Company Policy on Reimbursed Travel Expenses
Updated: Oct 14
In this article, I wanted to go over the standard company policy at Garrett Realty Partners for those who wish to pay for company travel themselves with their own credit card and then be reimbursed by the company for that expense.
Standard procedures: Adam Garrett Books Travel
Adam will typically be responsible for booking hotels, rental cars, train travel, & flights with the company's best option among points, over 30 credit cards, or a combination of both. If a checked bag &/or carry-on bag is needed and it's able to be booked upfront at the time of booking, Adam will do that. If it's unable to be added at booking, the employee should use their company card, if they have one, to pay for it. All other expenses incurred during and for travel that would be covered by company expenses should be paid for with their company credit card.
Introduction to Exceptions for Reimbursed Expenses
If you don't have a company credit card, your expenses will be <$100, & you have travel expenses that have been authorized for you to incur personally (i.e. Uber rides), get with Iris within 7 days of usage for reimbursement.
If you have added personal expenses (i.e. a preferred seat upgrade or booking to a more costly preferred carrier) that are above what was authorized by the company, be sure to get with Iris within 7 days from the date of booking to reimburse the company for those expenses.
If the company would have otherwise paid for travel expenses with a company credit card or used points, the below are examples of when it is beneficial to the company for employees to use their own credit cards for expenses rather than Adam performing the bookings and using company cards. The below numbers are based on factors like the TPG valuation of the points that the company would acquire by using Adam's standard operating procedure with over 30 available credit cards, relying heavily on premium credit cards (i.e. >$500/yr annual fees) to maximize the return on spending for the company's high volume of travel expenses.
Airline Bookings Exceptions if Seeking to Use Your Own Personal Credit Credit Card
If you would like to purchase a ticket yourself, keep in mind the following policies:
For $ bookings, if paying yourself and not getting any discounts that the company would be otherwise getting, the reimbursement that you will receive from the company would factor in any discount that the company might otherwise get (we have business accounts with a few airlines that provide a small discount at times, i.e. 2% or 3%) as well as 10% of the cost of the airline ticket (since the company typically gets 10% of the $ cost back in TPG value of points).
If a points booking is ideal for the itinerary, things can get more complex, but may still be possible as long as you compensate the company for the difference in the $ cost you pay and the points values (based on TPG valuations) of the points that would have been redeemed for the same booking.
Free bag(s) credit card: If using a credit card that you have would save the company money on baggage that you would otherwise need (i.e. from a # of annual fee incurring airline cards where only the account holder and those on their itinerary can get baggage benefits, while those flights they book for others without them on the itinerary do not receive the benefit), and the amount of savings would be in excess of any savings that the company would be getting by using the company's own cards (i.e. the 10% & in some cases more), no reduction in your reimbursement to the company is necessary. For instance, If you are flying Jet Blue or United Basic economy flights for a $200 round trip itinerary, & purchasing with one of the Jet Blue cards or United cards that provide a free checked bag (because no carry-ons are provided with Jet Blue or United basic economy), it would make more sense for you to use your own credit card because the cost of a carry on for a round trip itinerary will exceed $20. If the reduced cost from a bag credit wouldn't exceed the value that the company would get by booking themselves, you could be reimbursed the full amount of what you paid minus the difference.
Trip delay insurance: If you're purchasing with your own personal credit card that provides minimum 6 hrs or less reimbursed travel expenses for covered delays with a minimum $500 max threshold, it can act like a 1.5% bonus on reimbursement available from the company.
If you have status with an airline or something else that holds purchase protections (i.e. converting a non-refundable itinerary to be refundable) for booking that would not apply if the company booked your ticket for you, it can act like a 1.5% bonus on reimbursement available from the company.
Hotel Bookings Exceptions if Seeking to Use Your Own Personal Credit Credit Card
When comparing hotel rates, much is the same as with airlines, but there are some differences.
Typical $ bookings: For $ bookings, if paying yourself and not getting any discounts that the company would be otherwise getting, the reimbursement that you will receive from the company would factor in any discount that the company might otherwise get as well as 20% of the cost of the hotel room if it or a similar room at another hotel is available on the Capital One or Chase Travel Portal (since the company typically gets 20% of the $ cost back in TPG value of points if on the Chase Travel Portal). If the $ cost outside of the portal is >14% less elsewhere, defer to the #s in the next section. For instance, if you use the (discontinued from new applications) Citi Prestige's 4th-night free benefit for a 4-night stay that the company has already stated would be good for the company, the company would typically be able to reimburse you for 80% of the value of the 4 nights while you actually paid for 100% of 3 nights.
Bookings Primarily at Conference Rates: For $ bookings, if paying yourself and not getting any discounts that the company would be otherwise getting, the company will reimburse for the cost that they would pay minus any discount that the company might otherwise get as well as minus 6% of the cost of the hotel room if it or a similar room at another hotel is NOT available on the Capital One or Chase Travel Portal (since the company typically still gets 6% of the $ cost back in TPG value of points). An example with a 6% rate would be when receiving a conference discounted rate for a hotel.
If a points booking is ideal for the itinerary, things can get more complex, but may still be possible. You would be reimbursed for the TPG valuation of what the points that the company would have used would be as well as any $ fees they would have incurred. TPG valuations
If you have status with a hotel, that status may sometimes be used even if Adam books your room. If it may not be used, and that status would provide things like meal credits, lounge access, or breakfast benefits, please let Adam know so that something fair may be determined based on the reduced expenses that the company wouldn't need to incur for your meal(s) and the lesser of the per diem that you would have been alotted & the amount that you would have paid.
Rental Car Exceptions if Seeking to Use Your Own Personal Credit Credit Card
Below are the company policies when the company has approved a rental car.
Typical $ bookings: For $ bookings, if paying yourself and not getting any discounts that the company would be otherwise getting, the reimbursement that you will receive from the company would factor in any discount that the company might otherwise get as well as 20% of the cost of the rental car if it or a similar one is available on the Capital One or Chase Travel Portal (since the company typically gets 20% of the $ cost back in TPG value of points if on the Chase Travel Portal). If the $ cost outside of the portal is >14% less elsewhere, defer to the #s in the next section. For instance, if you use National's free day benefit for a 4-day rental that the company has already stated would be good for the company, the company would typically be able to reimburse you for 80% of the value of the 4 days while you actually paid for 100% of 3 days.
Bookings Primarily at Discount Rental Options (i.e. Turo): For $ bookings, if paying yourself and not getting any discounts that the company would be otherwise getting, you will be reimbursed by the company minus any discount that the company might otherwise get as well as minus 6% of the cost of the car if it or a similar car would be >14% below the price of vehicles available on the Capital One or Chase Travel Portal (since the company typically still gets 6% of the $ cost back in TPG value of points).
Insurance Benefit: If renting a car, & you are using a card with a collision damage waiver that operates with primary insurance coverage with at least a $75,000 policy (i.e. the Chase Sapphire Reserve & Capital One Venture X at the time of this writing) that covers your time driving, you may use your card & be reimbursed for the full amount as long as you waive the insurance costs so that the collision damage waiver is used if needed & as long as the insurance savings is >20% of the total cost. If the insurance savings is <20% of the cost, you may be reimbursed for 80% of what the cost would have been with insurance.
Personnel Exceptions - CEO & VP
Greg Garrett & Adam Triplett are exempt from a requirement for adherence to the above policies.