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Does your company have an effective Travel Policy

An Effective Travel Policy properly implemented should save you at least 25% on your current travel cost.

You might wonder why the cost has increased so dramatically when airfares have not gone up to the same extent?

The increase is partially due to the increase in the number of people travelling within the typical company.  However the primary driving force in this increase is that whilst airfares have not increased significantly, the costs of hotels, cars, meals, taxis, insurance, cell phones, e-mail on the road, laptops etc have increased susbstantially.

Travel and Entertainment is recognised as being the second largest controllable expense for most businesses where travel is necessary.  Whilst most of these companies do have some form of travel policy in place, the majority of travel policies have been found to be less than effective and enforceable.  In a recent worldwide study encompassing a variety of different sized companies, from the very large to the relatively small, the following was noted:


·       Only 49% require pre-trip authorization

·       Less than 45% require the use of the lowest convenient fares,
        discounted hotels and car rentals

·       Over 60% have no policy prohibiting higher priced flights to 
        accumulate frequent flyer miles


Whilst corporate executives reported a perceived compliance level of 98%, post travel audits revealed actual compliance level of only 73%.  This means that over 25% of corporate travel is undertaken in direct violation of existing policies!  In fact, 54% of travellers interviewed openly stated that they would violate their company’s T&E Policy where it is possible to do so!

Travel Agencies have traditionally worked for their customers ‘from the outside’.  In terms of corporate travel, that has meant finding the deals and often assisting with travel policy issues at the point of purchase.


Utilising a different approach, through the Travel Policy Consulting arm of its business, UNIGLOBE Travel works with companies ‘from the inside’. The process includes using a CD Rom T&E Policy Development Programme, which has been proven to produce significant savings for thousands of companies of all sizes around the world. Suggestions and alternatives are provided, covering every aspect of travel policy development, including many aspects not usually taken into consideration.  Systems and controls are created that directly influence the cost of travel BEFORE the purchase is made. The result is a tailor-made solution to suit each individual company and its culture, which with management support, produces guaranteed results. 

The service is extensively used by corporates of all sizes worldwide, and is available as part of a stand-alone comprehensive consulting service, whether or not the company uses UNIGLOBE as its Travel Management Consultants.

A regularly updated and enforceable policy can reduce a company’s current overall travel and entertainment expenses by up to 25% in the first year of inception.  This is done without affecting the number of trips undertaken or the class of travel utilised.  A well-written and well-developed policy balances cost savings with traveller comfort and convenience, helping to ensure the policy will be followed and savings realised. Companies with clear, balanced travel and entertainment policies have been found to retain travelling employees longer than those without them.