Pandemic Policy Is a Layer - W hile the Covid-19 crisis stopped most business - Business Travel News

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Pandemic Policy Is a Layer - W hile the Covid-19 crisis stopped most business - Business Travel News
BY ELIZABETH WEST

COVID-19 UPDATE

Pandemic Policy Is
a Layer
W
                  hile the Covid-19 crisis stopped most business        the person has reasons not to travel, that isn’t the purview of
                  travel in its tracks, travel managers have stepped    travel policy. It’s an HR issue, and may be considered in the
                  up strategic thinking for their companies. They’ve    same light as a disability, according to corporate legal experts
                  engaged in critical work groups charged with get-     who deal with such emerging issues.
ting employees back to physical offices where possible and, ide-           Most companies won’t force the issue on travel; they are
ally, back to travel. Many travel managers realized from the outset     providing options like desktop videoconferencing, which have
that recovery would have a ripple aspect, with certain markets          sustained remote working during Covid-19. Travel managers
emerging from lockdowns as others dipped deeper into infection.         should consider how pandemic-oriented travel policies should
   Wrapping a pandemic-oriented travel policy around that               divert potential trips to technology and automate it. For many
reality must start with an understanding of what government             organizations, though, deep partnerships and project work still
will allow. The International Air Transport Association offers a        require in-person interactions.
borders regulation map with ongoing updates and an option                  Given that, specific policies do require amendment. But
to license the data for internal or commercial use. Other data          don’t ditch the traditional policy—you’ll want to get back to it
providers have similar capabilities and corporates with travel          eventually. Think of the pandemic policy as a layer that you can
management company relationships can look to those partners             use when needed, now or in the future.
for integrated information solutions. This type of regulation is           Buyers BTN has spoken with are giving extra attention to
the first restriction that will prohibit a trip or, with a quarantine   ground transportation policies, looking to extend mileage limits
requirement, make the trip prohibitively expensive.                     on road travel should travelers feel nervous about flying and
   Just because a country will allow travel, doesn’t mean               extending how long travelers may hire rental cars. They may
traveling to that location is in the company’s best interest. For       also consider deepening relationships with chauffeur ground
business travel, it is crucial for companies to set their own           transportation providers for such trips to increase productivity
policies about infection rates and what is considered high risk.        and doing the same for train travel, particularly, in Europe, go-
To act on such policies, companies must have access to data             ing so far as to restrict short-haul air travel in favor of rail. Pub-
beyond border closures. Again, many TMCs have layered this              lic transport and ride-hailing policies also must be considered.
into their information services, as have specialized travel risk           Air travel policies require a revamp as well. Companies may
management companies, aggregating data from sources like                strongly prefer nonstop direct flights if they are possible and
the Centers for Disease Control and Prevention, World Health            may look to book pricier but refundable fares, as infection flares
Organization and Johns Hopkins University.                              could reverse trip plans. Utilizing unused tickets will be a priority.
   To drive policy and compliance based on this data, it’s ideally         Ensuring social distancing on flights may be an issue. Most
integrated into the self-booking workflow, alerting travelers to        carriers will not guarantee an empty middle seat in economy
the Covid-19 situation. In addition to origin and destination, also     class. Therefore, premium economy and business class tickets
consider transiting locations required on the trip. Airline capacity,   could become more prevalent. These policies will increase trip
frequency and route maps have changed dramatically and poli-            cost and, therefore, could raise the justification threshold.
cies around traveler risk need to account for connection points.           For hotel stays, the main concern is compliance with
Messaging within the booking tool or automated workflows—               preferred partners, which presumably are vetted for hygiene
like trip approval triggers or even blocked bookings—should alert       standards. One additional concern may be choosing a hotel as
travelers to next steps in the travel booking or approval process.      close as possible to the meeting location to minimize ground
Few companies are allowing travel bookings to go unchecked by           transportation needs. But paying for car rental and parking or
at least a direct manager and potentially up to the CEO.                black car service, even in urban locations, may be the answer
   Companies have pivoted to conversations around “es-                  if hotel locations aren’t amenable.
sential” business travel, yet defining those criteria can be               Finally, personal protection policies will be important. Many
challenging. One formulation is “a trip which, if not taken,            companies are providing PPE kits that include a mask, hand
would harm the business/organization.” While still somewhat             sanitizer, sanitizing wipes and other essentials that will help
subjective, that definition sets a high bar.                            travelers practice good hygiene. The kits may include instruc-
   Still, the traveler needs to be willing to undertake the jour-       tion about detailing airline seats or hotel rooms, and travelers
ney. This is an area where travel management must lean into             will take that guidance or not—but the company will show its
human resources. If travel is critical to an individual’s job, but      duty of care by providing it.
