Business Travel and Expense Glossary
Reference A-Z
Business Travel & Expense Definitions Definitions
A clear, jargon-free reference guide to the language of corporate travel and expense management — from base fares to working capital. Browse by letter, understand the term, and move forward with your day.
184 definitions · browse by letter below
- Accompanied MinorA child traveling on the same booking as a qualifying adult, where the accompanying passenger holds an eligible fare on the same flight.
- Accounts PayableThe outstanding amount a business owes to suppliers for goods or services it has received but not yet paid for.
- Accrual AccountingAn accounting method that recognizes revenue and expenses when they occur economically, regardless of when cash actually changes hands.
- Actual ExpenseThe verified amount an employee spent on a business cost, substantiated by a receipt or other documented proof.
- Administrating CarrierThe airline that holds commercial and financial accountability for a flight, which may differ from the carrier that physically operates it.
- Adoption RateThe proportion of travel bookings made through a company's approved channels, expressed as a percentage of total bookings.
- Advance Passenger Information (API)Personal traveler data that airlines collect and transmit to destination border authorities before a flight arrives.
- Advance Seat ReservationThe ability to choose a specific seat on a flight ahead of departure, rather than being assigned one at check-in.
- AggregatorA platform or service that collects and combines travel offers from multiple airlines in response to a single search request.
- Aircraft ConfigurationThe interior layout of an aircraft, specifying how cabins, seat classes, and available seating are arranged.
- Aircraft TurnaroundThe ground time between an aircraft's arrival at a gate and its next scheduled departure.
- Airline AllianceA formal partnership between two or more airlines that enables seamless travel across member carriers, offering shared frequent flyer benefits, coordinated scheduling, and joint sales agreements to corporate travellers.
- Airport CodeA standardized three-letter identifier assigned to airports worldwide by the International Air Transport Association (IATA) for use in ticketing, scheduling, and aviation communications.
- Airport LoungeA dedicated terminal facility providing premium waiting areas with seating, food, beverages, and amenities, typically accessible to business class passengers or frequent flyer program elite members.
- Airport SlotA designated time window that gives an airline the right to take off or land at a capacity-constrained airport.
- AmortizationThe accounting process of spreading the cost of an intangible asset or loan repayment across regular installments over a defined period.
- Ancillary RevenueIncome generated by airlines or travel businesses from services and products beyond their primary offering, such as baggage fees, seat upgrades, or onboard acquisitions.
- Ancillary ServicesOptional paid extras available on top of a base travel booking, such as supplementary baggage, seat upgrades, or meals.
- Approval WorkflowA structured authorization sequence that a travel or expense request must pass through before it is approved and funds are released.
- Audit TrailA chronological, timestamped log of every action taken on a transaction, document, or system record.
- Average Daily Rate (ADR)A hotel performance metric calculated by dividing total room revenue by the number of rooms sold during a defined period, used to benchmark pricing effectiveness and negotiate corporate rates.
- Back-to-Back TicketingA fare optimisation practice in which a traveler purchases two overlapping round-trip tickets with staggered travel dates, using one outbound from each to avoid the Saturday night stay or minimum stay requirements that trigger higher one-way or short-stay fares.
- Baggage AllowanceThe quantity, weight, and size of luggage a carrier permits a passenger to bring on a journey, as defined by the airline's ticketing policy.
- Baggage ReconciliationThe process of verifying that every piece of checked luggage on a flight is matched to a passenger who has actually boarded.
- Baggage TagA label attached to checked luggage that carries the passenger's booking reference and the bag's routing through the airline network.
- Balance SheetA financial statement that provides a snapshot of an organisation's assets, liabilities, and equity at a given point in time.
- Base FareThe fundamental ticket price before taxes, fees, and additional charges are applied, representing the carrier's core cost for transporting a passenger.
- Blackout DatesSpecific dates on which airlines, hotels, or loyalty programs restrict the use of award redemptions, discounts, or promotional offers.
- Bleisure TravelA travel pattern in which an employee extends a work trip to include personal leisure time, typically before or after the business portion.
- Boarding ZoneA passenger group assignment that determines the sequence in which travellers board an aircraft.
