definition of business travel

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What Is Business Travel? Importance and Types

Business travel has always been an integral part of the corporate world. It provides opportunities to meet clients face-to-face, attend conferences and networking events, and explore new markets. 

However, as much as business travel can be exciting, it also comes with its fair share of challenges. From flight delays and cancellations to tracking approvals and keeping spending in check, numerous obstacles can make business travel stressful and overwhelming. 

In this blog, we will explore the challenges and solutions of business travel and provide insights on how businesses can optimize their policies and practices to make them more efficient, cost-effective, and enjoyable for everyone involved. 

What is Business Travel?

Millions of professionals worldwide engage in business travel each year. Business travel is when you hit the road or take to the skies for work-related purposes. So, if you've ever traveled across state lines for a meeting or hopped on a plane for a conference, you've been on a business trip. 

According to  the Bureau of Transportation Statistics , Americans take over 400 million long-distance business trips yearly, accounting for roughly 16% of all long-distance travel.

What is the Importance of Business Travel?

It's clear that business travel is a significant part of many companies' operations, but what motivates them to send their employees on these journeys? There are several reasons why companies invest in business travel. Here are some of them: 

1. Closing Deals

Business deals often involve significant negotiation, and in-person meetings can be critical to reaching an agreement. When people meet in person, they can build trust and establish personal connections that are difficult to achieve through virtual communication. As such, closing deals in person is a common reason for business travel. 

2. Exploring New Markets

Companies looking to expand into new markets often send representatives to explore the conditions on the ground and conduct research. Visiting a new market can provide valuable insights into consumer behavior, local regulations, and cultural norms that can help companies tailor their products and services to a new audience. 

3. Building Relationships

One of the primary advantages of business travel is its opportunity to build stronger relationships with clients, partners, and colleagues. While email, phone, and video conferencing are convenient, nothing beats face-to-face interactions regarding establishing trust and rapport.

You can pick up on nonverbal cues during in-person meetings and establish a more personal connection. It can lead to a deeper understanding of the other person's needs and goals, which can ultimately help you provide better service or products. Additionally, in-person meetings can help address any concerns or issues more quickly and efficiently, preventing them from becoming more significant problems down the line. 

4. Networking

Attending industry events, trade shows, and conferences can provide networking opportunities, learning about new trends, and meeting potential clients and partners.

Networking can be invaluable for building relationships, finding new clients or partners, and staying up-to-date with industry best practices. For example, attending a trade show can provide opportunities to showcase your products or services, meet potential clients, and learn about the latest market trends. 

5. Competitive Advantage

Companies prioritizing business travel and investing in face-to-face meetings with clients and partners can gain a competitive advantage over those relying solely on digital communication. By meeting with clients and partners in person, companies can establish more personal connections and build trust, leading to more business opportunities and revenue. 

Here's a  business travel checklist  to make business travel for your employees less stressful. 

Different Types of Business Travel

Business travel can take many forms, depending on the purpose of the trip and the activities involved. Here are some of the most common types of business travel: 

• Event and Conference Travel:  Companies often send employees to corporate events and conferences where attendees can learn and network with peers, potential clients, and service providers. 
• Training and Education: Companies may send employees to conferences and workshops to learn about trends and best practices in their functional areas. These events can provide valuable opportunities for professional development and networking, helping employees stay up-to-date on the latest industry developments and build relationships with others in their field. 
• Internal Meetings and Visiting Offices:  National and multinational companies may need to send employees and leadership to other offices to discuss specific projects and business strategies or to build a more integrated organizational culture. 
• Company Retreats:  Some companies hold retreats annually or multiple times yearly to help teams grow stronger and build company culture through shared activities.
• Client Meetings:  Maintaining solid relationships with existing clients is crucial for many businesses. Account managers and others may regularly visit their most prominent clients to check in on them, take them out for a meal or drink, and generally show gratitude for their business. These visits can strengthen relationships and potentially lead to additional business. 
• Trade Fairs:  Many organizations attend trade shows and expos to display their products and services and connect with potential clients. Attending these events can effectively generate leads and build relationships with potential customers, especially in industries where face-to-face interactions are critical. 
• Transfers and Offshore Work:  Long-term transfers involve relocating employees to a different city or country for a certain period, usually to work on a specific project or set up a new function or business process. 
• Transient Travel:   Business transient  travelers typically refer to individuals who frequently travel for short periods, often for a business meeting or work-related. These travelers usually stay in hotels or temporary accommodations and frequently move between locations for work or other activities. 
• Bleisure Travel:  This hybrid travel style combines business and leisure travel, allowing employees to extend their business trips to leave time for sightseeing and relaxation. Bleisure travel can benefit employers and employees, encouraging employees to volunteer for business trips more often and providing a relaxing break. 

Top Challenges To Manage Business Travel 

As many businesses need help managing company travel, several issues affect day-to-day operations. These include: 

1. Managing Large Numbers of Requests

When managing large numbers of travel requests, keeping track of all the information and ensuring that requests are processed efficiently can be challenging. It can result in delays and frustration for employees waiting for travel approvals or information. 

For example, imagine a small company with just one finance person responsible for managing all travel requests. They receive requests from various team members in different formats—email, Slack messages, and in-person visits. It can lead to confusion and delays in processing the requests and distract the finance person from other essential tasks. 

2. Tracking Approvals

It's a massive headache if your company's travel approvals are manually emailed. Tracking travel approvals can be time-consuming and prone to errors. It can result in missed approvals, delayed travel, and frustration for employees waiting for approval. 

Imagine a team member submits a travel request, and the finance person then sends an email to the manager for approval. If the manager is busy or forgets to respond, the request may be delayed or even missed altogether, causing frustration for the employee who is scheduled to travel. 

3. Keeping Spending in Check

Managing travel costs can be difficult, especially when employees book trips independently or through different channels. It can result in overspending and frustration for finance teams who aim to keep costs under control. 

For example, imagine a company where employees book travel through different channels. Some employees book expensive hotels and flights, while others find cheaper options on discount travel websites. It can lead to inconsistency in travel costs and make it difficult for the finance team to manage and budget travel expenses. 

4. Being Flexible

Flexible travel policies can result in consistency, especially when balancing cost control with employee satisfaction. It can result in frustration for both employees and finance teams. 

For example, a business with restrictive travel policies can limit employees to specific airlines, hotels, and routes. It may help control costs, restrict employee options, and make travel less enjoyable. On the other hand, if policies are flexible, employees may book expensive options outside the budget. 

5. Reducing Errors

Reducing errors in travel management can be challenging, but it is essential to ensure accurate tracking of expenses and approvals. This can help prevent delays and frustration for employees and finance teams. 

How Companies Can Manage Business Travel  

Companies must make the process straightforward to ensure that team members comply with travel policies. If the process is simple, team members will find ways to circumvent the rules, and compliance will improve. The following are some common pitfalls to avoid: 

• Too many rules:  Too many, incredibly confusing or contradictory, can be overwhelming and frustrating for team members. It can lead to non-compliance or errors. 
• A high number of touches:  Too many touchpoints, like requiring additional emails to managers for approval, can slow down the process and make it difficult. 
• Lots of manual steps:  Requiring team members to file printed documents and receipts can be time-consuming and create opportunities for errors. 
• Unclear processes:  If team members are unsure of the steps or rules they must follow, they may become frustrated and disengage from the process. 

To ensure compliance and simplify the process, use  a corporate travel management system  that walks employees through each step. By automating the process and making it easy and intuitive, team members are more likely to follow the rules and comply with company policies. 

What is a Business Travel Solution? 

A travel management system is a software platform that helps companies manage their employees' travel-related activities and expenses. These systems can be purpose-built tools from third parties or developed in-house by large companies. However, building a travel management system from scratch doesn't make sense with the availability of business travel management tools out of the box for a relatively low cost. 

These systems aim to oversee, regulate, and coordinate a company's employees' travel activities and expenses. Previously, a company's office administrators or a dedicated travel manager would handle these tasks. However, with a travel management system, these manual tasks can be streamlined or automated, freeing up staff for more valuable work than monitoring others' travel plans. 

A  business travel solution  typically offers features such as online booking, expense tracking, policy compliance, travel budgeting, and reporting. They make booking, managing, and tracking business travel much simpler and more efficient for companies and their employees.  

As a business, it's essential to recognize the value of investing in business travel. There are numerous reasons why companies send their employees on these trips, including closing deals, exploring new markets, holding internal meetings, prospecting, educating, and visiting existing clients. These opportunities provide valuable experiences and insights to enhance your company's operations and bottom line. 

However, managing business travel can present challenges, such as managing large requests, tracking approvals, and dealing with changes in travel plans. To address these challenges, it's crucial to have a straightforward and streamlined travel policy outlining the process for requesting, approving, and booking travel and any expense and reimbursement policies. 

Another essential aspect of managing business travel is providing support and resources to employees while on the road. It includes ensuring they have the necessary technology and tools to stay connected and productive, providing guidance on safety and security, and offering access to travel support services in emergencies.

By recognizing the importance of business travel and implementing strategies to manage it effectively, your company can reap the benefits of enhanced collaboration, improved relationships with clients and partners, and increased opportunities for growth and success. 

