policy for business class travel

The complete guide to corporate travel policies 

The business travel policy guide you’ve been waiting for .

Creating a business travel policy for employees can feel really daunting. You don’t want to just throw something together and hope for the best, but it feels impossible to anticipate every possible scenario. The truth is your policy serves as more than a rule book; it's a guide to better decision-making about your corporate travel program and can save you a world of headaches down the road. 

Introduction

What is a travel policy .

• Why do you need a travel policy?
• How to create a travel policy

What to include in a travel policy 

• Travel policy best practices
• How to promote travel policy compliance
• When to review and update your travel policy
• Final thoughts

When it comes to company travel, a travel policy brings it all to one place. It acts as an influencer for travelers to make the most cost-effective choices, an important visibility tool for your managers and HR department, and it protects your people if it’s done right. 

If you’re new to business travel or haven’t looked at your travel policy in a while, we’ll start with the basics and then move into the nitty gritty of corporate travel policies. We’ll touch on a few best practices for writing a travel policy, what to include, and offer plenty of resources along the way. 

Ready to get cracking? Let’s go! 

A travel policy is a guide for business travelers to follow that outlines: 

• How, where, and when to book 
• Approved technology for travel management 
• Preferred suppliers for air travel, land travel, and accommodations 
• Approvals process for out-of-policy bookings 
• Trip extensions and personal travel 
• Expenses and what is covered or not covered 
• Reimbursement processes 
• Business travel insurance information 
• Emergency procedures and contacts 

Your company’s travel policy should reflect your company culture and values, be supportive of your travelers and their needs, and protect your company from unforeseen circumstances. It acts as a central document that guides your team to the processes of embarking on company business travel, from start to finish! 

While you might hear a few grumbles and groans around the words “policy” or “process,” don’t worry! A travel policy does not need to be rigid and inflexible. 

Do your travelers prefer to book on their own? Don’t take away their autonomy. They can still self-book, you’ll just provide them with a better tool and way to do it more efficiently. 

Do your people feel prepared for any event that can cause a travel hiccup? With a travel policy, you can give them clarity and help them feel more prepared when traveling for business purposes. 

Why do you need a travel policy? 

Your travel policy is an extension of your travel program and company culture. It’s the glue that holds your travel program together – from approvals, expenses, booking processes, and emergency contacts. 

Having a travel policy helps you: 

• Control travel costs 
• Determine how reimbursement works 
• Compile a list of trusted and approved travel vendors 
• Manage an employee’s travel experience and safety 
• Cut rogue bookings – and simplify approvals 
• Budget, report on travel expenses and activity and reconcile bookings 

It’s a roadmap or guidebook that your travelers can reference when they’re booking their own travel if they run into a tricky situation abroad, and it helps provide clarity around processes. 

As a company though, your travel policy helps centralize your travel program, makes data and tracking more accurate and easier to navigate, and it saves time and money (including on expense management). Plus, if you take the time to craft your policy in an intentional and inclusive way, you’ll have a policy your travelers are happier to follow. 

How to create a travel policy for employees 

• Determine business travel guidelines 
• Create a travel policy that puts your people first 
• Set reasonable budget limits 
• Simplify the process of expense claims 
• Adopt a user-friendly all-in-one travel platform 

Once you’ve read through our tips, be sure to download our free  travel policy template  so you can get started on creating a travel policy of your own! 

1) Determine corporate travel guidelines 

When you take the time to create a policy that meets the needs of your business, you are making sure that your travelers are safe, costs are controlled, and you’ve made every business trip count. 

Start by looking at what types of travel are allowed and the reason for each trip. 

If you have team members traveling all over the globe, you might want to set some extra safety measures. You should also decide if there will be restrictions on the type of ground transportation used or where employees can stay. 

Create a process for booking flights, hotels, and other ground transportation needs. How far in advance should they be booking? Do different rules apply based on the traveler’s position? Who is the point of contact for bookings and other travel questions? 

Making sure to include your company’s travel insurance info is also important. Make sure to note if your policy covers medical expenses and/or any losses due to cancellations or delays in transportation services due to factors outside an employee’s control. 

Do you have a policy for reporting and documenting expenses? This includes having a system in place for claims (like meal expenses) and a reimbursement process, so your team can easily get their money! 

2) Create a travel policy that puts your people first

You’ve heard the term “duty of care” before, so it’s important to create a corporate travel policy that puts traveler safety and accessibility needs first. You’ll need to define and assign the roles and responsibilities of everyone involved, including a travel manager, if you have one. 

Set up an emergency plan and provide access to traveler safety information. Determine who is the emergency contact (your TMC?) and how to get in touch. Do they have 24/7 emergency support available by phone or chat? What about email support? 

Invite your HR department, the travelers themselves, and your DE&I manager into a discussion to find out what needs your team has as individuals, what hiccups they face when traveling, and what holes exist in your travel program that make it difficult to navigate. 

Working with a TMC is a great way to ensure travelers are kept safe before and during their trip.  

3) Set reasonable budget limits for business travel

You have a budget you need to adhere to, but is it realistic? Setting reasonable budget limits is key to an effective policy. 

Your budget should account for all travel-related expenses, including airfare, accommodation, meals, and ground transportation. And once you’ve set your budget, you can determine reasonable costs for hotels and accommodation, ground transport, flights, and more. Build these caps into your  travel booking software  to help travelers stay within the set parameters, which will later help with accountability. 

It's important to set clear rules on what the company can pay back and what types of expenses are out-of-pocket. 

If you’ve set a maximum daily rate for meals on work trips, it's crucial that travelers understand the limit before racking up additional charges. Requiring receipts can also help keep track of employee spending and make sure they're not going over budget. 

By working with a  travel management company  like Corporate Traveler, you can review your previous year’s expenses and find where you can optimize or make changes based on market changes. 

4) Simplify the process of expense claims 

If you're unfamiliar with how to write a travel expense policy, creating a simple process for claiming expenses is key to getting your team on the same page. Do you have access to a payment system that pays for the majority of expenses at the time of booking? This could be a good way to save time and stress down the road.  

The more you can pay for before your travelers get to their destination, the easier everything is to reconcile after they get home.  

If you have a person in charge of reviewing expense reports and watching pre-trip approvals, make sure to set criteria for claim approvals and look at automating processes to make approvals simple! 

5) Adopt a user-friendly all-in-one travel platform  

Finding the right  corporate travel platform  is essential. The right booking platform can provide travelers with an easy-to-use experience, giving them access to the best fares and availability. 

For example, at Corporate Traveler, we use Melon . It’s a booking tool, reporting suite, travel policy pusher, traveler profile manager, and so much more. Melon features a “recommended spend” function, which helps keep travelers booking in policy. Hello, visual guilt! 

Melon’s simple user interface, combined with dedicated travel consultants and expert 24/7 support, makes it simple to book, manage, and keep track of your business travel. You’ll be able to access Melon-exclusive deals and perks (alongside many negotiated contracts and online deals) and take care of all your travel needs from one place. 

From the get-go, you’ll be able to work closely with our team to ensure that all of your needs are met. We'll help you customize your travel program to meet specific business needs, build your travel policy into the platform, and offer training to staff to help them along the way.   

Putting it all together  

Wow! You’ve reached the end and should have a better idea of how to write a corporate travel policy. High five! Now it’s time to put it all together and get it on paper.  

Maybe you already have something in place that needs some work or an entire overhaul. Check out our easy-to-use template and start checking those boxes! 

Grab our corporate travel policy template builder

Not sure where to start? No worries! We’ve got you. Here’s how to streamline your process with a travel policy template! 

While there’s no one-size-fits-all travel policy for every company, following the set guidelines helps you nail a perfect-for-you policy that can see you through an ever-changing travel climate. 

Travel policy template  

When you’re crafting your business travel policy, there are so many considerations to be made. Things might come up that you never even thought of, but not to worry. We have loads of resources to help you see this through. 

Starting out, it might be looking a little drab and wordy, but depending on your travel program size, a visual travel policy might be just what you need. You can search for examples online or take a look at an example of a visual travel policy we’ve created.  

When building your policy, it’s important to include: 

1. International or foreign travel policies  

When you’ve got travelers all over the globe, you need to build out a policy for international or foreign travel. This is a protects them (and you) on anything from travel safety, to expenses, and everywhere in between. 

Whether your travelers are individuals or entire teams, your international travel policy needs to cover: 

• How and where to book – is that with a travel manager, online booking tool, a travel management company (TMC) ? 
• Travel insurance coverages and contact info – international numbers and policy information 
• Emergency contacts – how to reach them and the process of in-destination emergencies 
• Travel expenses – limits and how to file for reimbursement 
• Travel documentation – who to contact with questions 
• Advance booking timelines – when should they be booking for international travel? 
• Travel extensions – are these allowed and what are travelers expected to cover if they choose to extend their trip for leisure? 

By outlining all of this information in your policy, you’ll streamline the process for your finance teams, travel managers, and your travelers. And really, who doesn’t want to make travel a smoother experience? 

2. Corporate travel policy for business class travel 

Does your corporate travel program have different rules, limits, or allowances for different levels of seniority? Are some junior members expected to travel in economy class, while some executives are allowed to book in business class? 

If some certain exceptions and situations might allow for an employee to book business class, regardless of their position, you should include that in your policy as well. 

Making this as clear as possible will avoid an approvals nightmare down the road. 

3. Corporate meal allowance policy 

It’s great if you’ve already centralized most of your business travel expenses like flights, accommodation, transportation, and car rentals, but your people gotta eat! It’s super important to include a meal allowance policy that clearly outlines which meals (and how much) you’ll cover. 

Some of your team might be traveling with corporate credit cards, while others might need to be reimbursed. The guidelines and procedures for submitting expenses or asking for reimbursement need to be crystal clear! 

Make sure to outline if you have a corporate travel policy for alcohol, too! You don’t want murky policies when it comes to footing the bill for drinks. 

Some things to consider for your meal allowance and alcohol travel policy: 

• Which meals are covered and for how much? 
• Who is footing the bill for an alcoholic beverage with dinner? 
• If entertaining clients, what is the budget, and how flexible is it? 
• What is the process of submitting company card expenses? 
• What is the process for requesting reimbursement? 

Your team will always have questions about the policy on food and drinks, so make sure they can find the info easily and have a point of contact for whoever can offer more clarity. 

4. Executive travel policy 

We briefly touched on executive travel when we talked about traveling in business class, but there is certainly more to the top dogs traveling. 

Executive travel can be a touchy subject if there are more lenient policies in place than there is for less senior team members. Your executives also may need to know the guidelines in place for their own travel, so they don’t accidently go overboard, which could be an accounting nightmare! 

You’ll need to make sure you deliver a guide for approvals, procedures, booking deadlines, meals, accommodation, basically everything. 

Lay it all out. Make your policy as digestible as possible, and for a busy exec, consider bullet points and titles in bold so they can easily skim to the areas they need to know. 

5. Natural disaster or COVID-19 business travel policy  

We can all agree that COVID-19 caused business travel to come to a screeching halt. Across most industries, the pandemic impacted client relationships, the ability to gain new clients and caused budgets to get slashed pretty dramatically.  

While this was only one event, many businesses have begun to consider the “what-ifs” of their travel programs should another outbreak of COVID or something else happen. Crossing our fingers and toes doesn’t cut it, unfortunately. 

There is also the chance of their travel being impacted by a natural disaster. We’ve seen it before – earthquakes, tsunamis, volcano eruptions, hurricanes. Do you have a plan or policy to aid your team and guide them through the unthinkable? 

In 2022, we surveyed 120 employees across various industries and businesses. More than half, 51% of respondents said their companies didn’t provide resources or tips for safety on their trips. Duty of care isn’t something to put on the back burner, it’s your legal obligation to make sure your team is informed. 

So, what’s the solution, you ask? 

Working with a TMC gives you the backup you need if anything ever happens and you have people traveling abroad. At Corporate Traveler, our travel management software, Melon, is a central place to house your policy for quick and easy access. Plus, our travel experts can help you paint the big picture of what to do, who to call, and how to get your team home safely as quickly as possible. 

Is there anything missing from your travel policy? 

Let’s break it down. If you think of your policy like a sandwich, it should include: 

The bread and butter  

• Where and why: Are there any restrictions on who travels domestically or internationally? Or guidelines around reasons for travel? 
• When: Are there any restrictions on when business travel is a no-no, like during an auditing period or financial downturn? 
• How? How should travel arrangements be booked? Through your corporate travel booking software or with a preferred Travel Management Company (TMC)? How far in advance should domestic and international trips be booked? 
• Preferred suppliers: Do you have preferred partners for air travel, accommodation, ground transport or travel insurance? 
• Approvals: Who’s responsible for giving the green light on trips? 
• Show me the money: What’s the process for managing/submitting expenses, paying for travel and reimbursements? 
• Uh-oh: How will you prevent or deal with non-compliance to the travel policy? 
• Noise level: Getting loads of ‘noise’ and questions about things in your policy? This means it’s not clear and it’s time to review why and where the stumbling block is for travelers (or your finance team!) 

 The filling  

• Classy, baby: Who gets to fly business class, book 5-star properties or order UberLUX? And how does your business handle upgrades or airport lounge access for long-haul flights? 
• All work, some play: What are the conditions if someone wants to extend their business trip to take personal leave? Are you happy for them to enjoy a bleisure trip, and if so, who foots the bill and for what? 
• Loyalty: Are there any travel rewards or business loyalty programs that can be used during booking? 
• Spending money: Do your business travelers have a daily allowance for meals, snacks, and drinks? How much is it, what does it include – and what’s not covered? Can they order room service, drink from the mini-bar, or use the in-house laundry service? 

The not-so-secret sauce  

• Safety first: your policy should support air, accommodation and ground transport suppliers that have been safety and security vetted. Guidelines or information on travel insurance for work trips is also helpful. 
• Now what: What’s the plan of action in the case of Acts of God or Force Majeure events? Does your team know who to call for help? 
• What’s next: Who is responsible for updating and reviewing your travel policy, and how often? 

Corporate travel policy best practices

• Write for skim readers
• Guide travelers to the right resources
• Automate your policies
• Stipulate a timeframe for expense claims
• Be prepared for the unexpected

1. Write for skim readers  

One of the first steps towards writing a people-first travel policy is understanding how your travelers will read it. And the truth is…  

They probably won’t.   

Research has shown that  adults get distracted every 47 seconds . So if a business traveler is looking at your policy, they’re most likely just searching for a specific answer – and they want it fast. So what can you do?  

First, make sure the document is easy to navigate. That means including things like:   

• A table of contents  
• Visual elements to help guide the eye toward crucial information, like flow charts and tables  
• Clear headings and important details in bold  
• Bulleted lists (see what we did here?) 

And even though it’s a technical document, don’t make it sound like one. An effective travel policy should be clear, concise, and easily comprehended. So skip the long, complex sentence structures and technical jargon, and write in plain, simple English. It helps to pretend like you’re writing it so an eighth-grader can understand it.   

2. Guide travelers to the right resources  

Remember when we said travelers will only read your policy to find a solution for a specific need? Whether it’s a link, a phone number, or a step-by-step tutorial – a well-managed travel policy should provide them with the right resources.  

Instead of treating a travel policy as a list of rules, treat it like a resource sheet. Here are some key pieces of information travelers might need to pull up easily:  

Your approved online booking tool (and steps on how to use it)  

• QR codes to download your  mobile travel app   
• Preferred airlines, including class, budgets, and other limits  
• Permissible hotels, including guidelines on star-class and incidental expenses  
• Guidelines on ground transportation (trains, ride-sharing services, rental cars, and personal car usage)  
• How to get travel support  
• Travel insurance carrier  
• Clarification on the reimbursement process (more on this later)  

You can also include other factors specific to your company, but this should at least be the necessary groundwork to help employees make the right choices on their own.  

3. Automate your policies  

Let’s face it: even with the best communication efforts, there’s always a chance that an employee may violate policy, even unintentionally. So, what can you do?  

Build policy into booking.  

By building your travel policy into your travel management software, it becomes unavoidably embedded in the booking process, so even the most easily confused employees end up following by default.   

Automation tools can sound the alarm on out-of-policy bookings and even provide an audit trail. This can be especially helpful for employees who may struggle to remember procedures and policies, especially after big changes to your travel program.  

4. Stipulate a timeframe for expense claims  

No one wants to get stuck waiting on the money they’re owed – or worse – find out they’re not getting reimbursed for an expenditure they thought would be covered.  

Having a clear and well-defined expense claim process is critical in any travel policy. Employees need to know how to claim their travel expenses, how soon they need to submit an expense report, and when to expect reimbursement.   

The policy should also be clear about what expenses are and are not reimbursable, including any limits or exceptions. For example, if an employee needs to book a different seat class to  accommodate a disability , the policy should include the process for requesting and approving this expense.   

Plus, a submission deadline reduces cash flow issues and provides more accurate and complete expense data for that period (your finance team will thank you later).  

5. Be prepared for the unexpected  

As a company, you have a duty-of-care responsibility. When it comes to business trips, you need to be prepared for the unexpected. No matter how much effort you put into planning, there will always be a few hiccups along the way.   

For instance, lost luggage, canceled or delayed flights, and sudden weather or political emergencies in unfamiliar destinations could all leave your employee stranded.   

“Companies need to be prepared to plan for the particular, not just the universal. Every aspect of the travel program needs to be able to fit each of your travelers like a glove, from adaptable plans and experts on call, to technology that makes the journey seamless.” - Emese Graham, DE&I Manager @ FCTG  

Don’t let unexpected situations blindside you. Have processes in place to ensure travel safety and security. Make sure they know what to do, where to go, and who to get a hold of if something goes wrong. Taking a proactive and prepared approach to your policy can minimize the impact of emergencies and take care of your team’s well-being while they’re on the road.  

BONUS TIP: Update your policy regularly  

Here’s a free business travel policy best practice just for you! It isn’t just a “one and done” deal – it’s a living document.  

What’s that mean? As your company grows and travel conditions change, so should your travel policy. Revisit your expense policy at least once a year to keep it relevant and effective – and lead you towards new cost-saving solutions.    

Data is going to be your best friend here. Here are a few key factors you should look into when updating your travel policy:  

• Analyze travel spend patterns – are you throwing a lot of company money at certain suppliers? You might want to see if you can negotiate a new deal or find better rates elsewhere.  
• Identify areas of overspending or inefficiency – are employees accruing high parking or travel costs? See if you can get season tickets or other accommodations.  
• Evaluate the overall performance of your policy – are you still compliant with any new regulations that have come into play since the policy was established? How can traveler experience be improved?  

You may even want to consider enlisting the help of professionals, such as a travel management company with experience in expense management, to give advice on how to optimize your travel policy to better meet the needs of your employees and your business as a whole.   

Building a travel policy that's good for business and travelers and meets their needs is no small feat. But whether you're looking to retain your team, attract new talent, or make life a little easier for your travelers, investing in a well-designed travel policy is definitely worth the effort and great for company culture.  

By following these travel policy best practices and ensuring your policy meets all travelers' needs, you’ll be on your way to smoother, safer, and more enjoyable travel experiences for all.  

How to promote travel policy compliance  

Whether compliance is a big or small issue in your company, it takes a little bit of investigating to figure out why it’s an issue at all. 

Maybe your policy meets the needs of only a few of your team members. Maybe it’s too difficult to navigate your policy. Or maybe, your policy is written in legalese and makes your travelers vision blur before they go rogue and book how they want. 

It could be that your travelers prefer a bit of freedom in booking and would rather do it on their own. Or, maybe they have specific needs that aren’t being met by the options provided. 

Whatever their reasons, it’s your job to figure out why they aren’t following and what you can do to build better compliance. 

Here are a few tips to improve travel policy compliance: 

• Make your policy easy to navigate, understand, and find 
• Use an online booking tool (OBT) for travelers who prefer to self-book 
• Allow a bit of flexibility so travelers feel they have some autonomy 
•  Include a category for last-minute bookings so it doesn’t mess up your data 
• Understand your traveler needs and build an inclusive policy 

Read the full guide:

You've researched, gathered the necessary resources, and communicated your travel and expense (T&E) policy to your employees. But now, you're not so sure they're actually following it.  

Read the full guide:  How to Improve Corporate Travel Policy Compliance

When to review and update your travel policy 

If the last time you reviewed or upgraded your travel policy was more than a year ago, it’s outdated and needs a refresher. If your company is small and has low turnover, you could probably get away with making small tweaks and optimizations. 

But if you have a larger company with multiple departments and higher turnover, you probably need to do an overhaul and review it more regularly. We’re not saying you have to change it every time someone is hired or leaves the company, but making sure it’s relevant to the people who are there and are traveling matters! 

Corporate Traveler conducted a survey in 2022, which showed that 48% of respondents didn’t know if their company had resources for specific traveler profiles, while 41% said their company didn’t provide resources for specific traveler profiles. This really goes to show that there’s room for improvement in how policies are built to support their people and their businesses. 

A people-first travel program and policy have become necessary as the world grows and begins to understand neurodiversity, disabilities, and cultural differences. When we learn about our team members’ diverse needs, we can better understand how to support them when they venture abroad for our businesses. 

GUIDE: Download the How to design a people-first travel program guide 

We recommend policy reviews every 3-6 months, but at the minimum, once per year. 

Final thoughts 

Business travel is so unpredictable, as we’ve seen in recent years. There will always be circumstances you can’t avoid as a company, but making sure that you have the necessary checks and balances in place can help to make things just a little easier. If you have groups traveling, VIPS, or people heading to high-risk destinations, it’s important that your policy is relevant. 

Don’t forget that travel policies shouldn’t be written and forgotten about – these are living documents that must be regularly updated to make sure they best protect your people. 

Remember these best practices when writing your travel policy: 

• Keep it simple and make it pop with visuals, bullet points, and bold headings. 
• Answer any and every question possible – think of all the eventualities 
• Always put your people first 
• Implement a quick and simple approval process 
• Automate as much as you can 
• Use technology that’s supports your policy 
• Be flexible with due reason 
• Be clear about what’s not allowed 
• Update your travel policy at least once a year 
• Keep it somewhere easy to find  

And finally, it doesn’t hurt to have a couple of different formats. Consider a visual version and an extended version so the message is delivered best depending on the person reading. For some, it might be easier to digest one over the other. 

Looking for a policy review? We’d be happy to work with you. 

Let’s chat .

for Shared Services

Thresholds for business class travel, peeriosity insights: recent research findings summarized insights. to view detailed research results, contact us to inquire about membership..

With the move to control discretionary spending in recent years, many companies have significantly reduced their travel budgets.  One opportunity to secure large gains in this space is by restricting business class travel, where the price difference for a single trip can be $4,000 or more.   Given that the most powerful executives are often frequent travelers, setting the policy can be difficult, and there often is a threshold when an employee can book their trip in business class.  And, since the majority of companies have a mix of local and global travel policies , creating policies that are consistently applied globally can be difficult.

Recently, a Peeriosity member from a large global company that didn’t permit business class travel wanted to understand the approach followed by peer companies, and also understand the mix of global and local policies for the travel process.   To find out, the member created an iPolling TM question and within 48 hours they had their answer.   

The poll results indicated that 78% of member companies allow travelers to book in business class with certain restrictions.  For 22% it is simply a matter of job level, and for 56% an approval threshold is set based on either the trip duration or the distance traveled.  Here are the details:

Results to the question about the scope of the travel policy were surprising, with 57% reporting that they have a mix of global and local policies, and just 35% reporting that travel policy is set and managed only on a global basis.   Creating a consistent travel policy not only improves the efficiency of the travel process, but it can also reduce complexity for the traveler, as well as ensure a proper balance between business need for travel perks and the cost of the premium services.

Here are examples of some of the additional comments from Peeriosity members that were added when they responded to these questions:

• Previously, business class was open to all employees, regardless of status for flights longer than 9 hours.  This policy has recently changed to be based on the employee job level , plus the flight needs to be longer than 9 hours.
• Business class travel is allowed when the total flight time of all segments of a one-way trip is at least 6 hours.
• Approval for business class travel is based on the employee’s job level and the frequency of international trips.
• Employees may use business class when the combined intercontinental flight connection exceeds 5,500 miles, or if the circumstances of the itinerary (e.g. multiple business stops) result in a fare equal to or lower than a coach.
• Officers may fly first class where offered and, if not, business class.  All other employees must fly economy unless the flight exceeds a certain amount of time.
• Business Class is permitted for flights exceeding 5 hours, except when traveling within North America (the U.S., Canada, and Alaska), Mexico and Central America, or between the U.S. and the Caribbean.
• Business travel is permitted for VP-level employees traveling on international nonstop flights lasting 10 hours or more.
• We allow business class for travel over 8 hours. For trips over 12 hours in length, we allow travelers to downgrade to economy class for a one-time cash payment to the employee of $1,500 (before taxes).

Under what circumstances does your company allow employees to book airline tickets in business class?  How consistent and how global is your company’s travel policy?

Who are your peers and how are you collaborating with them?

_____________________________________________________________________

  “iPolling TM ” is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from participating or accessing content. Members have full visibility of all respondents and their comments. Using Peeriosity’s integrated e-mail system, Peer Mail TM , members can easily communicate at any time with others who participate in iPolling.

