Business travel compliance: what is it and how to improve it?

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Compliance typically means the action of obeying (complying) with a wish or demand. However, what does this mean when it comes to business travel? Business travel compliance means employees agree to a business’ corporate travel policies for business trips.

In this brief article, we’ll take you through different types of travel compliance you need to consider, as well as why your business needs compliance processes for all business travelers.

Compliance meaning: a business travel breakdown
Picture this, you’re a manager, and your team Special Data member needs to go on a business trip to represent everything you’ve done. Now, you’re a travel manager. You’re suddenly responsible for a world of policies, risks, and processes outside of your work scope. You need to make sure your team member complies with company travel policies but don’t have a fantastic overview of them yourself.

Cue business travel compliance for easy global mobility. An opportunity for you to take the worry out of business travel. Allowing you and your teammate can focus on the reason for the trip, now the how-tos.



Why do we need business travel compliance?
There are quite a few reasons for compliance in global business travel. Some benefit the business; some benefit the traveling employee, all of them get everyone on the same page. Cases of non-compliance often occur out of misunderstanding.   

Risk management: Compliance means businesses can better manage all types of travel risks. Processes will be put in place to account for these risks, and when an employee complies with them, they minimize risk.

Reputation management: When a business traveler complies with travel policies, it means they comply with rules put in place to maintain the reputation of the company they’re traveling for.

Expense management: This is always a huge problem if you’re not booking through a business travel management company. Compliance with budget limits and processes for approvals ensure there’s no awkward overspending. Plus, they align people on reimbursement, and their designated travel spend.

Data handling: Data compliance enables the business to optimize corporate travel management in the future. Moreso, by having an overview of employee travel data, companies can further minimize risks and protect employees better, should there be a security threat.

Freedom for travelers: Compliance for business travelers means they don’t need micromanaging. Travelers agree to a specific set of rules and workflows, which means they clearly understand their travel freedom and their ‘online’ hours.

Overview for travel managers: Last but not least, travel policy compliance gives travel managers—whether experienced or not—peace of mind and an overview of what they can expect from their traveling employees.


Different types of business travel compliance
Although we’ve covered compliance meaning, there are a few specific areas of compliance to be aware of when it comes to corporate business travel.  

Tax compliance
Tax compliance issues and tax authorities sound like every worst nightmare—and they can be. Depending on the traveler, the destination, and the length of the stay, your business and travel can be affected by new corporate tax obligations and social security fees.  

However, it’s no longer a case of solely measuring the number of days your employee is on the road. Their type of work, number of trips, and compensation all need to be taken into account. Tax compliance ensures both you and your employee are aware of the tax implications for any particular trip.