So let your employees stay connected, build relationships and enjoy their next business trip!

John Hunter

John is the Senior Manager of Event Cloud Content Marketing at Cvent. He has 11 years of experience writing about the meetings and events industry. John also has extensive copywriting experience across diverse industries, including broadcast television, retail advertising, associations, higher education, and corporate PR.

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What is a business trip? Definition and examples

If you visit somewhere for work purposes, i.e., on behalf of your company, that is a business trip. The term applies to both the journey to your destination and your trip back. In most cases, the trip is not a short one.

Collins Dictionary has the following definition of the term :

“A journey made somewhere and back again for business purposes in one’s working capacity.”

Business trip vs. business travel

The two terms refer to the same action or activity. However, their uses are not the same.

Business travel

Business travel refers to traveling on behalf of your employer generally. Although it is a singular term, i.e., business travel and not business travels , it refers to all trips for work purposes. It is a general term .

I might say, for example: “Business travel is becoming a significant part of our airline’s income.” In this case, we are talking in general.

I cannot use business travel for just one journey. For example, I cannot say: “I’m sorry, Jane is away. She is on a business travel.” I would have to say: “I’m sorry … She’s on a business trip.”

Business trip

This term refers to just one journey. We need to use the plural if we are talking in general.

For example, if I wanted to talk about my airline’s revenue, I would say: “Business trip s are becoming a significant part of our airline’s income.” I would not be able to use the singular form.

Reasons for business travel

In all the examples below, your employer is paying for travel, accommodation, etc.

• Meeting with customers or clients.
• Visiting suppliers.
• Attending a conference.
• Attending a course.
• Identify new markets, trends, and consumer traits elsewhere.
• Visiting somewhere to check the progress of a project.
• Visiting a prospect. A prospect is a company or person that you think could turn into a paying customer.
• Apologizing to a customer.
• Your purpose is PR or public relations , such as taking part in a press conference.
• The ROI from the trip is more than its cost. ROI stands for return on investment .
• Your employer sends you somewhere to fix, for example, equipment.
• Networking. There are many people you can meet away from work with whom you or your company could do business.
• Face-to-face meetings are usually more effective than using email, VoIP, texting, etc. Sometimes they are necessary.

Business travelers typically claim their expenses by filling a report , in which they list how much they spent on local public transport, meals, taxis, phone calls, etc.

Negatives and positives of business travel

Business trips may be extremely rewarding experiences. However, for some people, especially if they have families, there is a price to pay.

Regular business travelers frequently feel loney. Some of them may show signs of deteriorating mental health and even depression. According to Adam Perotta in a Business travel News article in December 2019, over 20% of business travelers said they experienced negative mental health effects.

Regarding the survey, Perotta wrote :

“22 percent of respondents reported that business travel had a “very” or “somewhat” negative impact on their mental health. Twenty-one percent indicated that even thinking about an upcoming work trip caused stress. Factors causing that angst include the toll travel takes on physical health, sleep schedules, personal relationships, personal finances and productivity.”

Traveling regularly on behalf of your company may mean missing major family events, which can contribute significantly to relationship problems.

Jet lag can play havoc with our body clock, productivity, and mental and physical health. Eating small meals before and during your flight, refraining from consuming alcoholic drinks, drinking plenty of water, and getting plenty of rest beforehand can help reduce the negative effects of jet lag.

In a Small Business Trends article, Samson Haileysus wrote that the vast majority of small company owners enjoyed their work-related trips. Approximately fifty-five percent of small business owners travel for work purposes at least once each month. Sixty percent of them spend three nights away from home during each trip.

Haileysus added:

“Surprisingly enough almost all (88%) small business owners who travel for business do enjoy traveling. In fact, just under three in four (72%) say they wish they traveled for business more often.”

Corporate travel is a huge market

Business travel is worth hundreds of billions of dollars each year globally. The biggest spenders on business trips are the United States and China.

In the United States, there are over 405 million business trips annually (long distance). For every working day, approximately 1.1 million Americans are traveling for work purposes.

The world’s most popular destination is New York City, while Shanghai is the fastest growing. Trondent Development Corp. made the following comment regarding the importance of business travel for airlines:

“Business passengers represent 75 percent of an airline’s profits despite only being 12% of their total passengers. But the money is well spent: every $1.00 spent on business travel creates $15 of profit for increased sales.”

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Business Travel: The Beginner’s Guide

June 12, 2019

by Rob Browne

In a world where it has become as easy as a quick few taps on smartphone to book a trip across the world, business travel is more widespread and accessible than ever before.

Are you a recent graduate or new employee looking for an introduction to business travel? This article provides an overview of the field as a whole as well as a guide to traveling for work and managing your business travel expenses .

What is business travel? A step-by-step business trip guide

Research from Statista shows that business travel contributes almost $1.3 trillion to the global economy in a single year, making it one of the world’s largest economic industries. Further research highlights only upward trends in the amount that is spent on business travel as well.

This research reflects an increasingly intertwined global economy. With the speed at which businesses on opposite sides of the world can interact over the internet and travel to meet with each other, employees are operating in a space where location is fluid and business interests can converge across state, national, and continental lines.

Thus, business travel is a vital part of many companies’ lifebloods. In this article, we’ll explore the four temporal components of a business trip and use them as a lens through which to discuss business travel.

Booking business travel

Oftentimes, the dates and general logistics of your business trip are determined by the wants and needs of the client(s) you visit on the trip. If possible, it’s always best to book as far in advance as you can to plan on being out of office. Of course this won’t always be the case, as business trips occasionally arise on short notice if a client needs a quick turnaround time on a particular task that requires a visit.

Booking a business trip is not the same as browsing the internet for the best deals on a family vacation . The online booking platform (OBT) that you use for securing your transportation and hotel depends on your company’s internal travel policy.

Some companies require their employees to book through a specific brand of travel management software  or using a travel management company . A key motivator for companies to use travel management software is that it makes it easier to ensure that employees comply with corporate travel policies. These policies include which airfare class employees are allowed to book, which hotel star class they can stay in, and the class of rental car they can use.

For others, booking your business trip may be a similar experience to booking a trip outside of work, as some companies tolerate open market bookings.

The rigidity with which you’ll be dealing with in terms of booking compliance is dependent upon your company’s travel policy and budget. In most cases, you’ll be looking at a range of mid-tier flight and hotel options that best fit your needs in terms of schedule and distance from the site where you’ll conduct most of your business.

Preparing for the trip

Business trips are often short and have a singular purpose. Get to your destination, meet with the people you need to meet with, and go home. Because of the high energy level required for such a focused itinerary, you’ll want to make sure that you are well-rested going into the trip.

After arriving at your destination, there may not be time to catch a nap  before heading to your first meeting, so you’ll want to ensure that you are able to operate at peak performance as soon as you arrive.

Travel with your important items in your carry-on bag just in case anything happens to your checked luggage. Almost everything you bring on a business trip should be essential to your work, and with a short turnaround between arrival and meetings, you can’t risk not having item X, Y, Z..

On the trip

While on your trip, optimize for everything you can. Outside of any business-related commitments, you’ll want to make sure you have as much time as you need for your work. If there is a particular company policy regarding a daily per diem, or allowance, for meals or transportation, you’ll also need to keep that in mind.

If your trip is to a destination with a lot to see outside business hours or a place where you have friends or family, you can also check with your company’s travel policy regarding bleisure travel. Bleisure, a combination of “business” and “leisure,” means adding a few days onto the beginning or end of your trip to enjoy the opportunity to spend some time not only inside an office.

After the trip

The most important part of finishing a business trip is gathering your expenses and filing an expense report. Between flights, hotels, other transportation, and food, you likely spend a decent amount of money and would like your expenses to be approved and reimbursed as quickly as possible.

Having your expenses approved and reimbursed is typically an easy process, especially if your company uses a form of expense management software .

It’s a trip!

Traveling for work may seem daunting, but thinking about your trip in terms of these four segments will help you succeed at all points of your trip. If your job allows you the opportunity  to spend time outside of your office, enjoy it—and maybe spend time in some exciting destinations along the way.

Rob is a former content associate at G2. Originally from New Jersey, he previously worked at an NYC-based business travel startup. (he/him/his)

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• Business Taxes / Business Travel / Personal Taxes

What is the Definition of Business Travel? (It’ll Surprise You)

by Team Falcon · Published · Updated

Table of Contents

Not sure what qualifies as business travel? Read to learn what is considered business travel and business travel expenses.

Please continue to the bottom of this article for instructions about how to deduct business travel expenses.

Introduction

The simplest business travel definition is travel that is undertaken for business purposes. Business travel does not include daily commutes. However, that does not really get to the gist of the question we’re really trying to answer.

More specifically, according to the IRS, the definition of business travel is travel the taxpayer does, ‘away from their home’ for business purposes.

In this post, we go over the definition of business travel. We also provide a business travel definition for the purpose of expenses. This includes what qualifies as business travel expenses for tax deduction purposes and how to deduct business travel expenses. This post includes the information needed for both personal and business tax returns.