Pandemic Policy Is a Layer - W hile the Covid-19 crisis stopped most business - Business Travel News
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                        POLICY                                               www.businesstravelnews.com

                                                                                                   security. Some companies draft
                                                                                                   separate policies for executives but
                                                                                                   do not communicate these to all
                                                                                                   employees.
                                                                                                2. Recognizing road warriors by
                                                                                                   loosening policies for those who
                                                                                                   cross mileage or overnight-stay
                                                                                                   thresholds produces better busi-
                                                                                                   ness results in terms of recruiting,
                                                                                                   retention, willingness to travel and
                                                                                                   overall trip effectiveness. However,
                                                                                                   such a tiered travel policy requires
                                                                                                   more administration and may in-
                                                                                                   centivize travelers to take unneces-
                                                                                                   sary trips.
                                                                                                3. To mitigate disaster risk, compa-
                                                                                                   nies can forbid more than two or
                                                                                                   three executives from traveling

Establishing a T&E Policy                                                                          together, such as a CEO and CFO
                                                                                                   traveling on one aircraft.
                                                                                             E. Should the company deploy separate
I. QUESTIONS TO PONDER                                                                          policies for individual countries or
 A. What are the company’s goals and key performance indicators toward those goals?             regions?
 B. Who will own, write and update the policy?                                                  1. A policy that applies to all employ-
    1. Form a committee of stakeholders from various departments—travel, account-                  ees worldwide is the most consis-
       ing, administration, finance, HR, marketing, meetings, risk management, sales,              tent, but local laws and cultural
       strategic sourcing/procurement, training, accounts payable, expense manage-                 constraints make mandated com-
       ment, IT, and any department that employs frequent travelers—plus internation-              pliance to a global policy imprac-
       al representatives to recommend policy elements to a writer and to seek traveler            tical and inadvisable. The global
       input.                                                                                      policy should be the standard, and
    2. Obtain a few travel policies from colleagues within and beyond your own indus-              the company can adapt it to local
       try and from your travel management company; seek a range of examples from                  needs.
       brief to detailed.                                                                       2. An umbrella policy with addenda
    3. Get buy-in on a proof of concept from at least one executive before drafting a              for individual countries will work
       document. Feedback from that person or group will set the tone and direction as             if travel expense or management
       the committee drafts policy.                                                                data is available.
    4. One person with travel industry knowledge should write the policy, including             3. Companies can group countries
       input from managers, travelers and travel arrangers to improve the likelihood of            with common travel requirements
       senior management buy-in and support.                                                       and cultures into regional policies.
    5. Include representatives for all involved countries to encourage support and              4. Keep local standards, legislation,
       compliance.                                                                                 practices and budgets in mind.
    6. The policy won’t work without the signature or a letter of support from the CFO          5. If travel is paid for with a federal
       or CEO.                                                                                     contract or grant, consider relevant
    7. A staff leader like a controller or senior finance or HR executive should own the           travel restrictions like the Fly
       policy and take responsibility for updating it as needed.                                   America Act, as well as reporting
 C. Who should be subject to policy?                                                               requirements that apply to the
    1. The policy should apply to anyone traveling on the company’s expense, including             contract or grant.
       consultants, job candidates, customers and subcontractors.                               6. Consider Export Controls regulat-
    2. The policy should stipulate that individual travelers and group travelers each are          ing the shipment or transfer of
       subject to identical policies, unless a separate policy covers groups, conferences          software, technology and equip-
       and meetings.                                                                               ment from the U.S. to other
    3. Greater cost control comes with a single policy that covers all locations, but this         countries.
       style interferes with individual locations’ autonomy.                                 F. Should you make separate policies
    4. A company that wants to balance consistency and autonomy can institute an                for international travel?
       umbrella policy that individual divisions or locations can restrict but not relax.       1. The company may decide to draft
 D. Should policy apply equally to all levels of employees?                                        separate policies depending on the
    1. Some companies apply special consideration for high-ranking executives, for                 destination country and length of
       those whose time is most valuable financially and for those who require more                the trip, though it’s not necessary.
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                      POLICY                                                www.businesstravelnews.com

   2. Policy should cover passport and              limiting travelers’ options to               ensures compliance with the travel
      visa acquisition, health certificates         one supplier. Full liability for an          policy and allows a legal review of
      and security and emergency ser-               injured traveler, for example, could         the contracts.
      vices or advise employees where to            fall on a company that eliminated      C. How far in advance should travelers
      locate this information.                      air carrier options.                      plan?
   3. Travel managers also should work           4. If traveling on federal contract          1. Traditional wisdom says the
      with their travel management                  funds, a federal contracting plan is         farther in advance a trip is booked,
      companies and security providers              required. It requires that a certain         the greater the chance of lower
      to make sure they’re providing this           percentage of spend needs to be              airfare and availability of preferred
      information for each trip.                    with a certified small business              seats. These days, it isn’t always the
 G. How forceful should the policy be?              organization, and an easy way to             case, plus booking far in advance
   1. This major company-culture con-               meet the requirement is to use a             increases the chance that a traveler
      sideration is completely subjective           TMC that’s a small business.                 will need to change the reservation
      and will depend on company goals.       B. How should employees make travel                if business requirements change.
