Do You Have a Company Travel Budget Policy?

Status
Not open for further replies.
top 100 ASX company here. the travel policy is pretty fair:

- best travel time cheapest fare out of virgin or qantas (priority is on best time, so like others you can usually manipulate this a bit). always the cheapest fare basket. economy only for domestic or international <5 hours.

- business for international >5 hours.

meals: $25 breakfast (understanding that hotel brekkies can be expensive if not included), $15 lunch, $50 dinner (though this isn't strictly policed, you'll only get a tap on the shoulder if you really abuse it).

hotels, generally around $200 per night
 
We get a per diem day rate (85USD) plus a day rate. If any meals are provided by the company then the per diem is reduced by a % depending on whether it is breakfast/lunch/dinner. All tickets are discount economy, no matter how long the journey. Taxis etc are all paid for by the company via expenses. Internet is not covered in hotels unless you can justify you need it for work. If the employee has to book a hotel it needs to be approved by the line manager. Employee can request a flight/routing however it also needs to be approved by line manager (main consideration is cost).
 
Our company does not reimburse lunch on the basis that its not an " out of pocket" expense as you would pay for lunch if you weren't travelling.
 
Our company does not reimburse lunch on the basis that its not an " out of pocket" expense as you would pay for lunch if you weren't travelling.

+1

The only circumstance in which they'll reimburse lunch is if you normally bring your lunch from home when in the office.
 
Our company does not reimburse lunch on the basis that its not an " out of pocket" expense as you would pay for lunch if you weren't travelling.

for us lunch is reimbursed on the basis that if you had come from home, you'd have had access to a full kitchen with all the mod cons that morning, but when traveling you don't have access to such things.

on days we travel, all reasonable expenses are paid from the moment we leave home, to the moment we arrive back home. This includes things like an allowance for breakfast even of the plan was to get a free breakfast in the lounge / on the plane.

Then again, the MD realises that the extra $50 it costs him means his staff are happy and our bookkeeper doesn't need tp chase us up for receipts of $1.50, which cost both the engineer and our bookkeeper more in time than the cost of simply paying a reasonable amount.
 
We expect our travelling staff to be reasonable and they typically have a cash advance that gets re-imbursed within 2 or 3 days of their monthly report being received. In Australia we ask our people to eat like they eat at home. We would be alarmed if a mini bar clean out was on an expense claim and we encourage our staff not to drink alcohol when doing business with a customer. Internationally excluding New Zealand the worst would be Premium Economy for a manager.
We cover all meals and encourage our staff to use appropriate credit cards to earn points to cover off any perceived hardships they face by being away from home.
 
A bit off topic, but I object to the up to $30 breakfast charge of many hotels, particularly when the "hot" food is barely warm out of the Bain Marie. I now go to a local cafe and have a freshly cooked breakfast for $10.
 
Yes Blinky but if it is snowing or bucketing rain we would have breakfast at the hotel. Other than that yes vote with your feet on a $30 breakfast.
We say no to the Tequila Sunrise drinks on the business (or equivalents).
 
When I was reading about everyone's meal allowance limits, I was thinking about that scene in "Up in the air" in the hotel restaurant when Ryan Bingham orders his full $40 meal allowance to maximise his point earn. I would how many people do this on this forum? :p

6a00d8341c5a2653ef013489123ac9970c-800wi.jpg
 
We expect our travelling staff to be reasonable and they typically have a cash advance that gets re-imbursed within 2 or 3 days of their monthly report being received. In Australia we ask our people to eat like they eat at home. We would be alarmed if a mini bar clean out was on an expense claim and we encourage our staff not to drink alcohol when doing business with a customer. Internationally excluding New Zealand the worst would be Premium Economy for a manager.
We cover all meals and encourage our staff to use appropriate credit cards to earn points to cover off any perceived hardships they face by being away from home.

