Business Travel and Expense Definitions
AI-Powered Travel Assistant
An AI-Powered Travel Assistant is a smart, automated tool that helps business travelers plan, book, and manage trips efficiently. It uses artificial intelligence to provide personalized recommendations, automate expense tracking, and ensure policy compliance.
ATM Withdrawal Fee
An ATM withdrawal fee is a charge incurred when withdrawing cash from an ATM, especially when using a machine outside your bank’s network. These fees can vary based on location, bank policies, and card provider agreements.
Accounts Payable
Accounts Payable (AP) refers to the money a business owes to suppliers and vendors for goods and services received but not yet paid for, typically recorded as a liability on the balance sheet.
Accrual Accounting
Accrual accounting is a financial method where revenues and expenses are recorded when they are earned or incurred, rather than when cash is exchanged. This approach provides a more accurate picture of a company's financial health.
Actual Expense
Actual expense refers to the real, out-of-pocket costs incurred for business-related activities, such as travel, meals, and lodging. These expenses are reimbursed based on receipts and documented expenditures.
Adoption Rate
Adoption rate refers to the percentage of users or employees who start using a new tool, technology, or process within a company. It is a key metric in measuring the success of corporate travel and expense management solutions.
Advance Booking
Advance booking refers to reserving flights, hotels, or other travel services ahead of the actual travel date, often securing better rates and availability. It helps businesses control travel costs and ensure compliance with corporate travel policies.
Advance Purchase Excursion (APEX) Fare
An Advance Purchase Excursion (APEX) Fare is a discounted airline ticket that requires booking and payment well in advance of travel. These fares offer lower prices but often come with restrictions like limited changes and non-refundable policies.
Air Miles
Air Miles are reward points earned by travellers when they book flights with participating airlines or use affiliated credit cards. These miles can be redeemed for free flights, upgrades, hotel stays, or other travel-related benefits.
Airfare Rules
Airfare rules are the terms and conditions set by airlines that govern ticket pricing, cancellations, refunds, and itinerary changes. These rules vary based on fare class, booking conditions, and airline policies.
Airline Alliances
Airline alliances are partnerships between multiple airlines that allow them to share routes, offer seamless connectivity, and provide joint benefits to travelers. Major alliances include Star Alliance, oneworld, and SkyTeam, offering perks like shared frequent flyer programs and coordinated flight schedules.
Airline Joint Venture
An airline joint venture is a strategic partnership between two or more airlines that collaborate on routes, pricing, and revenue sharing while maintaining separate operations. These agreements help airlines expand their networks, offer seamless travel, and enhance customer benefits.
Airline Lounge Access
Airline lounge access allows travelers to enter exclusive airport lounges offering premium amenities such as comfortable seating, complimentary food and beverages, Wi-Fi, and business facilities. Access is typically granted through elite frequent flyer status, premium-class tickets, or paid membership programs.
Airline Policy
An airline policy refers to the rules and regulations set by airlines regarding ticket bookings, cancellations, refunds, baggage, upgrades, and passenger conduct. These policies vary by airline and fare class, affecting flexibility, fees, and overall travel experience.
Airline Regulations
Airline regulations are rules and standards set by aviation authorities and governments to ensure passenger safety, operational efficiency, and compliance in air travel. These regulations cover areas such as flight operations, baggage restrictions, security protocols, and passenger rights.
Airlines Reporting Corporation (ARC)
The Airlines Reporting Corporation (ARC) is a U.S.-based company that facilitates financial transactions between airlines and accredited travel agencies. ARC streamlines airline ticket sales, reporting, and settlement, ensuring secure and efficient payments within the travel industry.
Airlines Reservation System (ARS)
An Airlines Reservation System (ARS) is a digital platform used by airlines and travel agencies to manage flight bookings, ticketing, and passenger details. It allows travelers to search for flights, book tickets, and modify reservations efficiently.
Airport Access Fee
An airport access fee is a charge imposed by airports on transportation services, such as taxis, rideshares, and rental cars, for using airport facilities. These fees help airports maintain infrastructure and manage ground transportation operations.
Airport Code
An airport code is a unique three-letter or four-letter identifier assigned to airports worldwide by organizations like the International Air Transport Association (IATA) and the International Civil Aviation Organization (ICAO). These codes help travelers, airlines, and booking systems identify airports efficiently.
