Pandemic Policy Is a Layer - W hile the Covid-19 crisis stopped most business - Business Travel News
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
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.
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 shouldBUSINESS 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 theseBUSINESS 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 handleBUSINESS 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 smartphonesBUSINESS 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 individualBUSINESS 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.You can also read