For companies, business travel is a significant expense. For most companies, business travel is the largest expense. Therefore, it is important to understand the definition of business travel for expenses and accounting purposes. This way, both companies, and individual maximize their cost savings.

What is the definition of business travel?

According to the IRS , travel is considered ‘business travel’ and qualifies for tax-deductible business travel expenses when the travel is ‘away from home’ for a duration longer than an ordinary day’s worth of work. The IRS defines ‘away from home’ as outside the entire city or general area outside the location of your main place of business. Also, a duration longer than a day’s worth of work typically means the business traveler stays overnight.

What business travel expenses are tax deductible?

The IRS defines business travel expenses as tax deductible if they are ‘ordinary and necessary’ expenses incurred while traveling away from home for work. These expenses include transportation, lodging, meals, entertainment, and incidentals (such as tips). Business travel expenses are divided and grouped into different categories (as listed below). Each category often has different rules and limits about how to deduct and how much is tax deductible, which we explain in later sections towards the bottom of this article.

• Meals and entertainmtnt such as lunches, dinners, shows, sporting events, etc.
• Travel, such as by personal car, plane, train, bus, etc.
• Transportation, such as fare for taxis or other types of transportation to and from the airport, train station or hotel (including transportation between the hotel and work location.
• Lodging, such as hotels and Airbnb rentals.
• Incidental, such as tips; for example, baggage claim tips.
• Dry cleaning and laundry.
• Business calls while on a business trip. This includes business communications by fax machines or other business communication devices.
• Other ordinary and necessary expenses related to business travel.

Track your tax deductible business travel expenses with ease using Falcon Expenses award-winning expense tracker and expense report generator. Download on the app store, here .

How to Deduct Each Type of Business Travel Expense

Meal and entertainment expenses.

Meal and entertainment expenses involve taking clients, colleagues, prospects, partners, etc. out for meals and entertainment. From a tax deduction perspective, the IRS allows for 50% of these expenses to be deducted.

How to Deduct as a Business

Businesses typically reimburse employees and contractors the full amount of meals and entertainment expenses. The business then subsequently deducts 50% of these expenses from their business tax return. Businesses cannot deduct any amount of meals and entertainment expenses that were not reimbursed to employees or contractors.

How to Deduct as a Taxpayer

Taxpayers reimbursed in full for meals and entertainment expenses do not have anything to deduct from their personal tax return. Typically these taxpayers are employees of companies or contractors working under employment contracts that include full reimbursement of business travel expenses.

However, taxpayers that work as employees can deduct 50% of unreimbursed meals and entertainment expenses from their tax return. Also, only 50% of meals and entertainment expenses are deductible from the tax return of self-employed taxpayers who pay these expenses out-of-pocket and are not reimbursed for them.

Travel and Transportation

Travel expenses by plane, train, bus, or personal car to the business travel destination are tax deductible. Transportation expenses such as fares for taxis and other types of transportation are also tax deductible. However, some important notes need to be mentioned about the topic of travel when the travel is done using the taxpayer’s personal car.

Notes about travel and transportation by personal car.

The cost of travel if you drive a personal car between your home and your business travel destination is tax deductible. Also, the cost of travel while using a personal car at a business destination is tax deductible. For example, the commute between your hotel and office or client in the city the traveled to for business.

With that said, the IRS provides two ways to calculate this tax deduction amount. The Actual Car Expense Method and the Standard Mileage Rate method. The easiest method is the Standard Mileage Rate method. Check out this article for more information and a comparison of these two methods, How to Maximize Business Use Car Tax Deductions . Also, check out this page for an up-to-date list of per mile reimbursement rates for each year, IRS Standard Mileage Rate Tax Deductions . These rates are used for the Standard Mileage Rate method. For 2019 the standard mileage rate is $0.58 per business mile, $0.20 per moving mile, $0.14 per charitable mile. The IRS establishes these amounts by taking into consideration fuel costs, wear and tear on the car, and vehicle depreciation.

Business travel expenses are tax deductible by the business if reward points were not used to buy train, plane or bus tickets. The business can deduct the full amount of the expenses if the business reimburses employees and contractors the full amount of the expenses. The business cannot deduct the amount of travel and transportation expenses that were not reimbursed. In this case, it is the responsibility of the employee or contractor to take the deductions on their personal income tax return.

Personal Car Use

Typically businesses reimburse employees that drive their personal car for business trips. The standard mileage rate is typically used to calculate the reimbursement amount. Sometimes businesses will reimburse their employees or contractors more. However, whatever the employee or contractor is reimbursed, the business is only allowed to deduct the per mile amount for business travel specified by the IRS. Each year these amounts change.

Review the following post if you drive an employer-provided car and want to know about employer-provided vehicle tax deductions: Employer-Provided Car and Truck Expense Tax Deductions .

Travel expenses are tax deductible if the taxpayer paid for their plane, train or bus ticket out of pocket and they were not reimbursed. However, travel expenses are not deductible if reward points were used to buy by train, plane or bus tickets.

Personal Car Use and Consideration for Changes to the Tax Law as of 2018

In regards to travel by personal car, there are special details that need to be taken into consideration. For years prior to 2018 taxpayers employed by a company, on a payroll (i.e. not a contractor) and not reimbursed for business travel transportation with their personal car qualify to deduct this cost from their personal income tax return. However, for years 2018 to 2023 taxpayers who are employees can no longer take this deduction.

Lodging includes the cost of room and board while the business traveler is away on an overnight business trip.

Businesses can deduct the full amount of lodging expenses that are reimbursed to employees and contractors.

Employees that are not reimbursed by their employers can deduct the full amount of lodging expenses incurred during business travel from their tax returns. For those that are self-employed, they can also deduct the full amount of lodging expenses that were paid out-of-pocket while traveling for business.

Incidental expenses are the tiny expenses incurred while traveling for business. This includes things like tips, such as baggage handler tips or meal tips. Personal expenses are not incidental expenses.

Employees and contractors are typically reimbursed up to $5 per day for incidental expenses incurred when traveling for work. The company then subsequently deducts $5 per day per business traveler from the company’s tax return.

Employees reimbursed by their employers for incidental expenses cannot deduct incidental expenses from their tax return. However, self-employed, who pay incidental expenses out of pocket, can deduct up to $5 per day they were away for business travel from their tax return.

Other Business Travel Expenses

Other ordinary and necessary expenses related to business travel are tax deductible. These include things like the cost of dry cleaning and laundry. Business calls, including the use of fax machines. Stenographer fees, computer rental fees, etc.

Expenses reimbursed to the employee or contractor are fully deductible by the business. However, please consult a certified tax professional as needed.

Any expenses not reimbursed to the employee by their employer are tax deductible on the employee’s personal tax return. For the self-employed, any of these expenses paid out-of-pocket are tax deductible. However, please consult a certified tax professional as needed.

About Falcon Expenses

Falcon Expenses is an iOS solution for expense tracking and management. Scan receipts, we type merchant, date and amount, auto-track mileage expenses via GPS, and log billable hours with an integrated timer. Quickly organize expenses by time period, project, or client and easily prepare reports for email to anyone in PDF or spreadsheet formats, all from your phone. Use for reimbursements, taxes, record keeping or invoicing. Falcon Expenses is great for professionals, freelancers, realtors, business travelers, truckers, and more.

Please check out the following articles to learn more about Falcon Expenses products and services:

• How to Scan and Manage Receipts with Falcon Expenses
• How to Track Mileage Expenses with Falcon Expenses
• Falcon Expenses Expense Report Template & What Expense Reports Look Like
• What is Included in Falcon Expenses Mileage Expense Log

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Business Travel 101: What is Business Travel? And Why Use a Travel Management Company?

If you’re wondering why to use a travel management company, discover the many benefits partnering with one can deliver..

When you’re just getting started with business travel, you may encounter the term “travel management company,” or TMC for short. Why use a travel management company? There are many benefits that companies discover when they partner with a TMC.

To help you accelerate your journey into business travel. Here’s a look at the motivations behind business travel as well as the benefits of working with a TMC.

What is Business Travel?

Business travel is when an employee leaves his or her primary office to work elsewhere. This can include short trips, like leaving your home in Los Angeles to visit a prospective client in San Diego. And this can include long trips, like flying from Chicago to London for meetings with your company’s UK office. 

Americans make more than 400 million long-distance business trips each year, according to the Bureau of Transportation Statistics . Those trips account for about 16% of all long-distance travel. What motivates companies to send their employees on these journeys?

There are a number of reasons to travel for business:

• Closing Deals: It’s common to close large and important deals in-person.
• Exploring New Markets: Companies looking to expand into new markets will visit them to explore the conditions on the ground and to conduct research.
• Internal Meetings: In an age of remote work, companies may ask employees to travel for internal meetings or other collaboration events.
• Prospecting: Organizations often attend expos to display their products and/or services and to find prospective clients.
• Education: Companies may ask employees to travel to conferences where they can learn more about trends and best practices in their functional areas.
• Visiting Existing Clients: Account managers and others may regularly visit their largest clients. They can check in on them, to take them out for a meal or drink, and generally to show gratitude for their business.

These are just several examples of reasons why companies may ask employees to travel. There are countless motivations for workers to leave their primary offices for several days at a time.

