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TRAVEL POLICY BY BCD TRAVEL RESEARCH & INTELLIGENCE May 2024 TABLE OF CONTENTS ABOUT THE SURVEY Travel policy overviewTravel policy regulationsTravel policy updates and communication Goal:This survey explores modern corporate travelpolicies and looks at the policy changes happeningunder the influence of travel buyers' shiftingpriorities and the new trends shaping businesstravel. Methodology:The results are based on an onlinesurvey of 211 travel buyers conducted from April 3-17, 2024. Respondent profile Geography 55% Of travel managers have globalresponsibilities. Work for large companies withmore than 10,000 employees.64% 36% Have annual travel spend ofUS $50 million and above. Top three industries Travel policy overview Travel program priorities and benchmark, 2020-2024Travel policy availabilityTravel policy overviewTravel policy lengthTravel policy themesTraveler parametersStakeholdersTravel policy prioritiesTravel policy challengesRegional challengesImpact of policy on talent Travel program priorities Duty of care tops the list of travel program priorities with 92% of travel buyers rating it extremely or very important. Travel program priorities benchmark, 2020-2024 While duty of care, compliance and cost control kept growing importance, traveler satisfaction went down on the list ofpriorities. Travel policy 95% of travel buyers say their company has a published travel policy, which is often combined withexpense regulations. Q: Is your travel policy combined with your company'sexpense regulations into one Travel & Expense policy? Travel policy overview While most policies are cost-focused, few are based on KPIs and travelerfeedback. Travel policy length Over three-quarters of travel policies are under 20pages long. Travel policy themes Around two-thirds of policies include trip purpose and pre-trip approval,followed by virtual meetings and traveler wellbeing. Traveler parameters Companies may have dedicated travel policies for senior employees, teamsfrom specific business units and frequent travelers. Stakeholders In addition to travel management, Finance, HR andProcurement are typically involved in creating andupdating travel policy. Travel policy priorities Educating travelers is the top priority of travel buyerswhen it comes to managing travel policies: Over halfagree. Travel policy challenges Among the top-three challenges, buyers mention traveler education, working with policy exceptions and managingtravel policy across regions. Regional challenges Local laws and regulations prove to be a majorcomplexity when it comes to managing policies acrossregions. Impact of policy on talent According to three out of 10 travel buyers, travel policyhas a positive impact on attracting and retaining talent. Travel policy regulations Effectiveness of travel policyEnforcing travel policyMandated policy elementsBusiness class rulesProhibited travel suppliersIn-policy air ancillariesIn-policy hotel ancillariesCost-control measuresRecent travel budget reductions Effectivenessof travel policy Two-thirds of travel buyers consider their travel policyto be extremely or very effective. Enforcing travel policy Most employers enforce travel policy applying rules in online booking tools,improving traveler communication or managing travel expenses. Rewardingcompliant behavior isn’t common. Mandated policy elements Among the travel policy elements, air class is mandated most frequently: Nine in 10 travel buyers say so. Over halfmandate use of corporate cards, car rental class and meal allowance. Business class rules Most travel policies factor in flight duration whendefining the rules around traveling business class. Onaverage, business class is allowed on flights overseven hours long. Prohibited travel suppliers Eight in 10 travel buyers say their policy doesn’t allowthe use of sharing economy accommodation. In-policy air ancillaries Travel policies rarely include airline priority boarding,lounge access or class upgrades. In-policy hotel ancillaries Among in-policy hotel ancillaries, Wi-Fi charges arecovered most often, while room upgrades aren’tincluded. Cost-control measures Six in 10 travel buyers say their company reduced its travel budget in the past few years, and 96% introduced cost-control policies, most popular aiming to reduce the travel volume. Recent travel budget reduction Q: In the past few years, did your company reduce its travel budget? Travel policy updatesand communication Frequency of policy updatesLast policy updateCommunication channelsThe effectiveness of communicationTrends shaping travel policy Frequency of policy updates Last policy update Over half of buyers revise travel policy every coupleof years or more often, while three in 10 do thiswhen needed. Two-thirds of travel buyers have recently revisedtheir policy. Communication channels Intranet is the primary instrument for communicatingpolicy updates to company employees: Three-qua