Writing a travel policy not only lets your employees know what's expected of them in this area but can also help control and track business travel costs. Since every business is unique, each business travel policy must be unique as well.

Developing a travel policy will help you detail procedures for employees to follow and also secure potential savings through approved travel vendors. The policy should be well written to leave no doubt about both the employer's and employee's obligations when it comes to travel expenses.

Consider the following factors when writing your company's travel policy:

1. While a policy for business travel should be all encompassing, it should be reviewed at least annually and then modified as the need arises.

2. Your company travel policy should reflect company priorities and values. It should also be compatible and reflect other written company policies so there is some uniformity throughout the company handbook of policies.

3. A policy for travel is only as good as the paper it's written on. The most essential task will be to effectively train staff on the policy to maximize its effectiveness.

Action Steps
The best contacts and resources to help you get it done

Review travel policy basics by looking at samples and templates

While there's no one-policy-fits-all standard, you can learn much by evaluating other companies' policies. By viewing samples and templates, you can take the general format and customize the document to fit your own needs.

I recommend: Log on to WesTrav.com for a sample business travel policy. Download a business travel policy development kit from Personnel Policy Service for a fee.

Seek out vendor specials and write them into your corporate travel policy

Many travel discounts exist for business travelers; it just takes a little work to research those discounts. Contracts can then be set up with travel related vendors to secure discounts. If employees travel frequently, the savings can really add up.

I recommend: Montrose Travel as well as Travel and Transport's vendor relations department provide discounts on airline tickets, car rentals and hotel rooms.

Consider how expenses will be tracked with your business travel policy

When developing your travel policy, you'll want to manage how expenses are handled internally. Software has come a long way in helping human resource professionals and others record travel expenses. This not only helps with budgeting purposes but can also point out discrepancies and help with tax deductions at the end of the fiscal year.

I recommend: Employees can use a free service from Xpenser to submit expenses via e-mail or by using their PDA and other devices. Check out the features of Aestiva Software's expense report program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Once you've created a rough draft of your corporate travel policy, secure discount deals in writing from airline, lodging and car rental firms. Then write in the policy that employees may only use services from those discount suppliers. Those vendors may also help you track expenses by offering a quarterly or monthly report.

You've got a hot product, you've hired a couple of sales superstars and they're ready to hit the road. But wait! Before they head to the airport, you need to spell out how you want them to travel and how much they're authorized to spend.

Think a written travel policy is an unnecessary exercise? Better to do it when your business is small than to wrestle an 800-pound gorilla later. A brief, well-crafted travel policy can help:

1. Make it clear to your traveling staff how, when and why you want them to travel
2. Build vendor loyalties that can earn discounts from airlines, hotel chains and car rental companies
3. Get a handle on travel expenditures early on.

Action Steps
The best contacts and resources to help you get it done

Understand what goes in to a travel policy.

You want your travel program to reflect your corporate culture, but how do you go about that? Seek out examples of existing policies from other companies, your travel agency, or other members of your professional organizations.

I recommend: Check the internet for articles that advise what to include in a policy and for a sample policy that you can customize to your own needs.

Check tax and government guidelines for allowable travel expenses.

Use this information as a guideline when developing your policy.

I recommend: The Internal Revenue Service spells out allowable travel expense deductions in Publication 463. The U.S. General Services Administration lists guidelines for domestic and foreign per diems (scroll down to access rates chart. This information is also available in an Excel format at this website.)

You decide: Book with a traditional travel agency.

Choose a 'bricks and mortar' agency that specializes in business travel and has the technology to monitor and report on travel patterns.

I recommend: Look for a business travel-savvy agency with professional credentials like membership in ASTA (American Society of Travel Agents), NBTA (National Business Travelers Association) or ARTA (American Retail Travel Agencies). Use the internet to search for an agent.

You decide: Book on the internet.

Flexibility and convenience are a plus. It can be fast but there can be a downside: if there's a problem or you need to make a change, it might be difficult or impossible.

I recommend: Airline websites sometimes offer lower fares and "specials" not available through other outlets. Booking sites like Expedia, Travelocity and Orbitz offer comprehensive programs for business travelers.

Put the policy pieces together.

You've considered the pros and cons. You're ready to write the policy, monitor your travel budget and evaluate efficiencies.

I recommend: Use the internet to find travel policy templates, travel and entertainment expense reporting programs, and tools to analyze your policy effectiveness.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Avoid policy-making by committee. Assign the task to a senior staff member who is knowledgeable about business travel but who has no personal agenda.
• •  Solicit input from travelers, travel arrangers, the finance department and senior management.
• •  Spell out the approval process for trips.
• •  The policy MUST: 1) be distributed to all current and new employees, 2) be endorsed 100% by senior management, and 3) be regularly monitored for compliance.
• •  If travel schedule changes are common, think twice about booking on the internet. It could be costly – or impossible to rebook.
• •  Pick the credit card that maximizes free-and-discounted benefits.
• •  Look into airline 'soft dollar' programs for businesses, hotel frequency discounts, and business-friendly car rental programs.