   2. Some policies mandate actions,             arrangements? Five options:                     Changing an air reservation likely
      identifying consequences for non-          1. Designate a single TMC or a                  will cost money.
      compliance as strict as termina-              limited number of TMCs. The               2. Some companies still require
      tion of employment or denial of               benefits of consolidating to one             supervisor approval or passive no-
      reimbursement. The policy should              include service level, consistency,          tification for trips booked less than
      address exceptions for unplanned              consolidated reporting, centralized          two weeks in advance of travel.
      occurrences and local regulations.            duty of care and cost savings via         3. Some TMCs encourage advanced
      Companies subject to Sarbanes-                negotiated supplier discounts.               booking by notifying travelers and
      Oxley, the Sunshine Act or other           2. Deploy one preferred online book-            their managers how much the trav-
      such regulations should enforce               ing tool across as many countries            eler could have saved by booking
      mandates in strict accordance with            as possible. Configure the tool to           in advance. Make sure the data is
      written procedures and should                 highlight preferred suppliers or to          accurate.
      audit for compliance.                         eliminate other options. Consider         4. Some companies ask employees,
   3. Companies can present guidelines              prohibiting use of other websites            at the time of booking, to consider
      and require written explanations              so travelers can’t bypass your com-          travel alternatives like teleconfer-
      when travelers don’t follow them.             pany’s booking policy.                       encing, particularly for non-client-
   4. Or they can present policies as            3. For domestic bookings that involve           facing travel.
      standard procedures that carry the            more than three destinations and       D. Is pre-approval by the traveler’s
      company’s stamp of approval with              for international bookings, use           supervisor necessary? Should a su-
      the CFO or CEO’s signature.                   designated travel agents who make         pervisor approve reason for the trip
   5. Unmanaged travel programs                     arrangements using corporate-             or trip cost?
      should direct travelers to use their          approved channels.                        1. Approval enables a supervisor
      best judgment and then ask them            4. Some companies allow travelers to            to rule a trip unnecessary or too
      to share travel information to aid            book directly on supplier websites           expensive.
      duty of care.                                 or another distribution channels if       2. Pre-approval for an online reserva-
                                                    those prices fall below a prede-             tion may qualify as a second touch
II. ARRANGING TRAVEL                                termined cap and if the company              on the booking, adding cost.
 A. Should travelers have supplier                  has a way to capture the trip data.       3. It also may hold up ticketing,
   choices?                                         However, if travel programs                  which again could add to the cost.
   1. Giving travelers broad discretion             can’t capture trip data through           4. Consider requiring pre-approval
      could increase costs and decrease             new technologies or by travelers             for exceptions only or for specific
      policy compliance but also could              forwarding itineraries or booking            scenarios like transcontinental
      improve traveler satisfaction and             confirmations, travel managers               flights and high-cost travel.
      productivity.                                 can’t track travelers or spend.           5. Some companies simply require
   2. Most companies either encourage            5. Some policies require employees              travelers get verbal approval from
      travelers to use a travel manage-             planning a meeting to notify or              their managers prior to booking.
      ment company and online booking               work with the meetings depart-            6. Some companies prefer not to
      tools to book travel compatible               ment, travel department or TMC               burden senior executives with ad-
      with policy and preferred suppli-             if the meeting involves 10 or more           ministrative details like approvals.
      ers, or the companies prioritize              colleagues, involves hotel room        E. Address how travelers should handle
      lowest logical cost over use of               nights, requires a contract or            trip changes.
      preferred suppliers.                          exceeds budget thresholds. This           1. Many TMCs have 24-hour service
   3. Check with your legal and HR                  allows the company to take advan-            or tie in to third-party services for
      departments about the risk of                 tage of negotiated group discounts,          additional surcharges and should
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                        POLICY                                                   www.businesstravelnews.com

       be used only during nonbusiness                per diems on the firm’s histori-             2. Outline the circumstances under
       hours, for travel emergencies or to            cal expenses, BTN’s Corporate                   which travelers do not have to use
       avoid larger cancellation penalties.           Travel Index or published indices               preferred hotels, such as meetings
    2. Online booking tools are available             prepared by consulting firms and                and when traveling with clients.
       round-the-clock, but changing                  the federal government. Business          D. When can travelers stay in more
       ticketed itineraries is not always             entertainment expenses typically             expensive rooms?
       possible due to complex fare rules.            are calculated separately.                   1. Companies may allow high-rank-
 F. Should policy encourage or require             4. Designate different property                    ing executives to stay in luxury
    travelers to adjust schedules to mini-            classes per length of stay, such as             hotels or on executive floors.