Who Manages Corporate Travel?

The actual people who manage travel fall into two categories: internal and external.

Internally, a company may use someone in the human resources department to help book trips for Travelers and otherwise manage the travel program. Companies with more intensive travel schedules may have a dedicated Travel Manager or someone who arranges travel for employees.

Companies also work with third parties to manage travel. Organizations can completely outsource their travel to a third party. But it’s more often a hybrid approach where someone internal (like a Travel Manager) works in tandem with a third-party (like a TMC).

Why Use a Travel Management Company? 

As you explore business travel for your company, you may find yourself overwhelmed by the many tasks and responsibilities associated with managing travel. That’s why so many organizations choose to work with a TMC.

TMCs work with everything from small businesses with limited travel needs to large enterprises with enormous travel budgets.

These companies choose to work with TMCs because of the many benefits a third-party management company can deliver, including:

• Greater efficiency: A TMC can help the business and its Travelers do everything faster and more efficiently. You have a team of travel experts in your corner so that your employees can focus on doing their work.
• Lower costs: TMCs often have access to discounts that aren’t available to just anyone. They can also help organizations negotiate favorable contracts with vendors.
• Managed risk: Risk management is how companies live up to their duty-of-care responsibility to keep employees healthy and safe while away from the office. Many TMCs offer risk management services that help companies live up to that responsibility.
• Comprehensive policies: It’s hard to create a comprehensive travel policy from scratch. TMCs can help your organization develop a travel policy that meets both the company’s needs and the needs of its Travelers.
• Technology implementation: The right technologies can help you maximize your investment in business travel. A TMC can help you identify and implement the right technologies for your organization.
• Custom reporting: Optimizing travel spend is only possible when you have access to your travel data. TMCs can help you accrue and analyze your travel data so you can optimize your program.
• Assistance with trip disruptions: Things happen during business travel. A weather event might close an airport, for example, or mechanical issues may delay a flight. TMCs can step in and help when those disruptions occur.

As noted in the previous section, TMCs often work with a Travel Manager or another point person at their clients’ companies to get the most out of business travel. For example, a TMC may develop a system for custom reporting. Then a Travel Manager will present data to executives when making important travel-related decision. Or a Travel Manager may work with internal parties to create a travel policy. Then a TMC will review the policy and make recommendations on how to improve it.

Looking for the Best TMC?

If you’re looking for a TMC, you’ll find two different payment structures. Some TMCs will charge fees for booking and other activities, which can quickly add up and make your travel program more expensive. Others create inclusive contracts at a fixed cost so that they can serve as a true resource to their clients without worrying about expensive fees.

At JTB Business Travel, we take the latter approach of creating inclusive contracts that allow us to serve as a true resource to our clients. We help the companies maximize their spend on business travel, while also ensuring Travelers enjoy the most productive and comfortable trips possible. Behind everything we do is a common-sense approach to business travel.

Contact us today to discover what we can do as your TMC.

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What Is Corporate Travel Management?

Things to consider in corporate travel management, options for corporate travel management.

• Challenges of Corporate Travel Management

Tips for Creating a Corporate Travel Management Policy

Budgeting and reducing costs for corporate travel, the bottom line.

• Corporate Finance

A Complete Guide to Corporate Travel Management

Organize Your Employees’ Travel Itineraries and Manage Business Travel Efficiently

Travel is a major expense item for many companies, and while teleconferencing via Zoom and other online platforms may have eliminated the need for some trips, it remains essential for a wide range of business purposes, such as industry conferences and trade shows, critical sales calls, and certain meetings.

Corporate travel management (CTM) is one way that companies large and small can attempt to control and cut down on their travel costs. If you’re considering implementing a corporate travel management program for your business, here is what you need to know about how it works.

Key Takeaways

• Corporate travel management is a way for companies to try to control their travel costs and cut back on them if necessary.
• Some companies handle this function themselves, while others outsource it to specialist companies.
• Corporate travel managers can be involved in setting itineraries, booking flights and hotel rooms, and managing other travel-related costs.
• Today, many companies are concerned with not only the financial costs of employee travel but also its environmental impact.

Corporate travel management refers to processes that businesses put into place to oversee their employees’ travel and entertainment (T&E) expenses and ensure that they comply with the company’s policies. That can include approving (or rejecting) travel plans, arranging itineraries, purchasing tickets, and auditing expense reports.

A large company might have a separate department dedicated to corporate travel management, while a smaller one may assign the tasks to their human resources and accounting departments. Still others may outsource these functions to third-party travel management companies.

While the COVID-19 pandemic resulted in significant cutbacks in business travel, an October 2023 survey by the Global Business Travel Association found that 84% of companies said their business travel had “largely” or “mostly” returned to pre-pandemic levels.

Companies can choose to exert varying degrees of control over their employees’ travel, from fairly general guidelines on spending limits to very specific, step-by-step procedures, including which travel suppliers to use. Here are some of the matters they may take into consideration.

Itineraries

A business travel itinerary is a summary of a proposed trip, including travel dates and times, flight numbers, hotel bookings, meeting appointments and contact information, and so forth. Corporate travel managers may develop itineraries in collaboration with employees, making sure that each aspect complies with company policies. A written itinerary is also a handy reference for employees to bring with them on their trips.

Transportation

Corporate travel managers will often make transportation arrangements on behalf of employees, much like a travel agent might for someone’s personal vacation. Because they may control a high volume of business, they can have more leverage in negotiating with suppliers, such as airlines or rental car companies. They may also have special arrangements with certain suppliers, and the company might require its employees to use those suppliers whenever possible.

Even if they don’t have such arrangements in place or much power to negotiate prices, they may have tools at their disposal for searching out deals and discounts that individual employees don’t have. For example, they may have access to an online global distribution system (GDS), such as Amadeus, Sabre, or Travelport, allowing them to compare multiple carriers at the same time.

Accommodations

As with transportation providers, corporate travel managers can help arrange hotel bookings, often securing discounts that would be unavailable to employees individually. Hotel prices and availability are also provided on GDS platforms, which can save employees a lot of time and effort calling around to book a room.

Meetings and Events

For companies planning meetings and other events, corporate travel managers can book venues and assist attendees with their travel arrangements. Some companies may have separate travel management and event planning departments or merge the two into a single department. They can also farm out these functions to third-party companies that specialize in arranging events and have deep experience and contacts in that area.

Costs and Reporting

Since keeping costs under control is a major reason for implementing a corporate travel management program, setting spending policies and enforcing them is one of the managers’ key responsibilities. Employees must generally submit expense reports at the conclusion of their travel, which travel managers can then review.

Keeping accurate records, and receipts where necessary, is also important for tax reporting purposes. Companies can generally deduct employees’ travel expenses if they have a clear business purpose and are “ordinary and necessary” and not “lavish or extravagant.”

In many cases, companies will provide corporate credit cards for employees to use during their travels. Corporate credit cards can make it easier for companies to collect the information they need for reporting purposes, and spare employees the cost and bother of putting travel expenses on their own credit cards and having to wait for reimbursement.

Policy Compliance

Most companies of any size will have a written travel policy that they expect their employees who travel for business to become familiar with. This document will cover matters such as any required approval process before starting on a trip, spending limits, preferred travel suppliers, expenses that are reimbursable (or not), rules on the use of a corporate credit card, and how to fill out and submit an expense report at the conclusion of a trip. Written travel policies serve the dual purpose of controlling company costs and saving employees unwelcome surprises over expenses that the company won’t reimburse them for.

Beyond specific travel-related policies, corporate travel can be affected by broader company policies. For example, a 2023 Deloitte study reported, “Climate concerns will likely put a cap on corporate travel gains for several years to come. Four in 10 European companies and a third of U.S. companies say they need to reduce travel per employee by more than 20% to meet their 2030 sustainability targets.”

Travel Support and Assistance

In addition to helping employees with the logistical and financial aspects of travel, corporate travel managers can provide other forms of support, including help in a medical or other emergency. Many large corporate travel departments and third-party companies have support services available 24/7, just in case.

As mentioned, companies don’t have to take on all (or any) of these responsibilities themselves but can hire another company to handle it for them. While that represents an added cost, a company that specializes in corporate travel is likely to bring greater expertise to the role and may find cost savings that would otherwise go unnoticed.

Companies can also buy travel management software programs that allow employees to book their own travel arrangements and that may link to the company’s accounting software to simplify expense reporting. Such software can also flag and even reject any expenses that don’t comply with company rules.

If they don’t have access to professional GDS platforms, travel managers can also make use of regular consumer booking sites, such as Expedia and TripAdvisor.

Challenges of Corporate Travel Management 

While corporate travel management will often benefit a company from a financial perspective, it does present challenges.

For example, because it takes away some of the autonomy that employees may have become accustomed to in planning their own trips, it can cause them to feel mistrusted or micromanaged and make travel seem like more of a burden. In addition, for corporate travel management to be effective, it requires that the people who oversee it know what they’re doing, which may require not only training but also frequent refresher courses to keep up with the rapidly changing travel industry.

