Corporate travel policy: what to include and how to create one

Every company that sends employees on the road needs clear rules. Without them, each trip turns into a negotiation: who can fly in which class, what nightly hotel rate is acceptable, who approves, what gets reimbursed. A corporate travel policy settles all of this in a single document, and it is the first step to controlling costs without sacrificing the comfort and safety of travelers.

In this guide, ArrowTur, which has served companies in corporate travel since 1989, explains what a travel policy is, what it needs to contain and how to roll it out step by step.

What a corporate travel policy is

It is the internal document that defines how the company plans, approves, books and accounts for business trips. It sets out who can travel, how far in advance trips must be requested, which suppliers and categories are allowed, which expenses are covered and how reimbursement works.

A good policy is not a list of prohibitions. It balances three interests: the company budget, the productivity and well-being of the traveler and the safety of people working away from home.

Why your company needs one

• Predictable spending: with defined limits, finance knows how much each trip should cost before it happens.
• Less back-and-forth: clear rules cut the exchanges between traveler, manager and finance.
• Equal treatment: objective criteria prevent favoritism and case-by-case debates.
• Safety and duty of care: the company knows where each employee is and how to act in an emergency.
• Tax compliance and audits: receipts and approvals are standardized and traceable.

What to include in the travel policy: checklist

1. Purpose and scope

Explain what the policy is for and who it applies to: employees, executives, contractors, guests and job candidates. If rules differ by position, make that clear right at the start.

2. Request and approval workflow

Define who requests, who approves and how quickly. Ideally, approval happens before the purchase, in an online booking tool (OBT), so the manager sees the real cost of the trip and the most economical options available.

3. Minimum advance booking

Airfares go up as the travel date approaches. Set a minimum advance booking period for domestic trips and another for international ones, and define how to handle exceptions (urgent trips, client visits, operational emergencies).

4. Airline tickets

• Cabin class allowed by flight duration and by position.
• Lowest logical fare rule: the cheapest option within a reasonable time window.
• Baggage, seat selection and when paying for a flexible fare is allowed.
• Use of miles and loyalty programs.

5. Accommodation

Set nightly rate caps by city or region (in Brazil, São Paulo, Rio de Janeiro and state capitals usually have different rates from smaller cities), the accepted hotel category and a preference for hotels with rates negotiated by the company or the agency.

6. Ground transportation

Define when to use taxis, ride-hailing apps, transfers or rental cars, the vehicle category, the insurance policy and the rules for mileage reimbursement when employees use their own car.

7. Meals and daily expenses

Choose between a fixed daily allowance (per diem) or reimbursement against receipts, with limits per meal. Make clear what is not reimbursed, such as alcoholic drinks, minibar items and personal expenses.

8. Cash advances, corporate cards and expense reports

Explain how the traveler pays for expenses, the deadline for submitting expense reports, which receipts are accepted and what happens when the rules are not followed.

9. Travel insurance and documents

Make insurance mandatory for international trips and define the minimum coverage. Include guidance on passports, visas and vaccines, with the lead time needed for each.

10. Safety and emergencies

List the 24-hour emergency contacts, the procedure for cancelled flights, accidents or health problems, and the rules for destinations considered high-risk.

11. Exceptions

No policy covers everything. Define who can authorize an exception and how it is recorded. This allows flexibility without opening the door to loss of control.

How to roll out the policy in 6 steps

1. Gather current data. How much the company spends per month, with which suppliers, which routes repeat most often and how far in advance tickets are bought.
2. Involve the right teams. Finance, HR, legal and the managers who travel most. Also listen to frequent travelers: they know where the rules get in the way of work.
3. Write it simply. A short document with tables of limits is respected more than a 40-page manual.
4. Build the rules into the booking tool. When the policy is configured in the system, travelers only see the allowed options and managers approve with one click.
5. Communicate and train. Present the policy, explain the reason behind each rule and keep a channel open for questions.
6. Monitor and review. Analyze monthly reports on compliance, savings and exceptions, and review the policy at least once a year.

Common mistakes when creating a travel policy

• Copying another company’s policy without adapting it to your own travel profile.
• Creating rules so rigid that travelers start working around them.
• Not naming someone responsible for keeping the document up to date.
• Ignoring traveler well-being, such as red-eye flights followed by meetings on the same day.
• Not measuring results: without reports, there is no way to know whether the policy works.

How ArrowTur helps put the policy into practice

Having the policy in writing is half the job. The other half is making sure it is followed in every booking. At ArrowTur, your company’s policy is configured in the online booking tools, with approval workflows by cost center, and every trip is followed by dedicated consultants. You receive management reports with spending by cost center, requester, supplier and savings achieved, and you have service from 7 a.m. to 7 p.m., with emergency support for travelers at night, on weekends and on holidays.

If your company does not have a policy yet or wants to review the current one, talk to our sales team or learn about our corporate travel management.

Read also: how to reduce corporate travel costs and how to choose a corporate travel agency.

Frequently asked questions

Is a travel policy required by law?

No. No law requires a document with that name, but it helps the company substantiate expenses, standardize reimbursements and fulfill its duty of care toward traveling employees.

How long should a travel policy be?

Long enough to be read. For most companies, 4 to 10 pages with tables of limits are enough. Operational details can go in appendices.

How often should I review the policy?

At least once a year, or whenever there is a significant change in travel volume, destinations or market prices.

Do small companies need a policy too?

Yes. Even with few trips per month, simple rules on advance booking, approval and reimbursement prevent unnecessary spending and internal conflicts.