The Secret Ingredient to a Better Travel Management Program

Travel policy: Who needs one?

Business travel can be an enormous undertaking. In fact, recent data from Certify indicates that the average cost of domestic travel reaches $111.7 billion each year. Additionally, business travelers spend an average of $949 on airline costs, hotel fees, and other expenses during U.S. business trips–adding up to huge chunk of your company’s budget. That’s why your company’s finances depend on some set instructions and financial guidelines: It’s vitally important to establish boundaries for employees who travel for business. Does your company have a travel policy? Now is the time to get one if you don’t.

Business leader Lee Iacocca said, “Lay out the rules, communicate with your employees, motivate them and reward them. If you do all those things effectively, you can’t miss.” No words could provide a more apt description of travel policy. If travel managers could figure out those financial priorities, they’d be only a small step away from a well-managed travel program. The next frontier? Outlining their priorities and rules in a well-written employee guidebook that employees can understand and even appreciate.

A recent survey conducted by Rockbridge Associates showed that out-of-policy travelers spent an average of $2,881 more per year than travelers following the travel policy. Add up all of these extra money drains, and travel is racking up over 15% more expenses per year. Imagine how quickly these expenses accumulate over the course of time!

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