Take time to develop - and enforce - a travel policy

Betty Stark

"Just get there, make the sale (or attend the seminar, or repair the equipment) and come back" does not qualify as a travel policy, but for a surprising number of large and small companies, that is the unspoken rule.

There's a popular reason for this: Writing a travel policy is seen as a daunting task that is easily put on the back burner. But if travel costs are to be controlled, it is essential that a written policy clearly spell out company philosophies and expectations.

The policy must be implemented, monitored and enforced.

There are basic steps that can take any size company from no policy to a workable set of guidelines that recognizes existing corporate culture while reining in inconsistent and expensive habits.

For starters, resist the urge to form a committee composed of frequent travelers to labor over the nuts-and-bolts of the policy.

The goal is to develop reasonable guidelines that work for all travelers, not just those with vested interests.

A senior staff person such as an executive assistant who has travel industry knowledge and hands-on experience making travel arrangements will generally bring fewer biases to the process. That can minimize delays and the politicizing that might result from policy-making by committee.

Another key factor during the policy development process is input from designated travelers, travel arrangers, the finance department and senior management.

Also, the company travel agency may be able to provide sample policies and recommendations.

The standard inclusions in a travel policy are air travel, lodging, car rentals, per diem spending guidelines and expense reporting.

For each, determine if controls are to be low, medium or high.

A strict company policy on air travel, for example, might require travelers to accept the absolute lowest airfare regardless of time of departure, carrier, connections or other potential inconveniences.

A loosely controlled policy might allow the traveler to book a carrier of choice with minimal regard for time of travel and potentially inconvenient connections.

Because business travel is often a balancing act between cost effectiveness and convenience, a strict air travel policy could tip the balance toward cost-savings at the expense of convenience and traveler comfort. A policy that is too loose allows travelers to make decisions based on personal agendas such as frequent flyer miles.

This is where an evaluation of corporate culture comes in to play.

Companies that have historically operated on vague understandings and unspoken expectations will find it more difficult to enforce a very strict travel policy.

It's important when developing a travel policy to think outside the box. If travelers have "always" rented a car even when attending seminars at the destination hotel, ask whether a rental car is necessary.

Consider instead requiring the use of free airport shuttles, taxis or other local transit.

If travelers have "always" stayed at full-service hotels, consider requiring that hotels be selected based on the objective of the trip.

When client meetings and entertainment are key ingredients, a full service property such as Marriott or Hyatt might be necessary.

On the other hand, if what a traveler needs is a clean, comfortable room in a safe, convenient location, a moderate property such as Fairfield, Holiday Inn Express or AmericInn could suffice.

Decide whether travel is to be booked through a designated travel agency or on the Internet.

While the Internet offers convenience and options for business travelers, by allowing unmonitored booking, a company relinquishes the control and reporting necessary for reining in a corporate travel budget.

Consider instead a program that has the best of both: A travel company that offers corporate travel expertise, an online booking tool accessible around the clock, and management reports that track policy compliance.

Whatever components ultimately comprise a written travel policy, there are important keys to making it work. The policy should be fully endorsed and issued by top management, and it must be enforced.

A written travel policy, however well-crafted, is ineffective if it is not distributed to all travelers including new employees. Ideally, it should be accompanied by a cover letter from the company president or other senior staff spelling out the goals and rationale behind the policy.

Long or short, tightly controlled or not, a written travel policy is a valuable tool that can guide employees toward effective travel decisions and the company toward substantial savings on one of its largest budget items.

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