Travel Policy Key Terms

Know key terms so you can write a clear and effective company travel policy

By Michele Vrouvas

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.

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