When, where and who gets business class company travel?

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  • Anonymous
    Guest

    JPHK1878
    Participant

    I’m reviewing our travel policy and I’m interested to hear what your company travel policy is for business class travel.

    Is it based on title / grade?
    Distance travelled – over 5 hours, 7 hours, 9 hours… when is business travel granted – if at all?
    Combination of title and travel time?
    Does your company even allow business class travel?
    Is it economy only?
    Premium economy for long haul?

    Is the price subject to if you are within budget or is it managed by policy?

    Any information you can provide would be greatly appreciated.


    K1ngston
    Participant

    The subject that makes the seasoned travellers blood boil LOL I will answer as best I can!
    Title and Grade not so much unless Senior Directors and VPS
    Distance travelled yes, continuous over 6 hours ( used to take US out of reach)
    Only for the masses
    Yes as above
    For everything below 6 hours yes economy only
    PE sometimes where economy is full on 5.59 hour flights
    I am a P&L holder so its down to my budgeting

    Hope this helps ?


    jwak_hkg
    Participant

    1. Yes and No _ Title helps as does the amount of travel you do. I.E if you do one trip a year then probably economy.
    2. Over 4 hours is Business class (except China which is business class as most 2 hour flights take 7!!!)
    3. Managed by common sense policy. i.e Will send a spouse/partner if both in economy rather than 1 in business. i.e will happily allow a case of wine for friends if staying with them instead of hotel. i.e If P&L down then may fly economy and have stopover..

    In my experience (380,000 kms per annum) common sense should always prevail.

    cheers

    jwak


    PrakashMehta
    Participant

    Based on grade and time flown:

    Domestic travel: SVP and above business, others economy. However, with a focus on costs, unwritten rule is domestic by economy only for all.

    International travel: AVP and above business for flights above 5 hours or if it involves a red eye. All others economy.


    MrMichael
    Participant

    As a consultant it depends mainly on who is picking up the tab. All my business travel is within Europe and is generally public funded and is thus economy. Occasionally business if econ is full on the flight required. If a non funded trip the rules are clear, business only for flights over 5 hours.


    JohnnyEnglish
    Participant

    Speaking for my last organisation (still working out the policy in my new post):

    Chief Exec – always entitled to business; eveyone else, depends on flight time:

    Longer journies may be business provided at least one flight sector is over 6 hours. All else economy (even 18 hour trips with 2 x 5 hour flights and an 8 hour layover…)

    No PE and no cost restrictions if a business need exists (provided within overall travel budget).


    pheighdough
    Participant

    Is it based on title / grade? – No, the travel policy applies to all. Bit embarrassing when I went to Madrid recently and I was in business as the ticket was cheaper than economy, and sat behind me and the curtain was our (ex) chief executive!

    Distance travelled – over 5 hours, 7 hours, 9 hours… when is business travel granted – if at all? – If travel is over 5 hours then we are entitled to the next class of travel. So if flying BA I get PE rather than E, but Air Canada (for example) gives me business rather than Economy. Clever booking is required, and a good story to tell over times of flights etc.


    JeffD
    Participant

    In my last commerical job we had a very clear travel policy.
    If you were flying for more than 7 hours it was Business Class, this included LHR – JFK which was sometimes less. If you were travelling ultralong haul > 11 hours you could fly first class but had to start work on arrival, no day off to recover. So you tried to avoid flights arriving in the morning or early afternoon.

    In my current role, our policy is a lot less flexible you have to travel on the cheapest ticket available when you book. If you search around a bit this can be business class providing you can prove it was cheaper that economy.


    kweeki1
    Participant

    In my organisation (Head Office in Paris):

    Train : mandatory for the travel time less than 2h30
    Train or Flight : the cheapest option for travel time between 2h30 and 3h30
    Flight : Business Class when the total travel time (including transfers) exceeds 5h (daytime) or 4h (nighttime).
    First class forbeeden.
    Interestingly Premium Economy since this year is not mentioned anymore. So no chance to try new PE of Lufthansa.

    This is Travel Policy. In the real life of the projects common sense prevails (business and personal constraints, last minute meetings, fatigue, business class cheaper than economy etc)

    Travel Policy applies for all employees and contractors regardless position in the company (however I think there is another travel Policy for VIP)


    Bath_VIP
    Participant

    kweeki1, +1 re the fact that your company’s policy is irrespective of seniority. I find that concept very offensive and it doesn’t apply in my company. As an owner & MD, what’s good enough for me is good enough for all employees.

