A Comprehensive Guide to Developing your Company Travel Policy 

As companies expand internationally and hybrid working models continue to evolve, more employees are travelling regularly for meetings, client engagements, conferences, and projects. 

With increased travel comes increased cost and oversight. Companies, regardless if size, need clear processes in place to support employees, manage costs, maintain compliance and ensure traveller wellbeing while on the move.

That’s where a comprehensive company travel policy becomes invaluable.

Whether your organisation is developing its company travel policy for the first time or reviewing an existing policy, having clear, practical guidelines helps simplify every stage of the travel experience. Furthermore, it can really help keep costs down and ensure budgets are managed appropriately.

This guide explores what business should include in their travel policy and stay with us, as we also include a sample template you can use to get started. 

Firstly, what is a company travel policy?

A business travel policy is a formal set of guidelines that outlines how employees should arrange, manage and expense work related travel.

It provides clear direction on areas such as:

• Booking flights, accommodation and transfers/taxis.
• Approved travel suppliers and booking channels.
• Expense procedures and reimbursement policies.
• Traveller safety and duty of care responsibilities.
• Approval processes and budget controls.
• Visa, insurance and compliance requirements.

Why every company needs a travel policy

While a business travel policy may not always be a legal requirement, organisations do have important responsibilities when employees travel for work.

Employers have a duty of care to support the safety and wellbeing of travelling employees. There are also considerations around compliance, tax regulations, visa requirements, insurance and expense management that need to be managed consistently and correctly.

A clearly defined travel policy helps:

• Demonstrate compliance with internal and external requirements.
• Provide employees with clear guidance and support.
• Reduce uncertainty and inconsistencies.
• Protect both travellers and the business.

Beyond compliance, an effective travel policy creates a more efficient and positive travel experience for employees while helping companies manage oversight and costs. 

Key Considerations When Developing or Updating Your Travel Policy

Here’s an insight into what you should include: 

Approval & Oversight

A strong policy clearly outlines:

• Who can approve travel.
• Financial thresholds.
• Under what circumstances exceptions are permitted and how those are approved.

The right approval structure protects budgets without causing friction or delays, which can result in higher fares and reduced availability, hindering cost control.

C-Suite, VIPs & Senior Leadership

Executive travel requires thoughtful planning and discretion.

C-Suite leaders and senior executives often need:

• Flexible fares due to schedule changes.
• Direct routes to maximise productivity.
• Premium cabin options on long-haul.
• Increased privacy.
• Airport Lounges.
• On-board Wi-Fi, without disruption.
• Chauffeurs / prebooked cars.

Incidentally, it’s best to appoint a TMC that’s familiar with C-Suite and VIP travel, is willing to create bespoke trips, and offers 24/7 service with their direct contacts to support this type of travel. A single-faceted platform is not really suited to C-Suite travel and the nuances associated with it.

Employees and Senior Leaders Travelling Together

Another critical consideration is concentration risk.

Your policy should address:

• How many employees can travel on the same flight.
• Whether senior leaders should be separated across different flights.
• Scenarios where operational or safety risk must be mitigated.

For companies in sectors such as aviation, financial services, or manufacturing, limiting the number of key personnel on a single flight can be essential to business continuity planning.

Clear guidelines reduce ambiguity and protect both people and the organisation.

Long-Haul vs Short-Haul Travel

Cabin class decisions should be up front and transparent.

Typical considerations include:

• Short-haul travel: Economy or premium economy.
• Long-haul travel: Business class eligibility beyond a defined flight duration (for example 6+ hours).
• Overnight versus daytime travel.
• The business requirement on arrival.

Premium economy can often provide a sensible middle ground — offering improved comfort at a lower cost than business class. However, route availability and aircraft configuration must be considered.

When the Lowest Fare Isn’t the Lowest Cost

The “lowest logical fare” approach requires consideration in our view.

Highly restrictive tickets may lead to:

• High change fees.
• Rebooking costs (often as much as the flight itself).
• Loss of ticket value in its entirety.
• Additional accommodation or subsistence costs.

Flexible fares may appear more expensive initially, but they often prove more cost-efficient when schedules shift — particularly in industries with changing operational demands.

Direct routes may also represent better value than cheaper indirect options when traveller time, disruption risk and productivity are factored in, which is why we always operate the ‘best journey, best price’ approach.