Peeriosity members are invited to log into www.peeriosity.com to join the discussion and connect with Peers.   Membership is for practitioners only, with no consultants or vendors permitted.  To learn more about Peeriosity, click here .

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Corporate Travel Management Blogs

7 corporate travel policy templates to help you define.

Sajit Chacko Co-Founder

A corporate travel policy template can be a valuable tool to help companies define their policies and ensure that all employees are compliant with the company’s expectations. With a template, companies can quickly create a customized document that will ensure their travel policy meets all legal requirements as well as any other specific needs of the business.

For a business to implement a trip, it must first select and purchase the most economically viable choices for flights and accommodations. Apart from flight tickets and stay, incidental expenses commonly include trip aspects such as food, gifts to customers, newspapers, laundry services, value-added hotel services, dining charges, events tickets, local commutes, room service, and long-distance calls. 

By 2022, global corporate travel spending was expected to amount to over US $930 billion, emphasizing how expensive it can be to secure these expenses and successfully conduct a feasible business trip. 

Additionally, it is worth noting that planning and implementing these trips through traditional expense management systems makes it more expensive, tedious, and time-consuming than it needs to be. Due to the lack of transparency and restrictions of these systems, it is often a challenge for companies to track these non-budgeted expenses until post-trip reconciliation. 

By this time, it’s too late, and the employee already charges the costs to the enterprise. For a company to maintain a trip’s economic feasibility, it is crucial to establish the appropriate cost-cutting measures well before the trip’s planning phase takes place.

A well-written company travel policy can be instrumental in achieving this by providing businesses and travel stakeholders the means to reduce, streamline and curb associated corporate travel costs.

Studying the approaches leading organizations have taken to address their corporate travel and employee needs is an excellent way for aspiring businesses to devise their corporate travel strategies. 

Make sure to emphasize the perks of following your policy for travelers, like keeping them safe and providing support, so they understand why it’s important.

This article aims to provide businesses with seven market-tested robust templates that they may leverage as inspiration to create a winning corporate travel policy. 

Before you begin, it is essential to understand what a business travel policy is and what it can help your business achieve.

What is a corporate travel policy?

A business’s travel policy is a set of regulations and parameters set by business leaders to effectively manage travel bookings and expenditures when employees travel to visit partners, sites, prospects, clients, colleagues, and conferences. 

This crucial document contains information on the extent of expense coverage and considerations that travelers must follow when making flights, accommodation bookings, and incidental expenses during all travel phases. 

For an employee to secure timely T&E reimbursements, it is an absolute must to abide by the rules and guidelines this policy sets.

Best Corporate Travel Policy Templates

To help you understand these policies better, let us take a look at seven well-established organizations and their take on corporate travel:

Netflix, the world-renowned streaming platform’s travel policy, is a reflection of its organizational work culture and merely states, ‘Act in Netflix’s best interest .’ These five worded simplistic travel policies provide employees an elevated level of freedom, control, and responsibility over planning and implementing their corporate travel than most other companies. 

Instead of restricting employees with a stringent corporate travel policy, Netflix enables its employees to make their own travel decisions how they see fit as long as they conduct themselves in the company’s best interest and continue to drive value to the organization. Employees are free to take vacations without restrictions on the number of days a year. 

The goal here is to give employees the freedom to use their best judgment and make wise decisions by understanding the context of what management considers appropriate and inappropriate without imposing strict guidelines. 

This policy is enforced by a lead-by-example approach where Netflix’s leadership takes vacations that are also productive for the company.  

Although this famous policy may not be suitable for all organizational types, it is still worth studying to gauge if any aspects of it may benefit you.

While Basecamp’s policy follows a similar approach to Netflix’s, it is not nearly as simple. Basecamp instead takes it one step further by providing all employees with an American Express card that they can use without restrictions or approvals. 

The only criterion this highly trust-based approach expects from its employees is to be reasonable regarding the expenses they charge to the company account. It is a tricky system for businesses to implement as it requires high transparency of documented transactions for finance departments to ensure that expenses are justifiable. 

Basecamp additionally offers its employees perks such as monthly capital allowances for recreational and fitness activities such as massages, yoga, and gyms. 

The British Broadcasting Corporation (BBC) follows a traditional travel policy that provides its employees with informative and simplistic documentation of its policy coverage. This travel policy provides guidelines on all travel categories and transparent information on what expenses qualify for reimbursements. 

Being a sustainable corporate travel policy, it encourages employees to prioritize public transport, preferably rail, to reduce the company’s environmental impact. The expense policy also dictates using communication tools such as Telepresence, Skype, and other video conferencing options as an alternative means to conduct business to travel whenever possible. 

When air travel is unavoidable, the expense policy asks employees to make all flight bookings through BBC Travel & Delivery. The policy also requires travelers to obtain formal pre-approvals from the Divisional Finance Director for all bookings. 

If group bookings exceed ten travelers, the tickets must be procured well in advance with the BBC’s preferred suppliers and vendors. The company allows personal travel to be combined with business travel only if it reduces the cost of travel to the company.

Employees must book the lowest-priced economy-class tickets regardless of the airline. Travelers may book premium economy tickets if their flight duration exceeds six hours and are expected to work immediately upon arrival. 

Business-class tickets are reserved only for employees that have to travel over eight hours and are required to work immediately upon arrival. First-class tickets are entirely out of the question for employees and not covered under the company’s travel policy without any exceptions. 

The company vigorously enforces these rules and carefully monitors upgraded tickets. Employees are encouraged to stay in private accommodations, for which they can claim £20 per day, including food. Employees can claim reimbursement of incidental expenses such as personal calls and basic laundry when their official stay duration exceeds seven nights.

The expense policy for meals states that employees may claim up to a contribution of £6 per meal inclusive of taxes within working hours and £16 for any meals for work conducted after 8 pm. Employees must produce receipts for every meal and detail them individually in the Concur claim form. 

The BBC also allows employees to visit theatres and other cultural locations, provided they can assess talent and generate potentially lucrative ideas for the company. 

In such instances, the employee may purchase a single ticket reserved for themselves. They must also provide appropriate reasoning for their visit in the claims form to get reimbursed. 

For local commutes, the BBC’s corporate travel dictates that the usage of cabs is permissible only for business purposes if it is the cheapest available mode of transport. When such a requirement arises, the ride cost should not exceed £100, including all waiting time, booking fees, trip costs, and miscellaneous costs, unless it is the cheapest transportation option available. 

Employees traveling by cab must prove that they are commuting for work by filling out a passenger declaration form. When a cab ride for official work exceeds a distance of forty miles, the company will deduct it from the employee’s salary.

If it is the cheapest option, employees may engage in personal commuting for official business purposes. Their travel policy allows employees to acquire reimbursements for any fuel consumed during the commute, provided the traveler submits the appropriate receipts to the company detailing the business purpose of the journey. 

The BBC also allows employees to submit claims for car parking and toll costs as long as they are reasonable and if they occurred while conducting official business.

Federal Express, a global air freight network, provides reliable, prompt, time-definite delivery to over 200 countries and territories around the globe. As an international company that conducts its operations in numerous geographical locations, it formulated an iron-clad corporate travel and expense policy template that leaves no room for doubt for its employees on its coverage. 

All business travel ticketing, including airline tickets, rail tickets, hotels, and rental cars, must be booked through FedEx’s authorized travel agency or tools. Traveling employees are permitted to use only economy class, although travelers are allowed to use Business-class if the total travel time exceeds six hours. 

Flying First-class is reserved only for the company’s President and Vice Presidents.

FedEx Corporation has a preapproved list of hotels offering discounted corporate rates for their traveling employees across the globe. Employees may book a stay at a non-preferred hotel only when preferred hotels are busy or unavailable.

The corporate policy dictates that all employees must use the least expensive transportation option available such as public transportation, free shuttles, or personal vehicles, with the use of rental cars reserved only when it is cheaper than public transport and economically viable. 

Upon using a rental car, travelers must utilize it optimally with other team members to reduce the overall transportation cost to the company. Upon trip completion, the original receipts and rental agreements must be submitted to the finance team at FedEx for approval. 

Its corporate policy requires employees to carefully retain all receipts and submit expense reports trip-wise or weekly basis. FedEx remains clear that non-adherence to its corporate policy can lead to employee termination, depending on the circumstance. 

Dartmouth College

Dartmouth College’s corporate policy template is a comprehensive document that clearly defines all allowed and disallowed expenses to keep employees clear on their expense limitations. 

It details the penalties one might face when one fails to abide by the policy. It may not be a simple playbook, but it was designed specifically for the educational institution and its employees. 

Dartmouth College recommends that all traveling employees who travel at least once a year obtain a corporate card for their travel expenses. Its policy dictates that employees book airway tickets through the Dartmouth travel portal. 

Employees not possessing a corporate card may acquire advances to cover incidental costs for a maximum daily limit of US$50 as long as they provide a valid justification for it accompanied by proper receipts. These advances must be requested at least ten business days from the travel date and under no circumstances should be used to cover personal expenses or activities. 

Non-compliance or abusing the Dartmouth travel policy will result in the Dartmouth Controller’s Office revoking the traveler’s advance privileges.

The educational institution’s policy requires employees to choose the least expensive flight tickets, factoring in reasonable comfort and convenience requirements. It also encourages employees to leverage Dartmouth College’s contract with Travel Leaders to ensure they book the lowest fares. 

A significant employee benefit of the T&E policy is that travelers can personally retain the frequent flier points they accumulate through the corporate travels they can redeem for personal benefit. These benefits do not include any membership fees the employee may pay to join the frequent flier club. 

Employees are allowed to book business class tickets when the travel time exceeds five consecutive hours in duration or during exceptional circumstances subject to the approval of the Dean, President, Vice President, Board of Trustees, or Provost. 

Value-add-ons such as preferred seat selection and baggage fees are deemed acceptable per the policy, provided they are reasonable.

This company has a simple, transparent, and easily adaptable policy template that businesses can use as a starting point for writing their corporate travel policy. Businesses must download the customizable policy template from Workable’s company website and alter it based on their unique organizational travel requirements. 

The policy requires employees to contact the office manager, HR generalist, or finance manager for travel-related bookings. The robust approach requires employees to utilize their best judgment while on their trips and submit all travel-related invoices post-trip completion.

In their policy, a ‘business trip’ is any trip whereby an employee travels to a city different from where they typically work to conduct official business. The policy recognizes employee travel for client meetings, lectures, presentations, events, conferences, off-site company locations, and research trips as reimbursable. 

In such instances, all car, bus, or train commutes employees take that exceed an hour in travel time are also considered reimbursable business trip expenses. The policy does not consider daily work commutes of employees as a business trip regardless of how far they have to travel to get to the office.

It dictates that traveling employees are eligible to book a premium economy ticket, while Executives can book business class. Employees who utilize alternative means of air transport, such as boats, coaches, and trains, are eligible to reserve premium seats to and from their destination. 

Although, Workable’s travel policy does not cover any value-added services or extra baggage. The policy mandates that employees seek written approvals from their respective managers and book travel tickets and accommodation at least two weeks before the travel date. 

However, the policy facilitates flexibility for unforeseeable circumstances where the need for travel is unexpected. 

Traveling employees are allowed to travel by their personal vehicles or taxis for their business trips. In the case of the former, fuel and toll bills, and for the latter, the cab fares, are reimbursable provided the employee provides the appropriate receipts. A rental car is a third option per the policy for trips permissible when employees travel to multiple destinations to conduct official business. 

In such instances, the employee must book a basic two-four-door, compact, automatic transmission and petrol-powered automobile.

Employees are entitled to stay in three-star hotels or the best available accommodation available in the area, which will be paid for by the company. They are further encouraged to leverage business partnerships with hotels for discounted rates. 

Pending approval from the manager, employees can upgrade rooms or stay at higher prices if they pay the price difference. The policy stipulates that the company will not pay for upgrades or value-added services. 

Employees are also permitted to travel with a friend, partner, or family member if the extra member does not increase the travel cost to the company. In such cases, the policy requires the employee to pay in full for all additional expenses incurred that may arise due to the non-employee. 

Workable’s policy allows employees to claim up to US$20 for meals, including lunch and dinner, during business trips. Client dinners also come under the policy’s coverage for up to US$150. 

The traveling employee must acquire approval from Workable’s Chief Finance Officer (CFO) if the bill exceeds that amount. 

Corporate Traveler

Although it’s not a readily usable travel policy template, it serves as a guide for businesses to deploy their T&E policy . It dictates the steps and important considerations when devising a robust policy for unique business travel demands. It focuses on streamlining the corporate travel process to reduce costs and keep travelers safe. 

Employees are encouraged to use preferred suppliers and always opt for travel insurance. It motivates employees to avoid using business class or premium economy unless the flight time exceeds 10 hours. 

Additionally, the policy encourages businesses to outline clearly and precisely to employees on all reimbursable and non-reimbursable expenses, including meals, per diems, and ground transport, amongst others. 

Create and enforce your travel policy with Tripeur

Tripeur is a state-of-the-art travel management platform that simplifies the burden and responsibility of creating, updating, and enforcing your corporate travel policy. 

Once you write your policy, our system eliminates compliance issues by logging all business travel expenditures in real-time. These logs actively give employees T&E visibility to inform them precisely on what travel expenses they are entitled to and their limitations. 

Tripeur’s platform aims to help businesses overcome compliance issues by providing managers with the functionality of delivering WhatsApp and email approvals accompanied by automated expense reports. Through our system, management can instantly identify and mitigate any non-compliance in real time and enforce preventive measures to prevent future occurrences. 

Our innovative and user-friendly product could be the solution to create a robust travel policy that can effectively handle the re-emergence of international corporate travel. Every tool you need to maintain compliance is readily available within Tripeur’s powerful platform.  

Trying to figure out how to get better compliance with corporate travel policies? When you get Tripeur to book your business trips, it’ll link in with your travel policy. This makes it easier to spot when something isn’t following the rules and enables employees to make smarter decisions quickly.

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The Complete Guide to Business Travel Policy (With Free Downloadable Template)

Business trips may be unavoidable if you have overseas clients or offices in multiple locations. Or there may be international conferences that you want your employees to attend. With travel comes the hassle of booking transport, accommodation, paying for meals, and managing aspects related to the trip. 

Well, the norm is for companies to pay for any business-related expenses and business travel is one such major expense. To make budgeting and paying for corporate travel easy, it is advisable to have a business travel policy in place. 

What is a business travel policy?

A business travel policy or a corporate travel policy is a formal document that sets rules, guidelines, travel reimbursement process and other aspects related to business travel. It sets the tone for how employees should book, manage and apply for reimbursement for travel expenses related to a business trip. It must also include details on how managers should approve business travel. 

A company travel policy will include a purpose statement, scope, authorization and reimbursement processes, and travel arrangements. It will include details on transportation including airfare, per diem meal allowance, accommodation, incidental expenses and any miscellaneous expenses that may arise on a business trip. 

Usually, you may have a finance manager or a travel manager taking care of corporate travel. You could also hire an external travel agency. Irrespective of whether you manage business travel in-house or outsource it, having a comprehensive company travel policy regarding domestic and international travel can ease the process.

The objective of having a business travel policy 

The objective of having a travel policy for employees in a company is to establish specific standards for corporate travel. It is essential to be prudent. A company-wide business travel policy will set the expectations for booking business travel for different levels of employees. It will provide the basis for employees claiming reimbursements, set a process for the same and make it easy for both travellers and travel approvers. 

A travel and expense (T&E) policy is also required to help employees understand the legalities of business travel. It will also help with expense reporting and explaining to authorities how you budget and spend travel expenses as a business. 

With a T&E policy in place, you will be able to budget better, monitor employee spending, and ensure that employees have a safe trip. It is also a good way to reduce overspending and limit fraud. 

Scope of a travel and expense policy 

A comprehensive T&E policy should ideally cover all regular employees of the company. That should include top management and percolate down to interns, depending on who may need to travel. It could also include contractors, seasonal employees, part-time employees and all others who may need to travel. 

The scope should include:

• Transportation including airfare, trains and buses
• Private transportation
• On-ground or local travel 

Accommodation 

• Incidental expenses such as WiFi, parking charges, etc. 
• Miscellaneous expenses such as cost of vaccinations and boosters required for Covid
• Helpline numbers 

The repercussions of non-adherence to the company travel policy should be stringent for all.  

Why do you need a business travel policy? 

If you are a company that has employees who need to travel regularly, then it is optimal for you to have a T&E policy for employees. It has a range of benefits, not just for the business but also for your employees.

A corporate travel policy will ensure employee safety 

There is a Duty of Care that all employers owe to their employees. If your employees are on business travel, you must ensure their safety and protection. Having a travel policy for employees with clear guidelines can make travel safe. For instance, you may mandate that employees fly with a carrier with the highest safety standards. Or, you may permit employees to use private transport late at night. That is a reliable place to work.

It saves costs 

One of the biggest reasons to have a business T&E policy is to regulate costs. Research suggests that business travel expenses could grow to $1.7 billion by the end of the year. Businesses usually spend an average of 10% of their annual expenses on corporate travel. Without guidelines that tell your employees what an acceptable level of spending is, your business travel expenses could shoot up considerably. Employees may be tempted to go in for the most expensive option without appropriate guidelines in place. You don't want your employees spending on presidential suites and ordering caviar at company expense. In that case, you should consider enforcing a corporate travel policy that sets per diem limits on how much employees can spend on food, accommodation, local travel, client expenses, etc. 

‍ It makes travel management easier 

Having a clear set of guidelines on what is acceptable and what isn't when travelling for work makes the process easier for both employees and the company. Imagine if your employees had to clarify every small detail regarding their travel – what airline class is permitted, whether airport parking is a claimable expense or not, are Uber fares refundable, etc. A business travel policy makes it easier for your employees and saves time answering repetitive questions.

It reduces fraud 

When you have a company-wise detailed business travel policy, the chances of employees taking you for a ride are lower. Since you set the upper limit on how much they are allowed to spend on each aspect of business travel, such as food or accommodation, they will be forced to stick to the budget or pay for the difference themselves. When you put the onus on the employee, they are less likely to overspend, on purpose or otherwise. 

It increases fairness and transparency

A well-designed and properly communicated T&E policy fosters an environment of fairness in the company. Managers can show no favouritism. The policy will set out the budget for employees and arrangements will be made according to that. When employees see that everyone is getting equitable treatment, it will foster a positive company culture. 

Makes reimbursement process smoother 

A business travel policy will clearly state the budget for business travel. It will require employees to submit receipts and invoices to support their expenses. These can then be reconciled and settled accordingly. Having a T&E platform to settle business travel expenses will make the reimbursement process seamless. 

Who should consider creating a business travel policy? 

Whether you are a big business or a startup, you should consider having a company travel policy if: 

• You have factories in multiple locations. Managers and employees may need to travel to different sites for educational or training purposes. 
• Your business is rapidly expanding across geographies. This may require senior management or other employees to travel to other locations for business purposes. Having a travel policy will make it easier to monitor and budget for these trips. 
• Your business has clients spread across the country, or in international locations, then having a corporate travel policy is a must. Employees will need to travel frequently to liaise with clients. A travel policy will make business travel fair for all. 
• You are a company that outsources a good portion of your business to offshore vendors, you may need to visit them from time to time for quality checks and supervision. Getting a travel policy will make corporate travel hassle-free. 
• You send employees for training, conferences and seminars to other locations. This will make bulk bookings easier to manage and budget. 

What to include in your business travel policy? 

When drafting your business travel policy, there are many aspects to consider. Your T&E policy needs to reflect your unique needs, including your company's and employees' needs. Some of the fundamental elements to cover are:

Overall guidelines 

Set the basic standard of your T&E policy for business travel. Section your outline to include domestic and international travel separately. Budgets for different destinations will differ. Clearly outline who will be responsible for executing the policy at different levels. Will the travel manager handle sanctioning for everyone, or will other team managers be accountable for authorising business travel? Also, mention the timeline for making bookings. Encourage your employees to make bookings early to take advantage of cheaper rates. Apart from budgetary considerations, also look into business travel safety and security aspects. It will put your employees at ease while travelling for work.

Transportation 

You need to consider how your employees will travel for a business trip. For short domestic travel, you could consider trains or road travel. If an employee is taking their vehicle, outline whether you will be paying only for fuel or a driver. International travel may require sanctioning airline budgets. You should specify the budget for flight expenses or outline whether they are permitted to travel by business class or economy. Even while travelling locally at the destination they are at, you should specify whether employees are allowed to take cabs or whether they should stick to public transport. Even minute details such as what form of transport is acceptable while travelling to the airport or train station should be mentioned so that there is no ambiguity later on. In general, you should encourage your employees to minimise travel expenses.

If your employees need to stay overnight during business travel, you will need to provide accommodation. In the T&E policy, you must clearly state what accommodation you can provide. If your budget is large enough, you may be able to provide accommodation in a star hotel. As a startup, your accommodation may be within a budget stay. If you have your guesthouses, you could put up your employees there. Depending on your means as a company, you should define the accommodation arrangements in the corporate travel policy and communicate them to your employees. 

Travel insurance 

To increase business travel safety, you may choose to insure your employees on business trips. If you have partnered with an insurance company, disclose this in your T&E policy so that employees only avail the services of the vendor you have sanctioned. If there is any aspect of travel you do not insure, disclose it in your policy.

In case of group travel, you may be able to arrange food for all employees through a caterer or a fixed menu. Setting a budget per meal or day makes sense for solo travellers who may be dining on their own. Having a per diem allocation for meals can be economical. This section should also include details about whose meals employees are allowed to pay for. For instance, if an employee is going to a business meeting, you may enable them to pay for the client. However, a personal meeting not sanctioned by the manager may not fall under the company travel expense. You must outline these clearly so that there is no confusion.

Travel by designation 

You may have a blanket policy for everyone, or you may choose to provide upgraded services to executive employees. For instance, you may allow senior management to travel by business class and book accommodation in star hotels. While this may seem like additional expenditure, it can also be a way to motivate your employees. If you plan on providing differential travel arrangements for employees, you should mention this in your T&E policy. It will make it easier for your budgeting team to allocate resources accordingly.

Reimbursements 

You cannot prepay all expenses. There may be expenses that might arise while on the business trip, such as sudden meetings with clients, an add-on fee at a conference, etc. You need to state what expenses can be reimbursed and what cannot. You could issue a corporate credit card to your travelling employees to make the process easy. Even while giving the credit card, you need to be specific about which expenses they will be able to claim. Aspire provides unlimited corporate cards that you can issue to teams that help reduce or avoid forex charges, integrates seamlessly with your accounting software and makes it easy to track expenses. We also have specialised reimbursement software that is a delight for employees, accounting teams and the entire organization. 

Non-reimbursable expenses 

It may be prudent to include a section on non-reimbursable expenses. For instance, if you don't specify that entertainment expenses are excluded from business travel budgets, your employees may assume it is allowed. That could lead to confusion later on. You may not reimburse costs such as using a hotel's spa, swimming pool, gym, minibar, room service, etc. Mention this in the T&E policy.

Non-employee travel guidelines

For extended business trips, you may allow your employee to travel with their spouse or children. However, you may require them to stay in the same room or accommodation you have provided. Suppose you are allowing your employees to travel with their families. In that case, you need to specify which family members they are allowed to take with them and whether you will be paying for their travel or sanction any additional expenses.

Miscellaneous expenses 

If your employees are going to attend a conference and there are registration fees involved, your T&E policy should specify whether you will be covering the expenses. Any other miscellaneous costs such as parking fees at an airport, excess baggage, laundry services while staying for extended durations, gifts for clients, tests and vaccinations required for travel under Covid-19 protocol, etc., should also be specified in the T&E policy. Leaving any expense uncovered could create room for doubt and increase your travel budget.

Special Circumstances and exceptions

It is essential to outline a section dedicated to special circumstances such as missed flights, trains or buses, double bookings, lost tickets, surcharge fare on public transport, etc. You should outline every possibility and have a backup plan for employees to follow. Having these in your guidelines will eliminate ambiguity and a possible overcharging by employees. 

‍ Approved list of agents and partners 

Your business travel policy should include a list of pre-approved agents, vendors and partners you have tied up with for different purposes. For instance, you may have partnered with a group of hotels to avail corporate discounts. This should be stated in the company travel policy. You should also provide contact details, customer care numbers, discount codes, etc. wherever applicable. 

Reimbursement process

For expenses that are not prepaid, you need to have a reimbursement process in place. This includes the reimbursement timeline, instructions on how to submit receipts and vouchers, which software to use while applying for reimbursement, who issues reimbursements, how long the reimbursement process will take, etc. 

Escalations and emergencies 

Your T&E policy should also include details regarding what to do in case of emergencies. You should provide a company helpline number as well as a local person of contact to lean on in case of emergency. For other issues and escalations too, you should provide a separate point of contact. Not equipping your employees with these details could leave them lost and confused in unexpected circumstances. 

Things to consider before drafting a business travel policy 

As you can see, there's a lot of detail to drafting your business travel policy. Here are some steps to keep in mind while creating a comprehensive business travel policy:

Identify your objectives 

Before drafting your travel policy for employees, outline what the objectives are. You should be considering employee safety, cost management and a streamlined process; if you want your employees to have a self-serve option, you must design your T&E policy accordingly.

