifying acceptable expenses, and monitoring spending, companies can ensure that their employee travel activities stay within budget.

What is a travel policy?

A travel policy can be defined as the rules and guidelines established by an organization for business travel matters. Such rules dictate who is eligible to travel, where, and how much they can spend on meals and accommodations. Other essential matters discussed in the policy include reimbursements for expenses.

Why create a business travel policy?

A well-constructed policy helps keep business travel safe, cost-effective, and compliant. The main reason for creating a business travel policy is to protect the organization from financial risks and potential legal issues associated with employee travel.

What should be included in a corporate travel policy?

A comprehensive corporate travel policy contains guidelines for employees and contractors to follow when handling both domestic and international travel expenses. Important matters to be included in the policy should cover reimbursement rates, allowable expenses, booking procedures and restrictions, and safety considerations.

What should you consider when creating a business travel policy?

Key considerations to keep in mind include the destinations and objectives of trips to be taken by employees. The size of the business should also be taken into consideration since startups often don’t have the same resources as established companies.

What’s included in a T&E expense report?

A T&E expense report typically includes details about the dates of travel, expenses incurred, the purpose of travel, and any other relevant information such as airline tickets purchased or hotel accommodation. The names of those attending can also be included along with the cost per person for all meals and entertainment activities.

What travel expenses are deductible?

Generally speaking, several business-related travel and entertainment expenses are deductible. Examples of deductible travel expenses may include transportation (airfare, car rentals, taxis, etc.), lodging (hotel stays), meals, and entertainment.

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