Airport Lounge
An airport lounge is a premium waiting area within an airport that offers travelers comfortable seating, complimentary food and beverages, Wi-Fi, and other exclusive amenities. These lounges are accessible through airline memberships, credit card perks, or one-time passes.
Airport Lounge Access
Airport lounge access allows travelers to enter exclusive airport lounges, offering premium amenities like comfortable seating, Wi-Fi, refreshments, and workspaces. Access is granted through airline memberships, credit cards, business class tickets, or paid lounge programs.
Airport Transfer
An airport transfer is a pre-arranged transportation service that takes passengers between an airport and their destination, such as a hotel, office, or another airport. These transfers can be private, shared, or provided by hotels, airlines, or corporate travel programs.
Aisle Seat
An aisle seat is a seat located next to the walkway in an airplane, allowing easy access to the restroom, overhead bins, and quicker boarding and deplaning. It is often preferred by business travelers for convenience and extra legroom in some aircraft configurations.
Allocation
Allocation refers to the process of distributing resources, costs, or budgets to specific categories, departments, or projects. In corporate travel and expense management, it ensures proper assignment of travel costs to the right teams or business units.
Alternate Airports
Alternate airports are secondary airports near a traveler's primary destination, often offering lower fares, fewer delays, and less congestion. They are a strategic option in corporate travel to reduce costs and improve travel efficiency.
Amortization
Amortization is the process of gradually reducing a financial obligation or asset value over time through scheduled payments. In corporate finance, it applies to loan repayments and the depreciation of intangible assets.
Ancillary Fees
Ancillary fees are additional charges imposed by airlines, hotels, and travel providers for extra services beyond the base fare. These fees can include baggage charges, seat selection, Wi-Fi, and priority boarding.
Ancillary Services
Ancillary services refer to additional travel-related offerings beyond the base fare, such as baggage handling, priority boarding, in-flight meals, and hotel Wi-Fi. These services enhance the travel experience and generate extra revenue for airlines, hotels, and car rental companies.
Annual Travel Budget
An annual travel budget is the total allocated funds a company sets aside for employee travel expenses over a year. It includes costs for flights, accommodation, meals, transportation, and other business-related travel needs.
Approval Workflow
An approval workflow is a structured process that ensures business travel and expense requests are reviewed and approved before execution. It helps companies control costs, enforce policies, and maintain compliance.
Arrival Gate
An arrival gate is the designated terminal gate where a flight lands and passengers disembark after reaching their destination. It is where travelers exit the aircraft and proceed to baggage claim, customs, or onward connections.
Artificial Intelligence (AI)
Artificial Intelligence (AI) refers to the simulation of human intelligence in machines, enabling them to learn, analyze data, and make decisions. AI is widely used in corporate travel and expense management to enhance efficiency and personalization.
Audit Trail
An audit trail is a detailed record of financial transactions, system activities, or user actions that ensures transparency, security, and compliance. In corporate travel and expense management, it helps track approvals, modifications, and reimbursements.
Auditing
Auditing is the systematic review and examination of financial records, processes, and compliance measures to ensure accuracy and transparency. In corporate travel and expense management, auditing helps verify policy adherence, detect fraud, and optimize spending.
Automated Check-In
Automated check-in is a digital process that allows travelers to check into flights, hotels, or events without manual intervention. It enhances convenience by enabling seamless, contactless check-ins via mobile apps, emails, or kiosks.
Automated Expense Reporting
Automated expense reporting is a digital system that streamlines the process of tracking, submitting, and approving business expenses. It reduces manual data entry, improves accuracy, and enhances compliance with corporate travel and expense policies.
Baggage Allowance
Baggage allowance refers to the weight or number of bags a passenger is permitted to check in or carry onboard, as specified by an airline. It varies by airline, ticket class, and frequent flyer status.
Baggage Claim
Baggage claim is the designated airport area where passengers retrieve their checked luggage after a flight. It is typically located in the arrivals section and marked by baggage carousels or conveyor belts.
Balance Sheet
A balance sheet is a financial statement that provides a snapshot of a company’s assets, liabilities, and shareholders’ equity at a specific point in time. It helps businesses assess their financial health and make informed decisions.