A good corporate travel management policy will lay out as specifically as possible the company’s rules for arranging flights and other transportation, booking hotel accommodations, and expensing other reimbursable travel-related costs, such as meals and entertaining. Any caps on costs should be regularly revisited and revised as necessary to keep up with inflation and changes in the marketplace.

The policy should describe a clear process for having travel approved in advance, if that’s required, and submitting expense reports after the trip for timely reimbursement.

An effective policy will also strive to avoid situations in which lower-level employees feel they are subject to stricter or more penny-pinching rules than higher-ups.

Finally, it’s important that employees be encouraged to read the policy and know the rules. They may also be given the opportunity to provide feedback on ways that the rules can be improved next time the policy is revised.

Corporate travel managers not only play a role in monitoring how a company’s money is being spent and looking for ways to cut its costs. They also often have a major say in setting the company’s annual travel budget, based on previous years’ needs and anticipated pricing changes throughout the travel industry.

Today that may involve weighing in on when a virtual meeting can substitute for an in-person one. A 2023 Morgan Stanley survey of 100 global corporate travel managers found that they planned to replace 17% of their corporate travel with virtual meetings in 2024 for reasons “ranging from cost savings to lower carbon footprints.”   

Why Is Corporate Travel Important?

While many companies learned during the COVID-19 pandemic that they could sometimes substitute virtual meetings for in-person ones, they have also found that travel can more than justify its cost in many instances . As Harvard Business School Associate Professor Prithwiraj Choudhury remarked in a recent interview on the university’s website, “Even in a hybrid world, even in a world of work-from-anywhere, we still need to occasionally meet colleagues in person for social purposes.” In addition, face-to-face meetings can help establish more profitable and productive relationships with a company’s key customers and suppliers.

Who Handles Corporate Travel?

Companies handle corporate travel in a variety of ways. Many have created internal departments dedicated to corporate travel management, while others outsource that role. However, many companies still leave most of the decisions to individual employees. One 2023 survey by Morning Consult Research Intelligence reported, “Over half (51%) of those who travel frequently for work book on their own using a platform of their choice.”

What Does Corporate Travel Include?

Corporate travel can include both domestic and international trips that have a business purpose. It generally doesn’t include employees’ everyday commuting. Commuting costs are not tax-deductible for employees, but companies can choose to subsidize them up to certain limits through what the Internal Revenue Service (IRS) calls qualified transportation benefits. Those benefits are not taxable to the employee, but the employer doesn’t get any tax deduction for providing them.

Corporate travel is expensive, but many companies find that its benefits outweigh the costs. Corporate travel management is one way that companies can try to keep those costs under control and get the most value from their travel budgets. While many companies have embraced corporate travel management programs, others still leave most decisions to their individual employees.

Global Business Travel Association. “ Global Business Travel Industry Sees Rebound in 2023 with Shifting Challenges and Opportunities for 2024 .”

American Express. “ What Is Corporate Travel Management and Why Do You Need It? ”

Internal Revenue Service. “ Topic No. 511, Business Travel Expenses .”

Deloitte. “ Navigating Toward a New Normal: 2023 Deloitte Corporate Travel Study .”

Oracle NetSuite. “ What Is Corporate Travel Management? ”

Morgan Stanley. “ 2023 Outlook: Business Travel Bounces Back .”

Harvard Business School. “ Why Business Travel Still Matters in a Zoom World .”

Morning Consult Research Intelligence. “ Business, but Not as Usual ,” Page 18.

Internal Revenue Service. “ Publication 15-B: Employer’s Tax Guide to Fringe Benefits ,” Page 22.

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Business and Personal Travel and What Is Deductible

Traveling in the U.S. and Internationally

Defining Business Travel

Combining personal and business travel, partly international trips, international business trips, international travel deduction exceptions, frequently asked questions.

Business travel expenses are deductible to a business, but if the trip combines both business and personal activities, that may affect your deduction. Your deduction is also affected by where the trip takes place, since the IRS has different rules for international business travel.

Key Takeaways

• Business travel is defined as travel away from your regular place of business
• You can deduct business expenses that occurred during a personal trip, but you cannot deduct personal expenses that occurred during a business trip
• If you travel outside the U.S. for less than a week, your trip can be considered entirely for business, even if you combine business and personal activities

Business travel is defined by the IRS as travel away from your tax home that is "substantially longer than an ordinary day's work" and that requires you to sleep or rest while away from home. You must also sleep away from home to be able to deduct these costs. The travel must also not be for an indefinite period of time and must last less than a year. Your tax home is the location of your regular place of business, not your family home. Your tax home is defined as the place you are traveling from, for business expense purposes.

To deduct expenses for business travel in the United States, the trip must be entirely business-related. If you had some incidental personal travel within the trip - visiting family or taking a side trip, for example - the expenses relating to the personal activities (gas miles to someone's home or hotel at a personal location) are not deductible business expenses .

If the trip is primarily personal, like a vacation, you cannot deduct business expenses unless you can show that these expenses are directly related to your business. For example, if you take a vacation and spend a morning visiting a client, you can deduct the cost of the visit, but not the cost of getting from your tax home to the client's location.

If you take a trip for business and personal reasons that are partly within the U.S. and partly outside the U.S., follow the IRS guidelines for the location of the trip. For example, if you spend three days within the U.S., the in-country rules apply, and if you then spend three more days in Canada, out-of-country rules apply.

If you travel outside the U.S. and you spend the entire time on business activities, you can deduct all of your travel expenses as business expenses. If you were outside the United States for a week or less, and you combined personal and business activities, your trip is considered entirely for business by the IRS. One week means 7 consecutive days.

Even if you don't spend all your time on business activities, your international business travel expenses may be deductible if they meet at least one of four exceptions:

• If you had no "substantial control" over the arrangements for the trip. For example, if you are an employee that is not related to your employer, you are generally considered to have no substantial control over a business trip.
• If you travel outside the U.S. for less than a week, your trip can be considered entirely for business, even if you combine business and personal activities.
• If you spend less than 25% of your time on personal activities during the trip.
• Your trip can be considered entirely for business if you can establish that vacation was not a major consideration, even if you had control over the trip arrangements.

To determine percentages, divide the total number of days on the trip by the number of personal days.

There may be business travel deduction details not covered in this article. For more details on deductions for business travel, See IRS Publication 463 .

What Business Travel Expenses Are Deductible?

You can deduct the cost of transportation from your home to your business destination, the cost of your hotel or lodging, the cost of your dry cleaning and laundry, any business calls, shipping your baggage, some meals, and more.

Are Meals While Traveling Deductible?

You can take a business travel deduction for the meals you eat. The IRS limits meal deductions to 50% of either the standard meal allowance or the actual cost of the meal. Remember to keep your receipts so that your expenses can be verified.

IRS. " Topic No. 511 Business Travel Expenses ."

IRS. " Publication 463 ."

What Is Business Travel?

Business travel is a journey specifically taken for work purposes and doesn’t include daily commutes, leisure trips or holidays.

According to the WTO (World Trade Organisation) around 30 per cent of international trips these days are for business – and business travel shows no sign of slowing down. Even in this world of instant communication and social media, business travel is as necessary and advantageous as ever.

What are the main reasons for business travel?

• Networking . A handshake followed by a face-to-face chat is still the best way to meet and get to know someone – much better than Skype calls or reading dozens of emails and text messages. You may also want to personally show your leadership skills.
• Examples & samples.  You may need to take examples or samples of your work or see examples or samples of something you’re considering investing in. Explaining something – such as a product or service you offer – while with someone and actually seeing they understand is much better than any other way.
• Be personal.  You want to meet suppliers, customers or clients to take them for drinks and a meal and personally give them a gift as a way of showing your gratitude. You want to show them that they are worth the time that it takes to make a personal visit.
• Check conditions.  You prefer to visit suppliers to see everything looks fine. For example, someone having T-shirts made wants to see the conditions for workers are good. Or you are supplied food products and want to see where it grows and the facilities where it’s produced and packaged. These conditions can never be properly assessed through a flat screen.
• Location location location.  Your company may have offices in various locations and it’s helpful to visit so you know the environment. Or you may need to inspect something for work purposes, such as a plot of land you’re interested in.
• Attending meetings and events.  You need to attend a meeting, lecture, exhibition or show that’s relevant to your business.
• Search the world.  You want to look for or confirm new products are right for your business. You want to meet potential new suppliers or employees.
• Doing a deal . Business advisers Oxford Economics discovered through research that potential customers are nearly twice as likely to sign with you if you have a face-to-face meeting. So it’s definitely worth making that trip to see them.
• Incentives . These trips are to motivate employees, and involve such as going on team-building weekends – which although might involve a leisure event are essentially for business purposes.

Business travel in some form has been undertaken since the time people started trading with each other. In fact, many of today’s roads started as thoroughfares for people taking such as livestock or their wares to a weekly market.

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In the 1800s, the advent of trains further increased business travel. Then it started literally taking off in the 1960s with the arrival of reasonably priced and plentiful flights.

So we should remember that today’s business travellers are in a line from the innovators of centuries gone by – and without them, we might never have tasted such delights as tea, coffee and even chocolate.

