96% of managers have travel policy, most allow business class flights after 4-5 hrs
NAREIM Member Survey: T&E Policies takeaways
October 10, 2023
Nine out of 10 real estate investment management firms have a policy in place for employee travel and entertainment, with most firms allowing business class travel once a time threshold has been reached and often according to seniority.
NAREIM's latest member survey on T&E expenses outlines when firms allow employees to upgrade to business or first-class travel as well as highlighting policies around hotel spend per night, per diems and overtime allowances.
A total of 30 firms participated in the Survey between Sept 19 and Oct 4. Key findings are below. To download your copy of the Survey, click here
66% of firms allow business class on flights of 4 hours or more
A majority of firms adopt at least a four-hour or five-hour minimum threshold before which business class travel is allowed for eligible employees. Most firms allow business class on international flights, as well as red-eye travel.
63% of firms make no distinction between or have no restrictions on the use of black car service and premium rideshares.
Many firms ask employees to use their judgement and apply a reasonable to fair price standard to keep costs down, while for some firms black car service is limited by seniority, traveling with clients or prior approval from managers.
70% of firms set limits to hotel stays and expenses – with 64% of those respondents revealing they set a dollar amount per night for employees
That compares to 23% of firms which ask employees to stay at hotels where the firm has a business discount program. Of those that set a nightly allowance, 36% of firms set the nightly hotel allowance between $451-$650.
Three-quarters of firms set per diem limits for domestic & international travel
Of those firms setting per diem targets, almost 60% of firms of firms have a per diem rate of up to $150 per day. A quarter of firms do not have a distinct per diem policy.
NAREIM Member Surveys
NAREIM regularly conducts member surveys to help member firms understand organizational policies and strategies of peers. A total of 30 organizations, representing almost 8,000 FTEs and a median FTE of 96, participated in the T&E policies member survey, conducted between Sept. 19 and Oct. 4, 2023.