How to Create a Business Travel Standard Operating Procedure

Editor's Note: Take a look at our featured best practice, Process Automation & Digitalization Assessment (41-slide PowerPoint presentation). The Process Automation & Digitalization Assessment is a comprehensive framework designed to help organizations identify opportunities for streamlining operations, reducing manual efforts, and leveraging technology to drive efficiency and scalability. The assessment provides a structured approach to [read more]

Also, if you are interested in becoming an expert on Process Improvement, take a look at Flevy's Process Improvement Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

In today’s dynamic business landscape, travel is indispensable. Yet, some businesses overlook the importance of travel policies, erroneously assuming they’re exclusive to large corporations. This misconception must be dispelled. Businesses should meticulously craft business travel standard operating procedures to optimise the operation and lessen travel costs while prioritising the safety and satisfaction of business travellers.

Here’s how to create a business travel standard operating procedure.

1. Provide Clear Guidelines

Clear guidelines are crucial for establishing a business travel standard operating procedure (SOP), ensuring consistency, efficiency, and compliance with organisational policies and regulations. Clear guidelines outline the expectations and requirements for all aspects of business travel, including booking procedures, expense reporting, safety protocols, and behaviour standards.

By delineating specific procedures and protocols, businesses can minimise confusion and ambiguity, enabling employees to navigate the travel process smoothly and confidently. Clear guidelines also promote adherence to corporate policies and regulatory requirements, reducing the risk of non-compliance or misconduct.

Moreover, clear guidelines enhance efficiency by streamlining the travel process and eliminating unnecessary delays or errors. Employees can reference the SOP to understand the necessary steps and documentation required for travel, facilitating faster decision-making and execution.

Additionally, clear guidelines promote safety and risk management by outlining protocols for emergencies, health precautions, and travel advisories. Employees are better prepared to handle unexpected situations and mitigate potential risks when they have access to clear instructions and procedures.

With clear guidelines for business travel SOPs, businesses can establish consistency, efficiency, compliance, and safety in the travel process, ultimately contributing to the overall success of business travel.

2. Understand How to Write a Standard Operating Procedure

Organisations should understand the correct process for writing a standard operating procedure (SOP) for business travel to ensure clarity, consistency, and compliance with internal policies and external regulations. The process typically involves several key steps. 

The first step to creating a business travel standard operating procedure is to gather information about current travel practices, relevant regulations, and organisational policies related to business travel. Ensure you involve relevant individuals, from travel managers to finance personnel and HR representatives in gathering insights for a comprehensive coverage of all aspects of travel procedures.

A crucial part of creating business travel standard operating procedures is defining objectives. Businesses must articulate the scope of the SOP, including the specific processes and tasks it will cover. Write down detailed step-by-step instructions for each aspect of business travel, from booking and itinerary planning to expense reporting and safety protocols.

Take the time to review the SOP and have relevant individuals check it to ensure accuracy, clarity, and alignment with organisational goals and policies. Revise as needed based on feedback.

Consider offering training to employees on the SOP and ensure that it is accessible and easily understandable by everyone. Implement the SOP across the organisation and regularly update it as needed.

3. Set Spend Limits

Setting spending limits is one of the most important steps to creating business travel standard operating procedures. Doing so allows organisations to effectively manage expenses, maintain financial control, and ensure accountability. By establishing clear spending parameters, organisations can prevent excessive or unnecessary expenditures, optimise budget allocation, and safeguard financial resources.

Moreover, spending limits help employees adhere to budgetary constraints and financial targets. By defining specific thresholds for travel expenses such as accommodation, transportation, and meals, they can prevent employees from overspending, encouraging them to stay within budgetary limits while travelling.

Spending limits also help to promote responsible spending behaviour among employees. When they are aware of the maximum allowable expenditure for business travel, they will be encouraged to make cost-effective decisions, prioritise essential expenses, and seek out more economical options.

Additionally, spending limits enable organisations to standardise travel expenses and ensure consistency across departments and employees. By establishing uniform guidelines on spending limits, organisations can minimise discrepancies and maintain fairness in expense reimbursement processes.

Furthermore, setting spending limits on business travel enhances transparency and accountability. Employees have to justify expenses that exceed predefined limits, and this encourages a culture of accountability and discourages wasteful spending practices.

4. Create Booking Procedures 

Companies should include guidelines on booking procedures in their business travel SOPs to ensure consistency, efficiency, and compliance with organisational policies. Clear guidelines outline the process for booking accommodations, transportation, and other travel-related services, minimising confusion and errors while streamlining the booking process.

Part of the booking procedure often involves hiring some great companies that will help manage group bookings when travelling. These companies can provide valuable expertise and assistance in arranging group accommodations, transportation, and activities, ensuring seamless logistics and cost-effective solutions for group travel.

By incorporating guidelines on booking procedures, companies can standardise the booking process, establish accountability, and ensure that employees adhere to company policies and procedures when making travel arrangements. Doing so helps in controlling costs, maximising efficiency, and enhancing the overall travel experience for employees.

Additionally, hiring external services for group bookings can further optimise the process, leveraging the expertise of professionals to manage complex logistical requirements.

5. Include Safety Protocols

Businesses should include safety protocols in their business travel standard operating procedures (SOPs) to prioritise the well-being and security of their employees while travelling. Safety protocols outline measures to mitigate risks, respond to emergencies, and ensure the health and safety of employees throughout their travel experience.

Including safety protocols in SOPs helps to create a proactive approach to risk management, addressing potential hazards and threats before they escalate into crises. It may involve providing guidelines for destination assessments, travel advisories, and health precautions to minimise exposure to risks such as natural disasters, political instability, or public health emergencies.

Furthermore, safety protocols establish clear procedures for responding to emergencies, including communication channels, emergency contacts, and evacuation plans. By equipping employees with the knowledge and resources to handle unforeseen circumstances effectively, businesses can enhance their resilience and minimise the impact of emergencies on travel operations.

Incorporating safety protocols into SOPs also demonstrates a commitment to duty of care and employee well-being, promoting trust and confidence among employees. When employees feel that their companies support and protect them, they are more likely to perform their duties and positively represent the organisation.