Corporate Travel Policy

13 Corporate Travel Policy Other There are many types of transportation — traditional and non-traditional — that should be addressed in a travel policy. In addition to traditional ground transportation (e.g., car rental, rail), there are newer modes of getting from point A to point B, including electric scooter and city-wide bicycle rentals. Based on the volume of travel to cities where these services are readily available, consider which new modes of transportation should be allowed, if any. The organization’s stance should be clearly spelled out in the policy, as well as additional traveler safety and security considerations. Lodging Alternative Lodging The use of alternative lodging (e.g., Airbnb, HomeAway) is becoming more common and the travel policy should clearly define when this lodging type is appropriate. The profile of your workforce is an important consideration when integrating alternative lodging into your travel policy, as not all travelers are amenable to the unique conditions associated with this type of lodging. Do your road warriors want to be in a space where they are physically closer to their colleagues than in a hotel? Some travelers may want the additional privacy hotels afford them in order to recharge and be ready for the next day’s activities. When deciding how to integrate alternative lodging into your travel policy, work with corporate security to ensure that the travel policy reflects any unique protocols that might be needed to ensure traveler safety and tracking in the event of an emergency. Preferred Hotels While alternative lodging is becoming more accepted by organizations, preferred hotels continue to be the most common and effective guidance for employees when they book lodging for a business trip. Policies should be explicit about when an employee is required to book a preferred hotel, as well as provide guidance on how to follow duty of care policies if the employee books outside the recommended channels. Compliance with preferred properties is a good way to control costs, since the rates are pre-determined through regular sourcing and rate negotiation processes. Additionally, booking preferred properties helps the organization adhere to duty of care policies while a traveler is on their trip. For example, when travelers stay at preferred properties in a high risk country, the travel manager knows that the hotel has security mechanisms in place that are mandated by the organization (e.g., 24 hours onsite security, room card required in elevator for floor access, safes in room). However, it should be noted that noncompliance rates for preferred hotels are around 50%, since many travelers are looking for a different experience or choosing hotels where they earn reward points. Travel managers can do a lot to increase compliance by engaging travelers in the development of the preferred hotel program. Lodging Spend Caps There are a number of spend cap considerations as it relates to lodging. The decision to include spend caps is largely driven by cost control and is a travel management decision. If your organization decides to impose spend caps, the policy should address three key items: (1) a full list of all of the spend caps by destination, (2) how to handle situations in which employees spend above the spend cap when a lodging option below the spend cap is available, and (3) how to handle a situation where there is no lodging option available within the spend cap. When deciding how to integrate alternative lodging into your travel policy, work with corporate security to ensure that the travel policy reflects any unique protocols that might be needed to ensure traveler safety and tracking in the event of an emergency.