Last updated: May 2026
According to the GBTA Business Travel Index Outlook (2023), global business travel spending is forecast to reach $1.8 trillion by 2027. The industry is poised to surpass its pre-pandemic spending level in 2024, with robust growth seen in 2022 when global business travel spending surged by 47 per cent.
Key aspects of this accelerated rebound include the stabilising global economy and the significant progress made in overcoming the COVID-19 pandemic. The return of face-to-face meetings and in-person events, along with the recovery of international business travel capacity and volumes, has also contributed immensely.
Furthermore, there is a growing trend towards blending business and personal travel, with 62 percent of business travelers engaging in bleisure travel, and 42 per cent adding leisure days to their business trips. As the industry adapts to evolving trends and challenges, businesses must remain agile and proactive in their approach to travel management and expense optimisation.
What is business travel?
Business travel is travel undertaken by employees for work-related purposes, including client meetings, conferences, training sessions, and site visits, with associated costs typically covered or reimbursed by the employer.
This necessitates careful management and oversight of associated expenses. It involves the allocation of resources towards transportation, accommodation, meals, and incidental costs incurred during business-related trips. Effective spend management in business travel entails implementing policies, procedures, and technological solutions aimed at optimising resource utilisation, enhancing transparency, and ensuring compliance with organisational guidelines and regulatory frameworks.
What is bleisure travel?
Bleisure travel is the practice of combining a business trip with personal leisure time, either before, during, or after the work-related portion of the journey.
The rise of bleisure travel represents a refreshing shift in the way we approach business trips. It's no longer just about meetings and conferences; it's about seizing the opportunity to combine work with leisure, personal growth, and exploration.
What is the difference between business travel and personal travel?
Purpose of the trip: Business travel typically involves travel undertaken for work-related purposes:
business meetings and conferences
client visits
research
training sessions
Private travel, on the other hand, is for personal reasons, such as vacations, family visits, or leisure activities.
Documentation and booking: Business travel is often documented and arranged by the employer, the company's travel agents or travel consultants, with clear objectives and itineraries outlined in advance. Private travel may involve personal arrangements and bookings, with no direct association with the employer or organisation.
Expense reimbursement: Expenses incurred during corporate travel are typically reimbursed by the employer or organisation, and there are usually specific guidelines and procedures for submitting expense reports. Private travel expenses are generally not reimbursed by the employer unless explicitly stated in the employment contract or policies.
Duration and activities: Business travel tends to have a defined duration and specific activities or meetings scheduled during the trip. Private travel may be more flexible in terms of duration and activities, allowing for leisurely exploration or relaxation.
Tax considerations: Business travel expenses may be tax-deductible for the employer and sometimes for the employee, depending on local tax laws and regulations. Private travel expenses are generally not tax-deductible unless they meet specific criteria outlined by tax authorities.
Can you add personal days to a business trip?
When extending a business trip to enjoy some extra days of vacation at your destination, it is essential to navigate the overlap between business and personal activities carefully. Delineate between expenses incurred during the business portion of the trip and those related to personal vacation days. You and your employees should keep detailed records and receipts to facilitate accurate expense reporting and reimbursement.
Expenses directly related to business activities, such as car rentals, plane tickets or accommodation during work-related events, are typically eligible for reimbursement. Personal expenses, such as additional hotel nights or leisure activities during the vacation portion, are generally not reimbursable.
Be mindful of the tax implications of combining business and personal travel. Expenses directly attributable to business activities may be tax-deductible, while those incurred for personal vacation days are not. Therefore, the organisation should know about the employee's travel plans. This way, any additional days off align with company reimbursement policies and also do not interfere with work obligations or commitments.
The team member's travel itinerary should accommodate both business and personal activities seamlessly. Scheduling business-related meetings or events during the initial portion of the trip allows for sufficient time for relaxation or leisure activities afterwards.
How business travel is changing
The five key trends reshaping business travel are: (1) work from anywhere, (2) sustainability, (3) economic efficiency, (4) digitalisation, and (5) automation.
Business travel management is undergoing a transformative shift. There is a growing imperative for companies to prioritise sustainability in their travel practices, addressing environmental concerns and lowering their carbon footprint while enhancing profitability. Concurrently, the rise of remote work and increased employee mobility is reshaping traditional notions of workplace engagement. Embracing digitalisation and using advanced travel cost management tools and providers are pivotal in driving efficiency and cost-effectiveness, streamlining expense tracking, and optimising spend management processes.
Work from anywhere
The rise of remote work and flexible work arrangements has redefined the concept of the traditional office. With advancements in technology and communication tools, employees can effectively collaborate and conduct business from virtually anywhere in the world, for example in airport lounges, on business class flights with WiFi and in hotels. This shift allows for greater flexibility in travel arrangements, as employees may choose to work from various locations or travel while remaining connected to their teams and clients.