- Booking EngineSoftware enabling travellers or agents to search, compare, and acquisition travel services directly through a website or platform in real time.
- Booking ReferenceA unique alphanumeric code assigned to a travel reservation — also known as a confirmation number or locator — used to retrieve, modify, or cancel bookings across airlines, hotels, and car rental systems.
- BudgetingThe financial planning process by which an organisation allocates its available resources across priorities for a defined period.
- Business ClassA premium cabin class offering enhanced seating, meals, and services above economy class, typically used for long-haul business travel or senior executive travel.
- Business TravelTravel undertaken by employees on behalf of their organisation for professional purposes, including meetings, conference travel, client visits, or training — often involving both domestic and international travel.
- CabotageThe transport of passengers or goods between two domestic points by a foreign-registered carrier, which is prohibited or tightly restricted in most countries.
- Cancellation PolicyThe terms and conditions that govern whether and how a traveller can cancel a booking, specifying what refund or credit is available and whether any penalty fees apply.
- Car RentalThe short-term hire of a vehicle from a rental company for use during business travel, typically booked alongside flights and hotel accommodation through the corporate travel program.
- Carbon FootprintThe total volume of greenhouse gas emissions, measured in CO₂ equivalent, generated by an organisation's business travel activities.
- Carbon OffsetA verified environmental credit representing a reduction or removal of greenhouse gas emissions elsewhere, purchased by organisations or individuals to compensate for the carbon footprint generated by their business travel activities.
- Cash AdvanceA pre-approved payment issued to an employee before a business trip to cover anticipated out-of-pocket travel costs that cannot be charged to a corporate card.
- Change FeeA fee charged by an airline when a traveler modifies a confirmed booking after it has been ticketed.
- Checked BaggageLuggage handed over to the airline at check-in to travel in the aircraft's hold rather than being kept in the cabin.
- CodeshareAn arrangement in which one airline markets and sells seats on a flight physically operated by a different carrier, with both airlines' codes appearing in schedules.
- ComplianceAdherence to the applicable laws, regulations, internal policies, and industry standards that govern a business activity or travel programme.
- Conference TravelBusiness trips made to attend industry conferences, trade shows, seminars, or company-organised group events, often involving multiple employees traveling to the same destination simultaneously.
- Connecting FlightA flight itinerary requiring a passenger to change aircraft at one or more intermediate airports before reaching the final destination.
- Connecting TimeThe scheduled time gap between a traveler's arriving flight and their next departing flight at a connecting airport.
- Corporate CardA payment card issued in a company's name and provided to employees for business-related acquisitions, with the organisation holding financial liability for charges.
- Corporate DiscountA preferentially reduced rate negotiated by an organisation with airlines, hotels, car rental companies, or other travel suppliers in return for a committed or anticipated volume of business travel bookings.
- Corporate FareA privately negotiated airfare available exclusively to a specific company or consortium, offering discounted pricing or enhanced flexibility terms in exchange for committed booking volumes through preferred airline partnerships.
- Corporate Travel DepartmentAn in-house team dedicated to managing all aspects of employee business travel, including policy administration, supplier relationships, booking oversight, expense compliance, and traveler support — the internal equivalent of a travel management company (TMC).
- Corporate Travel PolicyA company's formal, written rules governing how employees plan, book, and pay for business travel, and how expenses are submitted and approved.
- Cost CenterA business unit that incurs costs without directly producing revenue, used to track and allocate spending within an organisation.
- Date ChangeThe modification of a confirmed booking to a different travel date, subject to applicable fare conditions and potential fees.
- Denied BoardingA situation in which a passenger with a confirmed reservation is refused a seat on their scheduled flight, typically due to overbooking.
- Destination ManagementThe planning, coordination, and delivery of on-the-ground travel services — logistics, accommodation, activities, and support — at a specific destination.
- Direct FlightA flight operating between two airports under a single flight number, which may include one or more intermediate stops without a change of aircraft.
- Duty of CareAn employer's legal and ethical responsibility to guarantee the safety, health, and wellbeing of employees during business travel.
- Duty-FreeGoods sold at airports, aboard aircraft, or at border crossings exempt from local or national import taxes and duties, available for purchase by international travelers.
