Business travel plays a crucial role in many companies—but getting employees to stick to the travel policy is often easier said than done. In fact, up to 60% of business travellers admit to booking outside of company-approved channels, often choosing flights and accommodation based on personal preference rather than what’s outlined in internal guidelines.
When policies are overlooked, costs can spiral and compliance issues can arise, putting your organisation’s bottom line at risk. That’s why having a clear, well-communicated travel policy—and knowing the red flags to watch out for—is essential for any travel manager looking to stay in control.
Read on to uncover key travel compliance red flags and practical ways to strengthen policy adherence across your organisation.
Why employees don’t always follow the travel policy
According to a 2023 GBTA survey, 33% of travel managers say poor policy awareness is the number one cause of non-compliance. That’s a striking figure—and a strong reminder that even the best-crafted corporate travel policy can fall flat if employees don’t fully understand or follow it.
While it might seem counterintuitive, giving employees more flexibility and autonomy in how they manage their travel can lead to smarter spending—if it’s supported by clear guidelines and proper oversight. Let’s explore the most common reasons business travellers go off-policy, and what you can do to bring them back on track.
- The policy isn’t clearly communicated
You can’t expect employees to comply with something they haven’t seen or fully understood. Whether your travel policy lives in a shared drive, is introduced during onboarding, or sent out via company-wide emails, make sure it’s visible, accessible, and regularly revisited.
A one-time announcement isn’t enough—regular reinforcement helps keep it top of mind.
- It’s not easy to understand
A travel policy filled with legalese and dense paragraphs is likely to be ignored. If employees aren’t sure what the rules are—or which are flexible—they may end up bypassing the policy altogether.
Encourage feedback, simplify your language, and make space for two-way communication. A living document that adapts to your company’s needs will serve both your business and your travellers better.
- Accidental breaches happen
Sometimes it’s not defiance, but a genuine misunderstanding. When it’s unclear whether a rule is mandatory or just a guideline, employees may unintentionally step outside policy. For example, they might book a premium seat thinking it’s allowed or forget to get pre-trip approval.
Clear boundaries, practical examples, and simple approval workflows can help eliminate this grey area.
- Deliberate non-compliance
According to the London School of Economics, employees most commonly ignore rules around approvals and restrictions on airfares or hotels. Whether it’s due to convenience or preference, some will knowingly sidestep the system.
This is where the right tools come in—using booking platforms that only show compliant options leaves little room for deviation.
- Costly habits that fly under the radar
Even when employees think they’re staying within bounds, their travel habits could be quietly inflating your costs. Here are a few red flags to watch for:
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- Booking too late: Last-minute flights and hotels tend to cost significantly more—sometimes up to three times the standard rate.
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- Skipping cost-effective options: Was there a cheaper hotel nearby or an earlier flight? Over time, these missed opportunities add up.
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- Bypassing approval processes: Skipping approval might seem harmless at the moment, but it often leads to unexpected expenses and audit issues.
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- Inefficient travel planning: Are multiple trips being made when one would do? Combining appointments can save both time and money.
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- Overspending without justification: Premium seats or five-star hotels may be justifiable in certain cases—but consistent overuse signals a problem. Context matters.
7 effective ways to improve corporate travel compliance
Ensuring employees follow your company’s travel policy isn’t just about setting rules — it’s about making those rules easy to follow, clearly understood, and flexible enough to suit real-world travel needs.
If your team is frequently booking outside of policy or submitting questionable expenses, it might be time to revisit your approach. Here are seven practical ways to strengthen travel compliance across your organisation.
- Reassess your current travel policy
Start by taking a fresh look at how your existing travel policy is performing. Has employee behaviour changed over the past year? Are your current guidelines still aligned with the way your team travels?
Consider these questions:
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- How many trips were taken this year versus last?
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- Are employees choosing budget or premium hotels?
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- What’s the average cost per domestic or international trip?
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- Are bookings made well in advance or last-minute?
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- Are travellers using approved booking channels?
Answering these will give you a clearer picture of how travel is managed and where compliance might be slipping. Use this insight to refine your policy — making it more relevant and user-friendly for your team.