Consider your employees' needs 

A business travel policy should not be solely from the company's point of view. You should also consider your employees' needs. Ask questions like whether your employee will be comfortable in the accommodation you are approving, whether the meals budget will be sufficient, is it safe to take public transport in the location they are travelling to, etc. You could employ a professional travel manager to make these decisions.

Set clear guidelines 

An ambiguous T&E policy will do as much harm as not having a policy. Make sure to set clear guidelines on what is acceptable during business travel. From transportation-related expenses to paying for clients and gifting policies, outline every detail, so there is no room for doubts.

Put it in writing and circulate it 

Write down your company travel policy in complete detail and make sure that every employee is aware of its existence. Doing this will ensure that they stick to the regulations. If you think an employee will need to travel, send the business travel policy across to them anyway. Also, make it accessible on your employee or HR portals so that employees can refer to it at any time.

Travel and expense policy best practices 

Follow these travel and expense policy best practices to ensure you have an easy-to-follow T&E policy:

Keep it simple

Your business travel policy should be comprehensive, but it should also be easy to understand. Avoid jargon and legalese in your corporate travel policy. If you have a lot of terms that are difficult to understand, include an index. That will make it easy for your employees to follow the travel policy and stick to it. If your policy is too complex, your employees may have difficulty keeping up and disregard the guidelines.

Be clear with your rules 

When drafting your travel policy, be clear and definite with the guidelines. Providing room for ambiguity can lead to your employees taking advantage, even if unintentional. If you have a comprehensive company travel policy that covers every aspect of travel, you are more likely to succeed with its implementation. Emphasise the importance of your employees sticking to your business travel policy and specify the repercussions of not adhering to the guidelines. To make the process smoother for your employees, you could create a detailed section with frequently asked questions. That will help make your business travel policy airtight.

Make your policy visible 

For your corporate travel policy to be successful, you need to communicate it to your employees. Instead of burying your T&E policy inside another policy such as employee guidelines or HR rules, make it standalone. Integrate it with your travel booking process so that there is no chance they miss it. The policy should be easily accessible on your employee portals.

Look into employees' needs

Don't limit your T&E policy to budgetary objectives alone. Frame your business travel policy keeping your employees' safety, requirements and preferences in mind. It is possible to arrive at a solution that answers all of these. For instance, you could permit business class air travel for business trips that exceed 12 hours. It will make your employees more comfortable and improve their productivity on the business trip.

Include a care plan

A travel policy should always include a care plan. If your employees fall sick during the trip or meet with an accident, you should have a healthcare option available easily. The health insurance you provide may not cover healthcare expenses in specific destinations. Evaluate what is covered under the health insurance policy and see how you can top it up for travel. Travel insurance is also a must to ensure a safe and comfortable trip.

Incorporate flexibility

Whether you are a startup, a small-sized or a medium-sized company, you should consider making your business travel policy flexible. As long as you put broader rules in place, giving your employees some freedom to decide their travel plans can make them feel more at ease. Giving your employees the option to book their travel, choose from a range of accommodation choices, different insurance providers, multiple means of transport, etc. are ways to make your corporate travel policy more flexible.

Look for feedback

Feedback and suggestions can go a long way in helping you improve your business travel policy. Make it a point to collect employee feedback on the positives and negatives of  business travel at regular intervals. You could consider monthly, quarterly or half-yearly feedback, depending on how frequently you employees travel. If you notice similar problems recurring among employees, you could consider changing that aspect of your travel policy.

Review your T&E policy frequently 

To keep up with the times, you should review and edit your travel policy from time to time. Consider the different issues that have cropped up with business travel and incorporate the changes diligently to make your procedure more effective.

You can use Aspire's Spend Management tool to track your travel expenses and employee reimbursements. Spend management will help you track all your company's business travel expenses in one place, all in real-time. Our one-click reimbursement process makes it simple to claim any expense, set limits on spending, store all receipts in one place and much more. By segregating your business travel expense spend from other reimbursement expenses, you can make travel expense management more accessible and streamlined.

Want to implement a Corporate Travel Expense Policy but still not sure where to start? Download our free travel policy template and begin your journey to create a robust business travel system!

Bonus: Travel expense reporting best practices 

Travel expense reporting is just as important as creating a comprehensive business travel policy. Following travel and expense reporting best practices can help you control your T&E spending. It has many advantages. You can understand how the travel expense budget is split. You can identify spending patterns and understand where most of the money is going. You can generate reports based on these analyses and involve the senior management to figure out how to handle the budget better.

Here are some travel expense reporting best practices to follow:

• Create a mechanism to report total spending at a company and department level.
• Report expenses both in international and your company's local currencies for an international trip.
• Issuing corporate credit cards can help you track expenses better since you can set up a system where you get real-time updates on spends.
• Use an expense management software that makes tracking easier.
• Ensure you use an expense management software that automatic categorizes expenses and syncs it with your accounting software for faster closure of books. 

Conclusion 

To scale your business and take advantage of new opportunities, you may need to send your employees on business trips. It would be best if you could put a business travel policy in place. A business travel policy will ensure that you have clear guidelines for travel, making business trips productive for you and effortless for your employees. It is also a way to ensure employee safety and at the same time, help you save costs.

If you are unsure how to create a company travel policy, use available pre-existing business travel expense policy templates and customise it to meet your requirements. Keep travel and expense policy best practices in mind before creating your business travel policy. Aspire's Spend Management tool can help you track your T&E budget and keep an eye on your travel and expense policy.

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How to create a best-in-class business travel policy

A conversation with Kelly Ellis, Global Practice Area Lead, Traveler Engagement

Your travel policy is the bedrock of your business travel program, and it needs to be practical and relevant.

With so much change in the industry, it’s more important than ever to build a gold standard travel policy to make your program the best it can be.

To help, we asked Kelly Ellis, Global Traveler Engagement Practice Lead for her guidance.

Why is it so important for companies to be thinking about travel policy now?

There’s been so much change over the last two years that it’s very likely your travel policy needs to be refreshed. Whether you’re thinking about travel, expenses, sustainability , inflation, or employee wellbeing, we’ve found that there are items throughout most policies that need to be examined to make sure they’re still relevant to today’s travel context.

What exactly do you mean by a “best-in-class” travel policy?

In the past, pre-COVID-19, when creating new travel policies, we’d benchmark to the best practices from other policies. But now we’re recommending a far more agile approach, benchmarking against what’s happening today, rather than against other policies.

In doing this, we’ve developed what we consider a gold standard or best-in-class travel policy approach. This includes standard elements for air, hotel, and ground transportation, but we are also incorporating a broader mix of factors. These could include sustainable travel initiatives, diversity and inclusion (D&I), traveler health and wellness, and perks, rewards, and incentives. The important thing is that it’s not a one size fits all approach because not everything will be relevant for each company or industry. So, we tailor that gold standard based on individual organizational priorities and travel program goals.

How do companies get started to ensure they are incorporating best practices into their policy?

First and foremost, you need to have a thorough understanding of your current travel policy, and how it may (or may not be) supporting overall organizational goals. We have the most important policy elements for each category in our database. So, for example, if we’re assessing an existing air policy, we can go through 50+ data points and score the existing policy to see if those are present and well written. We assign a score, then we’re able to show clients how they can incorporate new policy elements or improve existing ones to strengthen their policy overall.

What are some of the mindset shifts and changes companies need to make as they undertake the process of changing their policy?

We’re seeing three major shifts.

• Health and wellness is definitely a key factor now. Safety and security have always been a huge priority in travel policies – and still are today. However, since COVID-19, there’s more of a focus on health and wellbeing for travelers – thinking about what it means for them to be safe while on the road and also healthy. So, it’s important to incorporate and update policy guidance accordingly. This may not always require a hard-coded rule change. Sometimes, it’s just a finesse so it’s an addressed approach within the policy.
• Tone of voice and structure within policies is also changing. People used to read the black and white newspaper. They rarely do that anymore. Likewise, a 50-page policy was acceptable and maybe new employees would read it in one sitting. That’s not a normal occurrence anymore. So, we have to make policy information accessible and easily digestible for our traveler population and even be able to answer questions in the interview process as travel policies sometimes make or break an employment decision.
• Collaboration is another important mindset shift. Companies are moving away from working in silos when looking at the travel policy. Increasingly, lots of different teams have input, whether that’s the people handling expenses, the risk management team, the HR team, the sustainability group, or the COVID-19 task force. Companies are breaking down internal barriers, and teams aren’t just playing in their own sandboxes. It’s true collaboration, which is a great approach.

Can you outline some of the trending topics in travel policy today?

What’s trending right now is sustainable travel, health and wellness, D&I, and travel alternatives. This last one is a mindset shift we’ve been recommending for a few years now. Yes, we’re in the travel industry, and we want people to travel, but we also need to think about whether that’s the right choice and make that decision upfront. Companies are calling this out right at the top of the policy, asking questions like: “Is this trip necessary?” or “Is this trip essential?” And not surprisingly, “Could we use a virtual tool instead?” It’s encouraging travelers to act like owners and make the best decisions for themselves, the environment, and the company.

How can you get policy information out to travelers more effectively?

The big shift is engaging travelers at the moments when they need information, which is something we’ve always recommended at Advito. The remote work environment makes this even more important. This includes things like recommending sustainable options when booking in the online booking tool (OBT), or reminding them about their expense limit in the mobile app. Because travelers and especially new hires aren’t going to remember everything in the policy a few months later when they take their first business trip.

There are three key areas where it’s important to reach travelers. A company’s intranet site should house its full policy and emphasize key points on its travel pages. The OBT needs to focus on the policy portions that are relevant during that booking experience. And the mobile apps need to focus on what’s relevant to travelers while they’re on the road and even post-trip. In addition to those main three, you can also improve education and awareness with supplemental channels like email campaigns, internal social communities, webinars, lunch and learns, and so on to keep travelers up to speed on policy updates.

How has the approach to policy review changed, and why?

We used to review travel policies every five years or so, but everything is changing so rapidly and so drastically that it’s more important to have an agile, flexible approach. We now recommend a travel policy review at least once a year. If you do that, it becomes an ongoing approach that gets easier and easier to do each time.

Ready to create your own best-in-class travel policy? Learn more about Advito’s travel policy service .

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Corporate Travel Policy

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UNCLASSIFIED (U)

allowable travel and miscellaneous expenses

(CT:LOG-392;   03-20-2024) (Office of Origin:  A/LM)

14 FAM 561  POLICY AND AUTHORITIES

14 FAM 561.1  Policy

(CT:LOG-381;   09-26-2023)

It is the general policy of the U.S. Government that less-than-premium-class accommodations must be used for all modes of passenger transportation.  The policies in 14 FAM 567 govern the use of common carrier accommodations and apply to travel while on official U.S. Government business.

14 FAM 561.2  Exercising Care in Incurring Expenses

An employee traveling on official business is expected to exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business and expending personal funds.  Excess costs, circuitous routes, delays, or luxury accommodations and services unnecessary or unjustified in the performance of official business are not acceptable under this standard.  Employees will be responsible for excess costs and any additional expenses incurred for personal preference or convenience.

14 FAM 561.3  Authorities

In addition to the authorities listed in 14 FAM 511.4 , the following authorities apply:

(1)  State Department Delegation of Authority No. 462, dated January 9, 2019, delegates the Secretary of State's travel authority to the Under Secretary and Deputy Under Secretary of State for Management;

(2)  22 U.S.C. 4081 is the travel payment authorization provision of the Foreign Service Act that provides for a domestic relocation allowance;

(3)  The Federal Travel Regulation (FTR) 41 CFR 301.10-124 addresses coach-class seating upgrade programs;

(4) FTR 41 CFR Part 301-13 addresses travel of employees with special needs, and

(5)  The General Services Agency's (GSA) FTR Bulletin FTR 09-02, dated 31 Dec. 2008, clarifies the seat choice options and other miscellaneous fees Federal agencies may reimburse their employees while on official travel.

14 FAM 562  EXPENSES ALLOWABLE

14 FAM 562.1  Miscellaneous Expenses not Covered by Per Diem

(CT:LOG-392;   03-20-2024)

a. The following travel expenses, when actually incurred and necessary, can be itemized and reimbursed over and above the per diem allowance for lodging and meals and incidental expenses (M&IE):

(1)  Official telephone calls and faxes in connection with official business; internet access fees while performing official business.  Reimbursement for expenses must be authorized in advance of travel on the travel authorization;

(2)  Commissions for conversion of currency; fees to obtain travelers checks, money orders and certified checks; transaction fees for use of ATMs and other vendors such as hotels when using a U.S. Government contractor-issued charge card.  For locally employed (LE) staff who use their personal charge cards and for other travelers who the Department has determined may not be issued a U.S. Government charge card or who have been authorized to use their personal charge cards for official travel, transaction fees for the use of ATMs and other vendors such as hotels may be allowed, if stated on the travel authorization in advance of travel;

(3)  Lodging taxes in domestic and nonforeign areas (see FTR, 41 CFR 301-11.27); energy surcharge and lodging resort fees when such fees are not optional;

      NOTE :  Lodging taxes and mandatory fees in foreign areas are incorporated into the per diem rate for lodging for those areas.  In order to be fully reimbursed, the sum total cost of lodging plus mandatory taxes and fees in foreign areas must be within the prescribed lodging component of per diem for that area;

(4)  Fees in connection with the issuance of passports and visas and other legally required costs; photographs for passports and visas; certificates of birth, health and identity, and affidavits attesting thereto; foreign country entrance and exit fees;

(5)  Inoculations that cannot be obtained for free through a Federal dispensary (reimbursement must be authorized on the travel authorization before travel begins).  For yellow fever inoculations, there is no requirement for prior authorization for reimbursement; and

(6)  Expenses associated with the transport of human milk expressed by an employee or Eligible Family Member (EFM) while on TDY, approved medical travel, or on PCS travel (including for the authorized PCS travel to post for new infants following a parent's authorized obstetrical medevac) in accordance with the FTR, 41 CFR 301-13.2, up to a maximum of $1000.  Reimbursement for expenses must be authorized in advance on the travel authorization and the traveler must submit all receipts, regardless of amount, with the travel voucher.  Expenses may include commercial shipping fees, excess baggage, disposable storage bags, cold shipping packages, refrigeration, transport, and non-durable containers.  Durable containers that are not reimbursable include  canvas, polypropylene, and  soft- or hard-sided containers . For special cases of TDY travel where expenses exceed $1000, the traveler may receive reimbursement above $1000 only when authorized in writing by the EX Director (or agency equivalent) of the funding bureau in advance of travel.  Such authorization must also accompany the travel authorization and the travel voucher.  Travelers are ultimately responsible for arranging all transport of human milk and for handling all related logistics.  See 3 FAM 3860 for more information on the Department’s lactation policy.

b. For Agriculture only :  Foreign Agricultural Service allows for reimbursement of authorized telephone calls of a personal nature during official travel.  For foreign travel, the maximum reimbursement is $15.00 per day.  For domestic travel, the maximum reimbursement is $5.00 per day.  The maximum aggregate amount that may be approved for each travel period (i.e., consecutive days of official travel) cannot exceed the amount equal to the daily reimbursement rate multiplied by the number of lodging nights.  This reimbursement is not an automatic claim and should only be reflected on a voucher if actual expenses were incurred while in a TDY travel status.

c.  For USAID only :  ADS 633.3.6.1 Financial Management Aspects of TDY, and ADS 549, Telecommunications Management, defines some telephone calls to family as “Official” and allows for reimbursement of those telephone calls when an employee is traveling on government business.  See those ADS chapters for further details.

14 FAM 562.2  Transportation Expenses

a. The following transportation expenses, when actually incurred and necessary, can be itemized and reimbursed if not paid directly by the U.S. Government:

(1)  Travel on railroads, aircraft, sailing vessels, buses, streetcars, and other usual means of common carrier conveyance;

(2)  Transfer, storage, and checking of baggage necessary for the purpose of the official travel;

(3)  Charges for transfer, storage, checking, and porters' fees and tips for handling U.S. Government property carried by the traveler;

(4)  Transportation charges for authorized excess official baggage;

(5)  Shipments by express or freight of U.S. Government property not classed as baggage and not admissible to the mail (normally made on U.S. Government bills-of-lading (GBLs) where feasible);

(6)  Packing and necessary preparation for shipment, cost of unboxing at destination, and necessary cartage of unaccompanied baggage or personal effects, or baggage accompanying traveler;

(7)  Hire of a boat, automobile, taxicab, aircraft, or other conveyance when authorized or approved as advantageous to the U.S. Government and when employee is engaged in official business within or outside employee's post of duty;

(8)  Daily travel to procure meals or lodging at the nearest available place when such cannot be procured at a temporary duty station; and

(9)  Transportation by bus, subway, streetcar, taxicab, transportation network company (TNC), or innovative mobility technology company (IMTC) (see 14 FAM 511.3 for definitions):

(a)  Between places of business;

(b)  Between place of lodging and place of business at a temporary duty station;

(c)  Between place of lodging or employee’s home and common carrier transportation terminal in connection with official travel;

(d)  From employee's office to a common carrier transportation terminal on the day of departure from the office on an official trip requiring at least one night's lodging.

b. Use of taxicabs, TNCs, or IMTCs (see 14 FAM 511.3 for definitions):

(1)  When suitable common carrier transportation is available for travel between points other than those listed above, but the traveler elects to use a taxicab or TNC, or IMTC, detailed remarks noting the circumstances must be furnished on the travel voucher;

(2)  Taxicab, TNC, or IMTC reimbursement in excess of $75.00 plus tip must be supported by a receipt along with a statement justifying the use of such conveyance;

(3)  The maximum tip allowable under this section is 20 percent of the reimbursable fare;

(4)  In lieu of the use of a taxicab, TNC, or IMTC as provided in this section, payment on a mileage basis at the approved rate, as described in 14 FAM 566.2-2 , is allowed for the mileage of a privately owned automobile used for a purpose detailed above, provided that the amount of reimbursement for mileage does not exceed the estimated taxicab, TNC, or IMTC cost, including allowable tip, for transportation between the applicable points;

(5)  Membership or application fees, tickets, fines, cancellation fees or fees charged for waiting for the traveler, or other such expenses associated with TNCs or IMTCs are not reimbursable.  Only actual usage charges, booking charges, and reservation charges made directly with the TNC or ITMC (not a third-party company) are eligible for reimbursement; and

(6)  Travelers may not know prior to beginning a trip what ground transportation options will be available at a particular location.  Thus, travel authorizations that contain advance authorization for a taxi, a TNC, or an IMTC are considered to confer authority to use any or all of those ground transportation options.  When completing a travel voucher, however, it is necessary to specify whether a taxi, TNC, or IMTC was actually utilized for each instance of ground transportation in order to facilitate preparation of certain congressionally mandated reports.

14 FAM 562.3  Unaccompanied Minor Charges

Most airlines provide a service for children traveling unaccompanied on their airline without the presence of a legal guardian, but fees for this service differ by airplane.  This charge is reimbursable when:

(1)  The EFM child (16 years of age or younger) is the only individual entitled to travel at U.S. Government expense for the type of official travel authorized (e.g., travel of children of separated families, educational travel, educational allowance, or on authorized or ordered departure); and

(2)  The child is engaged in direct travel with no deviation from the authorized itinerary; and

(3)  The fee is authorized on the travel authorization in advance of travel.

14 FAM 563  EXPENSES NOT ALLOWABLE

14 FAM 563.1  Items Included in Per Diem

The following items are included within the lodging and/or meals and incidentals (M&IE) portions of the per diem allowance (see definition in 14 FAM 511.3 ) and may not be paid, itemized, or reimbursed separately:

(1)  Charges for lodging, including:

(a)  Overnight sleeping facilities;

(b)  Personal use of room and bath during daytime;

(c)  Telephone access fee; and

(d)  Service charges for fans, televisions, air conditioning, heaters, microwaves, and refrigerators in rooms;

(2)  Charges for meals, including:

(a)  Expenses for breakfast, lunch, and dinner; and

(b)  Related tips and taxes;

(3)  Incidental expenses, including:

(a)  Fees and tips given to waiters, porters, baggage handlers, bellhops, hotel personnel, restaurant staff, and similar employees;

(b)  Transportation between place of lodging or business and places where meals are taken, except as specified in 14 FAM 562.2 , subparagraph a(8); and

(c)  Bottled water;

(4)  Complimentary meals provided by common carriers or hotels (e.g., complimentary breakfast meals on airplanes, etc.) have no impact on per diem rates paid per FTR, 41 CFR 301-11.17.

14 FAM 563.2  Personal and Other Expenses

Costs of a personal nature are not reimbursable, such as:

(1)  Personal telephone calls or faxes, including messages, requesting leave, inquiring as to status of salary, expense vouchers, advance of funds, and reply thereto, or any other matter of personal nature.  This section does not apply to Agriculture or USAID employees (see exceptions for Agriculture employees in 14 FAM 562.1 , paragraph b, and for USAID employees in 14 FAM 562.1 , paragraph c);

(2)  Internet access fees for conducting personal business; internet service provider (ISP) fees (e.g., monthly charges for satellite, fiber, cable, or DSL internet access);

(3)  Transaction fees for use of ATMs and other vendors, such as hotels, with a personal charge card except when authorized in accordance with 14 FAM 562.1 , subparagraph a(2);

(4)  Laundry, dry cleaning, and pressing when traveling OCONUS or when traveling in CONUS for less than four consecutive nights;

(5)  Alcoholic beverages;

(6)  Entertainment expenses;

(7)  Any expenses incurred for other persons; and

(8)  Miscellaneous service fees (i.e., administrative, booking, and third-party fees) resulting from booking transportation or lodging outside a government-contracted travel management center or government lodging program (e.g., FedRooms).

14 FAM 564  Fare types

14 FAM 564.1  Unrestricted Fare Policy

(CT:LOG-381;   09-26-2023) (State and USAID)

a. In general and when possible, the Department utilizes the lowest-cost unrestricted fares available for travel between authorized origin and destination, respecting the terms of the General Services Administration (GSA) city-pair program, for all official travel.

b. An individual may request the purchase of a restricted or penalty fare for official travel based on personal convenience (e.g., taking an indirect route for personal reasons or wishing to travel in a class of service other than the one authorized), but the individual is responsible for any and all additional costs and/or penalties incurred in connection with such fares regardless of whether those costs are due to official or personal reasons.  See 14 FAM 561 for an employee's responsibility to exercise due care.

c.  When an individual is authorized an unrestricted fare but engages in indirect (cost-constructed) travel and elects to use a restricted fare, the cost of that restricted fare, in the class of service and the route used by the traveler, must be compared to the cost of an unrestricted fare along the authorized route in the authorized class of service in order to determine whether the individual’s deviation results in an additional cost to the U.S. Government:

(1)  If an additional cost would be incurred because of the individual’s decision to engage in indirect travel and/or travel in a class of service other than the one authorized, the individual must pay, to the TMC or air carrier issuing the ticket, the difference in fare between the restricted fare elected by the traveler and the unrestricted fare that would have been purchased by the U.S. Government; and

(2)  If no additional cost would be incurred, the U.S. Government may purchase the restricted fare along the indirect route and/or in the class of service other than the one authorized.  Any cost saving associated with the purchase of a restricted fare in this case is not transferrable to the traveler, and a fare saving may not be used to offset change or cancellation fees incurred as a result of the individual’s decision to use a restricted fare.

d. Whenever a cost comparison is made, documentation of the specific flight itineraries and their respective costs must be retained and included in the travel authorization for future reference and to meet auditing requirements.

14 FAM 564.2  Restricted Fare Policy

a. Restricted penalty fares should be authorized for official travel only when their use is practical and economical to the U.S. Government.  Round-trip tickets with such fares should be authorized only when, based on the journey as planned, the traveler knows or reasonably anticipates that such tickets will be utilized in accordance with their restrictions (see 14 FAM 542 for details of contract city-pair fares).  The use of prohibited ticketing practices, such as “throw-away,” “hidden city,” or “back-to-back” ticketing, is not permitted for any part of either authorized or cost constructed travel itineraries because those tactics violate air carrier contracts of carriage.

b. A mission or bureau has the option of developing a policy requiring the use of restricted, penalty fares subject to the conditions set out in paragraph a of this section.  The authorizing mission or bureau will assume financial responsibility for any penalties associated with these fares, should changes or cancellations be required by the U.S. Government.  The employee will be responsible for any penalties incurred for personal convenience.

c.  If a mission or bureau chooses to use restricted, penalty fares, the mission or bureau must provide the travel management center with a written policy for the use of these fares and the appropriate fare type (restricted or unrestricted) must be indicated in the remarks of each travel authorization.  At posts where a travel management center does not exist, the written policy must be provided to the travel section in the general services office.

d. When an employee is authorized a restricted fare under 14 FAM 564.2 , paragraph b, and engages in indirect (cost-constructed) travel also using a restricted fare, penalties incurred due to changes or cancellations required by the U.S. Government are reimbursable up to the cost that would have been incurred for similar modifications to the authorized routing.  The employee will be responsible for any penalties incurred for personal reasons.