- Dynamic PricingA pricing strategy in which travel fares and rates are adjusted in real time based on current demand, availability, competitor pricing, and other market variables.
- Economy ClassThe lowest-priced cabin class on commercial aircraft, offering standard seating and a basic service level designed to maximise passenger capacity.
- Electronic Miscellaneous Document (EMD)A digital transaction record used to process travel-related charges that fall outside the scope of a standard airline ticket.
- Electronic TicketA digital record of a flight booking that replaces the traditional paper ticket and is stored electronically in the airline's reservation system.
- EmbargoA temporary restriction placed by an airline on certain bookings, fare classes, or cargo movements for a specific route or date range.
- Excess BaggageLuggage that exceeds a carrier's permitted allowance in terms of weight, size, or number of pieces, subject to supplementary fees at check-in.
- Expense FraudThe deliberate submission of false, inflated, or unauthorized expense claims by employees to obtain reimbursements they are not entitled to receive.
- Expense ManagementThe process of tracking, controlling, and reporting costs incurred by employees during business travel and other work-related activities.
- Expense ReportA formal document submitted by employees itemizing business-related expenditures incurred during travel or other work activities, for reimbursement or reconciliation.
- Fare ClassA specific category of airline seat defined by its price level, booking restrictions, flexibility, and associated benefits.
- Fare RulesThe conditions and restrictions attached to an airline ticket, defining its cancellation policy, change fees, transferability, and other usage terms.
- Ferry FlightA flight operated without revenue passengers on board, usually to reposition an aircraft to where it is needed for the next commercial service.
- First ClassThe highest cabin tier offered by some airlines on premium routes, featuring the most spacious seating, exclusive dining, and personalised service — typically reserved under corporate travel policy for the most senior executives on specific routes.
- Fiscal YearA 12-month accounting period used by an organisation for financial reporting purposes, which may or may not align with the calendar year.
- Flight DelayA departure or arrival that occurs later than the scheduled time, requiring adjustment to onward travel arrangements, accommodation, or meeting schedules.
- Force MajeureAn unforeseeable event beyond the control of either party — such as a natural disaster, political upheaval, or pandemic — that may excuse non-performance of travel contracts or trigger waived cancellation fees.
- Frequent Flyer ProgramAn airline loyalty program that rewards repeat travellers with points or miles redeemable for flights, upgrades, airport lounge access, and other benefits.
- Fuel SurchargeA supplementary charge added to a base fare by carriers to offset fluctuating fuel costs, typically itemized separately on a ticket.
- GatewayA major airport that serves as the primary entry or connecting point into a country or region for long-haul international services.
- GDS (Global Distribution System)A computerized network that aggregates and distributes flight, hotel, car, and rail inventory to travel agents and booking platforms in real time.
- General LedgerThe central financial record of all a company's transactions, organized by account and used as the foundation for financial reporting.
- Global EntryA U.S. Customs and Border Protection program that provides expedited border clearance for pre-approved, low-risk international travellers arriving in the United States.
- Green TravelAn approach to business travel that minimises environmental impact by favouring lower-emission transport options, reducing unnecessary trips, and offsetting residual carbon footprint.
- Ground HandlingThe operational services provided to an aircraft and its passengers on the ground between arrival and the next departure.
- Ground TransportationAll surface-based travel modes used to support business travel, including taxis, ride-sharing services, rental cars, trains, buses, and chauffeur transfers between airports, hotels, and business venues.
- Group TravelCoordinated travel arrangements for ten or more passengers travelling together for the same business purpose, processed under a single group booking that typically attracts special pricing, seat allocation, and handling terms.
- Hotel BlockA reserved allocation of hotel rooms held for a specific group, event, or corporate account at an agreed rate, with rooms released back to general inventory after a set cut-off date.
- Hotel Loyalty ProgramA hotel chain's reward scheme through which guests accumulate points or nights from qualifying stays to redeem for complimentary accommodation, room upgrades, and other benefits — equivalent to an airline's frequent flyer program for accommodation providers.
- Hotel Rate AgreementA negotiated contract between a company and a hotel property or chain, specifying fixed or discounted room rates, room blocks, and service guarantees in exchange for a committed volume of business travel nights.