Bank Charges on Foreign Transactions
Bank charges on foreign transactions are fees imposed by financial institutions when processing payments in a currency different from the account’s base currency. These fees typically include conversion charges, international transaction fees, and processing costs.
Bank Reconciliation
Bank reconciliation is the process of matching a company’s financial records with its bank statements to ensure accuracy and identify discrepancies. It helps detect errors, fraudulent transactions, and unrecorded expenses.
Base Fare
Base fare is the fundamental cost of an airline ticket, excluding taxes, fuel surcharges, and additional fees. It represents the starting price before extra charges like baggage fees or airport taxes are added.
Basic Economy
Basic Economy is the most budget-friendly fare class offered by airlines, providing essential flight services with limited flexibility. It usually excludes perks like seat selection, baggage allowance, and ticket changes.
Benchmarking
Benchmarking is the process of comparing business performance metrics, costs, and best practices against industry standards or competitors. It helps organizations identify improvement areas and optimize their strategies for better efficiency.
Benchmarking Travel Costs
Benchmarking travel costs involves comparing a company's travel expenses against industry standards, competitors, or internal benchmarks to identify cost-saving opportunities and improve travel budget efficiency.
Bespoke Travel Policy
A bespoke travel policy is a customized set of guidelines tailored to a company’s specific travel needs, ensuring cost efficiency, compliance, and traveler satisfaction. Unlike generic policies, bespoke policies align with business objectives, employee preferences, and budget constraints.
Best Available Rate (BAR)
Best Available Rate (BAR) is the lowest publicly available rate for a hotel room at a given time, based on demand and market conditions. It is a dynamic pricing model used by hotels to adjust room rates in real time.
Bill of Expenses
A Bill of Expenses is a detailed summary of costs incurred during a business trip or project, including transportation, accommodation, meals, and other travel-related expenses. It serves as a record for reimbursement and accounting purposes.
Billable Expense
A billable expense is a cost incurred by a business or employee on behalf of a client that can be charged back to the client. These expenses are tracked separately and reimbursed as part of the service or project costs.
Billback
Billback is a payment arrangement where a business or travel management company initially covers expenses, and the costs are later charged to the client or employer. This simplifies financial reconciliation and improves expense tracking.
Blackout Dates
Blackout dates are specific days when promotional fares, discounts, or loyalty program redemptions are restricted by airlines, hotels, or travel service providers due to high demand. These dates typically coincide with holidays, major events, or peak travel seasons.
Blanket Purchase Order
A Blanket Purchase Order (BPO) is a long-term agreement between a buyer and a supplier for recurring purchases over a specified period at pre-negotiated terms. It streamlines procurement by reducing the need for multiple approvals and contracts.
Bleisure Travel
Bleisure travel is a combination of business and leisure travel, where employees extend their corporate trips for personal leisure activities. It allows professionals to explore new destinations while optimizing work travel expenses.
Blended Travel
Blended travel is a combination of business and personal travel within a single trip, allowing professionals to mix work commitments with leisure activities. It offers flexibility and cost-saving benefits for both employees and companies.
Boarding Pass
A boarding pass is a travel document issued by an airline that grants passengers access to the airport security checkpoint and allows them to board their flight. It contains essential flight details such as the passenger’s name, flight number, departure gate, and boarding time.
Booking Confirmation
A booking confirmation is an official document or email from a travel provider that verifies a reservation for a flight, hotel, or other travel services. It contains key details such as the reservation number, traveler’s name, itinerary, and payment status.
Booking Engine
A booking engine is an online platform or software that allows users to search, compare, and book travel services such as flights, hotels, and car rentals. It automates the reservation process by integrating with travel providers and payment gateways.
Boutique Hotels
Boutique hotels are small, stylish, and uniquely designed accommodations that offer personalized services and an intimate atmosphere. They often feature distinctive themes, upscale amenities, and a strong emphasis on customer experience.
Budgeting
Budgeting is the process of planning and managing financial resources to control spending and maximize efficiency. It helps businesses allocate funds wisely, track expenses, and achieve financial goals.
Business Class
Business Class is a premium airline seating category offering enhanced comfort, priority services, and exclusive amenities for business travelers. It provides extra legroom, superior dining, and dedicated workspaces compared to Economy Class.
