Why you need a corporate travel policy—and how to create one

Things don’t always go as planned when employees travel for work. Issues like budget overruns, reimbursement disputes, and disappointing hotel bookings can quickly derail a trip. Even routine travel can cause unnecessary stress if you don’t have corporate travel guidelines in place.

In this guide, we’ll explain why every business should have a travel policy, no matter the company’s size. You’ll learn what to include and how to shape a policy that works for both your team and your bottom line.

What’s a corporate travel policy?

A corporate travel policy is a set of guidelines that explain how employees should plan, book, and pay for business travel. It defines which expenses are covered, sets spending limits, and explains the reimbursement process. A well-crafted policy strikes the right balance between cost control and employee comfort, helping trips run smoothly without overspending.

Benefits of corporate travel policies

Without a travel policy, things can get confusing and expensive fast. Clear rules help:

• Keep travel expenses within budget
• Make sure everyone knows what’s allowed for standard and executive travel
• Speed up approvals and reimbursement
• Makes expense reporting easier
• Provide consistency for all business trips
• Support your duty of care by planning for emergencies and employee safety

Best practices for creating a corporate travel policy

Every company is different, but following a few best practices will help you draft a quality corporate travel policy.

Determine your budget

Business travel costs have risen in recent years, making it essential to establish a realistic travel budget. Start by analyzing your company’s average spend per trip, then break it down by category to create a comprehensive travel policy template.

Airfare

Booking flights early can lead to significant savings. Opting for economy class over business class can also help manage costs.

Accommodation

Hotel rates vary widely depending on the location and time of year. Major cities like New York and Boston tend to have higher average nightly rates, while cities like Charlotte, San Antonio, or Phoenix often offer more budget-friendly options.

Meals 

Daily meal expenses can add up quickly. To control costs, consider selecting hotels that offer complimentary breakfast, and set reasonable daily meal allowances for employees.

Transportation

Evaluate the cost-effectiveness of flying versus driving for each trip. If employees use personal vehicles for business travel, reimburse them using the IRS standard mileage rate, which is 70 cents per mile for 2025.

Make sure your policy is comprehensive

Your policy should cover more than just flights and hotels. Here are some important details to include:

• Rules for airfare class, car rentals, and public transit
• Guidelines for per diem limits and usage
• Allowances for Wi-Fi and mobile phone expenses
• Coverage for travel insurance, including cancellations, delays, and medical emergencies
• Processes for approvals and which team members are authorized to give them
• Steps for handling emergencies and escalation procedures

And don’t forget to include travel insurance—it protects your company, keeps employees safe, and provides peace of mind for everyone involved.

Focus on employee satisfaction

While saving money matters, so does keeping your team comfortable and productive. When employees are well-rested and stay in reliable accommodations, they’re more likely to perform at their best. 

Avoid cutting corners like booking long layovers or low-quality hotels just to shave a few dollars off the budget. Instead, look for smart ways to manage costs without sacrificing comfort. Try tactics like sticking with one reputable hotel chain to build loyalty rewards and unlock discounts, booking flights and rooms early to get better options, or taking advantage of extended-stay rates and group booking deals.

Communicate the policy clearly and make sure employees understand it 

A travel policy only works if your team knows about it, understands it, and knows where to find it. The more familiar employees are with the rules, the more likely they are to comply. 

Start by sharing the policy through a company-wide email, highlighting any policy updates or additions. Consider holding a quick team meeting to walk through key guidelines, and provide a copy or a link to where the policy lives on your internal site. Some companies even ask employees to sign the policy to confirm they’ve read it. To reinforce understanding, try running brief training sessions that walk employees through how to book the right flights and hotels, submit expenses correctly, and stay within their limits.

Pro tip: Work with your internal communications team to develop a rollout strategy that ensures consistent messaging and reaches everyone effectively.

Measure, track, and analyze costs

To get real value from your travel budget, you need to track where the money’s going. Collect receipts, monitor expenses by category, and compare spending against your initial projections. This data helps you spot patterns—like frequent overspending in certain areas—so you can refine your limits and update your travel policy as needed.

Feedback is just as important. Regular surveys or quick team check-ins can reveal what’s working and where the policy might need adjustments. A mix of data and employee input will help you make your travel program more efficient and employee-friendly. 

Implement continuous improvement

Don’t set it and forget it—review your corporate travel policy at least once a year. Travel costs and employee needs can change quickly, so keep the policy flexible enough to adapt. 

Creating a review group of frequent travelers and team leads can help you fine-tune your policy based on real-world experience. If many travelers report the same pain points, like long waits for reimbursement or unclear meal limits, those are red flags worth fixing.

Engine can help you save on corporate travel costs

Managing business travel doesn’t have to be stressful or expensive. With the right tools and a solid travel policy, your team can stay comfortable while keeping trip expenses in check. 

Engine is one such tool. Whether you’re booking for a small team or coordinating a company-wide retreat, our all-in-one travel management platform helps you stick to your travel policy while giving your team a smooth, comfortable experience.

Partner with Engine today to simplify booking, save money, and keep your team happy on the road.

FAQs

How do you enforce a corporate travel policy?

Make sure the policy is communicated clearly and consistently. Provide training, require employees to acknowledge the policy, and use tools or platforms like Engine that automatically ensure compliance with travel rules.

Can Engine help manage business travel for growing companies?

Yes, Engine is designed to support businesses of all sizes. We offer expert travel managers, discounted hotel rates, and hands-on help to ensure your team travels efficiently and within policy.

What’s the best way for remote employees to handle business travel?

The key is to treat remote employees as an intentional part of your travel program—not an afterthought. Start by outlining clear procedures for how and when they should book travel, what expenses are covered, and how to submit reimbursements. Since remote employees may be traveling from a wider range of locations, consider offering flexible options like regional meeting hubs or hybrid formats to reduce travel expenses. Providing access to a travel coordinator or point of contact can also help remote team members feel supported and stay aligned with company policy.

How can you manage hotel costs more effectively?

Set city-specific rate caps and use a platform like Engine to access discounted rates, track spend, and manage bookings in one place. Engine also makes it easy to secure deals for group travel, with dedicated support and no extra hassle.