Corporate Travel Policies

Some expenses associated with business travel are reimbursed by the company.

Companies weigh many factors when they develop a corporate travel policy. Some policies are aimed at saving the most money, while others emphasize the convenience and comfort of the business traveler. Such issues as authorized forms of payment and travel sources must be taken into consideration. Typically, employees are reimbursed for travel and travel expenses only when they are consistent with company objectives.

Coordinating Travel

Corporations may use a single travel agency for airfare, car rentals, hotels and meeting planning to produce a central database; which allows them to do cost analysis for future travel. Travel can be requested ahead of time on a travel authorization form and submitted through the department manager. Employees are responsible for notifying the travel agent as quickly as possible to get the best possible rates. Sometimes low-fare airlines and discount programs are used.

Travel Authorization

Department managers keep informed of current company travel policy and inform their staff about any changes. Managers look over the travel authorization forms and determine if the trip is necessary and if expenses associated with the trip are consistent with company guidelines. Once the trip is authorized by the manager, the signed form is sent to the travel agency and reservations are made.

Car Rental

Employees are usually directed to use a designated car rental company after low rates have been negotiated for the entire firm. Insurance for collision damage and personal liability is normally included. Many companies will reimburse employees for compact or intermediate sized cars only.

If a specialty or luxury car is needed, employees need advanced approval. It is recommended that employees fill up the rental car with gas before returning it to avoid excessive fill charges. A company will determine the rate of reimbursement per mile for employee use of a personal automobile. Travel to and from the office is not reimbursed.

Hotels

Some companies designate specific hotel chains that meet accepted industry business travel standards for use by employees. Employees may have to get approval from a manager ahead of time to stay at a hotel charging over a specified nightly room rate. Reservations are made through the designated travel agency.

Meals and Entertainment

Some meals and entertainment associated with business travel are reimbursed. Employees are instructed to save all receipts that show costs and gratuities. In order to be reimbursed for entertainment expenses, the employee must produce original receipts, obtain authorization from the manager and list the customers or potential customers who were entertained.

References

• Temple University: Travel and Business Related Expense Policy and Procedures
• White Hat Management: Corporate Travel Policy
• Rochester Institute of Technology: Travel Policies and Procedures