Failing to Update Your Travel Policy is Risky Business - Industry Week

A new report by American Express Global Business Travel outlines gaps and opportunities for companies to strengthen managed travel programs. According to the report, the main gaps and opportunities include: Security -- Companies should provide guidance such as how to prepare for a trip and what to do during a trip and after travel, particularly when traveling to high-risk destinations. Also, don't overlook guidance on what to do during a travel emergency or disruption, as well as information on security around company assets. Fees -- Addressing the various fees that travelers are confronted with while on the road remains a policy opportunity. Make it easier for travelers to understand what is reimbursable as waived fees and other benefits associated with booking with preferred suppliers -- such as free checked baggage on airlines or complimentary Wi-Fi as part of a hotel rate.Hotel compliance -- Safety and security rank at the top of the list of reasons that business travelers need to comply with company hotel policy. Knowing the city to which a traveler is headed is only half of the equation, particularly when locating travelers in an emergency. This area also poses the greatest area of leakage in travel policy, compromising negotiated rates when booking hotels outside of policy. Companies should communicate to travelers the reasons for booking hotels at the same time as air reservations.Mobile technology -- There have been advancements in travel technology that can help business travelers manage trip details before, during and after traveling. Company-supported mobile applications can be used to facilitate communication, both during critical issues like travel emergencies and for day-to-day support, including policy and traveler-benefits notifications. A successful travel policy should include rules for these resources, and help travelers find and take advantage of them to save time and increase compliance.Addressing lowest logical airfare -- Companies increasingly have introduced language instructing employees to find the lowest fare possible, regardless of whether or not a flight is with a preferred supplier. The reality of this practice is that the individual trip savings by booking cheaper fares with non-preferred airlines can jeopardize negotiated rates, unintentionally driving up overall travel costs over time. Establish guidelines indicating when this practice should be used. Recent capacity constraints, merger and acquisition activity, and even low-cost carrier dynamics require that travel managers revisit this concept and communicate it appropriately in policy. "Policy is the foundation of a successful managed travel program, and maintaining this infrastructure by conducting regular checkups is paramount," said Helen Brough, advisory services global policy practice director, American Express Global Business Travel. "In our policy practice we have identified over 300 areas companies should be reviewing in their policy for the best outcomes -- for the company, for the traveling employees and for ultimate travel-management program success. Companies that are most successful are those that regularly review and update their travel policies based on changing market conditions as well as focus on communicating those policies to their travelers." How to Engage Employees It's not enough to develop a travel policy and assume that employees know how to comply, according to Brough. "Companies should be actively leveraging and communicating their travel policy to employees and enlisting influencers within the company such as human resources, security and legal to support these efforts," she said. American Express Global Business Travel offers these strategies to engage employees in travel-policy compliance:
Make it accessible -- There are many ways a company can address communicating to travelers and encouraging compliance, including using pre-trip tools and policy messages integrated at the point of sale and even prior to booking. Intranets and other portals also can provide a channel to communicate policy to help travelers make the right decisions. Appeal to the traveler -- If travelers don't understand their travel policy or know where to find it, they likely won't adhere to it. Most employees want to do the right thing by the business, so businesses need to let employees know what is in it for the company and for them. That way the traveler can benefit from the perks of following the policy and the company can benefit from travel-policy compliance. Revisit for relevancy -- Establish a policy team with representatives from all stakeholders, including those who can represent the traveler, and charge them with the maintenance of the travel policy. Then communicate changes to travelers so everyone can stay current. Eliminate uncertainty -- It has been reported that one in four expense reports is typically sent back to the traveler for clarification or additional documentation support. Travel policy should take into consideration the process for expense reimbursement. The better a traveler understands the reimbursement process, the less time will be spent on re-doing these reports. View article on one page

View the original article here