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Reference Data for Air-ticket allowance ( Annual Vacation)

Dear colleagues,

Any suggestions or guidance on referencec data for developing an Air-ticket entitlement policy for annual vacation ?

I have 1000+ employees at my location and we are considering the shift from booking tickets for employees ( we currently have an employee travel desk) to giving an allowance for employees to book their own tickets. We have employees from 74 difference nationalities !

Needless to say, the challenge is what is the correct amount to pay, given the complications/fluctuationas of air-fare.  (Example: If we provide AED 2500 for a return ticket to an employee from Turkey, there will be months in which this amount will not be enough/ in other months it may be twice of the air fare in force) .

Thanks in advance for all your advice.

Best regards,

Sumeet 

 

 

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  • Hi Sumeet,


    That's an interesting prospect.  We currently give an allowance of 3 annual leave flights per annual leave year which are probably 80% booked through our travel desk.  Any flights over and above that are the employee's responsibility.  I'm not sure how easy it would be to create an allowance as surely it would create an awful lot of work researching the average flight costs to that employee's home location?


     Vicki

  • In reply to Vicki:

    We used to send a list of destinations to our retained travel agent with a request to quote for June prices, then pay the value in April payroll. Some years staff got a better deal sometimes they got a worse deal.  However the travel policy stated that an allowance towards a ticket would be payable rather than an actual ticket being bought so the fluctuations were covered by this wording.  You could always go for zoning where an average value us given for each region of the world I.e. Europe, Americas, Australasia etc. 

  • Thank you Vicki and Edna for taking the time to share your feedback . I do appreciate these inputs.
  • Hi,

    I have similar question to Sumeet, what would be the best way of calculating the  Cash lieu figure for the vacation ticket for the employees.  I mean should we take the average the of the past years amount paid to be paid for this year eg. 2014.  Or should be look at other options.

     

    rgds,

    Asha 

     

  • @Sumeet: The policy that was suited for us in all aspects was to give an average rate of fare for that sector at the time of end of contract or as per contract agreement. This was done via payroll, so management of this was easy, there was no need for additional staff and employees were happy since they go an average fare compared to fare fluctuation and previous policy of "lowest fare , lowest season".

     

    @Asha : Ticket fares are increasing every year, based on season and based on sector. The best way I suppose would be to give an average fare or actual which ever is less, considering cost impact for employer and employee satisfaction.

  • Thank you Ashehad, appreciate your reply.
  • Hi,

    We give an allowance based on the IATA rate set at the 1st January each year for travel to a predetermined point of origin.

     Regards 

  • Thank you Steve for your response. Our organization has also started doing annual surveys based on IATA.

     

  • In reply to Steve:

    Hi Steve,

    Can you please provide me with a link to the IATA rates that you mentioned or where exactly can I find them.