    mize costs, like arranging day trips?             limited-service hotels for one-              2. Better accommodations or a suite
    1. Provide alternative routing and                night stays and extended-stay                   might be appropriate if a traveler
       pricing options and record excep-              hotels for more than seven nights.              has to entertain clients or meet
       tion codes if travelers decline             5. Mandate the use of company                      with staff.
       reasonable alternatives.                       apartments or hotel room blocks              3. If the only hotels that conform to
    2. Balance savings with traveler pro-             when they’re available.                         policy are far from the business
       ductivity, convenience and morale.       C. What other limits should be in                     destination, it may be warranted to
                                                   the policy?                                        use closer, more expensive hotels.
III. LODGING                                       1. Encourage or mandate the use of           E. Other options.
 A. How should employees book rooms?                  hotels with which the company has            1. Make it clear in the policy that
    1. Using a designated agency or                   negotiated rates or the company’s               employees are responsible for
       online booking tool centralizes                TMC has preferred rates. Many                   canceling hotels within the hotels’
       bookings, enhancing the com-                   companies and TMCs have exten-                  cancellation windows. Policy could
       pany’s ability to enforce policy and           sive hotel directories but mandate              instruct a traveler who cancels a
       capture booking data to use for                the use of particular hotels in given           reservation to record a cancellation
       negotiations and to manage safety.             cities. Requirements for travel-                number or the name of the hotel
       It also ensures that travelers get the         ers to use preferred hotels should              employee taking the cancellation
       company’s or travel management                 stipulate that travelers book at the            to help resolve billing disputes.
       company’s negotiated rate and that             rate the company negotiated with                Whenever possible, travelers
       room nights are credited toward                the supplier.                                   should cancel through the TMC to
       volume agreements that companies
       or their TMCs have reached with
       suppliers. Plus, any commissions
       returned to the company can offset
                                                 Remote Conferencing
       program management costs.                 Advancements, cost savings and technology, including telepresence systems and
    2. The policy should state what              desktop videoconferencing tools, have boosted virtual meetings, which reduce wear
       travelers should do if they find          and tear on travelers and save travel costs. Prior to the Covid-19 pandemic, remote
       rates lower than the TMC’s or             conferencing tools were used primarily for internal meetings. Now, travel managers
       designated booking tool’s. Most           are looking at how to deploy such technologies more strategically for all types of
       companies discourage direct book-         business meetings and even larger business events, to reduce travel but also to provide
       ings through supplier websites.           workers with viable options that won’t expose them to infection vectors.
 B. How much should employees pay?
    1. Define the company’s acceptable           I. IT departments usually manage remote-conferencing tech, but travel managers can
       pricing level, such as moderately           promote its use and examine airline citypair and hotel data to choose locations for
       priced, by brand or by hotel tier.          installations. Integrate remote-conference booking and travel-booking systems, and
    2. Designate maximum hotel rates,              design them to prompt travelers to skip trips.
       though note that this could
       encourage employees to spend              II. Ideally, the option to use remote-conferencing alternatives would be integrated into
       as close to the limit as possible.          the online booking tool or trip approval process. Companies are setting a higher
       Consider setting different ceilings         justification threshold for business trips since Covid-19. Pandemic travel policies
       for different cities. Remember that         should be automated to divert non-essential trips to a choice of virtual meeting op-
       using too many hotels will influ-           tions. If they can’t be automated, such policies should be clarified so managers and
       ence the company’s performance              employees can make the
       in contracts.
    3. Consider giving travelers a               III.Tech suppliers offer services and products. Most employees also have videocon-
       maximum amount to spend daily               ferencing-capable personal devices, though IT may have to aid integration and
       across hotel, meals and incidentals,        collaboration.
       depending on the cost of doing
       business in each city. Base these
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                    POLICY                                                  www.businesstravelnews.com

     produce a better paper trail.              b. Nonrefundable fares: Balance                   upgrades.
   2. Policy should address whether the             the chance that the trip will be            b. International flights: Consider
      company will reimburse travelers              canceled or rescheduled against                 whether to include U.S.-orig-
      for personal items like in-room               savings from these cheaper                      inating flights to Canada, the
      movies, minibar purchases and                 fares. Remind travelers to keep                 Caribbean, Central America and
      laundry expenses. These policies              track of unused, nonrefundable                  Mexico.
      can vary based on the length of the           tickets. The company often can               c. Employees traveling with clients.
      trip.                                         use them for other trips after               d. Employees with physical dis-
   3. Address whether the company will              paying a change fee. The TMC                    abilities, though the company’s
      reimburse room service charges,               also should have an automated                   legal department should advise,
      as well as tips. Include guidance on          system for tracking unused tick-                as recording an employee’s dis-
      how much to tip.                              ets for business and group travel.              ability may violate the Ameri-
   4. Address whether the company will           c. Nonstop flights: Balance the                    cans with Disabilities Act.
      reimburse those traveling with                increased travel time and the                e. Employees who are expected to
      spouses or family for a single-room           risk of delays associated with in-              work a full day upon arrival.
      rate, an entire multiple-occupancy            direct flights against the higher            f. Employees taking multiple inter-
      room rate or a percentage of the              cost of nonstop flights. Consider               national trips within a defined
      multiple-occupancy rate.                      that a layover in Chicago in                    period of time.