 

Hotel Policy & Ancillary Spend

It is standard practice to include rate thresholds for the cities staff travel to most and where demand is high for rooms. These should take into account the reality of hotel bed rates on the ground by location – for example: £350 STG for London room only or $550 US Dollars for NYC room only.

Accommodation policy should extend beyond room rate alone and this often gets forgotten. You need to outline clearly what the company is willing to cover during hotel stays, particularly where these are extended for project work.

What is typically included:

• Standard room category
• Breakfast (where appropriate)
• Wi-Fi
• Taxes and service charges

What may require approval or reimbursement limits:

• Room upgrades
• Mini-bar and in-room dining
• Spa, leisure, or personal services
• Premium Wi-Fi or entertainment
• Late cancellation fees
• Late check-out

Clarity around ancillary spend avoids ambiguity and simplifies expense reconciliation.

Client Entertainment While on the Move

Client entertainment often forms part of corporate travel.

When reviewing your travel policy, it is advisable to include clear guidance on how entertainment expenses should be managed while travelling. This typically covers:

• Defining what constitutes reasonable and proportionate expenditure (taking into account location of travel)
• Ensuring alignment with your Code of Conduct and anti-bribery policies
• Setting clear approval thresholds
• Receipts and how to submit them post travel for reimbursement

Car Transfers

Private transfers (outside of C-Suite and VIP) are typically arranged for arrivals after 10pm, for travel within developing countries at any time, or for solo travellers where additional duty of care considerations apply. In all other circumstances, standard taxis or appropriate local transport are typically recommended line with cost-efficiency and policy guidelines.

Hiring a Car

We suggest including the following for employees hiring a car:

• Car rental should be justified by business or economic need rather than personal convenience.
• Economy or mid-sized vehicles should be specified, with car sharing encouraged for group travel (although your approach may differ depending on level of staff). Be specific about when upgrades can be taken if this is the case.
• Airport or hotel shuttle services should be used where practical.
• Written confirmation of full comprehensive insurance cover for all destinations should be obtained from the car hire company / travel management company on their behalf.
• Vehicles should be inspected prior to departure, with any damage recorded on the rental agreement. Specify that your team take photographs on arrival and before they depart the airport on returning the car.
• A reminder on full driver’s licence.
• Again, reminding staff to check fuel type before refuelling, or in the case of an E-vehicle to check the local charging network.

Being upfront and transparent about car hire options available to staff saves queries/issues at a later stage.

Extension of Business Travel for Personal Reasons

Adding personal travel to business trips is becoming increasingly common and can be accommodated within policy — provided clear parameters are defined.

Your policy should clarify:

• How personal extensions are arranged.
• Insurance coverage boundaries
• Fare recalculations if personal travel alters routing.
• Time-off requirements

A structured approach ensures fairness and compliance while supporting employee flexibility.

Loyalty Schemes & Reward Programmes

Frequent flyer and hotel loyalty programmes can deliver individual benefits, but policy clarity is essential.

Consider defining:

• Whether loyalty status should influence booking decisions.
• How corporate negotiated rates take precedence.
• How points are held.

While loyalty schemes can enhance traveller experience, bookings should always prioritise commercial value and policy alignment.

 

Embedding Policy into Bookings – the Hannon Travel Approach

A travel policy is only effective if consistently applied.

At Hannon Travel, we pride ourselves on our high rate of in-policy bookings (95% and above).

And here’s a little about how we do this:

• Policy rules are embedded directly within our booking technology at the outset and amended where policy changes.
• Automated approval workflows are embedded within the technology – so that the green light is only provided when travel is fully approved.
• Clear in-policy / out-of-policy visibility
• Offline consultant support for complex or executive itineraries.
• Ongoing reporting and trend analysis using our comprehensive reporting suite that captures.
  • Fully downloadable travel spends by individual, dept, cost centre.
  • Short cycle bookings.
  • Top vendors, etc.

This flexible online and offline travel model ensures flexibility while maintaining control.

Not just that – we help you develop and amend your policy as best practice changes, so that you are always in control and can maintain a high level of in-policy bookings.

Using our knowledge and experience built over 25 years, we have created a template travel policy you can use as a starting point to develop or refine your own.