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Defining Essential Business Travel During COVID-19

Defining essential business travel.

When Thomas Cook arranged what is believed to be the first publicly advertised rail excursion in 1841 1 he likely didn’t view himself as the father of non-essential travel. While Cook’s packaged tourism catered to an audience far different from today’s business travelers, the concept of travel by choice is, in some ways, a consideration more relevant now than ever.

Travel has long been an important business tool that drives commerce and connects economies. The Roman Empire brought trade, and thus travel, across the East and West eons ago. But it was generally wealthy merchants, not their staff, wandering the earth with huge steamer trunks to carry their wares.

Thankfully, both luggage and modes of transport have changed dramatically. The rapid growth of airlines beginning in the 1920s made travel faster — thanks to wings versus sails — and multitudes of innovations in the decades since made it more accessible.

Business travel is now a leveler, allowing organizations in every industry to more easily access and compete in larger marketplaces. It’s likely, pre-pandemic, the words business trip would not have raised so much as an eyebrow for most people. The unique challenges of today have changed that.

I suspect most business travelers have their own story about an essential trip that was actually a boring and non-essential hour-long meeting. But what about now? The realities of COVID-19  and associated public health concerns forced companies to re-evaluate travel policies, to clearly define approvals and eliminate ambiguity about compliance. Some employers are limiting or prohibiting non-essential business travel.  But, what does that mean?

Here are four things to consider when creating your travel program’s new definition of essential business travel.

Understand the terrain

Countries and regions continue to implement and then lift border closures, alternately restricting and opening entry. While essential workers such as first responders or construction and transport professionals whose trips are deemed non-optional are generally free to move around even during strict lockdowns, most travelers are not. As travel restrictions begin to ease and more individuals are allowed to travel freely, applying government guidance on travel to your travel program and policies can be complicated.

Some states are now requiring non-essential travelers from other select states to self-quarantine upon arrival. This type of mandate may make business travel to certain locations impractical. Similarly, the definition of essential may vary by state or country. You should check the relevant requirements to ensure whatever work your employee will be doing is considered essential at that location.

For these reasons, current entry and exit restrictions, mandates for self-quarantine and other requirements are important considerations for your travel policies. Use the Egencia ® Travel Advisor to quickly and easily access actionable insights you can use to help create your definition of permissible travel and inform adjustments to your policies on a temporary or longer-term basis.

Define optional

A single source of trusted advisory information is imperative for getting back to traveling and successfully navigating the changed, more complex global travel environment. But even with access to trusted information and advisories, the provision of PPE and other measures to support traveler wellbeing, some travelers may be second-guessing domestic and international travel. They personally may be at a higher risk of contracting COVID-19 or live with someone who is because of age, medical condition or disability. Making travel optional, requiring advance bookings and approvals, and taking steps such as training employees about their understanding of optional travel can help you to support your travelers’ wellbeing while at the same time reduce business risk .

Eliminate approval burdens

Companies need control and predictability — control on how and when their employees travel to any destination and predictability on the management of risk related to their employees’ travel experiences.

Employees whose duties are critical to infrastructure or business continuity are more likely to fall within a category of essential travel during times of extreme restrictions. Those more easily defined as knowledge workers may not be.

Clearly defining permissible travel allows for faster, more effective program management by removing the burdens associated with determining the level of urgency or potential ROI from your approvers. Egencia empowers you to self-serve travel policy and high-risk destination configuration to reduce travel risks as much as possible. Set corporate travel policy rules for all travel categories in one centralized space and instantly apply changes to your travel and approval policies across every booking channel.

Be more flexible 

According to a GBTA poll, 2  62% of organizations said they've modified their travel safety and security policies and 55% indicated they have new trip approval procedures. Once you’ve determined your parameters for permissible travel it may be wise to build in more flexibility in your policies and approval processes. Doing this can help to increase your travelers’ confidence in their wellbeing.

For example, a traveler might feel they are better cared for on their trip if given the option to select an airline that is limiting passenger capacity or blocking middle seats. Or they may prefer staying in a hotel that requires proper face masks and social distancing in public areas. Forcing an employee to base their booking choices on cost alone could result in business risks if the employee is exposed to COVID-19.

Egencia allows you to easily set multiple policies for different traveler groups or cost centers. And you can use approvals to ensure all business trips are properly reviewed before booking or departure.

Chances are your business travel program looks a lot different now than it did before. The role of the travel manager has become a business-critical role, focused on reducing risk. Travel managers, in partnership with executive leaders who have responsibility for employee safety and wellbeing should be creating systematic ways for their companies to reduce risk by defining new guidelines for corporate travel.

Defining essential, permissible travel is a critical component in your new guidelines. Find out more about other best practices for your program’s return to travel and the Egencia solutions to help you support your travelers while also increasing predictability and control in your travel program.

1   Leicester – the birthplace of popular tourism, https://www.storyofleicester.info/city-stories/thomas-cooks-leicester/

2  https://www.gbta.org/blog/new-gbta-research-shows-coronavirus-continues-to-impact-the-business-travel-industry/

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Meetings & Events

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• Premium Statistic Global corporate travel market size 2020-2028
• Basic Statistic Distribution of travel and tourism expenditure worldwide 2019-2022, by type
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Growth rate of global business travel spending 2001-2026
• Premium Statistic Countries with highest business travel spending 2023
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• Premium Statistic Expectations of business travel providers about revenue at their companies 2022
• Premium Statistic Buyers' expectations about business travel volume at their companies 2022

Market value of the business travel industry worldwide in 2020, with a forecast for 2028 (in billion U.S. dollars)

Distribution of travel and tourism expenditure worldwide 2019-2022, by type

Distribution of travel and tourism spending worldwide in 2019 and 2022, by type

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Percentage change in expenditure of business tourists worldwide from 2001 to 2022, with forecast until 2026

Leading business tourism markets worldwide in 2023, based on total travel spending (in billion U.S. dollars)

World's main travel agencies 2020, by sales share

Leading travel companies worldwide in 2020, by share of global sales

Expectations of business travel providers about revenue at their companies 2022

Expected change in revenue from business tourism for travel management companies worldwide as of January 2022

Buyers' expectations about business travel volume at their companies 2022

Expected change in the volume of business travel services purchased by travel managers at companies worldwide as of January 2022

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• Premium Statistic Number of international organization meetings worldwide 2015-2021
• Premium Statistic Share of international organization meetings worldwide 2001-2020, by region
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• Premium Statistic Preferred corporate events' setup worldwide 2023, by region

Number of international organization meetings worldwide 2015-2021

Number of meetings held by international associations worldwide from 2015 to 2021 (in 1,000s)

Share of international organization meetings worldwide 2001-2020, by region

Distribution of international association meetings held worldwide between 2001 and 2020, by region

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Expectations of hoteliers on the availability of meeting spaces worldwide in 2022

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• Premium Statistic COVID-19 impact on exhibitions and trade shows worldwide 2020
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Largest exhibition halls worldwide 2022, by gross hall capacity

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• Premium Statistic World's highest-priced business travel destinations Q4 2022
• Premium Statistic Highest hotel expenses in business travel destinations Q4 2022
• Premium Statistic Inbound business travel volume in selected countries worldwide 2019

World's best-rated destination countries for non-leisure tourists 2021

Leading countries for non-leisure travel worldwide in 2021, based on the Travel and Tourism Development Index

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Leading host countries for conferences and trade shows planned worldwide as of August 2023, by number of events

Main country destinations for business meetings 2022

Leading countries for association meetings and events worldwide in 2022, by number of in-person events

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Leading cities for association meetings worldwide in 2020, by number of regional events

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Most expensive cities for business tourism worldwide in 4th quarter 2022, by daily hotel cost (in U.S. dollars)

Inbound business travel volume in selected countries worldwide 2019

Number of international business tourist arrivals in selected countries worldwide in 2019 (in millions)

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COVID-19: main barriers for international business tourism worldwide 2022

Leading obstacles for international business travel amid coronavirus (COVID-19) pandemic according to companies worldwide as of January 2022

Impact of COVID-19 travel restrictions on business outcomes 2022

Perceived effect of government travel restrictions amid the coronavirus (COVID-19) pandemic on companies worldwide as of February 2022

Change in business travel bookings for travel suppliers 2021-2022

Change in travel bookings from corporate customers reported by travel suppliers worldwide from February 2021 to September 2022

Tourism professionals' outlook for global business travel 2022-2023

Opinion of travel suppliers and travel management companies on the path to recovery from COVID-19 of the business travel industry worldwide from January 2022 to January 2023

Employees' disposition towards business travel worldwide 2020-2023

Willingness of employees to take business trips according to travel managers worldwide from November 2020 to January 2023

Most stressful factors of flying for work purposes 2022, by travel phase

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Change in interest in bleisure travel by global corporate travel managers 2023

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What is Business Travel? Definition and Examples, Growing, Conferences, And More

Table of Contents

Business Travel- Definition and Examples

Business travel, otherwise known as business travel, is a term used to label a journey carried out on behalf of a business or do business with someone else. The time applies regardless of how frequent the travel is or how far away from the day-to-day work it takes the traveller (s). If you drive across town to call a client, that is not commercial travel.