   5. Note whether travelers will be re-            January carries a heftier risk            6. In a global policy, distinguish be-
      imbursed for host gifts when they             than a nonstop flight that would             tween such policy terms as inter-
      stay with colleagues, associates,             fly over a snowstorm. Most poli-             national, domestic, transcontinen-
      friends or relatives.                         cies do not require travelers to             tal, stateside and foreign air travel,
   6. Avoid properties with external                take flights that require them to            and note that the terms “coach”
      entrances for each room, and con-             change planes unless the savings             and “business” are not universal.
      sider conducting security audits.             are significant. Define the mini-      B. If the company or its TMC has
   7. Consider whether to allow travel-             mum level of savings for which            negotiated discounts with preferred
      ers to use Airbnb or similar ac-              travelers should book flights             airlines, are those airlines the best
      commodations.                                 with stops, typically $100 per            options?
                                                    segment, and a maximum length             1. Balance the company’s obligation
IV. AIR TRAVEL                                      of the layover, typically no more            to reach a certain booking volume
 A. What parameters should the policy               than two hours.                              or citypair market share in order
   place on airfare and class?                   d. Alternate airports: Consider the             to maintain preferred fares overall
   1. When airlines prices on certain               inconvenience for the trip and               against the individual travelers’
      city pairs are competitive or only            the cost ground transportation               opportunities to secure lower fares.
      slightly higher, request that travel-         adds to the total cost of the trip.       2. The policy should encourage or
      ers use the company’s preferred         4. Some policies allow senior manag-               mandate that groups, usually 10 or
      airlines.                                  ers to fly in premium economy,                  more traveling to the same destina-
   2. Most companies indicate coach as           business or first class if a discount           tion on the same day, use group
      the preferred class for nonexecu-          coach seat is not available. Some               rates if the company negotiated
      tives traveling domestically; howev-       airlines offer premium economy,                 such fares.
      er, talent-competitive industries are      business or executive class seating          3. The policy may lay out different
      more likely to authorize premium           as cheaper alternatives to first class.         preferred suppliers with differ-
      economy or a one-cabin upgrade.            Some companies that allow busi-                 ent airlines or alliances to cover
   3. Some companies require travelers           ness class for overnight flights pare           multiple city pairs.
      to choose the “lowest logical,” “low-      that allowance down to premium            C. What reimbursement items should
      est available” or “lowest applicable”      economy for shorter flights.                 the company lay out in the policy?
      fare. Define precisely what you         5. Employees may be willing to                  1. The circumstances and the approv-
      mean. The definition may differ for        pay for an upgrade personally or                als required for travelers to charter
      domestic and international travel.         companies may make it policy to                 aircraft when there is no other
      Because fare availability changes,         pay for employees to upgrade in                 convenient option for a group.
      many companies stipulate class             certain conditions, including:                  Involve the company’s insurance
      as the guiding principle. Require,         a. Flights of at least six or seven             and security departments in that
      encourage, permit or prohibit:                hours; using mileage as a mea-               decision.
      a. The lowest fare within a window            sure instead prevents travelers           2. If and how the company will reim-
         of time around the planned de-             from manipulating schedules—                 burse certain employees for airline
         parture, typically two hours for           booking flights with longer                  club memberships and premium-
         domestic travel but sometimes              connection times, for example—               services memberships.
         longer for international travel.           in order to become eligible for           3. How the company will handle
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                         POLICY                                                   www.businesstravelnews.com

       suppliers’ loyalty program benefits.         on the mileage reimbursement.                       program, no additional coverage
       Most companies allow travelers            2. Do not allow car rentals when:                      is needed. Policy can specify that
       to keep the rewards, while others            a. A traveler needs transportation                  employees will not be reimbursed
       encourage travelers to use them for              only from the airport to the                    for purchasing such coverage.
       business.                                        hotel and when a shuttle, taxi or            2. If no other coverage applies, the
    4. If and how the company will re-                  car service is less expensive.                  company may choose for the
       imburse travelers for checked bags            b. A company-owned or -leased                      traveler to purchase such coverage
       and overweight bags.                             car is available.                               while booking to avoid paperwork
    5. Which ancillary services, such                c. Employees are traveling to unfa-                and paying for damages.