Business Continuity
Business Continuity refers to an organization's ability to maintain essential operations during disruptions, such as natural disasters, cyberattacks, or travel disruptions. It includes strategies, policies, and plans that ensure minimal impact on business activities.
Business Expense
A business expense is a cost incurred while running a company, including travel, office supplies, meals, and client entertainment. These expenses are often tax-deductible and must be tracked for accurate financial reporting.
Business Travel Insurance
Business travel insurance is a policy that provides financial protection for employees traveling for work, covering risks such as trip cancellations, medical emergencies, and lost luggage. It helps companies safeguard their workforce and minimize unexpected travel-related expenses.
CLEAR
CLEAR is a biometric identity verification service that allows travelers to bypass standard TSA security lines using fingerprint or iris scans. It speeds up the airport screening process by verifying identities quickly and securely.
Cab Allowance
Cab allowance is a travel reimbursement provided by companies to employees for taxi or ride-hailing expenses incurred during official business travel. It ensures cost-effective and hassle-free local transportation for work-related activities.
Cabin Crew
Cabin crew are airline employees responsible for ensuring passenger safety, comfort, and in-flight service. They assist travelers, enforce safety procedures, and enhance the overall flight experience.
Cabin Pressure
Cabin pressure is the controlled air pressure inside an aircraft, maintained to ensure passenger and crew comfort at high altitudes. It prevents altitude sickness and allows for normal breathing during flights.
Capital Expense (CapEX)
Capital Expense (CapEX) refers to the funds a company spends on acquiring, upgrading, or maintaining physical assets such as property, equipment, or technology. These are long-term investments that help businesses grow and operate efficiently.
Capitalization
Capitalization refers to the total value of a company's financial resources, including equity, debt, and retained earnings. It determines the financial stability and investment potential of a business.
Car Rental Agreement
A car rental agreement is a legal contract between a rental company and a customer outlining the terms for renting a vehicle. It includes details like rental duration, fees, insurance coverage, and liability terms.
Carbon Emissions
Carbon emissions refer to the release of carbon dioxide (CO₂) and other greenhouse gases into the atmosphere, primarily from burning fossil fuels. In corporate travel, carbon emissions are generated by flights, car rentals, and other transportation modes.
Carbon Footprint
A carbon footprint measures the total greenhouse gas emissions produced directly or indirectly by an individual, organization, or activity. In corporate travel, it includes emissions from flights, hotels, and ground transportation.
Carbon Offsetting
Carbon offsetting is the practice of compensating for carbon emissions by funding environmental projects that reduce greenhouse gases, such as reforestation and renewable energy initiatives. It helps businesses and travelers balance their environmental impact.
Carry-On Luggage
Carry-on luggage refers to the small bags or suitcases that passengers are allowed to bring into the aircraft cabin. Airlines have size and weight restrictions for carry-ons to ensure they fit in the overhead bin or under the seat.
Carry-On Policy
A carry-on policy outlines the rules and restrictions set by airlines regarding the size, weight, and number of bags passengers can bring into the aircraft cabin. These policies vary by airline and can impact corporate travel costs and convenience.
Cash Advance
A cash advance is a short-term loan provided to employees for business-related expenses before they incur the costs. It helps cover travel, lodging, and other work-related expenditures without using personal funds.
Cash Basis Accounting
Cash basis accounting is a financial method where income and expenses are recorded only when cash is received or paid. It offers a simple way to track cash flow but does not account for outstanding invoices or future obligations.
Categorization
Categorization is the process of organizing expenses, transactions, or data into predefined groups for better tracking, analysis, and reporting. In corporate travel and expense management, it helps businesses streamline financial oversight and compliance.
Centralized Billing
Centralized billing is a financial management system where all transactions and expenses are consolidated into a single invoice for streamlined payments and reconciliation. It simplifies accounting processes and enhances cost control in corporate travel and expense management.
Centralized Travel Booking
Centralized travel booking is a system where all corporate travel arrangements—flights, hotels, and car rentals—are managed through a single platform or service provider. This approach streamlines bookings, ensures policy compliance, and enhances cost control.
Chain Discounts
Chain discounts are tiered price reductions offered by suppliers or service providers based on volume, partnerships, or multiple transactions within a corporate agreement. Businesses use these discounts to optimize travel costs and maximize savings.