14 FAM 564.3  Disposition of Airline Promotional Items

a. All Department employees, their dependents, and others whose travel is funded by the Department may retain for personal use promotional items (i.e., frequent flyer miles, upgrades, access to carrier lounges) earned from official travel under terms available to the general public and at no extra cost to the U.S. Government.

b. Travelers may accept free upgrades of services to business-class or first-class accommodations if they are obtained under terms available to the general public and at no extra cost to the U.S. Government.

c.  Travelers may redeem frequent flier miles (or use personal funds) to upgrade to business or first-class accommodations when performing official travel.

d. It is the responsibility of each traveler to communicate directly with a service provider to establish his or her frequent travel promotional benefits account.  Costs associated with establishing this account are to be paid by the traveler and are not a reimbursable expense.

e. Travelers need not report as taxable income promotional items obtained from official travel.

14 FAM 564.4  Compensation Received from Airlines for Denied Boarding

a. Voluntary :  A traveler may keep payments from a carrier for voluntarily vacating a transportation seat.  However, no additional expenses (per diem or miscellaneous reimbursable) may be paid because of the traveler’s delay.  Additional travel expenses incurred because of voluntarily giving up a seat are the traveler’s financial responsibility.

b. Involuntary :  If a traveler is involuntarily denied a transportation seat, the traveler enters an onward travel status for per diem and miscellaneous travel expense reimbursement.  Any monetary compensation (including meal and/or lodging vouchers) for the denied seat belongs to the U.S. Government.

14 FAM 565  CANCELED RESERVATIONS

14 FAM 565.1  Service/Cancellation Expenses

When a train, sailing vessel, or hotel reservation is canceled because of unavoidable, nonpersonal delay or because of official necessity, the cost of a service fee or cancellation expense charged by the service provider is allowed.  Fees paid for cancellations of reservations for personal reasons or avoidable delays in notifying the service provider are not reimbursable.

14 FAM 565.2  Liquidated Damage Payments to Traveler

a. When carrier tariffs require liquidated damage payments to travelers for the carrier's failure to provide confirmed reserved space, such payments by the liable carrier are to be by check, made payable to the "Treasurer of the United States."  In no case is the traveler permitted to accept from the carrier a check showing the traveler as payee.

b. The traveler is to acknowledge receipt of the check and submit a copy of the acknowledgment and the check with travel voucher.  Payment of denied boarding compensation to the Treasurer of the United States is a U.S. Government requirement and is no reflection on the carrier (see 4 FAM 470 ).

14 FAM 566  TRAVEL BY PRIVATELY OWNED VEHICLE OR PRIVATELY OWNED CONVEYANCE

14 FAM 566.1  Policy

a. Travel by common carrier is generally considered the most advantageous method to perform official travel.  Other methods of transportation may be authorized if they are determined to be more advantageous to the U.S. Government.  A determination that another method of transportation is more advantageous to the U.S. Government than common carrier transportation will not be made based on personal preference or inconvenience to the traveler.

b. In determining whether the use of a privately owned vehicle is advantageous to the U.S. Government, consider:

(1)  The feasibility of using common carrier transportation or U.S. Government-owned conveyances based on availability, suitability of schedules, and other applicable requirements;

(2)  The total cost to the government, including per diem, overtime, lost work time, actual transportation costs, total distance of travel, number of points visited on official travel, the number of travelers, and energy conservation;

(3)  The advantages resulting from the more expeditious transactions of the public business, economy, and employee performance effectiveness; and

(4)  Any other advantages and/or disadvantages to the U.S. Government in the particular case.

c.  The authority to travel by privately owned vehicle (POV) contained in this section is applicable to the employee and/or other family member(s) authorized to travel.  The vehicle to be used must be the property of the employee or family member prior to the initiation of travel and must be driven or shipped to the ultimate destination stipulated in the travel orders.  Only such vehicles as are eligible for shipment at U.S. Government expense are authorized to be driven on a mileage per diem basis under this provision.

d. Any reimbursement for travel by POV, under the mileage (see 14 FAM 566.2-1 ) per diem basis authorized by this section is limited to the actual mileage between authorized points on a direct route plus related per diem, not to exceed 10 days to each authorized destination.

14 FAM 566.2  Use Advantageous to the U.S. Government

14 FAM 566.2-1  General

(CT:LOG-388;   01-19-2024)

a. When the authorized travel from origin to destination (combined with TDY, consultation and/or home leave, as applicable) can be performed entirely using a privately owned vehicle (POV), such use may be authorized.

b. Travel by POV to separation address in the United States, when not otherwise covered under 14 FAM 566.1 , is hereby authorized from the port of discharge of the vehicle to the separation address via consultation point (as applicable).  In accordance with 14 FAM 618.4 , however, this authorization does not apply to vehicles acquired en route to a separation point.

c.  When an employee's vehicle is authorized emergency storage in accordance with 14 FAM 626 , an authorizing officer may determine that it is advantageous for the vehicle to be driven all or part of the distance to the designated storage point.

d. An employee who acquires a vehicle at a point on a direct route to the post of assignment abroad, and who has not previously shipped a vehicle under the provisions of the authorizing travel orders, may drive the POV to the destination.  The point of acquisition is considered the point of origin.  In no case may the cost of driving the vehicle from where it is acquired exceed the cost to the U.S. Government had the vehicle been shipped from the point of origin specified in the travel authorization to the authorized destination.

e. Travel by a POV is considered advantageous to the U.S. Government when the authorized or actual point of origin and the final destination are:

(1)  Connected by a hard-surface, all-weather highway or by vehicular ferry, or both (see 14 FAM 615.1 ); and

(2)  Within the continental United States or Canada or one of the following Mexican border posts:

(a)  Ciudad Juárez;

(b)  Matamoros;

(c)  Nuevo Laredo;

(d)  Tijuana; or

(e)  Nogales.

f.  When use of a rental vehicle in the United States is authorized, reimbursement for rental fees and actual expenses for fuel (gas, diesel, electricity, etc.) and tolls is authorized. U.S. Government-contracted rental vehicle services should be used whenever possible.  Collision damage waiver (CDW) is included in the contract amount and should not be accepted at extra cost.  When renting from companies not on the U.S. Government contracting list, travelers will not be reimbursed for CDW.  However, payments for damages to a rental car company or reimbursement to the employee, up to the deductible amount contained in the rental contract, are authorized, providing the employee was acting within the scope of his or her employment at the time of the incident.

g. When use of a rental vehicle abroad is authorized, reimbursement may include rental fees, including value added tax (VAT), and actual expenses for fuel and tolls.  U.S. Government-contracted rental vehicle services should be used whenever possible.  The contract rate includes CDW, VAT, and unlimited mileage. When renting from companies not on the U.S. Government contracting list, CDW, VAT, and unlimited mileage will not usually be included.  CDW is a reimbursable expense abroad.  In addition, payments for damages to a rental car company or reimbursement to the employee are authorized up to the deductible amount contained in the rental contract, providing the employee was acting within the scope of his or her employment at the time of the incident.

h. When use of a rental vehicle is authorized for official travel, the least expensive “compact” car available must be used unless one of the following exceptions for another class of vehicle applies and is indicated on the travel authorization:

(1)  When use of other than a compact car is necessary to accommodate a medical disability or other special need, and all applicable requirements set forth in 41 CFR 301-10.450(c)(1) have been met;

(2)  When additional room is required to accommodate multiple employees authorized to travel together in the same rental vehicle;

(3)  When security circumstances (as defined in writing by DS or the RSO) require a larger vehicle;

(4)  When necessary for other safety reasons, such as during severe weather or having to travel on rough or difficult terrain;

(5)  When travelers must carry a large amount of U.S. Government material incident to their official business, and a compact rental vehicle does not contain sufficient space; or

(6)  When the cost of other than a compact car is less than or equal to the cost of the least expensive compact car.

i.  For non-electric rental vehicles, t ravelers may not be reimbursed for purchasing prepaid refueling options.  Therefore, travelers must refuel prior to returning the rental vehicle to the drop-off location.  NOTE :  If it is not possible to refuel completely prior to returning the vehicle because of safety issues or due to the location of closest fueling station, travelers will be reimbursed for vendor refueling charges.   For electric rental vehicles, travelers may be reimbursed for pre-paid charging costs and/or necessary costs paid via credit card or billed back to the rental vehicle company to recharge the vehicle before return.

j.  Travelers will not be reimbursed for fees associated with rental car loyalty points or the transfer of points charged by car companies.

14 FAM 566.2-2  Mileage Reimbursement

Mileage reimbursement rates for automobiles (including trucks, vans, etc.), airplanes, motorcycles, and motor scooters are set by GSA.  The current rates may be found on the GSA website.

14 FAM 566.3  Privately Owned Vehicle (POV) Use for Personal Convenience

14 FAM 566.3-1  General

When no determination of advantage to the U.S. Government is made (see 14 FAM 566.2 ), the employee may elect to use a privately owned vehicle for personal convenience.  Any reimbursement for expenses for travel will be the lesser of:

(1)  Mileage for the authorized mode of travel at the rates provided in 14 FAM 566.2-2 , plus related per diem; or

(2)  For the portion of the route connected by air service, reimbursement may not exceed the constructive cost of the authorized U.S. Government fare for the authorized mode of travel on a direct route, plus related per diem and other expenses.  For any portion of the route not connected by air service, reimbursement may not exceed the constructive cost of commercial fares on a surface common carrier.

14 FAM 566.3-2  Use of Rental Vehicle

When the employee elects to use a rented vehicle for personal convenience, and use of the rental vehicle has not been specifically authorized, per 14 FAM 566.2-1 , paragraphs f and g, reimbursement for travel expenses will be the lesser of:

(1)  Mileage, plus per diem and other expenses allowable on the authorized mode of transportation stated in the travel authorization; or

(2)  The constructive cost of the U.S. Government airfare on a direct route, plus per diem and other expenses.  For any portion of the journey not connected by air service, reimbursement may not exceed the constructive cost of less than premium-class accommodations on a surface common carrier.

14 FAM 566.4  Computing Expenses

14 FAM 566.4-1  Distances

When travel is performed by a privately owned motor vehicle, distances are to be determined by use of standard highway mileage guides.  Travelers must explain any substantial deviation from distances shown in the standard highway mileage.  When travel is performed by privately owned airplanes, distances are to be determined from airways charts issued by the National Oceanic and Atmospheric Administration, Department of Commerce.  If a detour is necessary on account of adverse weather, mechanical difficulty, or other unusual conditions, the additional highway or charted air mileage may be included but must be explained.

14 FAM 566.4-2  Allowable Travel Time

Allowable time for travel by privately owned conveyance is limited to that which is reasonably required.  Variations in driving conditions do not permit the establishment of daily mileage requirements.  In the United States, however, 360 miles per day is considered the average normal driving distance.  Where road, climate, and other factors beyond the control of the traveler cause interruptions and deviations resulting in longer than normal travel time, the traveler will include a full explanation on the travel voucher.  The traveler must also explain any unusual circumstances that influence the elapsed time for travel by privately owned aircraft.

14 FAM 566.4-3  Shared Expenses

When two or more authorized travelers share the same privately owned conveyance, payment of mileage expenses is made to only one of them.

14 FAM 567  ACCOMMODATIONS

14 FAM 567.1  Accommodations on Trains and Vessels

a. U.S. Government employees who travel by train or sailing vessel (ship/ferry) are authorized the lowest class of accommodation on the train or sailing vessel.  For overnight train travel, employees must use slumber coach sleeping accommodations or the lowest level of economy sleeping accommodations available.  For overnight travel on a sailing vessel, employees must use the lowest-cost stateroom.  First-class train or steamer accommodations may be used only as permitted in 14 FAM 567.1-2 .

b. In some countries, the lowest class of train or sailing vessel service available locally may be considered by posts to be unacceptable by U.S. standards and not comparable to what would be considered as a reasonable basic class of accommodation as defined in 14 FAM 511.3 .  For example, train service described as first class at some posts may only equate to the coach-class definition in the United States.  Accordingly, posts may establish a policy re-defining the acceptable level of local train accommodations that would meet each definition and document this in a written policy for travelers, inspectors, and U.S. Government Accountability Office (GAO) auditors.

c.  If a train has only two classes of accommodation available (i.e., first and business), then the business class accommodation is deemed to be classified as coach class for the purposes of official travel since it is the lowest class offered.  In such cases, the travel authorization should reflect that use of the lowest class of service available is authorized.  While such travel may take place in the train’s business class compartment, is not reportable to GSA as premium class travel and no Form DS-4087 is required.

14 FAM 567.1-1  Authorization and Approval for the Use of Business- or First-Class Train or Sailing Vessel Accommodations

a. First class :  Heads of agencies, or their designees as listed in 14 FAM 567.2-3 , may authorize or approve the use of first-class train or sailing vessel accommodations under criteria specified in 14 FAM 567.1-2 .

b. Business class :  Officials listed in 14 FAM 567.2-4 may authorize or approve the use of business-class train or sailing vessel accommodations under criteria specified in 14 FAM 567.1-2 .

14 FAM 567.1-2  Use of Business- or First-Class Train or Sailing Vessel Accommodations

The use of business- or first-class accommodation may not be authorized strictly based on position or rank.  When business- or first-class accommodations are authorized under the following circumstances, only the next higher available accommodations satisfying the needs may be used; for example, business-class accommodations should be utilized before going to first-class accommodations.  Circumstances justifying the use of business- or first-class train or sailing vessel accommodations are limited to those listed below ( NOTE :  14 FAM 567.1-2 , subparagraph (4), applies only to trains):

(1)  No reasonably available coach-class train accommodations or lowest class sailing vessel accommodations :

(a)  Trains :  The use of business-class train accommodations may be authorized when no coach-class train accommodations are reasonably available.  For this paragraph, "reasonably available" means coach-class train accommodations that are scheduled to leave within 24 hours of the employee's proposed departure time or scheduled to arrive within 24 hours of the employee's proposed arrival time.  In the case of a direct route that requires overnight travel, "reasonably available” must be based on the availability of slumber coach, or lowest economy, sleeping accommodations.  "Reasonably available" does not include any accommodation with a scheduled arrival time that is later than the employee's required reporting time at the duty site, or with a scheduled departure time that is earlier than the time the employee is scheduled to complete duty;

(b)  When the traveler determines that coach seats are unavailable for reservation for the day he or she must travel to arrive at a destination in time to conduct official business, the traveler may proceed to obtain a reserved seat in the next higher class where a reserved seat is available.  This is only permissible when the traveler has made a good-faith effort to obtain a reservation in coach class at the earliest practicable time, i.e., the employee cannot unreasonably delay or postpone making reservations and travel plans to justify premium class travel; and

(c)  Sailing vessels :  The use of the next higher-class accommodations may be authorized or approved only when lowest-class accommodations are not available on the vessel;

(2)  Travel on trains or sailing vessels by an employee with a disability :  The use of business- or first-class train or sailing vessel accommodations may be authorized or approved when necessary to accommodate an employee's disability or other physical impairment, and the employee's condition and need for business- or first-class train or sailing vessel accommodations are substantiated in writing by MED or the regional medical officer or other competent medical authority.  The use of business- or first-class accommodations may also be authorized for an attendant, when the employee is authorized use of business- or first-class train or sailing vessel accommodations and MED, or the regional medical officer or other competent medical authority certifies that the employee's disability or other physical impairment requires the services of an attendant en route;

(3)  Security reasons aboard trains or sailing vessels :  The use of business- or first-class train or sailing vessel accommodations may be authorized or approved when exceptional security circumstances require such travel.  Exceptional security circumstances include but are not limited to:

(a)  Travel by an employee whose use of coach train or lowest-class sailing vessel accommodations would endanger the employee's life or U.S. Government property;

(b)  Travel by agents in charge of protective details and accompanying individuals authorized business- or first-class accommodations; or

(c)  Travel by couriers or control officers accompanying controlled pouches or packages and the lowest-class accommodations cannot fulfill the mission; and

(4)  Inadequate foreign coach-class train accommodations (foreign trains only) :  The use of business- or first-class train accommodations may be authorized or approved when coach-class accommodations on a foreign rail carrier lack adequate sanitation or health standards.

14 FAM 567.1-3  Reporting Requirements for Business- or First-Class Travel on a Train or Sailing Vessel

a. Refer to 14 FAM 567.2-5 for instructions on reporting the use of business- or first-class train or sailing vessel travel to GSA.

b. Extra-fare train service does not need to be reported to GSA if the traveler was ticketed in the lowest class of service offered, even if that class of service was business class.

c.  Travel that has been authorized under 14 FAM 567.1-2 , subparagraph (4) for inadequate sanitation or health standards does not need to be reported to GSA.

14 FAM 567.1-4  Extra-Fare Train Service (Express Trains)

a. Extra-fare train service is enhanced performance (i.e., faster speed or fewer stops) relative to other trains available between the same origin and destination.

b. Use of extra-fare trains is not authorized unless determined more advantageous to the U.S. Government or required for security reasons.

c.  To justify time savings as an advantage to the U.S. Government, the extra-fare train must reduce overall journey time by one hour or more.  Authorizing officials are reminded that air travel may be less expensive than extra-fare trains and, if so, should be the authorized mode of transportation.

d. To justify cost savings as an advantage to the U.S. Government, a ticket for the lowest class of service available on an extra-fare train must, relative to a ticket for the lowest class of service available on a standard train:

(1)  Have the same restrictions;

(2)  Be less expensive; and/or

(3)  Depart within 3 hours of the standard train that would otherwise be booked.

e. Authorizing officials listed in 14 FAM 567.1-1 must approve this and the requirements of 14 FAM 567.1-2 must be met to authorize business class (when it is other than the lowest class of service offered on the train) or first class on an extra-fare train.

14 FAM 567.2  Airplanes

a. See 14 FAM 583 .

b. U.S. Government employees who use commercial air carriers for domestic and international travel on official business must be authorized coach-class airline accommodations.  When available, the use of contract-air carriers offering discount (city-pair) fare is mandatory (see 14 FAM 542 , paragraph b).  First-class air accommodations may be authorized only as permitted in 14 FAM 567.2-3 .  Business-class air accommodations may be authorized only as permitted in 14 FAM 567.2-4 .

14 FAM 567.2-1  Seat Selection and Assignment

a. Each traveler, regardless of age, is entitled to occupy a seat on an airplane.

b. The policies and business practices of the airline(s) operating and/or marketing a particular flight determine whether a seat selection is available and, if they are available, whether a fee must be paid to obtain a seat.

c.  Inability to obtain a seat selection or assignment, either for "free" or upon payment of a fee, does not confer an exception to the mandatory use of contract carriers ( 14 FAM 543 ), the provisions of the Fly America Act ( 14 FAM 583 ), or the requirement to authorize travel on the carrier offering the lowest fare that is consistent with all travel regulations.

d. Except as specified in subparagraphs d(1) through d(3) of this section, travelers are eligible for reimbursement of charges to obtain an economy class seat selection in an amount not to exceed $300 (each way) between any two authorized duty locations (i.e., origin and destination pairs), as indicated on a travel authorization.  When a traveler qualifies for and is authorized a rest stop, the rest stop location is not considered a separate duty location for the purposes of this provision:

(1)  If a bureau/post has a written policy stating that it wishes to limit this benefit, a traveler’s authorizing official may cap reimbursement at a lower amount for a particular instance of travel.  In such cases, the authorizing official must specify, in advance of travel, the amount authorized for reimbursement between each duty location and should offer the traveler an explanation for the reduction;

(2)  Seat selection fees are not reimbursable for any segment(s) of travel:

(a)  Conducted in an indirect manner; or

(b)  For which a traveler has cost-constructed to use accommodation in business or first class; or

(c)  For which a traveler has been authorized business class or first-class accommodations; and

(3)  The "value" of a seat selection fee cannot be applied towards the cost of obtaining a ticket in an other-than-coach class of service or be considered as part of any cost-construct calculation.

e. Payment of a seat selection fee must be made directly to the airline by the traveler.  TMCs are not authorized to pay for seat selection fees, either by charging them directly to the U.S. Government or by facilitating payment on behalf of the traveler.

f.  Reimbursement for a seat selection fee must be approved on the travel authorization prior to commencing travel and can only be approved for authorized direct travel (see 14 FAM 511.3 ).

g. Receipts are required for reimbursement of seat selection fees, regardless of amount.

h. For the purposes of determining eligibility for reimbursement, a seat selection in any cabin except business class or first class will be considered an economy class seat selection.  Travelers may purchase any seating product, including those that offer increased seat width, additional legroom (formerly referred to as “extended economy seating”), or which are bundled/packaged with enhanced onboard or on-ground service, if the seating product is not business class or first class.  For example, whether an airline calls a seating product Economy Plus, Premium Economy, or Preferred Seats has no bearing on eligibility for reimbursement as long as the seats are not business or first-class seats.

i.  Travelers, not the TMC or airline, are responsible for making accurate determinations regarding whether a particular airline product is eligible for reimbursement as an economy-class seat assignment.  Because some airlines have developed branded names that do not give direct indication of their product’s status as business or first class (e.g., United Polaris, Delta One, Copa Dreams Class), travelers who are uncertain whether a product qualifies for reimbursement as an economy class seat selection fee may request a determination of eligibility, before travel commences, by contacting [email protected].

14 FAM 567.2-2  Requirements

14 FAM 567.2-2(A)  Authorization

a. Authorization for first-class or business-class air accommodations must be made in advance of the actual travel and must be documented in accordance with 14 FAM 567.2-2(B) .  The designated approving official must not be subordinate to the traveler except that the Executive Secretary may approve first-class or business-class air accommodations for the Secretary and the Deputy Secretaries.

b. If the documents required under 14 FAM 567.2-2(B) cannot be completed in advance of travel due to an emergency, the employee must obtain advance approval from an agency official not subordinate to the traveler or from the chief of the agency’s transportation and travel management division or other designated office and must submit the required documents with the appropriate signatures at the earliest possible time.

c.  If the employee does not obtain written authorization in accordance with this section, the employee is responsible for the difference between the first-class or business-class air accommodations used and the authorized coach-class or equivalent accommodations.

14 FAM 567.2-2(B)  Documentation

a. Authorization :  All requests for authorization must contain the name, grade, and position of the travelers; points between which first-class or business-class air accommodations are authorized; additional cost to the U.S. Government resulting from the difference between first-class or business-class and coach-class air accommodations; beginning date of travel; and an explanation of circumstances justifying the use of first-class or business-class air accommodations:

(1)  Authorization for first-class air accommodations must be reflected in the travel authorization and accompanied by a memo from the appropriate agency head or designee (see 14 FAM 567.2-3 );

(2)  Authorization for business-class air accommodations must be reflected in the travel authorization and accompanied by the appropriate form signed by the designated approving official (see 14 FAM 567.2-4 ):

(a)  State :  Form DS-4087, Authorization Request for Business-Class Air Travel; or Form DS-4086, Special Seating Request Form for Air Travel, if the justification for use of premium-class accommodations is authorized for disability or special need under 14 FAM 567.2-4 , subparagraph (b)(3);

(b)  USAID :  Form AID-522-2, Business Class Memorandum to M/MS/TTD;

(c)  Commerce :  Form CD-334, Request for Approval of Other Than Coach-Class Accommodations;

(d)  USDA/FAS :  Memo requesting premium-class travel;

(e)  APHIS :  Memo to approving official; and

(f)   USAGM :  Memo to approving official.

b. Ticketing :  The travel management center (where applicable) will not ticket first-class or business-class accommodations without the appropriate documentation.  Posts that do not have a travel management center must retain the required documentation for the record.

c.  Blanket orders :  The use of blanket travel authorizations for first-class or business-class accommodations is prohibited (State Department personnel).  Each trip involving first- or business-class travel accommodations must be separately authorized.

d. Couriers :  A courier who flies first class when business-class air accommodations are not available, must complete and sign Form DS-3031, Certification for Use of First-Class Air Accommodations.  A copy of the certification must be retained by the courier and the original is to be maintained in the courier's regional office.

14 FAM 567.2-3  First-Class Travel

a. Authorization or approval :  Authority to approve the use of first-class air accommodations is limited to the respective agency heads (the Secretary of State, the Administrator of USAID, the Secretary of Commerce, the Director of the U.S. International Broadcasting Bureau of the Broadcasting Board of Governors (USAGM/IBB), and the Secretary of Agriculture) or their designees.  Designees are as follows:

(1)  State :  The Under Secretary for Management (M) per State Department Delegation of Authority No. 198, dated September 16, 1992, except that the Executive Secretary may approve the use of first-class air accommodations for the Secretary and the Deputy Secretary;

(2)  USAID :  The Deputy Administrator;

(3)  Commerce :  The Chief Financial Officer and the Assistant Secretary for Administration except in cases of medical necessity or emergency evacuation when the Deputy Assistant Secretary for International Operations is delegated authority to approve.  First-class travel will only be authorized if no other commercial service is reasonably available or such travel is necessary for reasons of disability or medical condition (for details on Commerce’s policy on use of business-class accommodations, contact the Office of Foreign Service Human Capital);

(4)  USDA/FAS :  The Administrator, Foreign Agricultural Service;

(5)  APHIS :  The Under Secretary for Marketing and Regulatory Programs; and

(6)  USAGM :  The Director of the International Broadcasting Bureau or as specified in the Manual of Administration.

b. Use of first-class accommodations :  Circumstances justifying the use of first-class air accommodations are limited to those listed below:

(1)  No other reasonably available accommodations :  The use of first-class air accommodations may be authorized or approved when coach-class air accommodations or business-class air accommodations are not reasonably available.  "Not reasonably available" means no other class of accommodations other than first-class accommodations is available on any scheduled flight in time to accomplish the purpose of the official travel;

(2)  Travel by an employee with a disability :  The use of first-class air accommodations may be authorized or approved when necessary to accommodate an employee's disability or other physical impairment, and the employee's condition and need for first-class air accommodations are substantiated in writing by MED or the regional medical officer or other competent medical authority. The use of first-class air accommodations also may be authorized for an attendant(s) who is authorized to accompany the employee, when the employee is authorized first-class air accommodations and MED or the regional medical officer or other competent medical authority or the Disability/Reasonable Accommodation Division (GTM/ER/DRAD) certifies in writing that the employee's disability or other physical impairment requires the services of the attendant(s) en route;

(3)  Security reasons :  The use of first-class air accommodations may be authorized or approved when exceptional security circumstances require such travel.  Exceptional security circumstances include but are not limited to:

(a)  Travel by couriers or control officers accompanying controlled pouches or packages when business-class air accommodations are not available (see 14 FAM 567.1-2 , subparagraph (3)(c)); or

(b)  Travel by agents in charge of protective details accompanying first-class travelers; and

(c)  When required because of agency mission.

