Yes I’ve had exactly the same thing many many times with Aust Govt. The hotel daily rate cap was inflexible, and they literally did not care how much was spent on taxis to client and also on one occasion taxis to meals as the cheap hotel that was within the cap (in Darwin) did not offer meals and was not within safe night walking distance for single female travellers. After 3 trips to Darwin on that basis and questioning my taxi expense, they saw reason and opted for self catering apartment nearer to the client and a rental car instead of taxi. Much more sensible. But I don’t know why they couldn’t see that the first time I pointed it out to them, after the first trip.
So the message for travel policy is the clear need for common sense and an eye on total costs. Really the travel arrangers and travel approvers need to have had some poor travel experiences themselves before they start making decisions for others. When I ran my own company, I took my admin manager with me in a couple of trips just to show her what it was like to drive from CBR to western Sydney for an 0800 start with the client on a 2 day training program and why our policy, regardless of the client’s policy, was to drive up the night before. I also took her to Darwin, and made her go economy up so she could understand that too - gave her business on the way back. After these trips, she was a dedicated demon fighting for the rights of our travellers!