Developing a Travel Policy That Works for Your Business

For travel and procurement managers, a well-written travel policy is far more than a compliance document. It is a practical framework that ensures travel is appropriately approved, carefully monitored, and within budget — without restricting productivity or preventing travel altogether.

Whether you are developing a new policy or updating an existing one, the goal is to  enable your people to travel effectively without compromising on duty of care, appropriate approval, and budget.

Key Considerations When Developing or Updating Your Travel Policy

Governance, 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 structure protects budgets without creating friction. And, you’ll find tiered approval aligned to seniority and spend levels often work best for larger firms.

Importantly, the approval processes should be efficient. Delays in sign-off 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.

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. There’s no point arranging a multi flight trip that’s more cost effective but ultimately leads to lost time and delays.

A sensible travel policy should cover this.

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.

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 Booking & Traveller Behaviour

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.

Our Partner Approach

We partner with our clients to design practical, commercially sound travel policies that stand up to real-world demands.

We work closely with procurement, finance, HR, and leadership teams to:

  • Develop travel policies from the ground up.
  • Audit and optimise existing frameworks.
  • Analyse spend, routes and fare behaviour.
  • Align policy with commercial objectives.
  • Implement controls across online and offline booking channels.

Our experienced consultants ensure your travel programme remains commercially sound, operationally aligned, and responsive to your business needs.

Template Travel Policy

If you are reviewing your corporate travel framework, we have created a practical resource to support you.

Sign Up and get our travel policy template NOW!

If you would welcome a confidential discussion about your current travel policy and performance, our team would be pleased to assist.

Book a call with an expert today and we can help you develop your travel policy

Book now