The most common business travel policy mistakes and how to avoid them
In this guide, you will read about:
- Business travel policy objectives – why is it worth writing down all the rules?
- What's the priority in corporate business trips? Simplification? Time savings? Or perhaps both?
- What steps will be taken to optimize business travel costs?
- Mistake 1: Unclear or incomplete business travel policies
- How to avoid this mistake?
- Go for simplicity without losing key details
- Who can travel for business and when?
- What are the budget limits?
- What does the business travel approval process look like?
- Mistake 2: Impractical cost limit rules
- How to avoid this?
- Be flexible and update your travel policy regularly
- Hotels
- Flights
- Local transport
- Mistake 3: Complex and time-consuming travel approval process
- How do I fix this?
- Automate your business travel
- Mistake 4: Complicated accounting rules and failure to define employee safety issues
- How to avoid this?
- Simplify your billing rules and ensure security
- Mistake 5: Not being receptive to the needs of traveling employees
- How to change it?
- Listen to the needs of your business traveling team
- How is technology changing the rules of travel in companies?
Organizing business trips within a company is a complex process that can easily lead to paperwork chaos and hidden costs. A properly designed business travel policy can help avoid this. Defining precise rules for travel approval and defining travel and accommodation expense limits streamlines the entire process and simplifies travel settlement. Today, we'll have a look at the most common mistakes made in travel policies and discuss how you can prevent them.
Business travel policy objectives – why is it worth writing down all the rules?
A business travel policy should be a document that precisely outlines all applicable rules regarding business trips. Simple, right? However, many companies begin by defining rules, limits, and procedures, forgetting the absolute foundation: answering the question, "Why should all the rules be written down?" From the very beginning, every organization should internally define the answers to the following questions:
Defining travel policy goals provides a solid foundation upon which to build business travel policies that will translate into practice. Organized business travel brings satisfaction and comfort to employees, while travel managers gain effective control, optimize costs, and save time.
Mistake 1: Unclear or incomplete business travel policies
The most costly mistake many companies make is incomplete or unclear written business travel policies. Creating too general a document allows employees to interpret the rules differently. This can easily lead to chaos, misunderstandings, and a loss of control over expenses.
How to avoid this mistake?
Go for simplicity without losing key details
A good business travel policy doesn't have to be long or complicated. On the contrary, the simpler and more understandable it is, the better it works. Every employee should know:
Moving from the general to the specific, you need to identify the employee groups that travel within your company. You also need to define travel approval procedures. The next step is to establish budget limits for accommodation and transportation that will apply to specific travel destinations. We'll cover this in more detail later in this Guide.
Mistake 2: Impractical cost limit rules
Defining a single accommodation and transportation allowance for all business trips isn't a good idea. International travel costs can vary significantly depending on the country and exchange rate. Another factor that influences flight and hotel prices is seasonality. This can be crucial if your employees travel to metropolitan areas that are particularly attractive to tourists.
How to avoid this?
Be flexible and update your travel policy regularly
We recommend setting different spending limits depending on your travel destination. What should you consider?
Hotels
Set a ceiling on the cost of accommodation in a given country. Don't forget to clearly state what standard of accommodation is acceptable.
Flights
Record the flight class employees can choose (e.g., economy). It's worth distinguishing between short-haul and long-haul flights here. You can also indicate preferred modes of transportation (e.g., for flights under 5 hours, train is recommended, which can effectively support your company's ESG goals).
Local transport
Describe whether employees can rent a car, use a taxi, Uber, or public transport to efficiently get from the hotel to the business meeting location.
If your company's employees travel to several different locations, it's worth considering establishing separate travel policies. The worktrips.com platform allows you to define regions and assign specific travel policies to them. For example, you can add different budget limits for European countries than for Asian countries. This is a significant convenience and allows you to control costs much more effectively.
It's one thing for employees to adhere to a travel policy, but it's another for travel managers to regularly update it. Remember, you should regularly adjust your budget to market rates. It's a good idea to do this at least once a calendar year.
If your company regularly travels to the same destinations, you might consider negotiating special rates, for example, on hotels. If you want employees to choose a specific property, you can use the recommended hotels feature on the worktrips.com platform. This will allow the selected properties to appear at the top of search results.
Mistake 3: Complex and time-consuming travel approval process
If a company's travel approval procedures are complex and require numerous signatures, travel management becomes inefficient. A multistep approval process delays bookings, driving up airfare and accommodation costs. This means it's never possible to accurately estimate business travel budgets.
How do I fix this?
Automate your business travel
To simplify business travel management, it's worth shortening the approval process for business trip requests. Written travel approval policies should designate a single supervisor with approval authority. The worktrips.com system allows employees to automate the business trip booking process within the travel policy. The administrator immediately sees the request and can approve it. If the reservation falls within company policies, automatic approval can be used.
Mistake 4: Complicated accounting rules and failure to define employee safety issues
Travel policies should outline what additional travel expenses the company covers. This simplifies travel settlement for the finance department and eliminates misunderstandings. Safety and insurance for employees traveling are also crucial.
How to avoid this?
Simplify your billing rules and ensure security
Your business travel policy should precisely describe all aspects of business travel related to billing and safety. This helps avoid unforeseen situations. What should you do?
Clearly define the rules for settling business trips and additional costs incurred by the company, e.g., meals.
Make sure you understand the rules regarding travel insurance. Here, answer the following questions: Who should an employee contact to obtain coverage? Is there a person in the company who continuously monitors visa and health requirements (e.g., recommended vaccinations) in the destination country?
Designate a person whom employees can contact in the event of unexpected events, such as lost luggage, theft, or a delayed flight.
The best way out of the situation is to provide access to travel agent support. Using worktrips.com, employees can contact experienced specialists 24/7/365 who will assist in any situation. Additionally, on the worktrips.com platform, you can use the traveler tracker feature, which allows you to monitor employees' locations with their consent.
Mistake 5: Not being receptive to the needs of traveling employees
Employees' daily work lives look completely different today than they did just a few years ago. Both work styles and approaches to business travel are changing. That's why a modern travel policy should address employee needs. Ignoring the bleisure trend or failing to set ESG goals leaves your company behind.
How to change it?
Listen to the needs of your business traveling team
Focus on flexibility in your travel policy and treat it as a document that evolves with the needs of your employees and the company. Creating such a document just once is certainly not enough. Regularly updating your travel policy and adapting it to changing conditions is crucial. Here are some steps worth taking from the very beginning:
Create clear rules regarding bleisure. Define how business and personal travel will be billed in practice. The worktrips.com platform can make this easier.
Focus on ESG. Promote more sustainable modes of transport (e.g., recommending the train for domestic travel).
Listen to your team's needs. Engage employees in updating their business travel policies.
How is technology changing the rules of travel in companies?
Implementing an effective travel policy can be much easier with modern tools like the worktrips.com platform. Knowing the most common mistakes described in this guide is the first step to creating an effective travel policy. Treat this document as a dynamic tool that grows with your company and adapts to its needs. A well-prepared document becomes a strategic foundation that makes travel management simple and effective.