14 FAM 567.2-4  Business-Class Travel

a. Authorization or approval :

(1)  State :  For PCS travel, the designated approving official is the Executive Director, Bureau of Global Talent Management (GTM/EX).  Except where otherwise indicated, business-class air accommodations may be authorized only with approval from the officials below (or their designated representative(s)) as provided to TMP.  For travelers not mentioned below, the designated approving official must not be subordinate to the traveler:

(2)  USAID :  The Chief of the Travel and Transportation Division (M/MS/TTD), the director of the funding bureau, office, or mission or designee;

(3)  Commerce :  The Chief Financial Officer and the Assistant Secretary for Administration except in cases of medical necessity or emergency evacuation when the Deputy Assistant Secretary for International Operations is delegated authority to approve.  Business-class travel will only be authorized if no other commercial service is reasonably available or such travel is necessary for reasons of disability or medical condition (for details on Commerce's policy on the use of business-class accommodations, contact the Office of Foreign Service Human Capital);

(4)  USDA/FAS :  The Under Secretary for Farm and Foreign Agricultural Services and the USDA Chief Financial Officer;

(5)  APHIS :  The Under Secretary for Marketing and Regulatory Programs and the USDA Chief Financial Officer; and

b. Justification :  Travelers may use business-class air accommodations when an approving/authorizing official specifically approves or authorizes the travel in accordance with one or more of the following reasons:

(1)  Coach-class air accommodations not available :  Business-class air accommodations may be authorized when regularly scheduled flights between the authorized origin and destination points (including connection points) provide only business-class air accommodations;

(2)  No space available in coach-class air accommodations :  Business-class air accommodations may be authorized when space is not available in coach-class accommodations on any scheduled flight in time to accomplish the purpose of the official travel;

(3)  Travel by an individual with a disability or special need :  Upon the recommendation of the Bureau of Medical Services (MED), other competent medical authority in exigent circumstances, or the Disability/Reasonable Accommodation Division (GTM/ER/DRAD), business-class air accommodations may be authorized when necessary to accommodate an employee's disability or special need.  Other competent medical authority must certify in writing (to include the supporting clinical findings) the traveler’s condition and need for business-class air accommodations.  Upon the recommendation of MED or, in exigent circumstances, other competent medical authority, business-class air accommodations may also be authorized for an attendant authorized to accompany the traveler when the traveler is authorized use of business-class air accommodations.  Authorization for an attendant to accompany the traveler, by other competent medical authority, must include written certification that the traveler’s disability or other special need requires the services of the attendant en route;

(4)  Security or exceptional circumstances :  Business-class air accommodations may be authorized when such accommodations are required for security purposes or because exceptional circumstances, as determined by the agency head, or his or her designee, make their use essential to the successful performance of the agency's mission.  NOTE :  Exceptional circumstances may include, but are not limited to, a chief of mission (COM) and their eligible family member spouse (whether traveling together or at different times) going to post for the first time or leaving post the last time, in accordance with protocol and diplomatic practice for a COM.  The tandem spouse of a COM assigned to the same post may also be authorized business class on this basis.  Other eligible family members who accompany either the COM or spouse may be authorized business class.  If consultations are authorized en route to and from post, business-class accommodations may be authorized to and from the consultation location(s);

(5)  Overall cost savings :  Business-class air accommodations may be authorized when such accommodations would result in an overall savings to the U.S. Government, including by avoiding additional subsistence costs, overtime, or lost productive time while awaiting coach class accommodations.  Whenever a cost comparison is made, documentation of the specific flight itineraries and their respective costs must be retained and included in the travel authorization for future reference and to meet auditing requirements:

(a)  If a traveler is otherwise authorized an unrestricted economy fare and seeks to be authorized a business-class fare under this provision, the unrestricted economy fare must be compared to the cost of an unrestricted business-class fare;

(b)  If a traveler is otherwise authorized a restricted economy fare and seeks to be authorized a business-class fare under this provision, the restricted economy fare must be compared to the cost of a restricted business-class fare;

(6)  Agency mission :  Business-class air accommodations may be authorized when required due to agency mission.  State only :  Business-class travel of 14 hours or less based on this criteria must be approved by the traveler's under secretary or equivalent in their supervisory chain.  Deputy secretary and under secretary business-class travel is approved by the Executive Secretary;

(7)  Acceptance of payment from non-Federal source :  Business-class air accommodations may be authorized when the employee's transportation is paid in full through agency acceptance of payment from a non-Federal source in accordance with 2 FAM 962.12 (g) and 41 CFR 304-5.5; and

(8)  Travel in excess of 14 hours for temporary duty (TDY) travel, or medical evacuation travel (exception :  USAGM; for further USAGM guidance on when business-class accommodations can be authorized, refer to USAGM’s Manual of Operations and Administration (MOA) directive PART IV Section 636.3, Business-Class Travel Exceptions):

(a)  TDY travel to receive training:  Business-class air accommodations are not authorized for TDY travel over 14 hours where the primary purpose of the travel, as determined by the funding bureau or post approving/authorizing officer, is for the traveler to receive training or instruction;

(b)  TDY travel not related to training:  For TDY travel over 14 hours, travelers are authorized economy-class accommodations with a rest stop or a paid day pass to a business-class lounge at an intermediate point on the traveler’s authorized itinerary.  However, the funding bureau's executive director or authorizing official at post may determine that circumstances warrant issuance of a business-class ticket provided the following criteria are met:

(i)     The origin and/or destination is outside the continental United States;

(ii)    The scheduled flight time (including stopovers, but not including rest stops) on the usually traveled route is in excess of 14 hours;

(iii)    The purpose of the trip is urgent and cannot be postponed. The traveler must physically report to the duty location immediately upon arrival or the following day, and work until the urgent requirements are fulfilled; and

(iv)   Travelers taking leave during or near the dates of their travel indicate that there are no urgent duties requiring the traveler’s immediate departure or return.  Travelers who do not report for duty immediately upon arrival or no later than the next day, or take leave within days of their TDY travel should not be authorized business class travel.  The traveler may be held liable for excess business class accommodations;

(c)  Travelers in U.S. Government-funded business class are not entitled to a U.S. Government-funded rest stop en route to or upon arrival at the duty site.  They are not eligible for a U.S. Government-funded business-class lounge day pass, (see 14 FAM 584 ).  For definition of travel in excess of 14 hours and rest stop en route, see 14 FAM 567.2-4 , subparagraph b(10)(d);

(d)  Medical evacuation travel:  Premium-class travel is not authorized for medical evacuation unless MED, in consultation with the Foreign Service medical provider, or in an exigent situation, authorizes business-class accommodations for medical reasons.  Travelers authorized by MED to use premium accommodations may not be authorized a rest stop en route or a rest period upon arrival at destination, unless specifically authorized by MED.  Travel over 14 hours in duration that is not deemed medically necessary for premium class by MED, will be authorized economy class with a rest stop or a U.S. Government-funded day pass to a business-class lounge at the intermediate point;

(e)  Other official travel:  Business-class air accommodations may not be authorized or approved for other types of official travel more than 14 hours (such as R&R, PCS, home leave/return to post, educational travel, EVT, etc.) unless justified under one of the other provisions (see 14 FAM 567.2-4 ); and

(f)   Calculation of 14-hour travel period:

(i)     The “14-hour travel time" is defined as the scheduled flight time on the most expeditious available routing from your point of origin to scheduled arrival at point of destination (wheels up at origin to wheels down at destination).  It does not include rest stops or travel from residence/hotel to the airport.  Travel in excess of 14 hours includes a leg of travel (a travel segment) in excess of 14 hour or continuous legs of travel (continuous travel segments) without a U.S. Government-funded rest stop in excess of 14 hours on the most direct route;

(ii)    The time zone dislocation provision for a rest period upon arrival ( 14 FAM 584.5 ) does not apply to business-class travel.  However, business-class travelers may arrive the night before a meeting and be provided per diem for the night if such arrival is necessary to ensure attendance at the meeting.  This is not considered a rest period upon arrival; and

(iii)    The traveler will not be penalized and deprived of business-class accommodations if travel is delayed or accelerated due to airline schedules rather than to accommodate a traveler’s personal convenience.  This is not a rest period or rest stop.

c.  Use of the lowest upgradeable fare :  In cases where business-class travel is authorized in accordance with the justifications above, but not funded by the bureau or post, the bureau or post may approve the lowest-cost upgradable fare if the traveler commits to upgrading to a business-class fare at their own expense:

(1)  Travelers are responsible for obtaining approval for the lowest-cost upgradable fare from the authorizing official by completing a Form DS-4087 prior to travel;

(2)  The cost of the upgradable fare may not exceed the cost of the business-class fare for which the traveler is eligible;

(3)  When available and approved by the authorizing official, the discounted GSA city-pair YCA fare may qualify as the lowest upgradable fare in lieu of the CA fare;

(4)  When a GSA city-pair fare is not available, the authorizing official may approve a fare up to and including the full "Y" fare as the lowest upgradable fare;

(5)  A traveler may be authorized the upgradable fare only when the cost of the upgrade is borne by the traveler; and

(6)  Rest stops or day passes to a business-class lounge are not authorized when a traveler elects this option.

d. Business-class travel within the United States :  U.S. domestic flights do not usually offer separate and distinct business-class seats.  The U.S. Government, however, cannot directly book employees eligible for business-class into first-class accommodations.  When business-class accommodations are authorized and the airline places the individual in first-class seating at no additional cost for the part of the routing within the United States via a connection, such seating would be considered business-class accommodations for the purpose of this rule.

e. Traveler-paid or airline-provided business class :  When a traveler is authorized economy class but actually travels in business class, such as by redeeming airline miles or points, completion of a Form DS-4087 is not necessary.  Such instances are also not included in the annual premium-class travel report since they do not change the authorized class of accommodation or expend more U.S. Government funds than would have been spent on the authorized class of service.

f.  Exceptions :  The Under Secretary for Management or designee may make exceptions to this section to the extent consistent with the law.

14 FAM 567.3  Premium-Class Travel Reporting

a. Each post and domestic office that issues travel tickets must submit a premium-class (first-class and business-class) travel report identifying all premium-class commercial travel (i.e., airplanes, trains, vessels) ticketed and utilized during the fiscal year.  The only exception for reporting premium-class travel is outlined in 14 FAM 567.1-3 .  A negative report is required if no premium-class travel was utilized.  The Department is required to report to the General Services Administration (GSA) no later than October 31 each year.  Travel on U.S. Government aircraft is reported separately and is covered in 14 FAM 558 .

b. When the traveler was ticketed in the lowest class of service offered, or use is authorized under 14 FAM 567.1-2 , subparagraph (4), travel on an extra-fare train does not need to be reported to GSA.

c.  State only :  The Department ‘s Travel Management and Policy Division (A/LM/OPS/TMP) will compile the premium-class travel report from each post with a report from the domestic TMC including domestically issued tickets and submit a consolidated report to GSA in accordance with the guidelines in 41 CFR 300-70.100-103 of the Federal Travel Regulations.

14 FAM 568  AIRLINE LUGGAGE ALLOWANCE

14 FAM 568.1   Authorized Luggage

a. Each traveler is authorized to check, at U.S. Government expense, two pieces of luggage which do not exceed the airline's size limitations or are not considered "oversized" by the operating air carrier, and which weigh up to 50 pounds (23 kilograms) per piece.  This allowance constitutes "authorized luggage."  It applies to all types of travel and to/from all locations.

b. If a traveler checks items that exceed this authorized weight, size, and/or quantity limitation, reimbursement from the U.S. Government is limited to the cost that would have been incurred to transport “authorized luggage.”

c.  Up to two additional pieces of luggage (a maximum of four), which do not exceed the airline's size limitations and which weigh up to 50 pounds per piece, per authorized traveler, may be approved in lieu of an allowable unaccompanied baggage (UAB) entitlement for direct travel if approved in the travel authorization prior to commencing travel.

d. If, for a particular segment of a journey, an air carrier makes a more generous (weight, quantity, or size) checked luggage allowance available to a traveler at no, or no additional, cost to the U.S. Government, the traveler is welcome to utilize the more generous allowance for that segment.  This privilege does not , however, increase the “authorized luggage” allowance for subsequent segments.

e. Authorized luggage for indirect (cost-constructed) travel :  When a traveler elects to engage in indirect (cost-constructed) travel, the total amount that may be reimbursed by the U.S. Government for checked luggage fees is limited to the sum of expenses that would have been incurred to transport authorized luggage along all segments of the direct route.

14 FAM 568.2  Excess Luggage

a. Luggage exceeding the weight, size, or quantity limit for “authorized luggage” is considered “excess luggage.”  To be transported at U.S. Government expense, excess luggage must be required for an official purpose and be specifically authorized in advance of travel.  Travel orders that include authorization for the transport of excess luggage must include a justification detailing the specific official purpose necessitating the transport and an estimated cost of such transport.

b. Travel orders for an individual required to transport a checked luggage piece or pieces entirely comprised of U.S. Government materials should include authorization for the transport of those pieces as excess luggage to ensure that the traveler’s personal authorized luggage allowance is not diminished.

c. Excess luggage is not authorized at U.S. Government expense for permanent change-of-station, rest-and-recuperation, family-visitation, and/or emergency-visitation travel.  For medical travel, please refer to 16 FAM 310 .

14 FAM 568.3  Receipts

Receipts are required for reimbursement of checked luggage fees in any amount, including fees assessed by an air carrier to transport “authorized luggage.”

14 FAM 569  UNASSIGNED

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Sponsored Travel Guidance

• Last Revised: October 1, 2019
• Responsible Office: Office for Sponsored Programs

Introduction

There are specific rules relating to travel charged to Federal Awards; please review the  University Travel Policy  (Appendix G) and the  Sponsored Expenditures Guidelines .

Lowest Economy Class Airfare

Airfare other than lowest economy class (e.g., business or economy upgrade) is not allowable on Federally-Sponsored Funds or cost share companion accounts unless an exception is met, documented, and approved.

Harvard defines lowest economy class airfare (sometimes called coach, standard economy fare class or base airfare) to include a reserved seat, one personal item, one carry-on bag, and one checked bag. These expenses would be considered allowable on federal funds. A refundable ticket may be appropriate in situations where there is a high likelihood that the itinerary may change or other extenuating circumstances. Travelers must include the business reason for purchasing a refundable ticket in the business purpose section of the reimbursement request.

Federal regulations (2 CFR §200.475.e(1)) require that airfare costs in excess of the lowest economy fare class are unallowable except when the latter would:

• Require circuitous routing;
• Require travel during unreasonable hours;
• Excessively prolong travel;
• Result in additional costs that would offset the transportation savings; or
• Offer accommodations not reasonably adequate for the traveler's medical needs.

Exceptions for business-class or upgraded economy airfare must meet one of these criteria and be justified and documented to be allowable on a federal award. These exceptions require documentation and approval by a designated school official via the Federal Lowest Economy Airfare Travel Reimbursement Exception Form .

Where funds and budget allow, the Travel Policy may allow business or upgraded economy travel for certain flights (local policies may be more restrictive); however, the difference in fare between the lowest economy airfare and the business class fare cannot be charged to federal or federal cost share funds and must be charged to a non-sponsored account. Please utilize the Lowest Economy Airfare Split Coding Job Aid to assist you in allocating the cost between federal and non-federal accounts.

Authorized Approvers for the Federal Lowest Economy Airfare Travel Reimbursement Exception Form

• HMS –  Sheila Doyle
• SPH –  Kristie Froman  or  Judy Lo
• FAS –  Jennifer Lech
• SEAS –  Pamela Baker-Webber
• GSE –  Jane Eaton
• HKS –  Carrie Kachoria
• HLS –  Devin Advani

Fly America Act Overview

The Fly America Act is a federal regulation that states that any foreign air travel that is financed by federal funds must be booked on U.S. flag air carriers, regardless of cost or convenience when compared to foreign air carriers. This regulation must be followed by all Harvard and non-Harvard personnel, students, trainees, consultants and collaborators who are reimbursed for air travel using Harvard federally-funded sponsored awards and federal cost share companion accounts.

It is the Principal Investigator’s (PI) or PI designee’s responsibility to ensure that all air travel charged to Harvard federally-funded sponsored awards is in compliance with this regulation. Harvard requires travelers who will be reimbursed from federal awards to use a U.S. flag air carrier, consistent with the Fly America Act. Long-term exceptions to the Fly America Act include:

• When the use of U.S. flag air carrier service would extend travel time (including delay at origin) by 24 hours or more;
• When the costs of transportation are reimbursed in full by a third party, such as a foreign government or an international agency; or
• When U.S. flag air carriers do not offer nonstop or direct service between origin and destination.

However, a U.S. flag air carrier must be used on every portion of the route where it provides service unless, when compared to using a foreign air carrier, such use would:

• Increase the number of aircraft changes outside the United States by two or more;
• Extend travel time by at least six hours or more; or
• Require a connecting time of four hours or more at an overseas interchange point.

Exceptions to the Fly America Act must meet one of the exception criteria and be justified and documented to be allowable on a federal award. These exceptions require submission of the  Fly America Travel Reimbursement Exception Form , approval by an authorized reimbursement approver at a department/local level managing unit or by a designated school/tub official in accordance with school/tub’s policy, and supporting documentation.

An additional exception to Fly America occurs when an  Open Skies Agreement  is in place between the United States (U.S.) government and the government of a foreign country. There are currently four Open Skies agreements - with the European Union, Australia, Switzerland and Japan. It should be noted that there are limitations to the use of non-US carriers under an Open Skies agreement. Notably, the current Open Skies agreements do not apply to Department of Defense-supported activities and there is a prohibition against non-US carriers if a city pair contract exists. For more information on Open Skies please refer to our  Fly America Act and Open Skies Agreements Overview .

Please note that code-sharing agreements with foreign air carriers, whereby U.S. flag air carriers purchase or have the right to sell a block of tickets on a foreign carrier, comply with the Fly America Act. The ticket, or documentation for an electronic ticket, must identify the U.S. carrier's designator code and flight number. However, some funding sources may not recognize code-sharing as being compliant with Fly America Act. When the specific funding source policy is more restrictive than the Fly America Act, the more restrictive policy applies. Please  view code-share examples of situations that are in compliance and not in compliance with the Fly America Act .

Related Policies and Guidelines

• Travel FAQs
• Harvard University Travel Policy
• Sponsored Expenditures Guidelines
• Travel and Expense Reporting
• Responsibilities of Purchasers, Preparers and Approvers
• General Services Administration (GSA) website on Federal Travel Regulations

Tools and Training Resources

• Harvard Federal Travel Regulations online course
• Harvard Travel and Reimbursement Overview online course
• Fly America Act and Open Skies Agreements Decision Tree (Digitally Accessible Version)
• Fly America Act and Open Skies Agreements Decision Tree
• Lowest Economy Airfare Split Coding Job Aid
• Fly America Act and Open Skies Agreements Overview
• Compliant Code-Share Situation
• Non-Compliant Code-Share Situation
• Federal Lowest Economy Airfare Travel Reimbursement Exception Form
• Fly America Travel Reimbursement Exception Form (FATREF)
• Air Travel Guidelines at a Glance
• Flight Checklist when using Federal or Cost Share Funds
• Christyne Anderson , Manager, Training & Compliance, Office for Sponsored Programs
• Stacey Clifton , Strategic Sourcing Manager, Office of Procurement
• [email protected]

Sponsored Travel FAQs

1. my pi has funding from both federal and non-federal sponsors. are there rules relating to travel costs charged to federal awards that are different than those for non-federal awards.

Yes. Any travel costs charged to federal awards must comply with federal regulations, including the requirement to book the lowest economy airfare and comply with the  Fly America Act . When traveling on non-federal awards, unless it is specifically prohibited in the terms and conditions of the award agreement, travelers may purchase business class airfare provided it is in accordance with the University Travel Policy.

2. May travelers book business class rail fare or must a traveler book the lowest economy class fare available?

Rail travel is expected to be at the lowest fare that offers reserved seating. In some cases, this may be designated as business class or first-class and is considered allowable on federal funds. See  Harvard’s Amtrak website .

3. Is using a private (non-luxury) sedan service for transportation pickup allowed on sponsored funds?

Travelers are expected to use the most economical mode of transportation appropriate for their needs. See  Harvard Travel Policy Appendix B  for detailed guidance.

4. Are no-cost or free upgrades allowable?

Yes. Please be sure that the documentation clearly states that the traveler was only charged the lowest economy fare. See  Appendix A, Section 2 of the Harvard Travel Policy  for guidance.

5. Can change fees, cancellation fees or trip cancellation insurance be charged to sponsored funds?

Change fees, cancellation fees or trip cancellation insurance may be an allowable expense under extenuating circumstances provided there is a compelling and valid reason such as a canceled conference or medical emergency; as referenced in the  Appendix A, Section 2 of the Harvard Travel Policy . Authorized approvers must ensure any change or cancellation fees charged to sponsored funds are allowable and follow local policies. Generally, cancellation insurance requires preapproval (this is often an exceptions request through the Financial Dean or designee) and include the insurance with the travel reimbursement. See  Appendix A, Section 2 of the Harvard Travel Policy .

6. What information is required for reimbursement?

Harvard follows the accountable plan rules which requires the expense be business-related, substantiated with receipts and a business purpose, submitted timely, and cannot exceed actual expenses.

Federal awards require an itemized receipt in order to attest that all costs charged are allowable. For example, alcohol may not be charged to any federal award. An itemized receipt for a meal can serve as evidence that no alcohol was charged.

If an itemized receipt is not available for meal expenses, reimbursees must attest as to whether alcohol was purchased or not. If the traveler consumed alcohol with a meal but does not have an itemized receipt, the traveler must be able to estimate the amount of money spent on alcohol. The estimated amount, plus estimated tax and tip, must be deducted from allowable meal costs if charged to federal funds. Tax and tip for alcohol can be estimated at 22% (including an average 7% meal and beverage tax and 15% tip).

See  Definition of Receipts  for additional guidance.

7. Can a traveler still request reimbursement using per diems?

Depending on school/tub policy, travelers can choose to request per diems for meals, hotel and incidentals in lieu of actual receipts. The  Department of State (DOS) per diem rates  should be used for international travel, and the  General Services Administration (GSA) per diem rates  for domestic travel. Additionally, the GSA states that if your trip includes meals that are already paid for by the government (such as through a registration fee for a conference), you will need to deduct those meals from your reimbursement request.

Air Travel Requirements When Using Federal or Cost Share Funds

8. is harvard subject to the federal travel regulations (ftrs).

No, Harvard is not subject to the FTRs.

9. What is the Fly America Act and what qualifies as a U.S. flag air carrier?

The Fly America Act states that when using federal funds you must use U.S. flag air carriers or flights operated under a U.S. code share agreement to travel to any destination, including international destinations, regardless of the cost comparison with a foreign air carrier. It is recommended you book your travel directly through the U.S. flag air carrier or use a Harvard preferred travel vendor and inform them you are using federal funds.

10. Are there any exceptions to the Fly America Act?

You must use a U.S. flag air carrier for all legs of your route where a U.S. flag air carrier is an option. If a U.S. flag air carrier does not travel to your final destination or does not provide service on a portion of your route, you may use a foreign air carrier  only  on the leg(s) for which U.S. service is unavailable.

An additional exception to Fly America Act may be the  Open Skies Agreement  is in place.

These exceptions, along with few others, must be documented and approved within the submitted  Fly America Travel Reimbursement Exception Form (FATREF)  in order to be considered for reimbursement on a federal award.

11. My PI has a conference in Paris, and then they must travel to London for a collaborator meeting at a subrecipient institution. The flights between Paris and London were booked on British Airways. Can this be reimbursed on a federal award?

It depends. This flight could possibly be reimbursed by a federal award if it was booked on an EU or U.S. flag air carrier under the  Open Skies exception , unless you are using Department of Defense (DoD) funds. If you are using DoD funds, then this flight would not be eligible for reimbursement unless it met one of the other Fly America Act Exceptions per the Fly America Travel Reimbursement Exception Form (FATREF).