       as preferred seating, advance                    miliar areas, especially at night.           3. Differences in insurance laws and
       boarding and inflight Wi-Fi, are              d. Employees are traveling to for-                 other government regulations
       reimbursable.                                    eign countries, especially if road              make this coverage a good idea
    6. Whether the company will reim-                   conditions, safety and licensing                for foreign travel. Direct travelers
       burse travelers for insurance be-                needs are concerns.                             to accept all coverage in foreign
       yond that provided by airlines, the     B. Which suppliers should a traveler use?                countries.
       company’s insurance and corporate          1. Many policies encourage a single             F. Should travelers buy other insurance
       cards. Most do not pay for addi-              or limited number of suppliers                  products like personal accident insur-
       tional insurance unless a traveler is         with which the company or TMC                   ance, supplemental liability insurance
       transporting company goods.                   has negotiated rates.                           and personal effects coverage?
 D. Other factors to define in the policy.        2. Secondary suppliers can fill holes              1. Most companies already have insur-
    1. An approval process managed                   in designated supplier service.                    ance that provides such coverage.
       by a risk management designee.             3. Policy may direct employees to use              2. If not, they usually reimburse
       Consider whether to forbid travel             different suppliers in different cities.           employees for such purchases.
       to countries for which the U.S.         C. What car size or class should travel-              3. Policy also can state that employ-
       Department of State or the World           ers reserve?                                          ees may purchase additional cover-
       Health Organization has issued             1. Compact cars provide the greatest                  age at their own expense.
       a travel warning or advisory. The             savings but less comfort and capacity.       G. What should travelers do in the
       company should provide such ad-            2. Intermediate cars give travelers                 event of an accident?
       visories to travelers who’ve booked           reasonable comfort at a reason-                 1. Notify local authorities, the rental
       international trips.                          able cost. Most policies stipulate                 car supplier, the travel department,
    2. Who can fly in company-owned                  midsize or intermediate cars.                      HR and the company’s security
       and company-leased planes.                 3. Many companies restrict full-size                  department.
    3. Whether the traveler or the com-              or luxury cars to high-level execu-             2. If the car is damaged, notify the
       pany gets the denied-boarding                 tives, groups of two or more, those                company’s insurance department
       compensation when an airline pays             hosting clients or those of a certain              of the details of the accident and
       it out and whether travelers can              height or size.                                    instruct the supplier to submit a
       volunteer for compensation when            4. Hybrid cars can bolster corporate so-              bill for repairs to the same depart-
       flights are overbooked.                       cial responsibility initiatives, but their         ment, which will handle settle-
    4. Whether to mandate or encour-                 rental rates may be much higher and                ment. Photograph the damage.
       age alternatives like rail, personal          availability is unpredictable.               H. Other factors.
       cars or rental cars for trips within    D. Should the company advise or re-                   1. Encourage travelers to refill gas
       a certain distance. The policy also        quire travelers to use the company’s                  themselves, as car rental compa-
       may cap car costs by expense or            online booking tool or designated                     nies charge a premium to refill
       distance.                                  travel agency?                                        it. Some vendors offer an upfront
    5. Employees who are licensed pilots          1. Not if the booking must be last                    fee for fueling, which eliminates
       should not be allowed to fly pas-             minute.                                            refueling charges.
       sengers or themselves on business          2. Otherwise yes to ensure that the                2. Ask corporate travelers to avoid
       trips, whether in their own or                traveler gets the negotiated rate                  one-way drop-off charges by re-
       other aircraft.                               and that the company’s contracted                  turning rental cars to the locations
                                                     volume agreement gets credit for                   where they picked them up.
V. CAR RENTAL & GROUND                               the transaction.                                3. Instruct travelers to inspect cars
   TRANSPORTATION                              E. Should travelers accept damage-                       for damages and keep records to
 A. When should the policy require or             waiver coverage?                                      protect against unwarranted dam-
   forbid rental cars?                            1. If the company is self-insured, re-                age claims.
   1. Use a rental car when cheaper alter-           ceives free collision damage waiv-              4. Explain which ancillary service
      natives are inefficient for the trav-          ers under its contracts with car                   fees, including GPS and expedited
      eler or when it’s less expensive than          rental suppliers or is protected by                toll programs, the company will
      a personal automobile, depending               insurance under a corporate card                   reimburse. Most smartphones
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                        POLICY                                                www.businesstravelnews.com

      have GPS.                                     person cost.                               departments. Provide instruction
 I. When should travelers be allowed to           3. Define what categories of employ-         for how to submit value-added tax
    use chauffeured transportation?                   ees may entertain business guests        reclamations.
    1. When the per-person cost is simi-              without approval.
       lar to other ground transportation          4. In accordance with U.S. Internal       VII. PAYMENT METHODS
       options.                                       Revenue Service regulations and        A. How should employees pay?
