Follow our step-by-step guide to formulating a travel policy which guides and advises travellers on how to behave when spending the company’s money

“THE simplest policy I’ve ever read said: ‘Spend company money on travel as though it were your own’,” says Colin Brain, managing director of consultants Management Solutions. Follow his steps to ensure your company manages and controls travel spend.

STEP 1: Clarify the scope of the policy. Set up an internal mini-committee to examine opinions of those involved. Include HR, finance and, where applicable, procurement and purchasing, and the Trade Union. First consideration is the comfort and safety of employees; second, ensuring that the traveller arrives at his or her destination in a physical condition to be able to perform their duties; third, keeping costs at an acceptable level.

STEP 2: Communicate to all staff what you’re doing and what the main benefits are of having a travel policy, to ensure buy-in at all levels. They are: establishing compliance and accountability and demon-strating duty of care; preventing excessive spend by travellers; collecting comprehensive data; proving to suppliers that you will be giving preferred support to them; providing assurances to staff.

STEP 3: The policy should also raise the issue of whether a journey is really needed, or would video or web-conferencing achieve the same result? A form of travel authorisation should be considered for this reason.

STEP 4: A policy should fall into three areas, the first listing travel arrangements and how they book: Air (preferred carriers and classes of based upon duration); Rail (what classes booked based on duration); Road (maximum driving time); Car rental (preferred suppliers and maximum driving time); Car accident procedures (legal require-ments, witnesses, statements etc); Parking (preferred suppliers, receipts, responsibility for fines); Local transport (taxis, buses); Accommodation (properties and price guides); Subsistence (what can be charged for); Entertainment (expenses which fall into strictly-defined categories); Telephone calls (none in hotels; recommend the use of mobile phones); Other expenses (reasonable out-of-pocket expenses); VAT (obtain receipts); Health & Safety (note any security warnings, maintain details of travellers’ itineraries); Travel insurance (what is covered by the company).

STEP 5: The second area should list financial arrangements: Advances; Corporate credit card (why it should be used); Travellers cheques/foreign currency (policy on both); Payment of travel (what is covered prior to leaving the office and what isn’t); Taxis (usage); Gratuities (detail policy); Expense claims (reimbursement programme); Expenses authorisation (process).

STEP 6: List suppliers. These include the company’s TMC, preferred airlines, frequent flyer schemes and any limits on the number of executives per flight.

STEP 7: Place your travel policy on an internal section of your website where it can be easily viewed and amended as and when required.

STEP 8: Ensure all staff receive a copy of the policy and get them to sign it in order to recognise that it’s been read. The travel management company should be provided with copies of the policy and empowered to advise travellers when they contravene policy.

STEP 9: Get it signed off at the highest level and appoint an officer of the company to enforce it.

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