Corporate travel arrangements are processes that an organization or company utilizes to plan and manage employee journeys. They can be domestic or international and include hotel rooms, flights and cabs along with meal costs as well as conference and meeting rooms. Certain companies employ dedicated teams or individuals to supervise and manage these tasks. Some companies depend on software and other third-party organizations to manage these duties. To ensure an effective business trip, it is crucial to have clearly defined procedures and be accountable.
Clear policies and guidelines cut down on risk, optimize bookings, expenses, and ensure compliance. They also make it easier to approve the procedure, allowing employees to feel confident when submitting requests.
In addition to establishing policies, a travel management system (TMS) assists businesses in booking and monitor business travel-related activities which include flight, train and hotel reservations as well as car rental and on-site meeting arrangements. It usually provides real-time information and analytics that can be useful in analyzing and optimizing travel spending and strategies.
Another aspect of a business travel policy is defining whether employees are allowed to make business class bookings, as these can be significantly cheaper than economy bookings once the cost of other expenses such as baggage and meals are considered. Some companies require that frequent flyer points earned on business trips are the property of the company, whereas others allow employees to keep them. It is important to consider the requirements of each business when making these decisions.