Business travel: Why you need a corporate travel policy

Business travel is essential for achieving company goals. In fact, over 83% of employees surveyed by BTN say that business travel is important for business success. However, without proper management, costs can quickly add up, leading to missed opportunities due to budget constraints.

Understanding why you need a corporate travel policy and how it impacts your business will help you save costs and time for both administrators and business travelers.

In this guide, we’ll explore why a corporate travel policy is essential and how to build one that works for your company.

You'll learn:

• Why you need a corporate travel policy
• Benefits of having a corporate travel policy
• What to include in a corporate travel policy
• 4 tips to improve corporate travel policy adoption
• FAQs

Why you need a corporate travel policy

A corporate travel policy is a set of guidelines that companies implement to manage business travel. It outlines how employees book travel, manage expenses, and follow compliance rules to ensure cost control and safety.

A well-defined travel policy saves time and sets clear employee expectations.

• Without a corporate travel policy: Employees book their own travel without guidelines, leading to inconsistent spending, higher costs, and a lack of accountability. 
• With a corporate travel policy: The company has a structured process and a budget management system. It also provides employee outlines, improving cost management and travel experience.

Key objectives of a travel policy

• Streamline travel processes to reduce confusion 
• Outline cost-effective travel options
• Improve traveler safety and well-being
• Maintain compliance with company and regulatory requirements
• Support productivity and reduce travel-related stress

Benefits of having a corporate travel policy

Without budget controls, travel costs can escalate quickly. A travel policy keeps expenses predictable and prevents financial strain.

Benefits for the company

• Cost control and budget management: A well-defined travel policy helps companies regulate spending, negotiate rates with vendors, and avoid unnecessary expenses.
• Streamlined expense reporting: Clear guidelines on expense tracking and reimbursement processes. These guidelines make financial reporting quick and simple, reducing administrative burdens and errors. 
• Improved compliance and risk mitigation: A structured policy ensures all employees adhere to legal and corporate requirements, reducing risks related to fraud, non-compliance, and liability. 

Benefits for employees

• Enhanced traveler safety: Employees with clear guidelines feel supported on business trips. Clear access to support and emergency services increases confidence and security while traveling.
• Increased employee satisfaction and productivity: A well-structured travel policy reduces travel-related stress. When employees feel supported, they can focus on work rather than logistics.

What to include in a corporate travel policy

Corporate travel usually covers the following: accommodation, travel, safety, connectivity, and budget.

1. Booking and approval processes.

A structured booking and approval process ensures consistency and cost control in business travel. Without a formal process, employees can book last-minute, expensive travel that exceeds budget limits and increases administrative work.

A centralized travel management system or approved vendors simplifies approvals and ensures compliance with negotiated rates. Typically, travel managers, HR, or designated employees oversee bookings to ensure adherence to policy.

2. Preferred vendors and negotiated rates

Preferred vendors help standardize employee experiences, ensure cost savings, and provide reliability in business travel. It's good practice to partner with vendors to negotiate discounts with preferred airlines, hotels, and car rental providers to reduce travel costs.

For example, a business using a specific airline for frequent trips receives a 15% discount, saving thousands annually.

3. Expense reimbursement guidelines

Clear reimbursement policies prevent misunderstandings and help employees plan their travel budget. 

These guidelines define which travel-related expenses are covered and how employees can request reimbursement. They avoid confusion and help employees understand beforehand what expenses will come out of their pocket.

Companies typically categorize expenses into two groups:

• Pre-approved travel expenses: Flights, accommodations, pre-booked transportation, and incidentals within set budget limits.
• Per-day budget allocations: Meals, coffee, and co-working spaces, with daily spending limits.

Using automated tools helps employees log expenses accurately and speeds up reimbursements. On the business side, companies maintain clear records of employee expenses.

4. Travel safety and security measures

Safety policies reduce risks associated with travel. Policies typically include emergency protocols and insurance coverage to ensure employee safety.

It's good practice to share emergency numbers, support helpline, and access to connectivity at all times.

5. Connectivity abroad

Reliable communication prevents work disruptions, supports collaboration, and enhances security for traveling employees. Ensuring seamless communication for employees is key to their productivity abroad.

However, keeping employees connected usually involves a high price tag with data roaming or looking for Wi-Fi. 

That’s where Airalo for Business comes in — a smart solution designed to keep business travelers connected effortlessly with eSIM technology. Travel administrators gain access to a centralized eSIM management platform, enabling them to purchase, assign, and monitor eSIM usage with ease. This streamlined solution consolidates all eSIM purchases, providing complete visibility into employee connectivity.