- Hub AirportA major airport that serves as a central connecting point in an airline's route network, through which passengers transfer between flights.
- Hub-and-SpokeA network model in which passenger traffic is routed through central hub airports to connect travellers between many different origin and destination pairs.
- Incentive TravelA reward program in which an organisation funds travel experiences for employees or business partners who achieve defined performance targets, used as a non-monetary motivational tool within business travel programs.
- Incidental ExpensesMinor out-of-pocket costs that arise during business travel and are not covered by the primary expense categories in a travel policy.
- Interline AgreementA bilateral agreement between airlines that enables each to accept the other's tickets and transfer passengers and baggage across their respective networks.
- International TravelBusiness trips that cross national borders, requiring passport or travel document verification, potential visa acquisition, currency management, and heightened duty of care protocols.
- Invoice MatchingThe process of verifying that a supplier invoice matches the corresponding purchase order and the goods or services actually received before authorizing payment.
- Involuntary ReroutingWhen an airline places a passenger onto a different route or flight because their original itinerary cannot be operated as planned.
- ItineraryA detailed plan or schedule of a traveler's journey, listing flights, accommodation, transfers, and other bookings in chronological order.
- Jet LagA temporary physiological condition caused by rapid travel across multiple time zones, disrupting the body's internal clock and causing fatigue, sleep disturbance, and reduced cognitive performance.
- Joint FareA single combined fare covering a journey operated by two or more airlines under a formal revenue-sharing arrangement.
- Known ShipperA company that has been security-vetted and approved to send cargo on commercial passenger aircraft without supplementary item-level screening.
- Known Traveler Number (KTN)A unique identification number from a government trusted-traveler program that activates expedited security screening at participating airports.
- LayoverThe period a traveler spends at an intermediate airport between connecting flights, typically ranging from a short connection time to an overnight stay.
- LeakageTravel spend that falls outside a company's managed travel program, occurring when employees book through unapproved channels or with non-preferred vendors.
- Load FactorThe percentage of an aircraft's available seats that are occupied by paying passengers on a specific flight or averaged across an airline's network.
- Long-Haul FlightA flight covering a significant distance — typically over 6 hours or approximately 3,000 miles — often requiring special consideration in corporate travel policy for cabin class eligibility and rest provisions.
- Low-Cost Carrier (LCC)An airline that offers very low base fares by unbundling services and charging separately for most extras beyond the core seat.
- Lowest Logical Fare (LLF)The most affordable fare available within practical constraints — including reasonable routing and travel time — rather than the absolute cheapest option without regard to conditions.
- Managed TravelA corporate travel strategy in which an organisation actively oversees and controls how employees book, travel, and spend on business trips through defined policies and tools.
- MICEAn acronym for Meetings, Incentives, Conferences, and Events — the four major categories of group and corporate travel that require organised, multi-participant travel logistics distinct from individual business travel.
- Mileage ReimbursementCompensation paid to employees for the business use of their personal vehicle, calculated based on the distance driven and a standard rate per mile or kilometer.
- Minimum Connection Time (MCT)The shortest officially permitted time between a traveler's inbound and outbound flight at a given airport.
- Minimum StayA fare condition requiring a traveller to remain at their destination for at least one Saturday night or a specified number of nights before using the return flight, used by airlines to prevent business travellers from purchasing cheaper leisure fares.
- Missed ConnectionWhen a traveler fails to board a connecting flight because the inbound service arrived too late or because transit time was insufficient.
- Mobile Check-InA digital check-in process that allows travelers to confirm their itinerary, select seats, and receive boarding passes or hotel key on their smartphone, eliminating the need to queue at airport or hotel check-in counters.
- Multi-City FlightA single travel booking that includes flights connecting several different cities in sequence, rather than a simple round trip.
- NDC (New Distribution Capability)An IATA-defined data communication standard that enables airlines to distribute personalized, content-rich offers directly to booking channels.
- Net Promoter Score (NPS)A metric that quantifies customer loyalty by measuring how likely respondents are to recommend a product or service to others.
- No-ShowA passenger who fails to board a confirmed flight or cancel a reservation, typically resulting in forfeiture of the ticket value and potential penalty fees.
