Corporate Travel Policy

The CEO’s Guide to Writing an Effective Corporate Travel Policy

As we plan for a post Covid Travel scenario, one document that is very important is the Corporate Travel Policy. What is the Corporate Travel Policy? It is that document that basically lays out the rules for corporate travel that employees of a company need to follow, to ensure travel for and on behalf of the company is handled in sync with the vision of the company. It will ensure that all business travel effectively delivers to the financial goals of the company.

Post Pandemic Shape Of Corporate Travel Management Companies

Post Pandemic Shape Of Corporate Travel Management Companies

The International Air Transport Association (IATA) forecast for Travel in 2021 is 52% of 2019 levels. The estimate for 2022 is 88% of 2019. Only by the end of 2023 will it be 105% of 2019 levels. The demand for Air Travel in June 2021 was just 60.1% compared to June 2019. 

The revised estimate for travel in 2030 is 7% lower than former pre Covid-19 estimates. All of this is of course, Travel in general. We all know that Corporate Travel has been affected more than travel in general.

The prognosis therefore, for back-to-normal when comes to Air Travel, is not very good. When corporate travel eventually comes back, there will be a new normal. There will be no going back to the old normal. 

Devolución del IVA

Value Added Tax (VAT) Refund on Business Travel

Proposed originally by the German industrialist Wilhelm von Siemens in 1918, Value Added Tax or VAT has become an important part of the Tax structure in many countries. France was the first country to introduce VAT in 1954. Today it is, for France, the most important source of State Finance and forms almost 50% of the Government’s revenues.  Other countries were quick to add VAT to their own Tax structures. Most countries in the world today charge Value Added Tax, as part of their fiscal policy. It is a Tax that even visitors to such countries have to pay. It is unavoidable.  It can be as high as 25.50% in some countries. Every hotel stay, or restaurant bill, involves VAT.  The Scandinavian countries charge the highest rates. In some countries, different services or goods, attract different rates of VAT that is chargeable.  VAT varies from 5% to 25.50%. Fortunately, many companies become eligible for a VAT refund on the business travel of their employees.