Examples of Business Travel

Simply put, nothing entirely closes a business deal like a handclasp. There are plenty of details for business travel, but sometimes, putting a face to a name goes a long way to evolving a business relationship or partnership. Depending on the type of business travel, it can

 Growing of Business Travel

This business travel market is getting an increased focus from numerous in the portable industry. Business travellers often spend more money on their travels, especially when their costs by their employer. However, more highly, business travel is growing, thanks to factors like globalization then the availability of journeys.

Research amassed by Finances Online helps to highlight the extent of growth. For instance, a study from the Global Business Travel Association shows that between 2016 and 2018, global commercial travel expenditure grew by more than five per cent. Meanwhile, a Deloitte analysis estimates further growth in future years.

Business travel growth is particularly appealing for guesthouses. After all, rendering to Certify, trades spend 13 per cent of their entire business travel budget on accommodation. Additionally, a further 21 per cent on meals, and hotels may be able to secure some of this through hotel eateries and room service options

serve many different objectives for your company.

Some examples of common types of business portable include travelling to a different division of the same company, travelling to a different position to meet traders or commercial partners, or travelling for a conference or business event. It involves travel absent from the workplace that most definitions require at least one overnight stay.

Exhibitions and Trade Fairs in Business Travel

A great way to promote your creation and expose it to new people, whether a nutrition article or college education, is to attend an exhibition or trade fair in a different region or even a different country. You’ll also be able to look at your competitors’ products and services, as well as network with those in your industry.

Conferences and Meetings by Business Travel

If there’s a meeting or conference related to your business or industry that might be useful for growth or networking opportunities, you might want to think about going the distance.

Incentive Travel

Incentive travel is business-related travel provided by a company designed to motivate their employees, usually to achieve a goal. In turn, the employee encouragement, a networking opportunity, and an excellent incentive! A corporate-sponsored trip to an enticing destination not only offers a great reward but it also inspires company loyalty.

Latest Business Travel Trends

For hotel owners and others in portable manufacturing who are absorbed in capitalizing on business travel growth, it is essential to keep up with the latest changes. Below, you will find out more about eight of the latest business travel trends and how they are troublesome to the industry as a whole.

 Leisure Travel

Leisure travel refers to travel that combines both business and leisure elements. It is often mainly motivated by business, but the business traveller finds time on their trip to engage in freedom activities or extends the duration of their business trip to see the sights and participate in leisure activities.

Crucially, research displays that it is growing. Indeed, rendering to Expedia, more than 40 per cent of trips are extended for leisure purposes, which represents a critical demographic for hotels to appeal to.

To extend their stay in your hotel by the correct present. Aside from yielding easy access to nearby attractions, hotels need to think about the services and amenities they can provide so that business travellers have chances to enjoy themselves.

Giving to a study from SAP Concur, Millennials are the group that takes the most leisure trips, secretarial for 38 per cent of them in total. However, additional peers are non far late, with both Generation X and Baby Boomers accounting for 31 per cent of leisure trips each, highlighting its growing popularity across the board.

Personalization

The airline industry has been highly effective at capitalizing on business travellers’ need for personalization. Realizing that they can become frequent, loyal and also high-value customers if they are individuals. This desire for personalization has also extended to other areas of the travel industry so including hotels.

In truth, hotels’ personalization options can offer almost endless. Especially given business travellers’. Tendency to travel to the same seats often. This lets hotels use data from past trips to make recommendations. Predictions or adjustments. Based on an individual’s habits. The facilities they have used so their payment methods etc.

The Importance of Travelling to Business

The reasons for commercial travel are endless. and also indeed. Travelling is always a source of great energy irrespective of the length of your journey. The aspect of travelling is an amazing model to have fun and enhance your business. By rootlessness. you can also know many cultures prevailing across the world.

Face-to-Face Conversations are Essential  

In any business, the aspect of a relationship plays a dangerous role in its growth design. The commercial is run by people who have emotions. A successful team is more than the parts, as every team member works for a common goal.  Without meeting the persons in being or face-to-face chat, every team associate becomes too far away from the business objectives.

Hence business travel is considered to be vital for operating an effective business.

You can Expand the Business Net

Travelling makes business managers or proprietors establish many new connections. More highly, it provides you with an opportunity to meet different kinds of people such as investors, freelancers, suppliers, etc. Fascinatingly, you can also meet many possible customers who significantly impact your commercial.

Rendering to experts, some of the game-changing ideas arise throughout travelling and meeting others related or not related to your commercial. In short, business travel allows you to establish and develop your business network.

A well-planned commercial journey helps you keep your body fit and active both physically and psychologically as you tend to work systematically to reach your business objectives. There is no shortage of options for a busy traveller to select from.

Often, travel makes to keep away from the fear of the unknown. By travelling, you can travel many things concerned with your business.

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Topic no. 511, Business travel expenses

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Travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. You can't deduct expenses that are lavish or extravagant, or that are for personal purposes.

You're traveling away from home if your duties require you to be away from the general area of your tax home for a period substantially longer than an ordinary day's work, and you need to get sleep or rest to meet the demands of your work while away.

Generally, your tax home is the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home. For example, you live with your family in Chicago but work in Milwaukee where you stay in a hotel and eat in restaurants. You return to Chicago every weekend. You may not deduct any of your travel, meals or lodging in Milwaukee because that's your tax home. Your travel on weekends to your family home in Chicago isn't for your work, so these expenses are also not deductible. If you regularly work in more than one place, your tax home is the general area where your main place of business or work is located.

In determining your main place of business, take into account the length of time you normally need to spend at each location for business purposes, the degree of business activity in each area, and the relative significance of the financial return from each area. However, the most important consideration is the length of time you spend at each location.

You can deduct travel expenses paid or incurred in connection with a temporary work assignment away from home. However, you can't deduct travel expenses paid in connection with an indefinite work assignment. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if you realistically expect that you'll work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for one year or less, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes.

Travel expenses for conventions are deductible if you can show that your attendance benefits your trade or business. Special rules apply to conventions held outside the North American area.

Deductible travel expenses while away from home include, but aren't limited to, the costs of:

• Travel by airplane, train, bus or car between your home and your business destination. (If you're provided with a ticket or you're riding free as a result of a frequent traveler or similar program, your cost is zero.)
• The airport or train station and your hotel,
• The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location.
• Shipping of baggage, and sample or display material between your regular and temporary work locations.
• Using your car while at your business destination. You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking fees. If you rent a car, you can deduct only the business-use portion for the expenses.
• Lodging and non-entertainment-related meals.
• Dry cleaning and laundry.
• Business calls while on your business trip. (This includes business communications by fax machine or other communication devices.)
• Tips you pay for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to your business travel. (These expenses might include transportation to and from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer.)

Instead of keeping records of your meal expenses and deducting the actual cost, you can generally use a standard meal allowance, which varies depending on where you travel. The deduction for business meals is generally limited to 50% of the unreimbursed cost.

If you're self-employed, you can deduct travel expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship) , or if you're a farmer, on Schedule F (Form 1040), Profit or Loss From Farming .

If you're a member of the National Guard or military reserve, you may be able to claim a deduction for unreimbursed travel expenses paid in connection with the performance of services as a reservist that reduces your adjusted gross income. This travel must be overnight and more than 100 miles from your home. Expenses must be ordinary and necessary. This deduction is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Claim these expenses on Form 2106, Employee Business Expenses and report them on Form 1040 , Form 1040-SR , or Form 1040-NR as an adjustment to income.

Good records are essential. Refer to Topic no. 305 for information on recordkeeping. For more information on these and other travel expenses, refer to Publication 463, Travel, Entertainment, Gift, and Car Expenses .

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What is Business Travel Insurance? | Money

U nexpected events can disrupt even the most meticulously planned business trip . From medical emergencies to trip cancellations , these hiccups can be stressful and costly.

This is where business travel insurance comes in. It acts as a safety net, safeguarding you against a variety of unforeseen expenses:

• Medical emergencies : This includes coverage for unexpected medical bills and treatment costs incurred during your trip.
• Trip cancellations and delays: This coverage provides reimbursement for non-refundable trip expenses if your journey is canceled or delayed due to covered reasons like illness or bad weather.
• Lost or delayed luggage: This covers the cost of replacing essential items if your luggage goes missing or arrives late.
• Medical evacuation and repatriation : Coverage for transport back home in case of a medical emergency .

Many business travel insurance plans go beyond the essentials, offering additional benefits:

• 24/7 Assistance: Access to customer service representatives who can help with travel arrangements, finding medical care , or language translation.
• Business Equipment Coverage: Upgrade your policy to include coverage for laptops, tablets, and other business essentials in case of loss, theft, or damage.
• Rental Vehicle Coverage: Add coverage for rental cars used during your business trip .

How does business travel insurance work?

Business travel insurance affords many of the same protections as personal travel insurance .

Most travel insurance policies reimburse travelers — up to the plan’s limits — if their insured trip is canceled, postponed or delayed due to a covered reason or if they incur emergency medical expenses. They also generally cover lost or delayed luggage and medical evacuation and repatriation.