    2. When travelers are arriving at an              Sarbanes-Oxley processes—wheth-           1. Corporate cards allow the com-
       unfamiliar destination or a foreign            er business took place before, dur-          pany to build a travel expense
       country or at night.                           ing or after entertainment—events            database and thus a comprehen-
    3. Because most limos charge by car               employees should be prepared to              sive picture of travel patterns and
       or by the hour, not by the number              furnish:                                     spend volume to use in nego-
       of passengers, a sedan service may             a. Names, titles and company affili-         tiations with suppliers. They also
       prove more convenient and less                    ations of each person present.            help detect purchases that are
       expensive than a car rental or taxi            b. Business purpose served.                  exceptions to policy, and they may
       for commuting from the airport to              c. Business topics discussed.                provide the company financial in-
       the office.                                    d. Name and location of the                  centives through rebates based on
 J. Lay out procedures, policies and                     establishment.                            volume spending. Prohibit use of
    restrictions for parking expenses and             e. Exact amount of the expense.              these cards for personal purchases.
    tolls, traffic tickets and parking tick-       5. Include in the policy clear direc-        2. Personal charge cards eliminate the
    ets, including receipt requirements.              tion from legal, finance and HR to           time and some costs of corporate
 K. Work with key stakeholders regard-                guarantee that an employee paying            card programs. Some experts
    ing ride-hailing service providers like           for a business guest’s meal is not           advocate against this option.
    Uber and Lyft.                                    construed as a bribe and does not         3. The company can pre-load
                                                      exceed the corruption threshold.             reloadable debit cards with select
VI. INCIDENTALS, MEALS &                           6. Entertainment expenses, such as              amounts, set them to allow only
    ENTERTAINMENT                                     golf or tennis fees, may be reim-            certain expenses and deactivate
 A. How much can employees spend?                     bursable, or the policy could list           them if stolen or lost.
    1. To control costs and eliminate the             certain activities as unsuitable for      4. A centrally billed account can be
       need to review receipts, the policy            the company to sponsor.                      used for air and rail purchases.
       could set a maximum per diem,               7. The policy may list circumstances         5. A company can set up direct bill-
       and it could vary by city or region.           under which employees will be                ing with preferred lodging and
       Policy also could set a max per                reimbursed for hosting business              ground transportation suppliers.
       meal, which could vary among                   meals or entertainment in their        B. How should card expenses be billed?
       breakfast, lunch and dinner. Con-              homes.                                    1. When employee cardholders are
       sider adjusting the limits if flights,   E. Specify what incidental expenses                billed directly, they share liability
       hotels or events include free meals.        are reimbursable, and detail the                with the company. The employee
    2. Allowances can vary by level of             requirements. Consider dry cleaning,            holds the initial responsibility of
       employee.                                   laundry, foreign currency conver-               auditing and paying charges, which
    3. Analyze companywide average                 sion, international phone access,               reduces the administrative burden
       meal spending before establish-             Internet, passports, visas, medical             on the company and induces trav-
       ing standard rates. Setting high            inoculations, minibars, health clubs/           elers to file timely reports.
       maximums could tempt travelers              fitness centers, spas, in-room movies,       2. When the company is billed,
       to overspend.                               ATM fees, cash advances, shipping,              called centralized billing, the
 B. Specify whether any food is not                babysitting, kennels, the U.S. Trans-           company has complete liability.
    reimbursable, such as entertainment,           portation Security Administration’s             The company also has control over
    snacks, room service, alcohol or food          Precheck program, the U.S. Customs              delinquency, assuming
    purchased during travel that does not          and Border Protection’s Global Entry            it pays bills when they arrive.
    involve overnight stays.                       program and lost, stolen or damaged          3. For central pay/individual bill
 C. Specify that the highest-ranking               personal property.                              cards, the company has liability
    employee present should pay.                F. Decide whether to:                              and pays all bills, but bills also go
 D. Business entertainment.                        1. Require that expense reports sepa-           to employees for review.
    1. The expense must be for a legiti-              rate breakfast, lunch and dinner.         4. Centralized billing of airline
       mate business purpose. Require a            2. Specify events that are not reim-            expenses and individual billing for
       receipt listing individual charges,            bursable, such as birthday celebra-          other expenditures removes the
       which is crucial for tax-deduction             tions versus dinners at which                largest expenditure from individu-
       eligibility.                                   employees receive awards.                    al employees.