Travel policy application and uses are important to a company's bottom line. Air travel, car rental and hotel nights can add up quickly. The perfect travel policy eliminates ambiguity when employees book a trip.

A sensible place to start is outlining when business travel is warranted. Is travel allowed for internal meetings, for sales calls, for customer visits, for trade shows, for training, for vendor meetings or to help scout venues that your executives might visit soon? Sometimes companies host larger seminars that require employees from around the country or around the world to gather face-to-face. Such trips can go way over budget unless a travel policy is clearly written and consistently enforced.

1. Decide when travel is warranted and under what conditions employees should hit the road.

2. Build relationships with hotels, airlines, car rental agencies, and restaurants to generate volume discounts.

3. Insist that employees follow the travel policy, gain buy-in from the executive level and enforce the travel policy applications and uses.

Action Steps
The best contacts and resources to help you get it done

Build a travel policy that fits your business usage

The foundation of a successful travel policy is that it be consistent with the company culture. If your business is focused on superior customer service, you need to incorporate a travel policy that applies.

I recommend: Use a template from a company like HR Policy Answers. This company gives information on different applications and uses for a business travel policy, including travel rewards, tax implications, customer service travel and new business set-up travel. Templates like this will ensure that your policy touches all the bases. Once you have the basics down then figure out how you want to present yourself to employees and stakeholders through your travel policy. You can do that through the Framing a Travel Strategy website. Understanding what your travel policy says about your company is essential.

Apply your travel policy by building a network

Frequent customers get the best deal everywhere from the grocery store to the airport, so building partner relationships throughout the travel industry will help your company. Credit card companies are another avenue to build volume discounts. The more your employees use a card the greater the benefit to your company.

I recommend: Work the phones and the emails to gain usage contracts with travel companies. You can visit Management Travel News to learn more about how travel policy managers are working with discount service providers. Then, check out a case study at J.P. Morgan regarding how Moen was able to use a corporate credit card strategy to its advantage.

Earn employee buy-in and executive support to ensure the ultimate success of your travel policy

If your executives don't support the travel plan and employees don't follow it, you will wind up with a toothless document not worth the paper on which it is written. Company expenses will rise, and your prestige within the organization will suffer.

I recommend: Procurement Travel News has an excellent article on how Fortune 1000 companies build effective travel policies. See a public sector example of a travel policy and it's applications and uses from New Mexico State University, a well run and highly respected institution in that state.

Adopting a travel policy that spells out company rules for business travel will save you unnecessary costs and much aggravation in the long run. Use the policy to tell employees how you expect them to act when they're on business trips, the costs you'll pay for, and the procedures they must follow to seek reimbursement. You can outsource the task of writing a travel policy, as many companies today are doing. You'll still need to be aware of some travel policy key terms that can directly impact your budget.

Action Steps
The best contacts and resources to help you get it done

Employee's responsibility

A key component of any company's travel policy is the text relating to an employee's responsibility when traveling for business.

I recommend: West Trav offers a sample travel policy with an example of how you might word the section that covers an employee's responsibility. Specify who employees must notify about their travel arrangements and which airlines they are allowed to use. You'll also want them to know the expenses that your company will cover and whether there are vendors you use who offer discounts to employees.

Travel management firms

Some businesses are using travel management firms to administer a company's travel policy. Companies can read about the services firms like these offer, such as setting up contacts with vendors who offer discounts to traveling employees.

I recommend: Visit Travel and Transport to learn how travel management firms can help you reduce expenditures.

Federal Travel Regulation (FTR)

The Federal Travel Regulation (FTR), established in 2004, explains the requirements for travel by federal government employees.

I recommend: At the U.S. General Services Administration, you'll learn why the FTR was created and the guidelines it sets for employees who travel at the federal government's expense.

Company travel policy

A company travel policy is adopted by a private sector employer and sets different standards than those created by public companies.

I recommend: BLR offers suggestions for standard provisions you might want to include in your company policy. For example, consider whether you'll reimburse employees for living expenses when they're away from work for extended periods of time. You'll also get a sample of business expenses that standard travel policies cover.

Travel accident insurance plan

Some private companies include a travel accident insurance plan in their travel policy. Most travel accident plans cover the individual in the event of accidental death and dismemberment while traveling.

I recommend: CIGNA provides travel accident insurance plan. Read about their plan on their website.

Special considerations

To be as comprehensive as possible, your travel policy should take into account special considerations. These can include what kind of work you expect employees to do while they're traveling, how you calculate time for non-exempt employees, and whether there is overtime pay when an employee is traveling.

I recommend: Read Cornell University's sample travel policy language which talks about special considerations.