12. What does “circuitous routing” mean in relation to travel on federal awards?

Generally, circuitous routing involves flight options with multiple stops and/or stops at airports that significantly increase the travel time. A general rule is that two or more stops, or an increase in travel time of four hours, may be considered circuitous. Utilizing this exemption to allow for economy upgrade or business class travel on a federal award requires that the lowest economy class fare is not available for the shorter route. The  Fly America Act  still applies.

In order to charge the expenses to federal or cost share funds, the traveler must:

• Submit comparable flight documentation that identifies the date of the comparison of the itinerary, as well as the airline, flight number, date, time, fare class and price for the economy ticket, and fare class and price for the ticket purchased.
• Submit a completed  Federal Lowest Economy Airfare Travel Reimbursement Exception Form . The form must be signed by a school/tub authorized approver/official  prior  to submitting the travel reimbursement request in Concur or Buy-to-Pay.

13. What is required for a medical exception?

A completed  Federal Lowest Economy Airfare Travel Reimbursement Exception Form  is required. The form must be signed by a school/tub authorized approver/official  prior  to submitting the travel reimbursement request in Concur or Buy-to-Pay. A copy of the medical accommodation may be required by the school/tub authorized approver. Please consult with your school/tub HR office and/or Finance office for local procedures.

14. What details should be included in comparable flight documentation for economy versus economy plus or business flight information?

The comparable flight documentation should identify the date of the comparison of the itinerary, as well as the airline, flight number, date, time, fare class and price for the economy ticket, and fare class and price for the ticket purchased. If the incremental cost of the upgrade is clearly itemized on the purchase receipt, an additional comparison is not required.

• The comparable flight documentations must be submitted with the completed  Federal Lowest Economy Airfare Travel Reimbursement Exception Form  to a school/tub authorized approver/official for approval  prior  to submitting the travel reimbursement request in Concur or Buy-to-Pay.
• If the comparable flight documentation for economy versus economy plus or business is not obtained within 1 business day of booking, the entire fare must be charged to a non-sponsored account.

If you are booking a flight with more stops or a longer duration than required for the business trip due to personal travel, then you should provide the same documentation listed above a comparable itinerary (including price, dates, and air class) based on the business portion of the travel. The comparison must be obtained within one business day of booking. Only the allocable business portion of the travel may be charged to the appropriate Harvard fund(s). See  Appendix E of the Travel Policy  for additional guidance.

15. Can I purchase an “Economy Plus” airfare ticket if it is less expensive than the recommended Lowest Economy Class airfare option?

Yes, provided it is with the same airline and you obtain the required supporting documentation (see FAQ #14) within 1 business day of booking.

16. If my school’s authorized official determines that the airfare does not meet the exception criteria and does not approve my request, can I charge the lowest economy fare class amount to the federal award and charge the difference to a non-sponsored account?

Yes, but only if you obtain the comparable flight documentation for the economy rate versus the economy plus or business rate within 1 business day of booking and submit the documentation with the travel reimbursement request. If the incremental cost of the upgrade is clearly itemized on the purchase receipt, an additional comparison is not required.

17. Can we charge the federally unallowable portion of business class to a cost share companion account?

No, you should not charge the federally unallowable portion to a cost share companion account, since they follow the same sponsored award terms. These expenses must be charged to a non-sponsored account. Note that unallowable costs should never be charged to cost share companion account. You should charge the federally unallowable portion of a business class flight to a non-sponsored account using the appropriate airfare object code.

• Absence Management Guidance
• Administrative and Clerical Salaries on Federal Awards
• At-Risk Account Guidance
• Capital Equipment: Summary of Policy for Capital Equipment in Schools with Sponsored Research
• Consulting or Related Service Agreements
• Sponsored Cost Allocation Methodology Guidance
• Cost Sharing Policy
• Cost Transfer Policy
• Data Use Agreements
• Effort Reporting Policy
• Entering Preproposals into the Grants Management Application Suite (GMAS) Guidance
• eRA Commons Registration Requirements for Senior/Key Personnel
• Establishing an Internal Grant-Making Program
• Federal Work Study on Sponsored Awards Policy
• Fixed Price Residual Balances Guidance
• Guidance on Charging Approved Family and Medical Leaves to Sponsored Awards
• Foreign Awards Paid in Foreign Currency Guidance
• Gift vs. Sponsored Award Policy
• Indirect Costs - Policy for the Application of Indirect Costs to Sponsored Awards
• Intellectual Property
• Interest Income Paid on Non-Federal Sponsored Funds
• Interfaculty Involvement (IFI) Guidance
• International Collaborations and Activities
• International Projects Guidance
• NIH Public Access Policy
• Negotiating and Signing Authority for Agreements Related to Research
• Guidance Regarding Individuals Outside of the United States Being Paid with Sponsored Funding
• On-Campus and Off-Campus Indirect Cost Rates Policy on Federal Sponsored Awards
• Participant Support Costs Guidance
• Participation Agreement and Visiting Participation Agreement
• Procurement
• Program Income Guidance
• Proposal Submission Deadlines
• Provost Criteria
• Publications
• Retention of Research Data and Materials
• Service Centers: Academic Service Center Policy
• Severance on Sponsored Awards
• Closeout and Reporting Policy for Sponsored Awards
• Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Collaborations: Guidance on Conflict Management Considerations
• Sponsored Expenditures Guidance
• Fly America Act and Open Skies Agreements
• Travel & Expense Reporting
• Stipends on Sponsored Awards
• Subrecipient Monitoring Policy
• Subrecipient vs. Contractor Guidance
• Tuition Policy

Changes to the UN air travel policy

A new administrative instruction, ST/AI/2013/3 , introduces a number changes to the UN travel policy. This administrative instruction, issued on 12 August 2013, follows the General Assembly’s decision ( resolution 67/254 A ) on the standard of accommodation for air travel. The staff rule on the mode, date, route and standard of travel was also revised ( ST/SGB/2013/3/Amend.1 ).

Official travel will now be based on the least costly routing available. This is on the condition that the total time of the whole journey does not exceed that of the most direct route by four or more hours.

The main elements of changes to the travel policy introduced are:

• All travel arrangements should be finalized 16 calendar days in advance of commencement of official travel.
• For consultants and individual contractors, travel will be undertaken in economy class, irrespective of the duration of the journey.
• Programme managers will be required to certify that alternative methods, such as videoconference, audio-conference or other remote business practices, such as online meetings, have been carefully reviewed, were found not to be effective and that travel is therefore necessary.
• The normal route for all official travel will be the based on the most economical route available, provided that the total additional time of the whole journey does not exceed the most direct route by four hours or more.
• Travel on home leave or family visit travel combined with official travel will be in economy class.
• For staff members below the Assistant Secretary-General level and, where applicable, their eligible family members, official travel will be in business class when a single leg journey is 9 hours or more or for multi-leg journeys, the combined travel time of the journey is 11 hours or more, including a maximum of 2 hours of connection time. A journey that is interrupted by a stopover of more than 12 hours will no longer be combined to track the business class threshold.
• In computing the period of travel by air, a maximum of two hours shall be counted for each necessary waiting period between connecting flights.
• All air travel for learning and development activities (training), except for officials who travel as instructors or to provide a service, i.e., administrative and/or logistical support, will be in economy class only.
• The standard of travel accommodation for travel for medical, safety or security reasons, including when traveling as an escort, will be in economy class.
• Staff members are encouraged to voluntarily downgrade their entitlement from business class to premium economy cabins or premium seats, without restriction to the least costly economy service.
• Rest periods for travel by air shall be limited to staff travelling in economy class if the scheduled time for the journey is more than six hours.
• Staff members travelling in business class will be expected to report for duty at the official destination within a reasonable time (i.e. four hours) upon arrival, if feasible.
• The provision for an intermediate rest stop or a rest period on arriving at the destination on journeys of 16 hours or more is no longer in effect.
• The granting of travel time, which will be based on actual calendar days spent travelling, will be limited to staff members who utilize the normal entitlement to home leave or family visit travel through the provision of an actual air ticket issued by the Organization. No travel days will be granted for staff members who opt for the lump sum payment.
• The lump sum payable for travel on home leave or family visit or education grant travel will be based on 70 per cent of the least restrictive economy class base fare, excluding taxes and surcharges. The lump-sum option will no longer be available for travel on repatriation or separation from service.

Please note that the implementation of these changes took effect on 12 August 2013. Travel arrangements finalized before the entry into force of ST/SGB/2013/3/Amend.1 and ST/AI/2013/3 will continue to be implemented under the previous travel rules and policy only if the start of the official travel date is on or before 28 August 2013. Departures beyond 28 August 2013 covered by Travel Requests raised on or after 12 August 2013 will be processed in line with the new travel policy.

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format_list_bulleted Topic Overview

Business and travel expense policies.

The university pays directly or reimburses individuals for expenses that are necessary and appropriate to conduct university business. Below is an overview of the key considerations and associated processes for business and travel expenses, along with links to information, guidance and limits on specific types of expenses. 

University policy and guidance addresses many, but not all, scenarios. Where unclear or unusual circumstances arise, additional information, questions about financial policies or exceptional requests should be directed to the school or unit’s senior finance administrator. In all cases, fiscal prudence and good judgment should be exercised.

All Stanford transactions are subject to review by Financial Management Services (FMS) as well as internal and external auditors for compliance with sound business practices, institutional policies and procedures, and any applicable laws and regulations.

University Policy

Overview of administrative guide memo.

The university outlines its guiding principles and the IRS regulations for business and travel expenses in Administrative Guide Policy 5.4.2: Business and Travel Expenses . In summary:

• Supporting University Travelers: In  order for Stanford to be able to provide support to its faculty, staff, postdoctoral scholars and students when they are traveling on university-sponsored business, the university maintains a Travel Registry .
• Stewardship of Resources: Individuals using university resources for business or travel expenses and/or purchasing items to be owned by Stanford share the responsibility of ensuring that these resources are used appropriately, support the university mission and comply with university policies, applicable laws and regulations and sponsor and donor restrictions. Individuals are expected to spend appropriately and expenses must be reasonable and necessary. Departments may uphold more restrictive guidance than the university at local discretion.
• The university reimburses individuals under the IRS Accountable Plan when the IRS regulations are met. Under this plan, the reimbursement is not taxable as income to the employee if the expense has a business connection and is also submitted in a timely manner.

To prevent expenses from being treated as taxable income, a transaction must be prepared and submitted into the Expense Requests system in Oracle Financials with all appropriate receipts or backup documentation within 60 days after the end of travel (for travel expenses), the expense posted date (for non travel expenses), or expected clearing date (for advances). See Topic Overview: Managing Aging and Outstanding Expense Transactions for information on how to manage expense reports, Purchasing Card, Travel Card, and advance transactions with regard to timing.

Travel and business expenses that do not reflect good stewardship of university resources, are found to benefit the individual at the expense of the university and/or are deemed excessive or fraudulent will be subject to further review by the appropriate office (e.g., Office of Chief Risk Officer or School/Unit Office), as outlined in Administrative Guide Policy 3.5.1: Financial Irregularities .

Funding Source  

A key consideration in the proper stewardship of university resources is ensuring that the funding source  is appropriate to use for the expense. Funding sources such as individual or corporate donors, government agencies, non-government sponsors and tuition have varying restrictions for their use. The federal government has mandated that no alcohol may be charged as either a direct or indirect expense of federally sponsored projects. Consequently, alcohol cannot be charged to a federal grant or contract account under any circumstances. 

Business and travel expenses that will be charged to restricted or sponsored awards, including costs of lodging, meals and incidental expenses, must be reasonable, allowable, necessary to the award and consistent with university policies. For example, the use of the per diem method is required when travel meal expenses will be charged to a sponsored award. Certain expenditures, such as business entertainment, alcohol and eligible business-class airfare, may be incurred within policy for university business or travel, and may be charged to an unrestricted account, but may not be charged directly to restricted or sponsored awards.

University-Sponsored Travel

Per Administrative Guide Policy 5.4.2 , university-sponsored travel is defined as when the university pays directly or reimburses individuals for travel expenses that are necessary and appropriate to conduct university business. This includes the use of any funding source for which the university has financial responsibility and accountability, including operating budgets, donor gifts, federally-sponsored grants and awards, and any other restricted or unrestricted fund. Student and postdoctoral scholar travel that is directly related to their individual course of study, or for which academic credit may be awarded, is considered university-sponsored travel, even if the travel is funded via their base financial support.

University-sponsored travel may occur within or outside of the local area. Travel is considered outside of the local area when the destination is 50 miles or more one way from the traveler’s home or Stanford’s historic campus, whichever is greater. This definition is applicable to some travel expense policies, for example, hotel lodging reimbursement, where the university will only pay for hotel lodging expenses when the trip is outside of the local area.

Employee Travel to a Stanford Work Location

For employees in a hybrid work arrangement, travel between an employee’s telecommuting worksite and their Primary Stanford Work Location is considered part of an employee’s normal commute and associated expenses are not reimbursable. For details, see  Administrative Guide Policy 2.1.20: Hybrid (Telecommuting) Work Arrangements

For employees in a remote work arrangement whose residence is within the defined 10-county area*, travel to a Stanford Work Location will not be reimbursed because the remote arrangement is at the employee’s request and there is space available for the employee to work on campus. See Administrative Guide Policy 2.1.21: Remote Work Arrangements .

For Remote employees outside of the 10-county area, Stanford will reimburse expenses for occasional, required travel to a Stanford Work Location as long as the travel is necessarily incurred and the employee receives prior approval by the employee’s department/manager. In these instances, the guidelines for booking and reimbursement of business travel apply. For details, see  Administrative Guide Policy 2.1.21 Remote Work Arrangements .

*The 10-county area includes all of the following counties: Santa Clara County, San Mateo County, San Francisco County, Alameda County, Contra Costa County, Marin County, Napa County, Sonoma County, Solano County, or Santa Cruz County.

Split or Partially Funded Travel

When travel expenses for Stanford faculty, staff, postdoctoral scholars or students will be shared by Stanford University and one or more external organizations, even if only a minority of the travel expenses are sponsored by Stanford, the trip is considered split.

Split travel is considered university-sponsored travel and any portion of travel that Stanford pays for must follow  Business and Travel Expense Policies detailed here and in Administrative Guide Policy 5.4.2 . Stanford Travel booking channels may be used for travel expenses that are being paid for by Stanford. All booking policies apply, including itinerary forwarding.

If it is not easy to separate out the costs that will be covered by the external party, the Stanford Travel Card may be used to pay for the total cost of the trip, then Stanford must be reimbursed by the traveler or travel arranger for the external party portion. See How To Return Personal Expenses Charged to a Travel Card .

Fully Externally-sponsored Travel

When an outside institution or entity asks Stanford faculty, staff, postdoctoral scholars or students to travel on that organization’s behalf and provides full payment for those travel expenses, the trip is considered fully externally-sponsored, also referred to as third party travel.

Stanford University resources may not be used to book, purchase or reimburse expenses for fully externally-sponsored travel. In these instances, the use of the Stanford Travel Card and advances is prohibited, and travel arrangements may not be booked via Stanford Travel booking channels.

Costs not covered by the external organization, including extra costs incurred for personal upgrades or to enhance travel options, cannot be reimbursed by Stanford as the trip's purpose serves the external organization.

Personal Travel

When a personal component of travel is added to a business trip, the university will only pay for or reimburse the costs of the business component. The charge that would have been incurred without that personal component must be documented through a fare comparison at the time of booking in order to appropriately process the reimbursement.

The Travel Card may be used to pay for trips that include a component of personal travel that may not be easily separated from the booking, but it may not be used to purchase trips that are exclusively personal. In cases where the Travel Card is used to purchase trips with a personal component, the individual is responsible for reimbursing the university for the extra cost.

Booking Travel

The Office of the Chief Risk Officer’s Global Risk department requires that students, faculty, and staff planning Stanford-sponsored international travel register air and hotel itineraries with the university’s Travel Registry . This registry connects the reservation to Stanford’s provider of medical, personal, travel and security assistance. The requirements of the Travel Registry policy are summarized in the table below. When airfare or hotels are booked outside of Stanford Travel, itineraries must be forwarded to the Travel Registry.

It is highly encouraged that Stanford travelers use Stanford Travel booking channels when booking flights, hotels, and rental cars for university-sponsored travel. Stanford Travel booking channels automatically register itineraries and any booking updates to the Travel Registry , streamline the reimbursement process, and offer discounts, benefits, and perks to travelers. In addition, the Stanford Travel team can provide specialized assistance as needed to travelers who book through Stanford Travel.

While Stanford Travel booking channels are a great option for most domestic and international travel, there are certain types of travel that need to be booked directly with the airline or hotel. These may include regional air travel offered by local carriers, travel for field research, ticket exchanges or reissues, or certain group reservations. See the Airfare and Lodging pages for more detail on booking and managing those travel arrangements.  For information on the booking processes for various types of travelers, see Topic Overview: Travel Process .

Roles and Responsibilities

It is the responsibility of the individual incurring expenses, those who assist others with incurring expenses and those involved in the preparation and approval of advances, reimbursement requests or financial transactions to exercise good stewardship of university funds and to adhere to university policies. The individual incurring the expense and the appropriate administrator must ensure that all costs are in compliance with university travel and business expense policies prior to purchasing. These roles and responsibilities are outlined in Reimbursements and Expense Reports .

Travelers are responsible for obtaining necessary approvals and travel documents prior to travel.

Business Purpose

All business and travel expenses must have a business connection; that is, they must have been paid or incurred while performing Stanford business. The business connection must be adequately explained and documented in the university’s records. Documentation must include the Business Purpose, which should clearly and without need for interpretation:

• Explain how the business expense is connected to the university and supports its mission.
• Include sufficient documentation to support the Business Purpose and alignment to the purpose of the funds, such as agendas or travel itinerary, and demonstrate that the expense was reasonable based on circumstances.

A Business Purpose should be written so that someone reading it at a future time (e.g., an auditor reviewing the expense two or three years later) could understand the business connection without question. Refer to Resource: Guidelines for Writing a Clear Business Purpose . 

Purchasing and Reimbursement (Per Diem and Actual) Methods

Those responsible for spending university funds on business and travel expenses must use the appropriate purchasing, payment and reimbursement method. Depending upon the type of expenditure and circumstances, primary purchasing and payment methods for business and travel expenses include Stanford purchase requisitions, credit card programs, non-purchase order payments, advances (under special circumstances) and expense reimbursement. For more information about each of these methods, refer to Topic Overview: Purchasing & Payment Methods .

Travel expenses may only be reimbursed after the travel is completed, with the exception of conference registration and expenses for travel documents and fees required to gain entry to a country (such as visa fees).

Paying for Travel Expenses

The Stanford Travel Card (TCard) is the recommended payment method for any travel costs that will not be reimbursed through the per diem method.

Stanford travelers may elect to use the per diem reimbursement method for meals and/or lodging. For those trips, the traveler should not use the TCard for these meals and/or expenses. Reimbursing per diem expenses charged to a TCard creates an administrative burden for both the preparer and the university.

This chart shows which travel expenses are recommended for purchase with the TCard depending on the selected reimbursement method:

As an alternative to using the TCard, personal funds may be used and a request for reimbursement can be submitted after the trip. When personal funds are used, there are different reimbursement options available depending on who is traveling and the funding source:

• Stanford travelers may select between per diem or actual reimbursement up to the published maximums. The method selected must be used for the entire trip. If the funding source of the trip is a sponsored award, Stanford travelers must use the per diem option for travel meals.
• University affiliates must choose actual reimbursement up to the published maximums. Any individual without a SUNet ID should indicate their affiliation in the business purpose.
• Non-Stanford travelers and visitors are required by the IRS accountable plan rules to be reimbursed for actual travel expenditures up to the published maximums, regardless of the funding source. In these situations, a visitor must submit receipts for expenses of $75 or more to receive reimbursement. Any individual without a SUnet ID should indicate their affiliation in the business purpose.

Per Diem Reimbursement 

Stanford uses per diem rates recommended by the U.S. government to take advantage of governmental cost studies and to ensure general equity with grant and contract requirements. The use of the per diem method is required when travel meals will be charged to a sponsored award, except for visitors, who may not use per diem.

• Domestic per diem rates are maintained by the U.S. General Services Administration (GSA). To view the current per diem rates for a city (or county if the city is not listed), access the GSA’s Domestic Per Diem Rates .
• Foreign per diem rates are maintained by the U.S. Department of State. To view the current per diem rates for an international location, access the Foreign Per Diem Rates by Location .

When using the per diem method, documentation is required to demonstrate proof of travel, such as boarding passes and conference or hotel receipts to substantiate trip dates. Individual meal documentation or receipts are not required in the Expense Requests System , although individual schools, units or departments may require all receipts. 

When creating an expense report in the Expense Requests System, the per diem tab must be used for per diem rates to be automatically calculated and applied based on the city visited. When the trip includes more than one university business stop and the cities involved have different per diem rates, the lodging per diem rate for each calendar day (beginning at 12:01 a.m.) is determined by the location where the lodgings are obtained for that night. When listing multiple cities, add each city in the Details page before selecting Generate Per Diem. Meal per diem rates are determined by where the meal occurred. If the city in which the travel occurred does not have a specified per diem rate, enter the county in which the city is located to apply that rate, e.g., "Santa Clara County." 

The Expense Requests System automatically calculates the corrected travel meal amount for the first and last day of travel, at 75 percent of the meals rate for the first day based on government-listed rate for the city traveled to, and 75 percent of the meals rate for the last day, based on the government listed rate for the last city visited.

Travel 30 Days or Longer

Long term travel is defined as when a travel period is 30 days or longer. In these instances, the traveler is required to use the per diem reimbursement method, and the per diem rate is reduced to 55 percent for the trip. The assumption is that when staying 30 days or longer, a traveler can find cheaper accommodations or can plan for or prepare less expensive meals.

The reduced rate will not be calculated by the Expense Requests System so the expense report preparer should calculate the reduced rates (0.55 x listed rate) and enter the adjusted amount in the Expense Requests System via the Adjusted Per Diem expense type in transaction lines.

• To learn about travel meal policies for travel periods of 30 days or longer, please visit the Travel Meals Policy page.
• To learn about lodging policies for travel periods of 30 days or longer, please visit the  Lodging Policy page .

Receipts and Documentation

Expense and reimbursement requests must include sufficient documentation to support the business purpose and alignment to the purpose of the funds. Per the IRS Accountable Plan, documentation must demonstrate that the amounts incurred are reasonable based on the facts and circumstances, and specific explanation when they have deviated from university guidelines. Departments and units may have more restrictive requirements for receipts and documentation at their local discretion.

Requirements

• When the method of reimbursement will be based on actual expenses, original receipts are required in the Expense Requests System for expenses of $75 or more and should correspond to an individual expense line. If an individual expense is $75 or more, and an original receipt is not submitted as a backup document, some form of proof of payment, such as a credit card statement, must be submitted.
• When using the per diem reimbursement method, documentation or receipts are not required in the Expense Requests System, although individual schools, units or departments may require receipts. Documentation is required to demonstrate proof of travel, such as boarding passes or conference receipts to substantiate trip dates.
• Currency: Foreign receipts must be converted to U.S. dollars. The Oanda website  is a currency converter that can be used to convert foreign receipts. On the Oanda website, enter the date of receipt or date the plane ticket was issued (not necessarily the travel date) to get proper conversion. The currency conversion result must be attached to the expense report.
• Students and postdoctorates: Reimbursement to students and postdoctorates requires certification by the appropriate signatory within the Expense Request System. Learn more on the Student Travel  page.
• Agendas and schedules: All travel transactions require backup documentation to substantiate the dates and business purpose of a traveler’s business trip. This backup documentation must be attached to the transaction upon submission. Examples of this type of documentation include conference agendas, meeting agendas, a traveler’s schedule of meetings during their business trip, a schedule of events, program or event information, or promotional event materials such as flyers.

Additional Documentation 

Some expense categories, such as meals, airfare, car rental, lodging and lodging (including conference hotels) require additional documentation, which is detailed on those respective policy pages.

In addition, any relevant documents regarding pre-approvals, explanations for exceeding policy, etc., should be uploaded to the transaction upon submission.

Using eReceipts to Collect and Share Receipts

The eReceipts app lets travelers and others easily upload and share images of receipts from their mobile device. The app helps users manage business and travel expense receipts required for Expense Requests System (ERS) transactions or Purchasing Card (PCard) verifications more efficiently. Receipt uploaders and their preparers can learn more about eReceipts and how to integrate it into their workflow on the eReceipts System page.

This application does not replace paper receipt retention requirements that may be in place for your department.

Tips and Gratuities

Tips for meals.

Tips should not exceed 20% and should be based on the subtotal that excludes fees (such as for food delivery). Mandatory service fees/gratuities over 20% charged by restaurants for large groups are acceptable. If a restaurant or food service provider offers a pre-calculated tip, you may choose up to the 20% option.

When the total cost of a meal includes additional banquet or service fees charged by the venue, additional tipping is not allowed and will not be reimbursed.

The total cost of a meal, including any tips, must not exceed the meal maximum. For daily meal maximums and other meals guidance, visit the Business Meals Policy page or the Travel Meals Policy page .

Tips for Ground Transportation

Tips to drivers should not exceed 20% of the total cost.

If your ground transportation offers a pre-calculated tip, you may choose up to 20%, if appropriate.

