Fare Price Controls

In this article, we will explore how to establish a total price cap per person, as well as how to set a dollar or percentage limit over the lowest fare in your policy. This will help you manage travel expenses effectively while ensuring compliance with your company's travel guidelines.

When managing travel expenses, it's essential to have clear guidelines on fare limits. You can set up a total price cap per person, a dollar amount, or a percentage over the lowest fare in your policy. Let's break down how these caps work with some examples.

In this scenario, any fare over $500 is considered out of policy. This means flights will not be shown by default as its 'Prohibited'.

Here, we set a 20% cap over the lowest in-policy fare. If the lowest in-policy fare is $800, then fares up to $960.00 will be considered in policy. This allows for some flexibility while still keeping costs manageable.

In this example, we have both a $500 cap and a 20% over the lowest fare. The cap is $500, but if the lowest fare is $300, then $360 is the highest fare that is in policy. This ensures that even if the lowest fare is low, the cap still applies.

Lastly, we can set a $500 cap along with a $100 increase over the lowest fare. In this case, if the lowest fare is $300, then $400 is the highest fare that is in policy. This approach provides a clear limit while allowing for some variation based on the lowest fare available.

By understanding and implementing these fare policy caps, you can ensure that travel expenses remain within budget while providing employees with the flexibility they need to book their travel.