Change Fee
A change fee is a charge imposed by airlines, hotels, or travel providers when a traveler modifies a booking after confirmation. These fees vary based on factors like fare class, timing, and provider policies.
Chargeback Dispute
A chargeback dispute occurs when a customer or business challenges a credit card transaction, claiming unauthorized charges, billing errors, or service-related issues. The dispute process involves banks, merchants, and payment processors to determine the transaction’s validity.
Chart of Accounts
A Chart of Accounts (COA) is an organized list of a company’s financial accounts, categorized into assets, liabilities, income, expenses, and equity. It serves as the foundation for accurate financial reporting and budgeting.
Charting
Charting refers to the process of visually representing data or information using graphs, tables, or diagrams to analyze trends and make informed decisions. In corporate finance and travel management, charting helps track expenses, budgets, and performance metrics.
Checked Baggage
Checked baggage refers to luggage that passengers hand over to the airline at check-in, which is stored in the aircraft's cargo hold during a flight. Airlines impose weight and size limits, and additional fees may apply for excess baggage.
City Pair Program (CPP)
The City Pair Program (CPP) is a U.S. government travel program that provides discounted, pre-negotiated airfare rates for federal employees traveling on official business. It ensures cost-effective and flexible travel options between designated city pairs.
City Pairs
City pairs refer to a designated set of origin and destination cities frequently traveled between, often used in airline pricing, corporate travel planning, and government travel programs like the City Pair Program (CPP).
Claim Submission Deadline
The claim submission deadline is the final date by which an employee or traveler must submit expense claims for reimbursement. Missing this deadline may result in claim rejection, delayed payments, or policy non-compliance.
Class of Service (COS)
Class of Service (COS) refers to the different seating categories available on flights, such as Economy, Business, and First Class. It determines the level of comfort, amenities, and pricing for passengers.
Code Red Flight
A "Code Red Flight" refers to an emergency situation on an aircraft that requires immediate attention, such as severe weather, technical failures, or security threats. Airlines and air traffic control use this designation to prioritize safety and emergency response.
Codeshare
A codeshare is a partnership between two or more airlines that allows them to share the same flight under different flight numbers. This arrangement enhances connectivity, expands route options, and improves convenience for travelers.
Compliance
Compliance refers to adhering to laws, regulations, policies, and industry standards within an organization. In corporate travel and expense management, compliance ensures that employees follow company policies and financial regulations.
Computer Reservation System (CRS)
A Computer Reservation System (CRS) is an automated software platform used by travel agencies and corporations to book flights, hotels, car rentals, and other travel services. It centralizes travel inventory, pricing, and reservations in real time.
Connecting Flight
A connecting flight is a flight itinerary where a traveler takes two or more flights with a layover at an intermediate airport before reaching their final destination. It differs from a direct or nonstop flight by requiring a change of aircraft.
Consortia Rate
A Consortia Rate is a special discounted hotel rate negotiated by travel consortia—groups of travel agencies that leverage their collective buying power to secure better rates for their clients. These rates offer businesses cost savings on accommodations while maintaining access to premium services.
Content
Content refers to any information, media, or material created and shared online to engage audiences, educate users, or promote products and services. It includes text, images, videos, infographics, and other digital assets used to communicate a brand’s message.
Corporate Card
A corporate card is a payment card issued by companies to employees for business-related expenses, such as travel, meals, and client entertainment. It streamlines expense tracking and improves financial management for organizations.
Corporate Negotiated Rate (CNR)
A Corporate Negotiated Rate (CNR) is a specially discounted rate that businesses secure with hotels, airlines, or car rental companies based on their travel volume. These agreements help companies save on travel costs while ensuring preferred services for their employees.
Corporate Travel Policy
A Corporate Travel Policy is a set of guidelines established by a company to regulate employee travel, ensuring cost control, compliance, and efficiency. It outlines approved booking channels, expense limits, reimbursement processes, and travel safety protocols.
Corporate Travel Program
A Corporate Travel Program is a structured framework that companies use to manage employee business travel efficiently. It includes travel policies, preferred vendors, expense management, and duty of care measures to ensure cost savings and compliance.
Cost Allocation
Cost allocation is the process of assigning business expenses to specific departments, projects, or cost centers. It helps companies track spending, manage budgets, and ensure accurate financial reporting.