When car service is allowed, the total cost, including tip, must not exceed the maximum reimbursement listed on the Ground Transportation Policy page .

Permissible Expenses

The university reimburses for reasonable and necessary meal expenses of two types:

• A business meal  is defined as a meal at which faculty, staff, students and/or guests are present for the purpose of conducting university business. 
• A travel meal  is defined as an ordinary and necessary meal that a traveler has while traveling on university business.

For more information, visit the Meals Overview  page.

Travel Expenses

The university pays for reasonable and necessary expenses incurred by Stanford employees, affiliates and visitors in the course of university-related business travel. Travelers should neither gain nor lose personal funds as a result of business travel on behalf of Stanford University. Travelers must have necessary approvals and travel documents prior to travel.

• Airfare overview and airfare policy
• Lodging overview and lodging policy
• Meals overview , business meal policy , and travel meal policy
• Ground transportation overview and ground transportation policy

Other Common Reimbursable Expenses 

For information about other common reimbursable expenses, such as employee morale, recruitment expenses, human subjects and gifts, visit the Other Business Expenses  page.

For information about tips and gratuities, see the section above.

Non-Permissible Expenses

Below are some, but not all, expenses that are considered non-permissible expenses. Unless specifically noted, listed items may not be purchased or reimbursed, regardless of the funding source. As a general policy, purchases in excess of reasonableness are not allowed. Travelers should neither gain nor lose personal funds as a result of business travel on behalf of Stanford University. Unless Stanford University has approved the purchase of a product or service in advance, these items cannot be reimbursed to a university employee, affiliate or visitor for personal use.

Any costs specifically disallowed by school, department policy, external agreement or gift restriction are non-reimbursable.

Announcement Mar 19, 2024 Business Expense Updates and Hot Topics

Announcement Feb 22, 2024 Continuous Improvements to Fingate

Newsletter Sep 06, 2023 Stanford Travel Newsletter: Summer 2023

Purchasing & Payment Activities Submit a Support Request

© Stanford University , Stanford , California 94305 .

Upgrading your flight for the first time? Here's how to avoid being the most annoying person in first and business classes.

• Travel expert Gilbert Ott has tips for your first flight in a premium cabin.
• To blend in with seasoned first-class passengers, don't ask if everything is free.
• Don't hover over passengers, especially those in seats with doors.

With welcome gifts, multi-course meals, and private seats made for lounging, who wouldn't want to fly in premium cabins ?

Business and first-class flight tickets aren't cheap. But credit card and airline rewards programs have made the luxurious cabins accessible for those accumulating points and miles.

If you're upgrading a flight for the first time, Gilbert Ott has a few tips for those who want to blend in with the first-class crowd and avoid annoying more seasoned premium passengers.

From airport lounge manners to TSA PreCheck etiquette , the air travel expert who flies an estimated 200,000 miles a year shares tips to help other passengers have better experiences.

Don't ask if everything is free in first class.

"I think the etiquette is that first class is about indulgence," Ott told Business Insider, adding that it's best not to ask flight attendants if each bonus offering is free because everything is complimentary, from meals to sparkling wine.

He added that there's nothing wrong with "filling your boots" to make the most of the perks.

Don't expect too much in business class.

While first-class passengers often get personalized experiences where they're greeted by name, business-class passengers shouldn't expect the same level of attention.

"Business class is about efficiency. It's a comfortable seat where you can sleep or work," Ott said.

But staff members serve dozens of people in business class, whereas first-class cabins typically seat less than 10 passengers, he added.

"There's a lot of work that goes into all those meals and drinks," Ott said. "So if you're looking for an over-the-top experience, then first class is where you can expect staff to make the flight awesome. And that's what you're paying for."

Don't hover over passengers in doored seats.

Some business and first-class cabins have added doors to each seat to give passengers more privacy. Ott said you shouldn't infringe on another traveler's space to fetch items from overhead bins .

"Don't awkwardly hover over the person because the whole idea of doors is that people can't look in on you," Ott said. "So when you wake up and someone is looking over your space, it's odd."

Don't take up too much overhead bin space.

BI previously reported that premium cabin passengers are often entitled to overhead bin space , and according to Ott, the bins are usually not too crowded. But that doesn't mean you should bring extra bags and put them wherever you want, as Ott has seen many passengers do.

Instead, Ott suggests keeping your limited belongings in the space above your seat.

• Main content

The complete guide to corporate travel policies 

The business travel policy guide you’ve been waiting for .

Creating a business travel policy for your company can feel really daunting. You don’t want to just throw something together and hope for the best, but it feels impossible to anticipate every possible scenario. The truth is your policy serves as more than a rule book; it's a guide to better decision-making about your corporate travel programme and can save you a world of headaches down the road.  

Introduction

What is a travel policy .

• Why do you need a travel policy?
• How to create a travel policy

What to include in a travel policy 

• Travel policy best practices
• How to promote travel policy compliance

When to review and update your travel policy 

• Final thoughts

When it comes to company travel, a travel policy brings it all to one place. It acts as an influencer for travellers to make the most cost-effective choices, an important visibility tool for your managers and HR department, and it protects your people if it’s done right.  

If you’re new to business travel or haven’t looked at your travel policy in a while, we’ll start with the basics and then move into the nitty gritty of corporate travel policies. We’ll touch on a few best practices for writing a travel policy, what to include, and offer plenty of resources along the way.  

Ready to get cracking? Let’s go!  

A travel policy is a guide for business travellers to follow that outlines:  

• How, where, and when to book  
• Approved technology for travel management  
• Preferred suppliers for air travel, land travel, and accommodations  
• Approvals process for out-of-policy bookings  
• Trip extensions and personal travel  
• Expenses and what is covered or not covered  
• Reimbursement processes  
• Business travel insurance information  
• Emergency procedures and contacts  

Your company’s travel policy should reflect your company culture and values, be supportive of your travellers and their needs, and protect your company from unforeseen circumstances. It acts as a central document that guides your team to the processes of embarking on company business travel, from start to finish!  

While you might hear a few grumbles and groans around the words “policy” or “process,” don’t worry! A travel policy does not need to be rigid and inflexible.  

Do your travellers prefer to book on their own? Don’t take away their autonomy. They can still self-book, you’ll just provide them with a better tool and way to do it more efficiently.  

Do your people feel prepared for any event that can cause a travel hiccup? With a travel policy, you can give them clarity and help them feel more prepared when travelling for business purposes.

Why do you need a travel policy? 

Your travel policy is an extension of your travel programme and company culture. It’s the glue that holds your travel programme together – from approvals, expenses, booking processes, and emergency contacts.  

Having a travel policy helps you:  

• Control travel costs  
• Determine how reimbursement works  
• Compile a list of trusted and approved travel vendors  
• Manage an employee’s travel experience and safety  
• Cut rogue bookings – and simplify approvals  
• Budget, report on travel expenses and activity and reconcile bookings  

It’s a roadmap or guidebook that your travellers can reference when they’re booking their own travel if they run into a tricky situation abroad, and it helps provide clarity around processes.  

As a company though, your travel policy helps centralise your travel programme, makes data and tracking more accurate and easier to navigate, and it saves time and money (including on expense management). Plus, if you take the time to craft your policy in an intentional and inclusive way, you’ll have a policy your travellers are happier to follow.  

How do I create a travel policy that works for my business? 

• Determine business travel guidelines 
• Create a travel policy that puts your people first 
• Set reasonable budget limits 
• Simplify the process of expense claims 
• Adopt a user-friendly all-in-one travel platform 

Once you’ve read through our tips, be sure to download our free  travel policy template  so you can get started on creating a travel policy of your own! 

1) Determine corporate travel guidelines 

When you take the time to create a policy that meets the needs of your business, you are making sure that your travellers are safe, costs are controlled, and you’ve made every business trip count. 

Start by looking at what types of travel are allowed and the reason for each trip. 

If you have team members travelling all over the globe, you might want to set some extra safety measures. You should also decide if there will be restrictions on the type of ground transportation used or where employees can stay. 

Create a process for booking flights, hotels, and other ground transportation needs. How far in advance should they be booking? Do different rules apply based on the traveller’s position? Who is the point of contact for bookings and other travel questions? 

Making sure to include your company’s travel insurance info is also important. Make sure to note if your policy covers medical expenses and/or any losses due to cancellations or delays in transportation services due to factors outside an employee’s control. 

Do you have a policy for reporting and documenting expenses? This includes having a system in place for claims (like meal expenses) and a reimbursement process, so your team can easily get their money! 

2) Create a travel policy that puts your people first

You’ve heard the term “duty of care” before, so it’s important to create a corporate travel policy that puts traveller safety and accessibility needs first. You’ll need to define and assign the roles and responsibilities of everyone involved, including a travel manager, if you have one. 

Set up an emergency plan and provide access to traveller safety information. Determine who is the emergency contact (your TMC?) and how to get in touch. Do they have 24/7 emergency support available by phone or chat? What about email support? 

Invite your HR department, the travellers themselves, and your DE&I manager into a discussion to find out what needs your team has as individuals, what hiccups they face when travelling, and what holes exist in your travel programme that make it difficult to navigate. 

Working with a TMC is a great way to ensure travellers are kept safe before and during their trip.  

3) Set reasonable budget limits for business travel

You have a budget you need to adhere to, but is it realistic? Setting reasonable budget limits is key to an effective policy. 

Your budget should account for all travel-related expenses, including airfare, accommodation, meals, and ground transportation. And once you’ve set your budget, you can determine reasonable costs for hotels and accommodation, ground transport, flights, and more. Build these caps into your  travel booking software  to help travellers stay within the set parameters, which will later help with accountability. 

It's important to set clear rules on what the company can pay back and what types of expenses are out-of-pocket. 

If you’ve set a maximum daily rate for meals on work trips, it's crucial that travellers understand the limit before racking up additional charges. Requiring receipts can also help keep track of employee spending and make sure they're not going over budget. 

By working with a  travel management company  like Corporate Traveller, you can review your previous year’s expenses and find where you can optimise or make changes based on market changes. 

4) Simplify the process of expense claims 

If you're unfamiliar with  how to write a travel expense policy , creating a simple process for claiming expenses is key to getting your team on the same page. Do you have access to a payment system that pays for the majority of expenses at the time of booking? This could be a good way to save time and stress down the road.  

The more you can pay for before your travellers get to their destination, the easier everything is to reconcile after they get home.  

If you have a person in charge of reviewing expense reports and watching pre-trip approvals, make sure to set criteria for claim approvals and look at automating processes to make approvals simple! 

5) Adopt a user-friendly all-in-one travel platform  

Finding the right  travel management software  is essential. The right booking platform can provide travellers with an easy-to-use experience, giving them access to the best fares and availability. 

For example, at Corporate Traveller, we use Melon . It’s a  corporate travel platform  that includes booking tool, reporting suite, travel policy pusher, traveller profile manager, and so much more. Melon features a “recommended spend” function, which helps keep travellers booking in policy. Hello, visual guilt! 

Melon’s simple user interface, combined with dedicated travel consultants and expert 24/7 support, makes it simple to book, manage, and keep track of your business travel. You’ll be able to access Melon-exclusive deals and perks (alongside many negotiated contracts and online deals) and take care of all your travel needs from one place. 

From the get-go, you’ll be able to work closely with our team to ensure that all of your needs are met. We'll help you customise your travel programme to meet specific business needs, build your travel policy into the platform, and offer training to staff to help them along the way.   

Putting it all together  

Wow! You’ve reached the end and should have a better idea of how to write a corporate travel policy. High five! Now it’s time to put it all together and get it on paper.  

Maybe you already have something in place that needs some work or an entire overhaul. Check out our easy-to-use template and start checking those boxes! 

Grab our corporate travel policy template builder

Not sure where to start? No worries! We’ve got you. Here’s how to streamline your process with a  travel policy template ! 

While there’s no one-size-fits-all travel policy for every company, following the set guidelines helps you nail a perfect-for-you policy that can see you through an ever-changing travel climate. 

Travel policy template  

When you’re crafting your business travel policy, there are so many considerations to be made. Things might come up that you never even thought of, but not to worry. We have loads of resources to help you see this through.  

Starting out, it might be looking a little drab and wordy, but depending on your travel programme size, a visual travel policy might be just what you need. You can search for examples online or take a look at an example of a visual travel policy we’ve created.   

When building your policy, it’s important to include:  

1. International or foreign travel policies  

When you’ve got travellers all over the globe, you need to build out a policy for international or foreign travel. This is protects them (and you) on anything from travel safety, to expenses, and everywhere in between.  

• Whether your travellers are individuals or entire teams, your international travel policy needs to cover:  
• How and where to book – is that with a travel manager, online booking tool, a travel management company (TMC) ?  
• Travel insurance coverages and contact info – international numbers and policy information  
• Emergency contacts – how to reach them and the process of in-destination emergencies  
• Travel expenses – limits and how to file for reimbursement  
• Travel documentation – who to contact with questions  
• Advance booking timelines – when should they be booking for international travel?  
• Travel extensions – are these allowed and what are travellers expected to cover if they choose to extend their trip for leisure?  

By outlining all of this information in your policy, you’ll streamline the process for your finance teams, travel managers, and your travellers. And really, who doesn’t want to make travel a smoother experience?  

2. Corporate travel policy for business class travel 

Does your corporate travel programme have different rules, limits, or allowances for different levels of seniority? Are some junior members expected to travel in economy class, while some executives are allowed to book in business class?  

If some certain exceptions and situations might allow for an employee to book business class, regardless of their position, you should include that in your policy as well.  

Making this as clear as possible will avoid an approvals nightmare down the road.  

3. Corporate meal allowance policy 

It’s great if you’ve already centralised most of your business travel expenses like flights, accommodation, transportation, and car hires, but your people gotta eat! It’s super important to include a meal allowance policy that clearly outlines which meals (and how much) you’ll cover.  

Some of your team might be travelling with corporate credit cards, while others might need to be reimbursed. The guidelines and procedures for submitting expenses or asking for reimbursement need to be crystal clear!  

Make sure to outline if you have a corporate travel policy for alcohol, too! You don’t want murky policies when it comes to footing the bill for drinks.  

Some things to consider for your meal allowance and alcohol travel policy:  

• Which meals are covered and for how much?  
• Who is footing the bill for an alcoholic beverage with dinner?  
• If entertaining clients, what is the budget, and how flexible is it?  
• What is the process of submitting company card expenses?  
• What is the process for requesting reimbursement?  

Your team will always have questions about the policy on food and drinks, so make sure they can find the info easily and have a point of contact for whoever can offer more clarity.  

4. Executive travel policy 

We briefly touched on executive travel when we talked about travelling in business class, but there is certainly more to the top dogs travelling.  

Executive travel can be a touchy subject if there are more lenient policies in place than there is for less senior team members. Your executives also may need to know the guidelines in place for their own travel, so they don’t accidently go overboard, which could be an accounting nightmare!  

You’ll need to make sure you deliver a guide for approvals, procedures, booking deadlines, meals, accommodation, basically everything.  

Lay it all out. Make your policy as digestible as possible, and for a busy exec, consider bullet points and titles in bold so they can easily skim to the areas they need to know.  

5. Natural disaster or COVID-19 business travel policy  

We can all agree that COVID-19 caused business travel to come to a screeching halt. Across most industries, the pandemic impacted client relationships, the ability to gain new clients and caused budgets to get slashed pretty dramatically.   

While this was only one event, many businesses have begun to consider the “what-ifs” of their travel programmes should another outbreak of COVID or something else happen. Crossing our fingers and toes doesn’t cut it, unfortunately.  

There is also the chance of their travel being impacted by a natural disaster. We’ve seen it before – earthquakes, tsunamis, volcano eruptions, hurricanes. Do you have a plan or policy to aid your team and guide them through the unthinkable?  

In 2022, we surveyed 120 employees across various industries and businesses. More than half, 51% of respondents said their companies didn’t provide resources or tips for safety on their trips. Duty of care isn’t something to put on the back burner, it’s your legal obligation to make sure your team is informed.  

So, what’s the solution, you ask?  

Working with a TMC gives you the backup you need if anything ever happens and you have people travelling abroad. At Corporate Traveller, our travel management software, Melon, is a central place to house your policy for quick and easy access. Plus, our travel experts can help you paint the big picture of what to do, who to call, and how to get your team home safely as quickly as possible.  

Is there anything missing from your travel policy? 

Let’s break it down. If you think of your policy like a sandwich, it should include:  

The bread and butter  

• Where and why: Are there any restrictions on who travels domestically or internationally? Or guidelines around reasons for travel?  
• When: Are there any restrictions on when business travel is a no-no, like during an auditing period or financial downturn?  
• How? How should travel arrangements be booked? Through your online booking tool or with a preferred Travel Management Company (TMC)? How far in advance should domestic and international trips be booked?  
• Preferred suppliers: Do you have preferred partners for air travel, accommodation, ground transport or travel insurance?  
• Approvals: Who’s responsible for giving the green light on trips?  
• Show me the money: What’s the process for managing/submitting expenses, paying for travel and reimbursements?  
• Uh-oh: How will you prevent or deal with non-compliance to the travel policy?  
• Noise level: Getting loads of ‘noise’ and questions about things in your policy? This means it’s not clear and it’s time to review why and where the stumbling block is for travellers (or your finance team!)  

 The filling  

• Classy, baby: Who gets to fly business class, book 5-star properties or order UberLUX? And how does your business handle upgrades or airport lounge access for long-haul flights?  
• All work, some play: What are the conditions if someone wants to extend their business trip to take personal leave? Are you happy for them to enjoy a bleisure trip, and if so, who foots the bill and for what?  
• Loyalty: Are there any travel rewards or business loyalty programmes that can be used during booking?  
• Spending money: Do your business travellers have a daily allowance for meals, snacks, and drinks? How much is it, what does it include – and what’s not covered? Can they order room service, drink from the mini-bar, or use the in-house laundry service?  

The not-so-secret sauce  

• Safety first: your policy should support air, accommodation and ground transport suppliers that have been safety and security vetted. Guidelines or information on travel insurance for work trips is also helpful.  
• Now what: What’s the plan of action in the case of Acts of God or Force Majeure events? Does your team know who to call for help?  
• What’s next: Who is responsible for updating and reviewing your travel policy, and how often?  

Corporate travel policy best practices

• Write for skim readers
• Guide travellers to the right resources
• Automate your policies
• Stipulate a timeframe for expense claims
• Be prepared for the unexpected

1. Write for skim readers  

One of the first steps towards writing a people-first travel policy is understanding how your travellers will read it. And the truth is…  

They probably won’t.   

Research has shown that  adults get distracted every 47 seconds . So if a business traveller is looking at your policy, they’re most likely just searching for a specific answer – and they want it fast. So what can you do?  

First, make sure the document is easy to navigate. That means including things like:   

• A table of contents  
• Visual elements to help guide the eye toward crucial information, like flow charts and tables  
• Clear headings and important details in bold  
• Bulleted lists (see what we did here?) 

And even though it’s a technical document, don’t make it sound like one. An effective travel policy should be clear, concise, and easily comprehended. So skip the long, complex sentence structures and technical jargon, and write in plain, simple English. It helps to pretend like you’re writing it so an eighth-grader can understand it.   

2. Guide travellers to the right resources  

Remember when we said travellers will only read your policy to find a solution for a specific need? Whether it’s a link, a phone number, or a step-by-step tutorial – a well-managed travel policy should provide them with the right resources.  

Instead of treating a travel policy as a list of rules, treat it like a resource sheet. Here are some key pieces of information travellers might need to pull up easily:  

Your approved online booking tool (and steps on how to use it)  

• QR codes to download your  mobile travel app   
• Preferred airlines, including class, budgets, and other limits  
• Permissible hotels, including guidelines on star-class and incidental expenses  
• Guidelines on ground transportation (trains, ride-sharing services, rental cars, and personal car usage)  
• How to get travel support  
• Travel insurance carrier  
• Clarification on the reimbursement process (more on this later)  

You can also include other factors specific to your company, but this should at least be the necessary groundwork to help employees make the right choices on their own.  

3. Automate your policies  

Let’s face it: even with the best communication efforts, there’s always a chance that an employee may violate policy, even unintentionally. So, what can you do?  

Build policy into booking.  

By building your travel policy into your travel management software, it becomes unavoidably embedded in the booking process, so even the most easily confused employees end up following by default.   

Automation tools can sound the alarm on out-of-policy bookings and even provide an audit trail. This can be especially helpful for employees who may struggle to remember procedures and policies, especially after big changes to your travel programme.  

4. Stipulate a timeframe for expense claims  

No one wants to get stuck waiting on the money they’re owed – or worse – find out they’re not getting reimbursed for an expenditure they thought would be covered.  

Having a clear and well-defined expense claim process is critical in any travel policy. Employees need to know how to claim their travel expenses, how soon they need to submit an expense report, and when to expect reimbursement.   

The  travel expense policy  should also be clear about what expenses are and are not reimbursable, including any limits or exceptions. For example, if an employee needs to book a different seat class to  accommodate a disability , the policy should include the process for requesting and approving this expense.   

Plus, a submission deadline reduces cash flow issues and provides more accurate and complete expense data for that period (your finance team will thank you later).  

5. Be prepared for the unexpected  

As a company, you have a duty-of-care responsibility. When it comes to business trips, you need to be prepared for the unexpected. No matter how much effort you put into planning, there will always be a few hiccups along the way.   

For instance, lost luggage, canceled or delayed flights, and sudden weather or political emergencies in unfamiliar destinations could all leave your employee stranded.   

“Companies need to be prepared to plan for the particular, not just the universal. Every aspect of the travel programme needs to be able to fit each of your travellers like a glove, from adaptable plans and experts on call, to technology that makes the journey seamless.” - Emese Graham, DE&I Manager @ FCTG  

Don’t let unexpected situations blindside you. Have processes in place to ensure travel safety and security. Make sure they know what to do, where to go, and who to get a hold of if something goes wrong. Taking a proactive and prepared approach to your policy can minimise the impact of emergencies and take care of your team’s well-being while they’re on the road.  

BONUS TIP: Update your policy regularly  

Here’s a free business travel policy best practice just for you! It isn’t just a “one and done” deal – it’s a living document.  

What’s that mean? As your company grows and travel conditions change, so should your travel policy. Revisit your expense policy at least once a year to keep it relevant and effective – and lead you towards new cost-saving solutions.    

Data is going to be your best friend here. Here are a few key factors you should look into when updating your travel policy:  

• Analyse travel spend patterns  – are you throwing a lot of company money at certain suppliers? You might want to see if you can negotiate a new deal or find better rates elsewhere.  
• Identify areas of overspending or inefficiency – are employees accruing high parking or travel costs? See if you can get season tickets or other accommodations.  
• Evaluate the overall performance of your policy – are you still compliant with any new regulations that have come into play since the policy was established? How can traveller experience be improved?  

You may even want to consider enlisting the help of professionals, such as a travel management company with experience in expense management, to give advice on how to optimise your travel policy to better meet the needs of your employees and your business as a whole.   

Building a travel policy that's good for business and travellers and meets their needs is no small feat. But whether you're looking to retain your team, attract new talent, or make life a little easier for your travellers, investing in a well-designed travel policy is definitely worth the effort and great for company culture.  

By following these travel policy best practices and ensuring your policy meets all travellers' needs, you’ll be on your way to smoother, safer, and more enjoyable travel experiences for all.  

What are you waiting for? Start with this travel policy template and watch your business soar to new heights!  

How to promote travel policy compliance  

Whether compliance is a big or small issue in your company, it takes a little bit of investigating to figure out why it’s an issue at all.  

Maybe your policy meets the needs of only a few of your team members. Maybe it’s too difficult to navigate your policy. Or maybe, your policy is written in legalese and makes your travellers vision blur before they go rogue and book how they want.  

It could be that your travellers prefer a bit of freedom in booking and would rather do it on their own. Or, maybe they have specific needs that aren’t being met by the options provided.  

Whatever their reasons, it’s your job to figure out why they aren’t following and what you can do to build better compliance.  

Here are a few tips to improve travel policy compliance:  

• Make your policy easy to navigate, understand, and find  
• Use an online booking tool (OBT) for travellers who prefer to self-book  
• Allow a bit of flexibility so travellers feel they have some autonomy  
• Include a category for last-minute bookings so it doesn’t mess up your data  
• Understand your traveller needs and build an inclusive policy  

Work with your DE&I Manager, HR manager, and travellers better learn how to diversify your travel program me.  

Read the full guide:

You've researched, gathered the necessary resources, and communicated your travel and expense (T&E) policy to your employees. But now, you're not so sure they're actually following it.  

Read the full guide:  How to Improve Corporate Travel Policy Compliance

If the last time you reviewed or upgraded your travel policy was more than a year ago, it’s outdated and needs a refresher. If your company is small and has low turnover, you could probably get away with making small tweaks and optimisations.  

But if you have a larger company with multiple departments and higher turnover, you probably need to do an overhaul and review it more regularly. We’re not saying you have to change it every time someone is hired or leaves the company, but making sure it’s relevant to the people who are there and are travelling matters!  

Corporate Traveller conducted a survey in 2022, which showed that 48% of respondents didn’t know if their company had resources for specific traveller profiles, while 41% said their company didn’t provide resources for specific traveller profiles. This really goes to show that there’s room for improvement in how policies are built to support their people and their businesses.  