    2. The policy may put a max or                 3. Reimburse for employees’ spouse.          5. When deciding, beware that some
       provide a guideline on average per-      G.Include input from HR, legal and tax             countries do not allow individual
BUSINESS TRAVEL BUYER’S HANDBOOK 2020                       POLICY                                                 www.businesstravelnews.com

       payment and liability. Also con-           foreign currencies, whether the rate          reimbursement and, in extreme cases
       sider cards billed in local currency,      on the currency exchange receipt on           or for repeat offenders, termina-
       foreign language billing state-            the credit card statement or reputable        tion. If the company bills air travel
       ments, ATM fees, card fees and             source’s archive of conversion rates,         centrally, you can require travelers
       collision damage-waiver insurance.         pegged to the day of the transaction.         who make out-of-policy air book-
 C. Designate in the policy who should         D. The policy should designate expense           ings to fund their trips and then seek
    get corporate cards: every employee,          report deadlines, whether within              reimbursement.
    every employee who travels, even if           seven days of the end of the trip; at      D. Work with HR to provide employee
    minimally, or only those who incur            regular intervals—such as weekly,             data to the TMC for new travelers
    travel expenses regularly.                    biweekly or monthly—for frequent              and to maintain existing traveler
 D. Include in the policy how travelers           travelers; immediately upon purchase          profiles. Encourage infrequent travel-
    obtain cards and what to do if they’re        of a ticket; or immediately upon              ers to update their profiles whenever
    lost or stolen.                               receipt of the statement. Policy may          a change occurs, and ask travelers to
                                                  specify that employees will not be            review their profiles annually.
VIII. E
       XPENSE REPORTING &                        reimbursed if they do not file ex-         E. The policy also can include:
      REIMBURSEMENT                               pense reports on time. Indicate in the        1. Statement from the CEO of scope,
 A. Lay out the requirements for what             policy how to handle late-payment                goals and purpose of the travel
    receipts the company requires to be           fees and interest charges.                       program, as well as the advantages
    attached to expense reports, whether       E. How should travelers file expense                of supporting preferred travel
    all air, car rental and hotel receipts;       reports?                                         vendors.
    any receipt above a threshold, often          1. All employees should be prepared           2. A precise rundown of company
    $25; or the IRS’s requirement of                 to disclose when, how and why                 managers and officials responsible
    receipts for expenses of $75 or more.            expenditures were incurred and                for enforcing policy.
 B. What documentation is required for               be required to list dates, locations,      3. Whether to permit travel apps on
    reimbursement?                                   names and titles of those visited             company smartphones, whether to
    1. The policy can specify types of               and the purpose of the trip.                  restrict travel apps and whether to
       receipts for different services, such      2. Mandate use of an automated                   permit travelers to book business
       as an itinerary copy or electronic            expense reporting system if it’s              travel with their personal devices.
       receipt and boarding pass for air, a          available.                                 4. Whether to allow travelers to
       hotel folio plus proof of payment          3. Require separate expense reports              review or share corporate travel
       for lodging and receipt or corpo-             for each trip.                                supplier experiences on social
       rate card record for car rental.        F. Indicate whether the company will                media and public websites.
    2. The IRS accepts electronic data            reimburse travelers who do not book           5. How, when and how much to
       from card suppliers in lieu of paper       through the mandated TMC or on-                  charge clients for travel.
       receipts if appropriate detail is          line booking system.                          6. Instructions for medical and other
       included. Some card companies                                                               emergencies, especially when trav-
       and hotel chains cannot provide         IX. MISCELLANEOUS                                   eling overseas.
       full detail on hotel receipts.          A. Distribute the travel policy in a             7. Procedures and requirements for
    3. Many companies do not require              user-friendly summary document                   borrowing company computers
       receipts if travelers charge the           or in multiple documents covering                and other technology and when
       expenses on corporate cards, a             different modes and classes of travel.           the company will buy or lease
       significant efficiency for employ-         Publish it on the corporate intranet             equipment for travelers.
       ees. Advise within the policy,             and travel webpage or website, in             8. Responsibilities of travelers, travel
       though, that employees should              newsletters, in the employee hand-               arrangers and managers.
       be prepared to disclose how and            book and via e-mail and corporate             9. Mobile roaming charges: De-
       when expenditures were incurred;           social media tools. Review it during             termine whether you’ll issue
       whether the hotel was approved,            employee orientation and travel                  company phones, ask employees
       whether the hotel gave the lowest          policy seminars.                                 to supply their own or neither.
       rate available and whether the          B. Require employees to confirm they’ve             Set guidelines on what charges
       booking aligned with travel policy;        read the policy.                                 are reimbursable, especially when
       the type of card used for payment       C. In the policy, state what steps will be          traveling internationally. Look for
       and its last four digits; whether the      taken if a traveler does not com-                alternative methods of communi-
       booking was done over the phone            ply, such as informing supervisors,              cation like WhatsApp and Skype
       or electronically; and whether the         CCing managers on reminders,                     or discounted company plans with
       TMC handled the reservation.               adding authorizations for pre-trip               wireless providers.
 C. The policy should specify what                planning and post-trip audits, repri-       10. Indicate whether to allow travelers
    conversion rates to use on expense            mands, documentation in employees’               to combine business and personal
    reports for expenses incurred in              personnel files, delay or denial of              travel.
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