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.
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.