Implementing an effective travel policy is crucial for companies of all sizes, but especially for small and midsize businesses. These companies may not have the resources or expertise to manage travel expenses efficiently, leading to overspending and lack of control over travel arrangements. By establishing a comprehensive travel policy, companies can set clear guidelines and standards for their employees, ensuring cost-effective and organized travel arrangements.
One key aspect of a travel policy is setting standards upfront. According to industry expert Hunke, it is essential to go beyond just providing guidelines and establish specific requirements for travelers. For example, employees may be required to use an approved booking tool for all travel arrangements, or there may be maximum spending limits for accommodation. By configuring these policies into a booking tool, companies can easily monitor and enforce compliance, flagging any bookings that exceed set limits.
However, it is important to recognize that not all travel experiences have to be equal. Different levels of travelers may have access to additional services and amenities, and it is crucial to define when and for whom these amenities apply. By clearly outlining these distinctions in the travel policy, companies can ensure consistency and fairness in how travel benefits are distributed. Additionally, different markets may have unique needs and requirements, so it is essential to tailor the travel policy to accommodate these differences and avoid creating inequities.
When starting from scratch with a travel program, companies have various options to consider based on their specific needs and budget. For midsize companies with a significant travel spend, working with a large travel management company and implementing a preferred booking tool like Concur may be the best approach. This allows for centralized management of travel arrangements and access to preferred supplier contracts, ultimately leading to cost savings and efficiency.
On the other hand, smaller midsize companies may opt for a different approach, such as working with a smaller travel agency or managing travel arrangements in-house. For example, Eliquent Life Sciences, a company with a $2 million annual travel spend and 400 employees, is in the process of launching a new travel program. With the challenge of unifying travel management across five separate entities, the company is exploring different options to create a cohesive and cost-effective travel program.
In conclusion, implementing a managed travel program can be complex, but it is essential for small and midsize companies to establish a comprehensive travel policy to control costs, ensure compliance, and streamline travel arrangements. By setting clear standards, addressing different traveler levels and market needs, and choosing the right approach for their specific requirements, companies can create an effective travel program that benefits both employees and the organization as a whole.
