
For years now there have been companies that reimburse travel expenses of employees presenting proof of purchase. Some have strict requirements as to who qualifies for reimbursement.
In some companies, if a certain percentage of your work involves traveling, you are eligible for reimbursement of expenses. There are people, however, who travel but do not receive a cent of funds allocated to employee benefits.
The real debate starts when budget issues are involved. If you add the reimbursement expenses for education programs and meal vouchers, the budget for employee benefits may be sailing into serious financial straits. So how do you set your budgeting priorities? There are several things to consider.
For one thing, air travel is a lot more expensive than travel by car, bus, or train. With the rising costs of oil, air travel expenses have doubled or tripled in the past years.
As for the recent risks of air travel, should my company pay me more money for flying to the U.K. or the U.S. these days? Traveling by plane is expensive in itself, but the risks involved might have their own price tag as well. Of course the argument could be made that air travel is still safer than car travel. It probably is more dangerous to drive around the city than get on an airplane.
Drawing up a clear company policy on travel reimbursement is a tough job. But one thing is for sure. Traveling first class is a thing of the past for most companies, except in the case of long trips requiring rest. Most firms have cut their business travel expenses in half by simply not traveling to see partners, but rather communicating with them via video conferencing, etc. When real business contracts are in the making, there is a special need for physical presence, even physical contact.
The old battle wages on. Some obstacles may have been hurdled just by throwing money at the problem, but what happens when there is not enough money to go around?
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Posted on http://www.weeklyletter.com at 2006-09-26 12:00:00 +0200
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Business travel should be reimbursed for car travel and air travel.
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Hello Paul,
I think that is a good subject fo the article.
I think that it all depens on the position you have in the company: the closer you are to the CEO the more money the Company will spend on you. (The opposite is also true).
If you travel in first class you are more confortable and you also get better service, is it worth it? If I had to pay it myself it wouldn’t, but if it was a company trip OF COURSE it would.
Regards,
Cristina
Thanks for your comments Cristina!
I wrote this article before travelling to Chicago. I just got back a few days ago…and I must say, from the looks of it, there is nothing like travelling in first class. Of course, normal people can’t afford travelling first class…it actually costs twice the money or even more than that.
Which leads me to my next observation… when is someone going to sue an airline for charging so much money for first class which only companies can afford?
Paul
...There goes another American talking of suing someone esle eh!! (only kiddin’ eh Paul!).
Given the exorbitant “extra” cost of first class travel compared to standard “tourist class”...do you really think that even multinationals can justify the costs?
Surely the cost of “extra luxury” of one transatlantic first/ business class flight could cover the costs of staff training or other “staff incentives”...all to the greater benefit of the company??
Excellent observations Jeremy…
You know it’s really hard to know where to “draw the line” when it comes to spending money on air travel, let alone “First Class” air travel. For years now, big corporations and multinationals have been “In the eye of the media storm” over their more than hefty air travel budgets. A lot of them justify them by claiming that they give a lot of business to airlines and plus, they usually “write off” most of these expenses. It seems to be a viscious circle: companies spend lots of money on air travel, airlines make lots of money, and the government gives companies back a good portion of those expenses…. it certainly seems a bit unfair to me! Great comments Jez…