Everything You Need To Know About Using Your Business Travel Allowance
Traveling is a common aspect of business management and growth. The approximate amount of money spent on business travel in the United States alone is over $120 billion. Many businesses seek to cut professional travel costs by implementing a business travel allowance. As a professional who travels for work, here’s everything you need to know about using your business travel allowance.
What a Business Travel Allowance Is
A travel allowance is designed to cover your expenses while you’re traveling for professional purposes. It’s paid by the company that employs you and typically covers essential things such as transport, accommodations, drinks, food and entertainment.
Different companies have different travel allowances. So if you recently moved from one company to another, it’s important to review the new company’s business travel allowance policies. That way you’ll know what to expect and can avoid making embarrassing assumptions about what will be covered when you’re on a business trip.
What’s Typically Covered in a Business Travel Allowance
Though travel allowances can differ significantly from business to business, most businesses typically cover the following travel costs:
- Gratuities, tips and other incidental expenses
- Transportation expenses, including airfare, car rental, taxi costs and parking fees
- Costs for vaccinations and other medical requirements for international travel
- Accommodation provisions
- Food and drink allowances
- Entertainment expenses (often these are only covered if the traveling employee takes one or more clients with them)
- Laundry and dry cleaning services (typically offered for long work trips)
- Travel insurance policies
While a business travel allowance is not a legal requirement in all countries, it is in some countries. Thus, the details of how businesses handle their professional travel allowances and employee reimbursements may differ greatly from country to country.
How Per Diem Allowance Works
To make things easier for themselves and their employees, some businesses choose to offer a per diem allowance to employees. A per diem allowance is a specified amount that a traveler is allotted per day. Per diem rates give travelers the benefit of making travel purchasing decisions in a more laid-back way. It also removes the stress of having to keep track of receipts and turn them in for approval.
When setting a per diem allowance, it’s important to remember that different countries will have widely ranging prices for even basic things such as hotel rooms and meals. When establishing a per diem allowance, it’s essential to ensure the allowance is adequate for the traveler’s daily needs.
Find Travel and Accommodations That Fit Into Your Business Travel Allowance
A business travel allowance is designed to help employers save money on employee travel expenses. Without such an allowance, some employees might not be motivated to select economical airfare and other travel arrangements.
To encourage employees to save money wherever possible, it is helpful to use a travel benefits program that can cut travel costs by 20% on average while simultaneously increasing employee satisfaction and engagement. With an impressive network of travel partnerships, Rocketrip gives you and your employees the power to save. Contact us today to start saving more on your business travels!