    The idea that frequent travellers should be allowed higher class of travel vs infrequent travellers is an odd one to me though I understand its logic. The issue is a financial one since the frequent traveller will account for the bulk of the company’s travel expenditure. If you need to reduce the travel bill, addressing the frequent traveller’s costs will have a much larger impact than further limiting the infrequents’. I would have thought the marginal cost of dispensing with this requirement would not be that high.

    My policy for travel not funded by clients is to set a budget for each trip and then allow the traveller to choose whichever option suits them within their budget. The starting point for me is the fully flexible economy fare plus allowances for transfers, hotel and food to arrive at the trip budget.


    libertyscott4
    Participant

    I’ve been under a couple, but the logical one at the moment is as follows:

    It is not based on title/grade.
    It is travel time and budget based (the latter because it can depend on project budgets).
    Cheapest economy for flights of up to five hours as a rule (exception is the occasional times premium economy or business is cheaper or no more than a 15% surcharge).
    Paying for exit row/extra legroom seats (i.e. the US carrier economy plus/extra products) is allowed for flights over three hours.
    Premium economy may be allowed for longer flights, business if the flight is overnight long haul (has to be intercontinental) if budget allows. If business is within 15% of premium economy, it may also be allowed.

    The definition of a reasonable option is any non-stop in economy or premium economy, for business it is the cheapest indirect route that doesn’t have a long transfer (e.g. overnight or more than 6 hours), or a transit that requires a visa or may be considered risky/unpleasant. Circuitous routings that increase travel time over non-stop by over 50% are not necessary.

    Staff can choose options to correspond to frequent flyer preferences if they are using them to upgrade or access preferential seating for free, but not if the fare for that preference is substantially higher than the cheapest reasonable option (taking into account location of home to airports – e.g. someone in Surrey isn’t expected to fly out of Stansted).

    By and large, most projects have a travel budget calculated based on estimates of economy travel to Europe/Middle East, premium economy to North America and business to Asia/Africa/Latin America/Australasia (albeit one way premium economy for daylight sectors if possible). If fares are much higher, then the lower class prevails. The only other factor is occasionally some staff may have a medical condition that means business is mandatory (e.g. a young staff member was hospitalised for DVT after a long haul economy flight from Africa because business was sold out).

    A few clients demand travel be claimed separately and have curious rules, one says fully flexible economy is ok (and anything cheaper than that too), which has allowed for cheap business to be booked on flights to the Middle East.


    JohnHarper
    Participant

    The entitlement fluctuates but I think in a different way to what others are describing.

    At annual performance review all things are looked at and staff put into one of three bands which are silver, gold and platinum. They determine a number of things about your work in the coming year including what sort of car you might have, the hotels you might stay in and the class of travel you are entitled to and the size bonus you get.

    Generally the only people in the silver band are people who’ve been with us less than five years. They are developing and achieving. I think anyone in the silver band after five years would probably need to seek their fortune elsewhere.They are entitled to economy class travel regardless of the length of journey and accommodation in a Mercure or Novotel or similar unless there is a reason for the hotel to be upgraded e.g. client meetings. Travel must be on Star Alliance airlines unless there is no practical alternative but which airline is up to the employee. Within Europe if there is no *A carrier for shorthaul e.g. LON-AMS then Easyjet is the second choice.

    Anyone in the gold band gets business class travel on any service they use and they get to stay in Pullmans or similar. Travel must be on Star Alliance airlines unless there is no practical alternative.

    Anyone in the platinum band gets business class on shorthaul and first on longhaul again with Star Alliance carriers unless there is no practical alternative. Hotels are Sofitels or similar.

    It’s very rare that people drop a band and for instance if someone was sick and off work for a significant period of time they would not lose out in the following year.

    Anyone away for seven days or more can take their spouse or partner along in the same class as they are entitled to travel. PA’s always travel in the same cabin as their boss if they are accompanying.

    As the CEO owning 65% of the shares I can travel as I like and generally take Mrs JH along with me. We generally stick to the *A policy and like Sofitels too but I do some travel with QR and CX.


    mikewebley
    Participant

    What about a Travel policy of

    The employee can travel in any class they like.
    The company will provide the employee a refund to the value of a economy ticket on the same route.


    MartynSinclair
    Participant

    I too am a consultant and my travel policy is based on cost and flight duration.

    Europe, is mainly all economy

    USA and Asia is mainly business

    The choice is down to cost and I try to maximise avios (yes mainly BA).

    Due to routings, I tend to manage at least 5 free European sectors in economy for each longhaul in business. Zero issue in redeeming avios for shorthaul generally within a week of travel need.

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