4 tips to improve corporate travel policy adoption

A policy is only effective if employees understand and follow it. Proper implementation ensures compliance and smooth travel experiences.

1. Onboard your employees for better policy adherence

Training employees on your travel policy helps them comply. Clear guidelines reduce confusion and make business travel easier for both employees and administrators.

Introducing employees to the travel policy through training and resources ensures smooth adoption. A well-informed workforce makes fewer mistakes and creates a smoother reimbursement process.

How to onboard employees to your travel policy:

• Include travel policy training during new hire orientation.
• Hold quarterly travel policy refreshers to update employees on policy changes.
• Conduct training sessions to walk employees through the travel policy and answer questions.
• Provide easy access to travel policy documents and FAQs.
• Use interactive Q&A sessions to clarify common concerns.
• Send periodic policy reminders through email or internal communication channels.

2. Create a designated FAQ section for common questions

An FAQ section provides employees with quick answers to common questions about the corporate travel policy. It helps eliminate confusion and streamlines compliance by providing clear and concise information.

An accessible FAQ section helps employees and travel managers save time. Instead of asking the same questions, employees can quickly find answers about costs, refunds, and how to book travel.

Where to create and share the FAQ travel policy

Depending on your company structure, the right place for FAQs will always be where it is accessible to all and easy to find. Here are some examples:

• Company wiki or employee portal
• Travel management system
• Shared online documents or company handbook
• Reminders in email newsletters and internal communication channels

3. Save time and reimbursements with technology made for business travelers

Technology solutions to streamline and automate your budget, connectivity, and reimbursement processes. 

Dedicated solutions eliminate inefficiencies, reduce manual work, and ensure compliance with travel policies. It also helps employees stay connected and productive while traveling.

Technology solutions to consider: 

• Travel booking platforms: Centralize and automate business trip planning.
• Expense tracking apps: Simplify expense submissions and approvals.
• Digital banks and corporate cards: Avoid conversion fees and centralize all expenses.

It's one thing to include technology in your business; it's another to ensure it is actually being used. Provide tutorials or hands-on training sessions for using the chosen travel management tools. This will help business travelers understand what is expected of them and avoid stress while traveling. 

4. Introduce Airalo for Business to simplify employee connectivity abroad 

Staying connected while traveling abroad is crucial for business travelers. Traditional roaming services can be costly and unreliable, leading to unnecessary disruptions. Airalo for Business offers a seamless, cost-effective connectivity solution that ensures employees have access to data and communication tools anywhere in the world.

With Airalo for Business, travel administrators can manage connectivity effortlessly. They can purchase eSIMs at corporate rates, assign and share them with employees, or allow travelers to buy eSIMs through the Airalo app and charge them directly to the company.

This all-in-one platform lets businesses track connectivity costs, adjust budget limits, and access real-time analytics. It helps control travel expenses while keeping employees reliably connected.

Watch this video to learn more about Airalo for Business: 

By implementing these strategies, companies can ensure smooth corporate travel policy adoption, leading to better compliance, cost control, and an improved experience for traveling employees.

Corporate travel policy FAQs

What are the risks of not having a corporate travel policy?

Without a corporate travel policy, companies risk uncontrolled costs, compliance issues, and budget overruns. This can limit travel opportunities, making it harder to attend key events and meetings.

How do corporate travel policies differ for small vs. large businesses?

Budget management and compliance are essential for businesses of all sizes. However, corporate travel policies vary based on company size. Larger companies can leverage their scale and reputation to negotiate better deals with vendors. Smaller businesses can focus on building strong vendor relationships. Both can use travel technology to track and control costs effectively.

How can companies reduce the environmental impact of business travel?

Companies can make business travel more sustainable by adopting simple, eco-friendly practices. Using eSIMs instead of physical SIM cards reduces plastic waste and the environmental impact of manufacturing and distribution. Businesses can also opt for greener choices, such as flying on fuel-efficient airlines and booking eco-friendly accommodations.

Does Airalo for Business have any upfront fees?

No, Airalo for Business has no upfront fees or subscriptions. You only pay for the eSIMs your team uses, and you benefit from a corporate discount. Airalo for Business is designed to be a cost-effective solution for corporate travel connectivity.

In which countries does Airalo for Business offer coverage?

Airalo for Business provides local, regional, and global coverage for over 200 destinations. We offer you access to the world's largest eSIM platform, keeping employees connected worldwide.