Are you a travel manager or an HR representative trying to find compliant hotels for business travel? Or are you new to the job and aren’t really sure what a hotel booking policy is and what it consists of? Then you’ve come to the right place! This article will break down everything you need to know about hotel booking policies and what you need to do to find compliant hotels for business travel.
Let’s dive in!
What is a hotel booking policy?
A hotel booking policy are the rules and guidelines a company establishes within their travel policy. It lays down the law about how employees can choose, reserve and pay for hotels during their business trips.
How does a hotel booking policy fall within the broader business travel policy?
A business travel policy seeks to establish a series of rules and guidelines that help ensure expenses are kept under wraps, while also ensuring that no matter who travels or where they travel, it is clear what is allowed and what isn’t allowed in terms of safety, regulations and how travel approvals are carried out across all company-sponsored work trips.
The hotel booking policy is part of the broader travel policy. It can determine the maximum budget per night, what is permitted in terms of extras (Wi-Fi, Mini bar services, upgrades), accommodation standards, and it also establishes the approved booking channels. Usually in the case of growing businesses, there will be one T&E platform designed to service the whole company’s travel needs.
Why do companies establish hotel-specific rules?
The main reasons for establishing hotel-specific rules are:
- Financial responsibility
- Duty of Care
- Operational efficiency
- Ease of managing accounting
- Setting a standard that can be applied to all employees
Companies must establish hotel-specific rules for business trips to help control corporate spending, make accounting easier and protect employees by ensuring the company lives up to their duty of care.
Key components of a hotel booking policy
So what does a hotel booking policy usually include?
- Accommodation standards: Defines what kinds of room types are allowed under the policy and star ratings. It also lines up what kind of upgrades are permitted.
- Approved booking channels: Defines the corporate booking tool or TMC that all reservations must be made through (like GetGoing).
- Rate caps: This part of the policy establishes the maximum nightly rate, which is usually different depending on whether the hotel is in a rural or city setting.
- Preferred suppliers: When working with a corporate booking platform, preferred suppliers are already worked into the booking system. In case of booking on your own, this rule is usually established within the hotel booking policy.
- Cancellation/ refundability rules: Sets up the procedure should changes or late cancellations, and helping to ensure the selection of flexible rates.
- Extras: Clarifies what extras and upgrades are allowed. For example, whether breakfast, Wi-Fi, or parking are covered under the hotel rate or are part of established per diems.
- Duty of care: Provides information for travelers going to dangerous locations, and ensures the hotels chosen for business purposes are in a safe location and meet health standards. It also provides the protocol of what to do in case of an emergency.
- Approval requirements: When working with a corporate travel management tool, approval flows are usually worked into the booking process. When hotels are booked within the protocol, having special approval requirements is usually not necessary.
5 steps business travelers can take to book hotels that comply with company policy
How can companies make compliant hotel booking easier?
The easiest way for companies to make sure hotel bookings are compliant is to work with a travel and expense management platform like GetGoing that can guide employees to make reservations at hotels that are within the company’s travel policy. It’s as easy as searching for the dates, city or town your staff is visiting and next to the hotel you can easily locate whether the hotel is in the company policy or not.
What happens if no compliant hotel is available?
This is where it’s up to the company to define what the exception process looks like and the protocol employees need to follow to get the hotel approved in the case there’s an event, overbooking or in the absence of a hotel within policy. It’s important that you don’t force travelers to book somewhere that is not up to your company’s standards just because they want to meet the rate cap set by the company.
Don’t have a T&E platform at your company? Book a demo to see what GetGoing can offer.
FAQ
What should the hotel section of a travel policy include?
A clear nightly cap for each city or region, the booking channel employees must use, the preferred or negotiated corporate hotel rates, and a simple approval process for exceptions. Caps work best when they reflect real market prices. Amex GBT expects London hotel rates to rise between 3.6% and 5.4% in 2027.
Why do employees book hotels outside the travel policy?
Usually because the policy does not match their needs. Some reports have shown that nearly half of business travelers admitted bending or breaking travel or expense policy.
Is there an HMRC allowance for hotel costs on business trips?
No. HMRC has benchmark rates for meals, such as up to £5 for breakfast, but it has not set a benchmark rate for overnight subsistence. Each employer has to agree to its own hotel or overnight rate, which is why a clear policy cap matters.
How does booking within policy help with duty of care?
When hotels are booked through the company’s channel, the company knows where its travelers are, which is especially important in an emergency. However, according to some studies less than half of CFOs say their organization is fully responsible for employee safety during business trips.