Where do I sign up? :D
 
Elevate your business spending to first-class rewards! Sign up today with code AFF10 and process over $10,000 in business expenses within your first 30 days to unlock 10,000 Bonus PayRewards Points.
Join 30,000+ savvy business owners who:

✅ Pay suppliers who don’t accept Amex
✅ Max out credit card rewards—even on government payments
✅ Earn & transfer PayRewards Points to 10+ airline & hotel partners

Start earning today!
- Pay suppliers who don’t take Amex
- Max out credit card rewards—even on government payments
- Earn & Transfer PayRewards Points to 8+ top airline & hotel partners

AFF Supporters can remove this and all advertisements

US based MNC here. For a number of year we had a policy that was more steeped in being reasonable than hard and fast rules, that gave us some discretion. However always an expectation of meeting budget,and usually that also meant trimming x% off travel budget as we moved closer to year end.

Recently introduced more stringent policies, including a $50 USD permeal limit and $80 USD/day limit for all meals. This is excluding taxes/tips, so means places like Australia where there are minimum wages and service charges are therefore built into pricing, it is a little disadvantageous. Of course where I usually travel to in Asia if you eat outside major hotel restaurants you can have a feast for that! There are also a nightly spend limit on accommodation that only applies in the US (except major cities like NYC, SF etc), and US travellers usually try to hit that when travelling outside US. Of course when they visit somewhere like SIN there is no hope (unless you put them up in the sort of hotel that charges by the hour! Broadband is covered in hotels if you don't have stick, but not on planes. Minibar is Ok, is part of daily allowance, although personally, if there is 7-11 next door selling cokes for 45c the hotel minibar costs $6 for same coke, I'd go for the 7-11 even though company is paying.

We have a 6hr minimum for business class, but often feeling is created for those just exceeding the limit you travel in economy. Since rules were tightened, though, I think people are more inclined to "work to rule" so to speak, so are less enamoured and less likely to travel in economy if the flight is >6hrs.

Intercontinental travel require executive team (or delegate) approval, other travel approvals vary depending on which part of the business you are in and who has been delegated what.

The other change made recently - globally - is the requirement to buy air tickets >14 days from travel, otherwise you need to seek another level of approval. Very much a US perspective on the world, as 7, 14 and 21 day advance purchase fares are still part of the system there. Of course here (ie Singapore) I've observed the time of day you travel has a much bigger influence on the fare than booking 14 days in advance. In fact a number of times I've seen the fare move down closer to travel. This can have side effects, for example I spend best part of 2 days trying get the best multi country itinerary to work for a very senior visitor to the region from US and it would have taken me 2 hrs to organise it all if that person had just come a day or two earlier (just because more people were available 2 days earlier), but that would have been inside 14 days.

On the meal limit thing, I can see the point, I am sure some people do take the p#ss, so I that is clearly why it is needed. But it sort of sends a signal to staff "we don't trust you". I'd rather the budget accountability type approach. If you're away for 4 nights and have a $15 meal for three of those nights, who cares if you spend $80 on the fourth night? Now the inclination is more to take the Ryan Bingham approach and spend $50 every night!
 
I think the advance purchase rule is entirely reasonable. It should be possible to organise meetings at least a week ahead, unless it's a deal breaker situation.

Mea culpa, I've deliberately organised late flights to maximise SCs. Never again. It's unethical.
 
I think the advance purchase rule is entirely reasonable. It should be possible to organise meetings at least a week ahead, unless it's a deal breaker situation.

But it doesn't necessarily make sense in markets where advance purchase fares don't exist. Each market is different, and I know here in SIN, based on my personal travel, tickets have a tendency to very cheap months in advance, increase substantially, then in the last week or two drop again (except for around long weekends/holidays/festivals, and Jakarta flights which usually run full).

A few times I've booked flights 14 days in advance - but they weren't ticketed immediately by TA (and of course in the system I was non compliant, as it only records ticketed date). On couple of occasions because of this delayed ticketing I've asked them to rebook me in lower fares that weren't available when I originally booked. Anyway, moot point, outside of markets that have 14 day AP rules there are work arounds using flexible fares.
 
One interesting element of our travel policy is that all flights, accommodation and car hire are booked using the CEOs credit card. He would accrue millions of points a year. I have no idea what he does with them.
 
I worked for a large multi national who had a world wide travel policy. I was a weekly commuter on the east coast. We had a domestic preferred carrier ( QF) with negotiated airfares. All domestic travel was in Y . International travel class was subject to the customer, as was charged back to them. We also had preferred hotels or apartments. Most of the team would stay in Apartments as was a MON-FRI FIFO arrangement. We were given a $60 per day allowance for food, with transport ( taxi) and airfares+ accommodation on top of that. Most of the team used a private limo company as worked out more economical than a taxi.