Tip: Check the country's respective work regulations, permits and visas and also give employees a heads-up.
Corporate responsibility and sustainability
Nowadays, companies are under growing pressure to adopt sustainable business practices, including in their travel policies. This involves minimising the environmental impact of business travel by promoting alternatives such as virtual meetings, using eco-friendly transportation options, and offsetting carbon emissions. By incorporating sustainability into their travel strategies, your company can demonstrate your commitment to corporate social responsibility while also reducing costs associated with travel.
Economic efficiency
Business travel represents a significant expense for companies, encompassing costs such as transportation, accommodation, meals, and entertainment. In light of economic uncertainties and budgetary constraints, organisations are increasingly focused on optimising the efficiency and cost-effectiveness of their travel expenditures. This includes implementing measures to reduce unnecessary travel, negotiate favourable rates with travel vendors, and leverage technology solutions for expense management and reporting.
Digitalisation
The proliferation of digital technologies has revolutionised the way business travel is planned, booked, and managed. From online booking platforms and mobile applications to expense management software and virtual collaboration tools, digitalisation has streamlined and automated various aspects of the travel process. Companies can now seamlessly book flights, reserve accommodations, track expenses, and communicate with colleagues and clients in real time, enhancing productivity and efficiency while reducing administrative burdens.
Automation
Automation plays a tremendous role in streamlining and optimising the management of business travel expenses. By automating processes such as expense reporting, reimbursement, and approval workflows, companies can eliminate manual tasks, reduce errors, and expedite the reimbursement cycle. Solutions such as AI-powered expense management platforms can automatically categorise expenses, flag policy violations, and generate insightful analytics to help organisations make data-driven decisions and optimise their travel spending.
How do companies manage business travel costs?
By proactively monitoring expenses throughout the journey, you can prevent overspending and ensure accurate reimbursement processes. One efficient method is to utilise digital tools to capture receipts, such as taking photos with a smartphone or using expense management apps. By promptly recording expenses as they occur, you can establish a clear audit trail and facilitate the reimbursement tasks upon your return.
Furthermore, maintaining awareness of expenses in real-time allows for better decision-making and budget management during the trip. By monitoring spending patterns, you can identify areas where adjustments may be necessary to stay within budget constraints and optimise resource allocation.
Common types of travel expenses
The most common business travel expenses are: transport costs, meals, vehicle mileage, hotel accommodation, travel insurance, parking fees, business phone calls, and last-minute cancellation fees.
Your team should take these into account for invoicing purposes:
transport costs
meals
vehicle mileage
hotels
insurance
parking fees
business phone calls
last-minute cancellation fees
Preparing for your business trip
Before embarking on your business journey, every employee should take a moment to assess the necessity of the trip. It is worth questioning whether a face-to-face meeting is truly essential or if a virtual (video) call could suffice as a viable alternative. Moreover, there may be team members who do not necessarily need to participate. Shortening the attendee list to include only essential personnel can minimise expenses and optimise the effectiveness of the trip.
Business travel pre-trip checklist:
Assess whether the trip is necessary or if a virtual meeting could suffice
Identify essential attendees only
Compare transportation options (car rental, plane, rail) for cost and efficiency
Confirm how travel costs will be paid (corporate cards, personal reimbursement)
Set clear spending limits for each expense category
Train employees on expense recording and reporting procedures
Review company travel policy for compliance requirements
When planning your travel logistics, compare various options to identify the most cost-effective and efficient means of transportation. Whether it is car rental, plane or rail travel, selecting the right mode of transportation can significantly impact the overall budget and success of the trip.
Your account manager should determine how travel-related costs will be paid, particularly whether corporate cards will be utilised. This ensures consistency and compliance with company policies, streamlining the reimbursement process and minimising administrative overhead.
To maintain financial discipline, it is also advisable to set clear spending limits for various expense categories. By establishing predefined thresholds, you can prevent overspending and ensure adherence to budgetary constraints.
Finally, provide comprehensive training to traveling employees on how to accurately record and report travel expenses. Ensuring that employees are well-versed in expense management procedures minimises errors and streamlines the reimbursement process.
Streamline your business travel with Perk
Business trips can be stressful in itself, and dealing with detailed expense reports afterwards only adds to the burden. Time that could be better spent following up on the trip and taking necessary next steps is often consumed by tedious administrative tasks. Perk offers a solution to alleviate this burden by automating expense management processes for you and your team.
With Perk, employees can effortlessly dispense with time-consuming expense reports. By implementing Perk's intuitive platform into the management process, business expenses can be captured and recorded on the go, eliminating the need for manual entry of reimbursable receipts. Whether using virtual cards, physical cards, or personal cards, Perk streamlines payment processes and minimises administrative overhead.
Do you want to experience how Perk can minimise your administrative workload? Get in touch today to book a demo!
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