A people-first travel programme and policy have become necessary as the world grows and begins to understand neurodiversity, disabilities, and cultural differences. When we learn about our team members’ diverse needs, we can better understand how to support them when they venture abroad for our businesses.  

READ MORE: Learn how to diversify your travel programme to support your team

We recommend policy reviews every 3-6 months, but at the minimum, once per year.  

Final thoughts 

Business travel is so unpredictable, as we’ve seen in recent years. There will always be circumstances you can’t avoid as a company, but making sure that you have the necessary checks and balances in place can help to make things just a little easier. If you have groups travelling, VIPS, or people heading to high-risk destinations, it’s important that your policy is relevant.  

Don’t forget that travel policies shouldn’t be written and forgotten about – these are living documents that must be regularly updated to make sure they best protect your people.  

Remember these best practices when writing your travel policy:  

• Keep it simple and make it pop with visuals, bullet points, and bold headings.  
• Answer any and every question possible – think of all the eventualities  
• Always put your people first  
• Implement a quick and simple approval process  
• Automate as much as you can  
• Use technology that’s supports your policy  
• Be flexible with due reason  
• Be clear about what’s not allowed  
• Update your travel policy at least once a year  
• Keep it somewhere easy to find   

And finally, it doesn’t hurt to have a couple of different formats. Consider a visual version and an extended version so the message is delivered best depending on the person reading. For some, it might be easier to digest one over the other.  

Looking for a policy review? We’d be happy to work with you. 

Let’s chat .

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3301 PR.03 Air Travel on University Business

1.      Overview

2.      Fundamentals of Air Travel Reservations

3.      Non-Economy Class Air Travel

4.      Frequent Flyer Programs, Personal Upgrades, and Personal Travel

5.      Air Travel on Sponsored Awards: General Principles

6.      Air Travel on Federally Sponsored Awards: Fly America Act

1. Overview

This procedure supports Policy 3301 Travel on University Business , specifically the air travel rules and requirements established in Section 3301.2 .  It details the processes and guidelines relating to air travel on University business.

2. Fundamentals of Air Travel Reservations

Travelers (or their designees) conducting Yale business are encouraged to plan their travel as far in advance as possible, as the availability of lower air fares is generally greater when reservations are booked well in advance.  While the optimal booking time may vary by airline and destination, the effective practice is to book travel as far in advance as possible when plans become firm.  Note : travel on sponsored awards may be governed by different requirements.  In such instances, travelers and their designees are expected to comply with the sponsor’s (federal or non-federal) terms and conditions. 

Travelers (or their designees) are expected to select air travel within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements.  The University acknowledges that commercial airlines vary in their ticketing structures and do not necessarily offer consistent services in single fares.  Therefore, Yale considers “air travel within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements” to mean airfare within the basic cabin class (i.e., equivalent of “economy” or “coach,” regardless of the specific airline’s name for this class) that is consistent with business requirements.

Travelers (or their designees) may make incremental purchases and upgrades (e.g., preferred seating, checked luggage, etc.) within the basic least expensive unrestricted accommodations class, as follows, to the extent such items/services are not included in the airfare price:

• Refundable tickets;
• Checked luggage (up to two (2));
• Non-alcoholic drinks;
• Seat selection;
• Preferred seating within the basic least expensive unrestricted accommodations class ( not allowable on federally sponsored awards);
• Internet access/Wi-Fi ( not allowable on federally sponsored awards);
• Pillows and blankets ( not allowable on federally sponsored awards).

Travelers may also purchase meals and alcoholic drinks (alcohol is not allowable on federally sponsored awards) if they are not included in the airfare price, but travelers (or their designees) are expected to include such purchases as one of their allowable travel meals (see Procedure 3301 PR.01 Travel Arrangements for University Business ).

Lead Administrators (and their designees) retain the discretion to impose tighter pricing expectations for budgetary and other considerations, as well as the discretion to evaluate whether selected air travel is consistent with business requirements. 

A. Preferred Travel Supplier and Online Booking Tool

Travelers (or their designees) are not required, but they are encouraged, to book air travel using the University’s preferred travel supplier, World Travel .  It provides a number of services and allows travelers to take advantage of University-negotiated discounts. 

B. Charter and/or Private Aircraft

For the safety of travelers, the University does not recommend flying on charter and/or private aircraft.  The University assumes no liability for death, personal injury, or property damage in connection with charter/private aircraft travel.

If a traveler finds it necessary to travel by private aircraft due to unusual circumstances, exceptions for such circumstances require prior approval, consistent with the Exceptions and Special Circumstances section of Policy 3301 Travel on University Business .  If the exception is granted, the traveler (or their designee) must notify the Office of Enterprise Risk Management before the flight occurs for insurance purposes.  When a private plane or charter aircraft is used primarily for the convenience of the traveler, reimbursement/payment will not exceed airfare within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements, for a comparable trip.

C. Airline Club Memberships

The University does not pay dues or fees for a traveler’s membership in airline clubs.

D. Changes and Cancellations

Travelers and their designees should endeavor to avoid change and cancellation fees whenever possible.  In the event a traveler incurs a change or cancellation penalty:

• Penalties for changes to an airline ticket for business reasons or circumstances beyond the traveler’s control will be reimbursed.  Note : In general, airlines require that a ticket is changed or cancelled prior to flight departure to retain its value.  (Refer to subsection 5.A., below, for additional guidance on sponsored awards.)
• When applicable, the remaining value of the ticket (less any airline-imposed penalties) should be applied to the next appropriate business trip.  Unused tickets cannot be used for personal travel.
• Travelers will not be reimbursed for trips cancelled, changed, or forfeited (due to failure to cancel prior to departure) for personal convenience.

E. Required Documentation

Travelers (or their designees) are expected to provide documentation via an expense report for all air travel on University business (see Procedure 3215 PR.02 Yale Expense Management (PCard and Out-of-Pocket Expenses) for details on expense reports).  This documentation includes the following, at a minimum:

• Receipt showing traveler name, flight details (including airfare class), pricing, and payment;
• Valid business purpose for the expense.  A valid business purpose should describe enough detail to allow an approver and any subsequent reviewer to validate the need for the expense; and
• Any additional supporting documentation required by the sections below.   

3. Non-Economy Class Air Travel

Travelers on University business are not permitted to use first class for air travel.  Travelers may, however, use business class for air travel if the relevant business office confirms before purchase that appropriate funds are available and if any of the following conditions are met:

• Any single flight segment has a scheduled in-air flying time in excess of five (5) hours;
• The total scheduled in-air flight time, including connecting legs, is in excess of eight (8) hours; or
• A medical justification exists, documented in writing by a primary care provider.

Students must travel economy or economy-equivalent class regardless of duration or length of the flight.  Business class is permitted for students, however, for medical justifications documented in writing by a primary care provider.

In rare cases, other extenuating circumstances may justify the use of business class for trips that do not meet the above conditions.  Exceptions for such circumstances require prior approval, consistent with the Exceptions and Special Circumstances section of Policy 3301 Travel on University Business .

Note : For travel expenses that are administered by Yale but will be reimbursed in full by a third party, business class travel is allowable if approved and documented by the sponsoring institution/entity and documented in the expense report.

A. Documentation of Approved Business Class Air Travel

If a traveler is allowed to fly business class, the traveler (or their designee) must determine and document the cost of business class that exceeds airfare within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements, for a comparable trip.  The traveler (or their designee) is also responsible for charging that excess cost differential using appropriate charging instructions (see Accounting for Air Travel Expenses ), consistent with the following:

• In general, the excess cost differential cannot be charged to a federally sponsored award.  Federal regulations require only the basic least expensive unrestricted accommodations class offered by commercial airlines be charged to a federal sponsored award.
• The excess cost differential may be charged to a federally sponsored award only when the basic least expensive unrestricted accommodations class offered by commercial airlines is not reasonably adequate for the traveler’s medical needs (i.e., a medical justification exists, documented in writing by a primary care provider).

The traveler (or their designee) is responsible for documenting the cost of business class that exceeds airfare within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements, for a comparable trip for all University travel, regardless of the charging instructions used.  To do so, the traveler (or their designee) is expected to attach documentation to the applicable expense report showing an airfare comparison from a travel service (e.g., World Travel , Sanditz, Travelocity, Orbitz, Expedia) contemporaneous with the business class booking.

• Maintains documentation showing the flight details and pricing for both the Business Flight and the Economy Flight (this includes a screenshot showing the search parameters, any search filters, and the date and time of the screenshot);
• Calculates the excess cost differential between the Business Flight and Economy Flight at $300; and
• Attaches documentation to the applicable expense report and provides appropriate charging instructions for the price of the Economy Flight ($700) and the excess cost differential ($300). 

4. Frequent Flier Programs, Personal Upgrades, and Personal Travel

A. Frequent Flyer Programs

The University allows travelers to accrue their own frequent flyer mileage for trips taken on University business.  The University does not, however, reimburse travelers for tickets or upgrades purchased with frequent flyer miles or other reward points.

B. Personal Upgrades

Travelers may upgrade the level of air service at personal expense or by using their frequent flyer miles or other reward points.  In opting to do so, travelers (or their designees) must document the source of the upgrade on the applicable expense report and must personally cover the excess cost differential between the purchased ticket and the trip’s comparable airfare within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements.  To do so, the traveler (or their designee) is expected to attach documentation to the applicable expense report showing an airfare comparison from a travel service (e.g., World Travel , Sanditz, Travelocity, Orbitz, Expedia) contemporaneous with the booking.

• Maintains documentation showing the flight details and pricing for both the Upgrade Flight and the Economy Flight (this includes a screenshot showing the search parameters, any search filters, and the date and time of the screenshot); and
• Attaches documentation to the applicable expense report and provides appropriate charging instructions for the price of the Economy Flight ($500) and an explanation as to the source of the upgrade to business class (e.g., personal frequent flyer miles).

C. Personal Travel Combined with Business Travel

Whenever possible, personal expenses should be charged separately when making travel arrangements.  If part of the business trip is personal/leisure and requires extra bags (e.g., golf clubs), the cost of the extra bags is personal.

If a travel itinerary is structured to accommodate personal business or leisure, the traveler must pay the incremental cost of personal travel and document the costs incurred, separating personal expenses from University business expenses.  To do so, the traveler (or their designee) is expected to attach documentation to the applicable expense report showing an airfare comparison from a travel service (e.g., World Travel , Sanditz, Travelocity, Orbitz, Expedia) contemporaneous with the booking.  The cost of the University business component needs to be clearly differentiated from the cost of the personal component, as demonstrated by the examples below: 

• Maintains documentation showing the flight details and pricing for both the University Flight and the Personal Flight (this includes a screenshot showing the search parameters, any search filters, and the date and time of the screenshot);
• Calculates the excess cost differential between the Personal Flight and University Flight at $200; and
• Attaches documentation to the applicable expense report and provides appropriate charging instructions for the price of the University Flight ($600) and an explanation that the excess cost differential was to accommodate personal travel.  The $200 excess cost differential is a personal expense for the traveler.
• Calculates the excess cost differential between the Personal Flight and University Flight at $400; and
• Attaches documentation to the applicable expense report and provides appropriate charging instructions for the price of the University Flight ($700) and an explanation that the excess cost differential was to accommodate personal travel.  The $400 excess cost differential is a personal expense for the traveler.
• Maintains documentation showing the flight details and pricing for both the University Flight and the Personal Flight (this includes a screenshot showing the search parameters, any search filters, and the date and time of the screenshot); and
• Attaches documentation to the applicable expense report and provides appropriate charging instructions for the price of the less expensive Personal Flight ($800) and an explanation that the Personal Flight is less expensive than the University Flight, even though it accommodates personal travel.  The full $800 price is considered a valid Yale business expense and is covered.

5. Air Travel on Sponsored Awards: General Principles

Travel charged to sponsored awards is subject to specific limitations and restrictions set by the sponsor(s) and, if applicable, federal regulations.  Travel restrictions may vary between federal and non-federal sponsors.  Additional restrictions not specifically covered by this policy, but sponsor specific, may apply.  Address questions to your award manager in the Office of Sponsored Projects (“ OSP ”).

Certain expenditures (e.g., alcohol) are “unallowable” in accordance with federal cost principles and cannot be charged to a federal award or non-federal award, depending on the terms and conditions of the award.  Some expenses not allowed on a sponsored award may, however, be reimbursed by non-sponsored funds under specific circumstances if the expense is reasonable, adheres to University policy, is broken out separately from the allowable expense(s), and is coded to the proper account number listed in the University’s Chart of Accounts.  For additional information and proper use of ledger accounts and spend categories, refer to Procedure 1305 PR.04 Unallowable Costs .

A. Changes and Cancellations

Changes and cancellations, in general, are covered in Section 2 , above.  In addition to that guidance, the following applies to air travel on sponsored awards:

• If air travel is charged to a sponsored award and subsequently cancelled or otherwise not used, the traveler (or their designee) is responsible for removing the charge from the sponsored award (i.e., crediting the sponsored award) and moving the charge to appropriate, non-sponsored charging instructions.

B. Air Travel on a Federally Sponsored Award: Airfare Pricing Principles and Documentation

Travelers (or their designees) on federally sponsored awards and subawards are expected to select air travel within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements (defined in Section 2 , above).

Travelers (or their designees) on federally sponsored awards and subawards are expected to document their selection of air travel within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements.  To accomplish this, the University strongly recommends the use of Yale’s preferred travel service for travel on federally sponsored awards: World Travel .  Use of this service eliminates the need for independent documentation of comparison airfares, as the service captures the required documentation automatically.  When completing an expense report, travelers (or their designees) need only attach the following:

• If no exceptions are noted on the World Travel Trip Confirmation, the only required attachment is the World Travel Trip Confirmation; or
• If one or more exceptions are noted on the World Travel Trip Confirmation, attach both the World Travel Trip Confirmation and the Concur Travel History Report.     

In the event a traveler (or their designee) opts to book air travel outside World Travel , the traveler (or their designee) is still responsible for documenting their selection of air travel within the basic least expensive unrestricted accommodations class offered by commercial airlines, consistent with business requirements.  To do so, the traveler (or their designee) is expected to include in the expense report airfare comparisons from a travel service (e.g., World Travel , Sanditz, Travelocity, Orbitz, Expedia) contemporaneous with the booking that includes:

• Documentation showing the flight details and pricing for the selected flight; and
• Documentation showing the flight details and pricing for the comparison flights (this includes a screenshot showing the search parameters, any search filters, the date and time of the screenshot, and at least three comparison flights (fewer than three comparisons are permitted if there are fewer than three comparisons available)).

C. Air Travel on a Federally Sponsored Award: Other Applicable Rules

In addition to the specific rules discussed in the sections above, the following rules, organized by subject matter, apply to air travel on federally sponsored awards and subawards:

• Non-economy class air travel – see Section 3 , above; and
• Personal upgrades and personal travel – see Section 4 , above.

6. Air Travel on Federally Sponsored Awards: Fly America Act

Travelers (or their designees) on University business funded by a federal award must comply with the requirements of 2 CFR Part 200 and are required by 49 U.S.C. 40118 , commonly referred to as the “Fly America Act,” to use United States air carrier service for all air travel and cargo transportation services funded by the United States Government.  Accordingly, it is the responsibility of the traveler (or their designee) and their departmental business office to:

• Identify the source(s) of funds supporting the travel, determine the methodology of expense allocation, and determine whether one or more allocated source is a federally sponsored award;
• Review the terms and conditions of the applicable award notice, award document, program announcement, and/or sponsor specific requirements to determine if any travel restrictions apply prior to making any travel arrangements; and
• Book air travel in accordance with this procedure, any applicable travel restrictions, and the Fly America Act or Open Skies Agreement (see below).

Federal regulations (i.e., the Fly America Act) require that federally funded domestic awardees use U.S. flag air carriers when traveling between the U.S. and an international destination, between domestic destinations, or between international destinations to the maximum extent possible.

Any air transportation to, from, between, or within a country other than the U.S. of persons or property paid for from U.S. federal funds must be performed by or under a code-sharing arrangement with a U.S. flag air carrier if service provided by such carrier is available.   Tickets or documentation for electronic tickets must identify the U.S. flag air carrier’s designator code and flight number .

For purposes of this requirement, a U.S. flag air carrier service is considered available even though:

• A comparable or a different kind of service can be provided at less cost by a foreign flag air carrier; or
• A foreign flag air carrier service is preferred or more convenient.

Exceptions to the Fly America Act are permitted when one or more of the following conditions exist at the time travel reservations are made: 

• A U.S. flag air carrier is not available.
• The use of a U.S. flag air carrier would extend travel time, including delay at origin, by 24 hours or more.
• Increase the number of aircraft changes outside the U.S. by two or more ;
• Extend travel time by at least six hours or more ; or
• Require a connection time of four hours or more at an overseas interchange point.
• The elapsed time between origin and destination by a foreign carrier is three hours or fewer ; and
• The use of a U.S. flag air carrier would double the time en-route.
• United States (U.S.) Government and the European Union (EU) (including Norway and Iceland), effective April 30, 2007; U.S.-EU Amendment, effective June 24, 2010; and U.S.-EU Amendment, effective June 21, 2011.
• United States (U.S.) and Australia, effective October 1, 2008.  Requires city pair verification.
• United States (U.S.) and Switzerland, effective October 1, 2008.  Requires city pair verification.
• United States (U.S.) and Japan, effective October 1, 2011.  Requires city pair verification.
• Current Open Skies agreements do not apply to Department of Defense (“DOD”) funds (i.e., exceptions to the Fly America Act are not permitted on DOD awards).  Therefore, only U.S. flag air carriers are applicable for DOD awards.
• Use of Australia, Switzerland, and Japan member state air carriers require a city pair verification prior to booking travel on the air carrier.  Open Skies Agreements allow the use of a non-U.S. flag air carrier when that airline is a member state carrier (i.e., Qantas, Swiss Air, and Japan Airlines), and a city pair fare does not exist between the U.S. city of origin and the destination city within the member state.  City pair fares can be verified using GSA Airline City Pairs .

A. Fly America Act Documentation

Air travel that does not involve an exception to the Fly America Act does not require any incremental documentation.  According to the U.S. General Services Administration (“GSA”), exceptions to the Fly America Act must be documented.  The University strongly recommends the use of Yale’s preferred travel service for travel on federally sponsored awards: World Travel .  Use of this service eliminates the need for independent documentation of Fly America Act exceptions, as the service captures the required documentation automatically.  When completing an expense report, travelers (or their designees) need only attach the following:

• If one or more exceptions are noted on the World Travel Trip Confirmation, attach both the World Travel Trip Confirmation and the Concur Travel History Report.

In the event a traveler (or their designee) opts to book air travel outside World Travel , the traveler (or their designee) is still responsible for documenting any exceptions to the Fly America Act.  To do so, the traveler (or their designee) must include the following information as attachments to the applicable expense report:

1. A completed and signed Form 3301 FR.06 Documentation for Travel on a Non-U.S. Air Carrier ;

2. A detailed travel itinerary from a travel agent or online travel service (e.g., World Travel , Sanditz, Travelocity, Orbitz, Expedia); and

3. The search results performed at the time of booking from an online travel service that document all available flights and the existence of the Fly America exception identified on the Fly America exception form, if applicable.

Note : For those rare situations when a booking from a travel agent or online travel service with accompanying search results is not possible, please provide a detailed explanation as to why the information for items 2. and 3., above, is not being provided in addition to providing Form 3301 FR.06 Documentation for Travel on a Non-U.S. Air Carrier.  Consideration will be given to the circumstances described by the traveler (or their designee), but an exception to the documentation requirement is not guaranteed.

Travelers (or their designees) must not charge airfare without the required supporting documentation to a federally sponsored award, unless a documentation exception has been approved per the above note.  Failure to complete and attach all proper documentation (including an approved exception, if applicable) will result in removal of the applicable charge(s) from sponsored awards.

For additional guidance and assistance with the Fly America Act and Open Skies Agreements, refer to the matrix below:

* If travel is on a EU air carrier then the point of origin, destination or layover must be in one of the EU Open Skies Member States.  If travel is on an air carrier from Australia, Switzerland or Japan then point of origin or destination must be in Australia, Switzerland or Japan.

** If travel is on a EU air carrier then the point of origin, destination or layover must be in one of the EU Open Skies Member States.  Air carriers from Australia, Switzerland may be used for travel between two points outside of the U.S.

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• Per Diem Lookup

Privately owned vehicle (POV) mileage reimbursement rates

GSA has adjusted all POV mileage reimbursement rates effective January 1, 2024.

* Airplane nautical miles (NMs) should be converted into statute miles (SMs) or regular miles when submitting a voucher using the formula (1 NM equals 1.15077945 SMs).

For calculating the mileage difference between airports, please visit the U.S. Department of Transportation's Inter-Airport Distance website.

QUESTIONS: For all travel policy questions, email [email protected] .

Have travel policy questions? Use our ' Have a Question? ' site

PER DIEM LOOK-UP

1 choose a location.

Error, The Per Diem API is not responding. Please try again later.

No results could be found for the location you've entered.

Rates for Alaska, Hawaii, U.S. Territories and Possessions are set by the Department of Defense .

Rates for foreign countries are set by the State Department .

2 Choose a date

Rates are available between 10/1/2021 and 09/30/2024.

The End Date of your trip can not occur before the Start Date.

Traveler reimbursement is based on the location of the work activities and not the accommodations, unless lodging is not available at the work activity, then the agency may authorize the rate where lodging is obtained.

Unless otherwise specified, the per diem locality is defined as "all locations within, or entirely surrounded by, the corporate limits of the key city, including independent entities located within those boundaries."

Per diem localities with county definitions shall include "all locations within, or entirely surrounded by, the corporate limits of the key city as well as the boundaries of the listed counties, including independent entities located within the boundaries of the key city and the listed counties (unless otherwise listed separately)."

When a military installation or Government - related facility(whether or not specifically named) is located partially within more than one city or county boundary, the applicable per diem rate for the entire installation or facility is the higher of the rates which apply to the cities and / or counties, even though part(s) of such activities may be located outside the defined per diem locality.

5 Easy Ways to Score Cheap Business-Class Flights in 2024

T he business-class experience can be incredible, especially when you compare it to economy. Goodbye cramped, uncomfortable seating where you need to battle for the armrest. In business class, the seats are spacious -- they may even turn into beds -- and the in-flight meal service is a giant step up.

A premium experience also normally comes with a premium price tag. If you want to book a business-class ticket on an international flight, it could cost $3,000 or more each way.

Some people see those hefty ticket prices and decide to stick to economy. But there are several easy hacks that savvy travelers use to book business class at a fraction of its typical cost.

1. Start earning credit card travel rewards

The best way to save on business class is with travel credit cards . You can use these cards to earn points or miles, and then use those rewards to pay for business-class airfare.

If you always fly with the same airline, you could open one of its airline credit cards . When you use an airline card, you earn miles that you can redeem with that airline. But if you're not loyal to one airline, a better option is a travel card with transferable rewards. These are travel cards that let you transfer your rewards to airline partners.

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Instead of having miles that you can only use with one airline, you'll be able to transfer your rewards to any of your card issuer's partner airlines. This gives you far more options for booking business class.

2. Fly to an affordable destination

Airfare tends to be much cheaper when you fly to places with a lower cost of living. That's true with economy and business-class seats. So if you're hoping to have a better travel experience, without shelling out thousands of dollars for a flight, try looking for more affordable destinations.

Latin America is a popular choice because it has a low cost of living and it's not far from the United States. I've often found business-class tickets for $500 to $700 traveling to and around Latin America. If you're interested in going to Europe, Portugal and Spain are two of the less expensive options.

3. Go where the deals are

If you're the adventurous type, another way to save is an open-ended flight search. Many flight booking tools, including Google Flights and Skyscanner, let you explore destinations this way. Here's how:

• Choose your departure airport.
• Select the option to search for business-class flights.
• Enter your desired travel dates.
• In the destination field, choose the "anywhere" option.

You'll get a list of places you can visit, with prices for business-class airfare. Open-ended flight searches have become popular -- Skyscanner reports that 1 in 2 travelers start their searches without a destination in mind.

4. Compare prices on different travel dates

When you're trying to get cheap flights, being flexible makes it much easier. Flights sometimes cost half as much, or less, depending on the travel dates you choose. This is true when you're paying in cash or credit card miles.

The cheapest days to fly are Tuesdays and Wednesdays, according to research by CheapAir.com, so you may want to start your search there. With most airlines and online travel portals, you can quickly jump from day to day and see which have the lowest prices. Many airlines also have low-fare calendars where you can quickly check prices for an entire month at a time.

5. Upgrade your way into business class

Can't find a deal on the flight you want? You could book an economy ticket, and then see if it's possible to upgrade it later, space permitting. This is more of a gamble, so only do it if you wouldn't mind flying economy.

The upgrade process will depend on the flight and the airline. Some airlines give you the option to pay a flat fee for an immediate upgrade. Others use bidding systems, where you bid the amount you're willing to pay, and the airline later lets you know if your bid was accepted.

You don't need to stretch your travel budget to the limit for a business-class flight. If you shop around for deals, are flexible about when you travel, and use credit cards that earn travel rewards, you can fly this way at a reasonable cost.

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