We also had a option of staying at a friend or family’s place. We were allowed a $80 “ gift” allowance to pass on to our host
 
When I was reading about everyone's meal allowance limits, I was thinking about that scene in "Up in the air" in the hotel restaurant when Ryan Bingham orders his full $40 meal allowance to maximise his point earn. I would how many people do this on this forum? :p

View attachment 10144

Such a good movie - compulsory viewing for every AFFer!
 
We also had a option of staying at a friend or family’s place. We were allowed a $80 “ gift” allowance to pass on to our host

The one time I've done that, my gift was dinner at a very nice (and surprisingly expensive) restaurant. The way I figured it was that by the time had I gotten a hotel in MEL CBD for 2 nights, and then paid for dinner, I could stay at my sisters place, and treat her and her husband out to a nice dinner for far less than the cost of just a hotel room. Plus it gave me a chance to catch up with both of them, which is quite difficult as their favorite game is "where in the world are we this week".
 
I work Australia's seccond largest travel company (not the big Redwhite/FC) and our policy is as below!

Travel Type Policy
Domestic Travel All domestic travel is to be Economy class.
Outbound & return flights will be booked on the cheapest, non flexible fares on Qantas. Return flexible fares will be booked pending appropriate authorization from General Manger.
Virgin Blue / Jetstar will be used for specific routes as required or where specifically requested. Baggage allowance will be included in each fare for over night stay.
A half hour lee way will be given for both directions in order to obtain best possible fare.

International Travel
Up to 6 Hours: All travel will be booked in Economy.
Outbound & return flights will be booked based on “best fare of the day”.
Greater than 6 Hours: Travel will be booked on Economy, Premium Economy or Business Class
depending upon the nature and circumstance of trip e.g. if arriving and going straight to a meeting, then Business Class is warranted. However, if travelling for an educational trip, travel should be Economy.
A travel request form must be completed and signed by appropriate General Manger and must be sent via "Name Nedacted"for approval.


Car Rental
A small car will be booked when one person is traveling, medium car if 2 people are traveling and a large car when 3 or more people are traveling together.
The cheapest rate will be booked through Hertz or Avis
If travel does not include metropolitan CBD (eg: suburbs & regional) car rental should be considered in lieu of taxi.

Accommodation
Hotel / Apartment accommodation will be booked at traveller's request using standard room “Best Rate of the Day” or “"Redacted" rate”. Accommodation required must be noted and authorised on the Travel Request form.
Travellers may apply for ID75/50 rates direct with the hotel. .
Staff leisure travel rates which have been negotiated with specific properties / chains may not be used for duty travel purposes.
Travellers are to pay direct for all hotel bookings.
 
robd, I hope this all has given you a bit of insight for you if you are still interested in drafting a company travel policy.

The only caveat going forward is that if your policy is a new thing for the company, you will definitely need to be prepared for a minor backlash and a period of acceptance, as well as your policy will need to be well grounded (e.g. ATO guidelines) and founded on good principles both for the company (not just in the profit sense, perhaps it can be pitched it is good for discipline and customer relations).

People will have to get used to the new guidelines and also to possibly increased paperwork. You will definitely need to get your line management (including the one smitten with the "shrewd travelling one") on side, without a doubt. And you will have to make clear that for transparency reasons, judicious justification will need to accompany "exceptions", e.g. an expense approved by a manager that is well above the policy (and this need for justification shouldn't be a chore "just 'cos", but it should be because it is the right thing to do).

And of course, never forget that the policy will also apply to you.
 
Status
Not open for further replies.

Become an AFF member!

Join Australian Frequent Flyer (AFF) for free and unlock insider tips, exclusive deals, and global meetups with 65,000+ frequent flyers.

AFF members can also access our Frequent Flyer Training courses, and upgrade to Fast-track your way to expert traveller status and unlock even more exclusive discounts!

AFF forum abbreviations

Wondering about Y, J or any of the other abbreviations used on our forum?

Check out our guide to common AFF acronyms & abbreviations.
Back
Top