- Make your travel policy easy to understand (and find)
One of the top reasons policies get ignored? People simply don’t know them well enough. Instead of just emailing a PDF to everyone, invest time in guiding employees through the key takeaways — especially during onboarding.
You could:
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- Run short training sessions or workshops
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- Offer bite-sized video guides or infographics
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- Use apps to send reminders or highlight updates when employees are on the road
Clear, ongoing communication will help employees absorb what’s expected — and why.
- Empower employees with self-booking tools
Lengthy approval chains and outdated booking processes can frustrate employees — and encourage them to go rogue. The better solution? Introduce a self-booking platform that’s integrated with your travel policy.
With the right software, you can:
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- Set in-built policy rules and approval workflows
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- Allow bookings from pre-approved inventories
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- Automatically flag out-of-policy options
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- Enable real-time approvals from managers
This simplifies the process for everyone and increases the likelihood of compliance.
- Personalise travel options where possible
While controlling costs is important, ignoring employee preferences can result in policy pushback. If travellers are consistently avoiding your suggested airlines or accommodations, it’s worth asking why.
Modern travel platforms now use AI to suggest bookings based on both policy and past employee behaviour. These tools balance personal comfort with company guidelines — a win-win for compliance and morale.
Also, don’t skip the feedback loop. Encourage employees to share their travel experiences and suggestions. Their insights can help shape a policy that works better for everyone.
- Be clear (and firm) about expense rules
Unclear expense policies are a major cause of non-compliance. If your employees don’t know whether they can claim things like in-room dining or taxi tips, chances are they’ll either overspend or file claims that don’t meet policy.
To fix this:
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- Outline exactly what’s reimbursable
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- Set category-specific limits
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- Highlight common mistakes
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- Enforce your rules consistently
A no-reimbursement policy for out-of-policy expenses is a strong incentive for employees to stay within the lines.
- Monitor tax and immigration compliance
Business travel isn’t just about flights and hotels. When your employees travel internationally, there are tax and immigration regulations to consider too.
To avoid cost penalties:
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- Track travel durations and destinations closely
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- Educate employees on local tax rules and reporting requirements
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- Make sure they have the correct visas for business activities
Your travel and HR teams should work together to flag any potential risks early and keep documentation in order.
- Use technology to stay ahead
The best way to improve compliance? Use the right tools. Travel and expense management platforms provide real-time visibility into bookings, spending patterns, and policy breaches.
Choose software that allow:
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- Customisable policy configurations (by department, level, trip type, etc.)
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- Multi-layered approval processes
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- Instant alerts when someone books out of policy
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- Easy data reporting for audits and optimisation
Why choose Holiday Tours as your travel management partner?
When it comes to corporate travel, having the right partner makes all the difference. Holiday Tours brings over 50 years of experience to the table, offering expert support and tailored solutions for businesses of all sizes.
Here’s why they’re a smart choice:
- Personalised travel programs
Holiday Tours understands that no two companies are the same. Their team works closely with you to customise travel programs that suit your business goals, policies, and traveller needs — whether it’s frequent international trips or cost-efficient local travel.
- End-to-end support
From itinerary planning to visa applications and emergency assistance, Holiday Tours takes care of every step in the journey. Their proactive support ensures that your employees feel safe and supported, wherever work takes them.
- Smart technology for smarter decisions
Get access to real-time data, reporting dashboards, and integrated booking tools. With Holiday Tours’ tech platform, you gain full visibility over spending, policy compliance, and travel trends — making it easier to stay in control and identify savings.
- Dedicated account manager
You’re never just another client. A dedicated account manager is assigned to ensure your travel program runs smoothly, resolves issues quickly, and continuously find ways to improve performance.
- Trusted partnerships worldwide
As part of the BCD Travel global network, Holiday Tours gives you access to strong supplier relationships and exclusive rates across the world. This means better value, more choices, and smoother journeys for your team.
Choosing Holiday Tours isn’t just about convenience — it’s about building a strategic partnership that enhances your corporate travel program from every angle.
DISCOVER HOW SEAMLESS, EFFICIENT, AND COST-EFFECTIVE CORPORATE TRAVEL CAN BE.
REACH OUT TO US AT +603 2303 9100 (PRESS 3) OR [email protected]
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