Cost Center
A cost center is a business unit, department, or function within an organization where costs are tracked but that does not generate direct revenue. It helps businesses monitor expenses and improve financial accountability.
Cost Control
Cost control is the process of monitoring and managing expenses to ensure they stay within budget and align with financial goals. It helps businesses optimize spending and maximize profitability.
Credit Card Authorization (CCA)
Credit Card Authorization (CCA) is the process of verifying a credit card’s validity and available funds before approving a transaction. It helps prevent fraud and ensures businesses receive payment securely.
Credit Card Reconciliation
Credit Card Reconciliation is the process of matching credit card transactions with financial records to ensure accuracy and prevent discrepancies. It helps businesses track expenses, detect fraud, and maintain compliance.
Cross-Platform Search
Cross-Platform Search is the ability to search for content, data, or services across multiple digital platforms or systems from a single interface. It enhances efficiency by consolidating results from various sources, improving accessibility and decision-making.
Customer Channels
Customer Channels refer to the various communication and interaction touchpoints businesses use to engage with customers, such as websites, mobile apps, email, social media, and support centers. Effective customer channels ensure seamless communication, enhancing user experience and satisfaction.
Daily Allowance
Daily Allowance is a fixed per diem amount provided to employees for meals, transportation, and other travel-related expenses during business trips. It helps streamline expense management and ensures compliance with corporate travel policies.
Data Analytics in Travel
Data Analytics in Travel refers to the use of big data, artificial intelligence, and machine learning to optimize travel planning, cost management, and customer experience. It helps businesses make data-driven decisions for improved efficiency and savings.
Data Integration
Data Integration is the process of combining data from multiple sources into a unified view, enabling seamless access, analysis, and reporting. In corporate travel, it ensures synchronized data across booking platforms, expense systems, and financial reports.
Deadhead
A "Deadhead" refers to a flight segment where a crew member or an aircraft travels without passengers or paying cargo. In corporate travel, deadheading can also apply to employees traveling without an official work purpose but as part of logistics planning.
Delayed Flight Compensation
Delayed flight compensation refers to the financial reimbursement or benefits passengers receive when their flight is delayed beyond a certain threshold. Compensation varies based on airline policies, travel regulations, and the length of the delay.
Departure Gate
A departure gate is the designated boarding area at an airport where passengers wait to board their flight. It is assigned by the airline and displayed on boarding passes and airport screens.
Depreciation
Depreciation is the process of allocating the cost of a tangible asset over its useful life, reflecting its gradual reduction in value. In corporate travel and expense management, depreciation impacts budgeting for assets like company vehicles, office equipment, and travel-related resources.
Designated Booker
A Designated Booker is an authorized employee responsible for making travel and accommodation arrangements on behalf of others within an organization. This role helps streamline corporate travel by ensuring compliance with company policies and optimizing cost savings.
Destination Airport
A Destination Airport is the final arrival point of a flight, where passengers disembark after completing their journey. It plays a crucial role in business travel, affecting flight selection, layovers, and overall trip planning.
Digital Wallet Integration
Digital Wallet Integration allows businesses and travelers to securely store, manage, and process payments using digital payment platforms like Apple Pay, Google Pay, or PayPal. This enhances convenience, speeds up transactions, and improves expense tracking in corporate travel.
Dine & Stay Packages
Dine & Stay Packages are hotel deals that combine accommodation with dining benefits, offering travelers a seamless and cost-effective experience. These packages are popular among corporate travelers looking for convenience and value during business trips.
Direct Billing Agreement
A Direct Billing Agreement is a financial arrangement between a company and a service provider, such as a hotel or airline, where expenses are billed directly to the company instead of requiring employee reimbursement. This simplifies corporate travel expense management and ensures compliance with company policies.
Direct Cost
A direct cost is an expense that can be directly traced to a specific product, service, or business operation, such as employee travel, airfare, or hotel accommodations. In corporate travel, direct costs help businesses allocate expenses efficiently and maintain budget control.
Direct Flight
A direct flight is a flight that travels between two destinations with the same flight number, but it may have one or more stopovers without requiring passengers to change planes. Unlike a non-stop flight, a direct flight can include layovers where passengers remain on the aircraft or briefly disembark.