- Non-Refundable TicketAn airline ticket that cannot be refunded if the traveler cancels or does not use it, typically offered at a lower price in exchange for this restriction.
- Non-Stop FlightA flight that travels from its departure point to its destination with no intermediate stops.
- Occupancy RateA metric expressing the percentage of available rooms, seats, or units that are actually occupied or sold during a given period.
- Online Booking Tool (OBT)Company-approved software that enables employees to search, compare, and book travel in compliance with corporate policy.
- Online Travel Agency (OTA)A digital marketplace that allows individual and corporate travellers to search, compare, and book flights, hotels, car hire, and travel packages from multiple suppliers through a single website or app.
- Open TicketAn airline ticket with a confirmed booking for the route but without a specific departure date fixed, allowing the traveler flexibility to travel at a later time.
- Open-Jaw ItineraryA round-trip itinerary where the traveler departs from or returns to a different city than the standard origin or destination, creating a gap in the routing.
- Operating CarrierThe airline that physically operates a flight, which may differ from the marketing or ticketing carrier when codeshare or interline agreements are in place.
- Out-of-Pocket ExpenseA business cost that an employee pays from personal funds with the expectation of being reimbursed by their employer.
- OverbookingThe practice of selling more tickets or reservations than actual available capacity, used by airlines and hotels to compensate for anticipated no-shows.
- PassportAn official government-issued travel document that certifies the identity and nationality of the holder, required for international business travel and for fulfilling advance passenger information (API) requirements.
- Per DiemA daily allowance paid to employees to cover lodging, meals, and incidental expenses incurred during business travel, based on fixed rates for the destination.
- PNR (Passenger Name Record)A digital record in an airline's reservation system that contains all booking and itinerary details for a traveler's journey.
- Preferred SupplierAn airline, hotel chain, car rental company, or other travel service provider that has entered a formal preferential agreement with a corporate travel program, securing priority placement and corporate discounts in exchange for a committed or anticipated booking volume.
- Premium EconomyA cabin class positioned between economy class and business class, offering wider seats, more legroom, enhanced meals, and additional services at a moderate fare premium.
- Prepaid ExpenseA cost paid in advance and carried as an asset on the balance sheet until the associated benefit is received or consumed.
- Priority BoardingA boarding privilege that enables certain passengers — such as premium class travellers, loyalty program members, or those with supplementary needs — to board the aircraft before general passengers.
- Purchase OrderA formal document issued by a buyer that authorizes the acquisition of specified goods or services from a supplier at agreed terms and price.
- Rack RateA hotel's standard published room rate before any negotiated discounts, promotional pricing, or corporate rates are applied.
- Rail TravelTrain-based intercity transportation used as an alternative or complement to short-haul flights for business travel, particularly valued for its city-centre-to-city-centre routing and lower carbon footprint.
- Red-Eye FlightAn overnight flight that departs late in the evening and arrives early the following morning, named for the fatigue it causes in passengers.
- ReimbursementThe repayment by an organisation to an employee for legitimate business expenses the employee paid from personal funds.
- RepatriationThe process of returning a traveler to their home country, typically following a medical emergency, political disruption, or other serious incident abroad.
- Revenue ManagementA pricing and inventory optimization strategy used by travel providers to maximise revenue by selling the right product at the right price to the right customer at the right time.
- Revenue Passenger Kilometer (RPK)An aviation traffic metric that measures airline output as one paying passenger carried one kilometer.
- Risk AssessmentA systematic evaluation of potential safety, health, security, and logistical threats associated with a planned business travel destination, forming part of an organisation's duty of care obligations.
- Round-Trip TicketA single ticket that covers travel to a destination and the return journey back to the point of origin.
- Same-Day ChangeThe option to switch to a different flight on the same day of travel, typically subject to availability and applicable conditions.
- Schedule ChangeA modification made by an airline to a previously confirmed flight's departure time, route, or operational status after the booking has been made.
- Seat PitchThe distance between a row of seats and the row directly in front, used as a standard measure of legroom on aircraft.