Additionally, most insurers provide 24/7 customer service and assistance with things like making travel arrangements, finding medical care facilities and obtaining language support.

While coverage options and details vary by insurer, some of the best travel insurance companies let you customize their standard policies by adding coverage for business property and rental vehicles — for an additional cost.

Research the specific types of coverage offered by each company you’re considering before purchasing a plan. It may also be helpful to review our guide on what travel insurance covers .

What does business travel accident insurance cover?

Business travel accident (BTA) insurance can cover different things, depending on the company and policy you select. There is no standard definition for terms like business travel insurance and business travel accident insurance. Companies market various policies under names like these, but policy names don’t guarantee specific types of coverage.

That said, BTA policies may cover:

• Medical expenses stemming from an accident
• Medical evacuation and repatriation
• Emergency travel assistance
• Accidental death and dismemberment
• 24/7 travel assistance

Depending on the insurer, coverage may also extend to personal trips tied to business ones.

Types of coverages in a business travel insurance policy

Again, while coverage options vary by insurer, you can generally find travel insurance plans that bundle the following types of coverage.

Trip cancellation and interruption

When you take a trip, you typically pay for things like your flight, accommodations and activities before you leave. Trip cancellation and interruption insurance reimburses you for those pre-paid, non-refundable trip costs if you cannot travel due to a covered reason.

Your policy will list covered reasons for canceling or interrupting your trip in the description of coverage. However, some common covered reasons include:

• Illness or injury: You, your travel companion or a family member not traveling with you becoming ill or getting injured
• Death: The death of a family member or traveling companion
• Inclement weather: A natural disaster or severe weather at your destination
• Job loss: You or your traveling companion losing their job or getting laid off

To cancel your trip for reasons other than those listed as covered under your policy, you must purchase cancel for any reason (CFAR) coverage. As the name suggests, CFAR travel insurance will reimburse you a percentage of your total trip cost (typically 50% to 75%) if you cancel for any reason at all.

CFAR is generally sold as an upgrade, so it costs extra. And to qualify you must insure the entire cost of your trip and purchase coverage within a certain timeframe, among other potential requirements.

Medical expenses and emergency medical evacuation

Most travel insurance policies cover unforeseen medical emergencies and illnesses. So, if you sprain an ankle or get food poisoning during your business trip, your policy should reimburse you for a portion of the medical expenses you incur. This generally extends to dental emergencies and even emergency medical evacuation to the nearest medical facility and/or your home after you’re discharged.

However, it’s important to note that most plans don’t cover pre-existing conditions . Some insurance companies offer a waiver of their pre-existing conditions exclusion, provided you meet certain requirements. These generally include purchasing coverage soon after booking, insuring the full cost of your trip and being medically fit to travel.

Similarly, doctor visits for routine checkups or prescription refills aren’t covered under travel insurance. But if you’re a U.S. citizen traveling domestically, these and other expenses are likely covered under your health insurance policy.

Travel delays and missed connections

Your business travels could be interrupted by a missed connecting flight or unforeseen arrival or departure delays. In either scenario, you may be faced with unexpected costs such as last-minute hotel bookings or additional transportation expenses to reach your destination.

Most travel policies reimburse you (up to a maximum) for expenses stemming from delays in your travel plans. However, policies generally require a certain number of hours to have passed — three hours or more, for example — before this coverage takes effect.

Baggage loss and delay

If you’re traveling with luggage, there’s always a chance the airline could lose it or send it to the wrong location. If that happens, you may need to purchase new clothes and supplies.

Baggage loss and delay coverage can reimburse you for some of these expenses. However, just as with travel delay coverage, most plans require a certain number of hours to have passed before coverage takes effect.

Business equipment coverage

Companies selling business travel insurance offer optional coverage for business equipment such as laptops, tablets and cameras. If the equipment is lost or damaged by your airline carrier or is stolen during your trip, the policy can cover the cost of repairing or replacing the item — up to your policy limits.

Some insurers also cover part of the cost of repairing or replacing rental equipment that your airline carrier loses, damages or fails to deliver on time.

Conditions may apply with either of these options, so the insurer may require you to report the loss within a certain timeframe or take necessary precautions to avoid a loss. Additionally, the company may exclude certain items from coverage, including passports and other documents.

Rental car damage

Rental car damage coverage is an optional add-on you can purchase along with many base travel insurance policies. This coverage option can reimburse you up to the policy’s coverage limit if your rental car is damaged or stolen during the scheduled rental period.

As with other business travel insurance options, exclusions and conditions may apply. For example, for damages to be covered, the driver at the time of the accident must generally be the same person listed in the rental car agreement.

Note, however, that not all rental car companies accept rental car damage as a suitable form of coverage. Always check with the car rental agency before purchasing this rider.

Who needs business travel insurance?

If you frequently travel for work, business travel insurance can help you cover a portion of the expenses you may incur in the event of a medical emergency, travel delay, cancellation or other covered loss.

This type of policy can benefit those who don’t have business travel coverage through their employer or are self-employed and often travel overseas carrying valuable business equipment. Even if your employer provides travel insurance, you may still want to purchase individual policy to supplement any gaps in their coverage.

How to get business travel insurance

If you think business travel insurance may be right for you, following these steps can help you get the right travel insurance policy and coverage amount.

1. Determine the type and level of coverage you need

Your first step should be to determine the amount of coverage you need for your upcoming trip. To do that, consider whether you already have coverage through a credit card or other form of insurance.

For instance, some of the best business credit cards provide travel insurance and protection if you use the card to book your plane ticket, hotel room or rental vehicle. Depending on your needs and whether your credit card provides primary or secondary coverage, you may not need additional insurance.

Similarly, if you’re traveling domestically, your health insurance policy likely covers medical emergencies that happen across state lines. And your homeowners or renters insurance should cover personal property stored in your vehicle.

If you’re traveling internationally and don’t have other forms of coverage, consider the risks you’re likely to face during your business trip. For example, if you’re traveling with valuable gear, opting for a policy with a high coverage limit for business equipment can protect your pocket and give you peace of mind.

Lastly, if you’re a frequent business traveler, an annual travel insurance plan may be more cost-effective than purchasing separate single-trip plans. Annual plans generally cover all eligible trips you take within the coverage period, as long as each one doesn’t exceed the maximum trip duration outlined by the plan.

2. Compare travel insurance plans from reputable providers

Once you have a good idea of the type and level of coverage you need, start comparing plans from multiple companies. Remember that while some insurers sell dedicated business travel policies, others provide comparable coverage through their standard travel insurance plans.

Regardless of marketing terms, compare policies based on the following:

• Coverage exclusions
• Coverage limits and maximum benefit amounts
• Deductibles you may need to pay before your coverage activates

You may also want to check out travel insurance reviews to get a better sense of a company’s overall offer.

4. Get quotes from multiple travel insurers

To find the coverage you need at the best price, compare travel insurance quotes from multiple companies. Most travel insurers feature quote tools on their websites that can provide accurate price estimates in minutes. All you need to do is input basic personal information and travel details such as:

• Your age and location
• Your travel destination
• The total cost of your trip
• The coverage tier and optional add-ons you want

5. Purchase the policy that best suits your needs and budget

The last step in the process is to compare the insurance offers you’ve gathered and choose the one that best aligns with your requirements. While it may be clear which company offers the most extensive coverage for a reasonable price, you should also be mindful of deductibles and exclusions that could increase your out-of-pocket costs should you need to file a claim.

Is business travel insurance worth it?

The cost of travel insurance can range from 4% to 12% of your total trip cost. That may or may not be a figure you believe is worth paying. The decision comes down to the risks you’re likely to face during your travels and the level of financial responsibility you’re willing to assume in the event of a medical emergency, loss, delay or cancellation.

Summary of Money’s what is business travel insurance

Business travel insurance can provide financial protection for your next business trip by reimbursing you for a portion of the expenses you might incur if you had a medical emergency, travel delay or other covered loss.

While some companies market business insurance as a separate product, these policies generally offer many of the same coverage options as other travel insurance policies. However, some insurers also extend coverage to business equipment and business equipment rentals.

As with any other form of insurance, read your policy details carefully to understand exactly what your plan covers and to what extent.

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Managing business travel expenses

Guide to hmrc subsistence allowance & expenses, what is a subsistence allowance, how do hmrc subsistence rates work.

• The cost of food or drink must be incurred after the business trip has started
• The trip must be beyond their usual commute and be done as part of official business
• The journey must take the employee away from their normal place of work for 5 hours or more

Is meal allowance taxable?

• a meal or beverage is not purchased
• the meal does not constitute additional expenditure
• the “staying with friends or relatives allowance” is claimed
• meals have been taken at home
• meals are provided during a training course, conference or similar activity
• meals are provided on the train or plane and included in the ticket cost

What are the HMRC domestic subsistence allowance rates?

• £5 for travel of 5 hours or more (£10 supplement if travel is ongoing at 8pm)
• £10 for travel of 10 hours or more (£10 supplement if travel is ongoing at 8pm)
• £25 for travel of 15 hours or more (and ongoing at 8pm)

Overnight accommodation rate UK

Meal allowance rates overseas, how does a business report subsistence allowance spend.

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