Discounted Corporate Fares
Discounted corporate fares are specially negotiated airline ticket prices offered to businesses for employee travel. These fares provide cost savings, flexibility, and additional perks compared to standard ticket prices.
Discretionary Expense
A discretionary expense is a non-essential cost that businesses or employees choose to spend on, such as entertainment, travel upgrades, or dining. Unlike fixed expenses, these costs are flexible and can be adjusted based on budget priorities.
Distribution Platforms
A distribution platform is a system or network that enables the delivery of travel inventory, such as flights, hotels, and car rentals, to corporate travelers and travel agencies. These platforms connect suppliers with buyers, streamlining bookings and transactions.
Dunning
Dunning is the process of systematically communicating with customers to collect overdue payments for goods or services. It involves reminders, follow-ups, and escalations to ensure timely payments and reduce financial risk.
Duplicate Expense Detection
Duplicate Expense Detection is the process of identifying and flagging repeated or duplicate claims within expense reports. This helps companies avoid reimbursement errors, prevent fraud, and maintain accurate financial records.
Duty of Care
Duty of Care refers to a company’s legal and ethical responsibility to ensure the health, safety, and well-being of employees during work-related activities, including business travel. It involves proactive risk management and support services in case of emergencies.
Keep-the-Change Travel Reimbursement
Keep-the-change travel reimbursement is a practice where employees are reimbursed for travel expenses up to a certain amount, with the excess balance allowed to be kept by the employee. It simplifies the reimbursement process by eliminating the need for exact cost tracking.
Land Arrangements
Land arrangements refer to the services and logistics related to ground transportation and accommodations during travel, excluding air travel. These include hotel bookings, car rentals, transfers, and guided tours, typically arranged for travelers' convenience.
Leisure Travel
Leisure travel refers to trips taken for relaxation, recreation, or personal enjoyment rather than for business purposes. It includes vacations, family visits, and adventure travel, often booked through personal funds or travel rewards.
Liability
Liability in corporate travel and expense refers to the financial or legal responsibility a company or traveler holds for costs, damages, or obligations incurred during a trip. It includes risks related to travel expenses, insurance claims, duty of care, and compliance with company policies.
Limited-Service Hotel
A limited-service hotel is a type of accommodation that offers essential amenities like lodging, Wi-Fi, and breakfast but lacks full-service features such as a restaurant, concierge, or extensive meeting spaces. These hotels are budget-friendly and commonly used for short business trips or cost-conscious corporate travel.
Liquidation
Liquidation in corporate travel and expense refers to the process of settling outstanding travel-related debts, reimbursements, or unused assets by converting them into cash or writing them off. This can include unused airline tickets, hotel credits, or the closure of travel budgets in financial reporting.
Local Travel Policy
A local travel policy is a company's set of rules and guidelines for managing business-related travel within a specific city, region, or country. It defines allowable expenses, transportation options, reimbursement limits, and compliance requirements for short-distance work trips.
Lodge Card
A lodge card is a centrally billed corporate payment card used to manage and consolidate travel expenses, such as flights, hotels, and car rentals, without issuing individual cards to employees. It helps companies streamline payments, improve expense tracking, and enhance travel policy compliance.
Lodging Expense Cap
A lodging expense cap is the maximum amount a company allows employees to spend on hotel accommodations during business travel. It helps control travel costs, enforce compliance with corporate travel policies, and ensure budget-friendly lodging choices.
Long-Term Car Rental
A long-term car rental is a vehicle rental for an extended period, typically 30 days or more, used by businesses to provide employees with cost-effective, flexible transportation for work-related travel. It offers an alternative to leasing or company-owned vehicles, reducing administrative costs and maintenance concerns.
Long-Term Corporate Housing
Long-term corporate housing refers to furnished accommodations rented for extended business stays, typically 30 days or more, offering a cost-effective alternative to hotels. It provides business travelers with fully equipped apartments or homes for comfort, convenience, and a more residential experience.
Loss Damage Waiver (LDW)
A Loss Damage Waiver (LDW) is an optional rental car coverage that relieves renters from financial responsibility for theft, loss, or damage to the vehicle. It is not insurance but a waiver provided by the rental company, covering repair costs up to certain limits.