- Seat UpgradeThe movement of a passenger from a lower to a higher cabin class, either by paying a supplementary fee, redeeming loyalty points, or being selected by the airline for a complimentary upgrade based on elite status.
- Shoulder SeasonThe transitional travel period between peak and off-peak seasons, characterized by moderate demand, better pricing, and shorter queues compared to high season.
- Spend ManagementThe end-to-end organizational process of tracking, controlling, analyzing, and optimizing all company expenditure.
- StandbyA status where a traveler waits at the airport for a seat on a flight for which they do not hold a confirmed reservation.
- StationAn airport location where an airline maintains operational facilities and handles its flights, from check-in through to departure.
- StopoverA planned break in a journey at an intermediate point, where the traveler stays overnight or for an extended period before continuing to the final destination.
- Through FareA combined fare that covers an entire journey with multiple segments or connections under a single ticket, rather than separate fares for each leg.
- Ticket ValidityThe defined period during which an airline ticket remains valid for use in travel, after which unused flights may no longer be honored.
- Transit PassengerA traveler passing through an airport en route to a final destination in another country, without formally entering the country of transit.
- Travel & Expense (T&E)The combined category covering all spending associated with employee business travel and work-related expenses.
- Travel AdvisoryAn official notification issued by government authorities or travel risk organizations warning travellers about safety conditions, risks, or restrictions at a specific destination.
- Travel Expense PolicyA set of written rules defining which travel costs an organisation will reimburse, the maximum amounts permitted by category, the documentation required, and the approval and submission process employees must follow.
- Travel InsuranceA financial product that provides coverage for travel-related losses and risks, including trip cancellation, medical emergencies, lost baggage, and travel delays.
- Travel Management Company (TMC)A specialist agency that manages an organisation's corporate travel programme, including booking, policy management, reporting, and traveler support.
- Travel Risk ManagementThe systematic process of identifying, assessing, and mitigating threats to employee safety and organisational continuity that may arise during business travel — from health and security risks to natural disasters and travel disruptions.
- Travel VoucherA prepaid credit or certificate issued by an airline, hotel, or travel provider — or by an employer — that can be applied against future travel bookings in lieu of cash payment.
- Traveler ProfileA digital record maintained in a booking system or travel management company (TMC) platform that stores a traveler's personal details, travel document data, seat preferences, meal requirements, and loyalty program memberships.
- Trip ApprovalThe formal authorisation process through which a manager or designated approver reviews and sanctions an employee's planned business travel request before bookings are made or costs committed.
- Trusted Traveler ProgramA government-administered enrollment scheme that pre-vets travellers to enable expedited border clearance and security screening, such as Global Entry and TSA PreCheck.
- TSA PreCheckA US Transportation Security Administration program that enables pre-vetted travellers to use dedicated expedited security screening lanes at participating US airports.
- Unaccompanied MinorA child traveling by air without a parent or guardian, subject to mandatory airline supervision programs and special handling requirements.
- Unmanaged TravelBusiness travel booked by employees independently, without central coordination, approved tools, or program oversight.
- Unused TicketA cancelled non-refundable airline ticket that retains a residual credit value applicable to a future booking, subject to conditions and fees.
- Value-Added Tax (VAT)A consumption tax levied at each stage of production and distribution, charged on the value added at each step and ultimately borne by the end consumer.
- Variable ExpenseA business cost that varies in direct proportion to the level of business activity or output.
- Vendor ManagementThe structured process of identifying, contracting, monitoring, and continuously improving relationships with the external suppliers a business acquisitions from.
- Virtual CardA digital-only payment card number generated for a specific transaction or supplier, providing enhanced security and spend control without requiring a physical card.
- VisaAn official endorsement placed in or associated with a passport that grants permission to enter, transit through, or remain in a foreign country for a specified purpose and duration.
- WaitlistA queue for a seat, room, or fare class that is currently sold out, which may be fulfilled if availability opens up before departure.
- Wet LeaseA lease arrangement in which an airline rents an aircraft together with the crew, maintenance, and insurance from another operator.
- WorkcationThe practice of working remotely from a leisure destination, combining professional responsibilities with time away from the usual work environment.
- Working CapitalThe short-term financial liquidity available to a business, calculated by subtracting current liabilities from current assets.