Lost Baggage Compensation
Lost baggage compensation refers to the financial reimbursement or coverage provided to travelers when their checked luggage is lost, delayed, or permanently missing. Airlines, travel insurance providers, or corporate travel policies may offer payouts, replacement funds, or reimbursements for essential items.
Low-Cost Carrier (LCC) or Low-Cost Airline
A Low-Cost Carrier (LCC) or Low-Cost Airline is an airline that offers budget-friendly fares by minimizing operational costs and providing basic, no-frills services. These airlines typically charge extra for add-ons like checked baggage, seat selection, and in-flight meals, making them a cost-effective option for business and leisure travelers.
Lowest Logical Fare (LLF)
Lowest Logical Fare (LLF) refers to the most cost-effective airfare that aligns with a company’s travel policy, trip requirements, and reasonable booking conditions. It ensures businesses save money while allowing travelers to select convenient and practical flight options based on routing, timing, and fare rules.
Loyalty Program
A loyalty program is a rewards system offered by airlines, hotels, and travel providers to encourage repeat business by offering points, miles, or perks for frequent travelers. These programs help corporate travelers save on future bookings, earn upgrades, and access exclusive benefits like priority boarding and lounge access.
Loyalty Program Status Matching
Loyalty Program Status Matching allows travelers to transfer their elite status from one airline, hotel, or car rental loyalty program to another, gaining similar benefits without meeting new qualification requirements. This helps corporate travelers enjoy premium perks like upgrades, lounge access, and priority services across multiple providers.
Luxury Business Travel
Luxury business travel refers to premium corporate travel experiences that include first-class flights, five-star hotels, private transfers, and exclusive services. It is designed for executives, VIPs, and high-value employees who require comfort, efficiency, and personalized amenities during work trips.
Machine Learning
Machine learning (ML) is an AI-driven technology that enables systems to learn from data and improve over time without explicit programming. In corporate travel, ML is used for predictive analytics, fraud detection, personalized recommendations, and automated expense management to enhance efficiency and cost savings.
Managed Travel
Managed travel refers to a structured approach to corporate travel where companies enforce policies, use approved vendors, and leverage technology to optimize bookings, expenses, and compliance. It ensures cost control, duty of care, and streamlined travel experiences for employees.
Managed Travel Program
A managed travel program is a structured system where companies centralize corporate travel bookings, enforce policies, and optimize costs through technology and vendor partnerships. It ensures efficiency, compliance, and duty of care while providing employees with seamless travel experiences.
O&D (Origin and Destination)
O&D (Origin and Destination) refers to the complete journey a traveler takes, from the starting point (origin) to the final endpoint (destination), regardless of layovers or connections. Airlines and corporate travel managers use O&D data to analyze travel patterns, pricing, and route efficiency.
Same-Day Change
A same-day change allows travelers to modify their flight to an earlier or later departure on the same day of travel, typically for a fee or at no cost depending on the airline's policy and fare class. This feature provides flexibility for business travelers with unpredictable schedules.
T&E (Travel and Expense)
T&E (Travel and Expense) refers to the costs incurred by employees for business-related travel, including transportation, lodging, meals, and other reimbursable expenses. Companies manage T&E through expense policies, approval workflows, and digital tools to control costs and ensure compliance.
U.S. Customs and Border Protection (CBP)
U.S. Customs and Border Protection (CBP) is the federal agency responsible for securing U.S. borders, regulating international trade, and processing travelers entering the country. CBP enforces immigration laws, collects duties, and facilitates lawful travel and trade at airports, seaports, and land borders.
Vacation vs. Business Travel Expense
Vacation vs. Business Travel Expense refers to the distinction between personal and work-related travel costs, where only business-related expenses (flights, hotels, meals, and transport) are reimbursable, while personal expenses (sightseeing, leisure activities) are not.
Wage Garnishment for Travel Advances
Wage garnishment for travel advances occurs when an employer deducts money from an employee’s paycheck to recover unpaid or misused corporate travel advances. This process ensures compliance with company policies and financial accountability.
Z-Class Airline Fare
Z-Class airline fare refers to a specific booking class in airline ticketing, typically reserved for discounted or promotional business or first-class seats. It often offers flexibility in ticket changes and cancellations but may come with certain restrictions or limited availability.