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Business tourism 101: All you need to know

What is business tourism.

• To participate in internal meetings at different office locations
• To meet business partners (clients or suppliers)
• To go to conferences, exhibitions, trade shows, and other local or international business events
• To take part in company retreats or incentive trips

Why is business tourism important?

• Better understand common goals, needs, and challenges
• Work together more efficiently
• Easily share knowledge and ideas
• Achieve important breakthroughs and solve problems faster

See how to save money on business travel

What are the different types of business tourism, traditional business traveling, incentive trips, conference and exhibitions, how has business tourism evolved over the years.

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UN Tourism | Bringing the world closer

UN standards for measuring tourism

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Glossary of tourism terms

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which involve tourism expenditure.

A B C D E F G H I J K L M N O P Q R S T U V W Y Z

Activity/activities : In tourism statistics, the term activities represent the actions and behaviors of people in preparation for and during a trip in their capacity as consumers ( IRTS 2008, 1.2 ).

Activity (principal): The principal activity of a producer unit is the activity whose value added exceeds that of any other activity carried out within the same unit ( SNA 2008, 5.8 ).

Activity (productive): The (productive) activity carried out by a statistical unit is the type of production in which it engages. It has to be understood as a process, i.e. the combination of actions that result in a certain set of products. The classification of productive activities is determined by their principal output.

Administrative data : Administrative data is the set of units and data derived from an administrative source. This is a data holding information collected and maintained for the purpose of implementing one or more administrative regulations.

Adventure tourism : Adventure tourism is a type of tourism which usually takes place in destinations with specific geographic features and landscape and tends to be associated with a physical activity, cultural exchange, interaction and engagement with nature. This experience may involve some kind of real or perceived risk and may require significant physical and/or mental effort. Adventure tourism generally includes outdoor activities such as mountaineering, trekking, bungee jumping, rock climbing, rafting, canoeing, kayaking, canyoning, mountain biking, bush walking, scuba diving. Likewise, some indoor adventure tourism activities may also be practiced.

Aggregated data : The result of transforming unit level data into quantitative measures for a set of characteristics of a population.

Aggregation : A process that transforms microdata into aggregate-level information by using an aggregation function such as count, sum average, standard deviation, etc.

Analytical unit : Entity created by statisticians, by splitting or combining observation units with the help of estimations and imputations.

Balance of payments : The balance of payments is a statistical statement that summarizes transactions between residents and non-residents during a period. It consists of the goods and services account, the primary income account, the secondary income account, the capital account, and the financial account ( BPM6, 2.12 ).

Bias : An effect which deprives a statistical result of representativeness by systematically distorting it, as distinct from a random error which may distort on any one occasion but balances out on the average.

Business and professional purpose (of a tourism trip): The business and professional purpose of a tourism trip includes the activities of the self-employed and employees, as long as they do not correspond to an implicit or explicit employer-employee relationship with a resident producer in the country or place visited, those of investors, businessmen, etc. ( IRTS 2008, 3.17.2 ).

Business tourism : Business tourism is a type of tourism activity in which visitors travel for a specific professional and/or business purpose to a place outside their workplace and residence with the aim of attending a meeting, an activity or an event. The key components of business tourism are meetings, incentives, conventions and exhibitions. The term "meetings industry" within the context of business tourism recognizes the industrial nature of such activities. Business tourism can be combined with any other tourism type during the same trip.

Business visitor : A business visitor is a visitor whose main purpose for a tourism trip corresponds to the business and professional category of purpose ( IRTS 2008, 3.17.2 ).

Central Product Classification : The Central Product Classification (CPC) constitutes a complete product classification covering goods and services. It is intended to serve as an international standard for assembling and tabulating all kinds of data requiring product detail, including industrial production, national accounts, service industries, domestic and foreign commodity trade, international trade in services, balance of payments, consumption and price statistics. Other basic aims are to provide a framework for international comparison and promote harmonization of various types of statistics dealing with goods and services.

Census : A census is the complete enumeration of a population or groups at a point in time with respect to well defined characteristics: for example, Population, Production, Traffic on particular roads.

Coastal, maritime and inland water tourism : Coastal tourism refers to land-based tourism activities such as swimming, surfing, sunbathing and other coastal leisure, recreation and sports activities which take place on the shore of a sea, lake or river. Proximity to the coast is also a condition for services and facilities that support coastal tourism. Maritime tourism refers to sea-based activities such as cruising, yachting, boating and nautical sports and includes their respective land-based services and infrastructure. Inland water tourism refers to tourism activities such as cruising, yachting, boating and nautical sports which take place in aquatic- influenced environments located within land boundaries and include lakes, rivers, ponds, streams, groundwater, springs, cave waters and others traditionally grouped as inland wetlands.

Coherence : Adequacy of statistics to be combined in different ways and for various uses.

Competitiveness of a tourism destination : The competitiveness of a tourism destination is the ability of the destination to use its natural, cultural, human, man-made and capital resources efficiently to develop and deliver quality, innovative, ethical and attractive tourism products and services in order to achieve a sustainable growth within its overall vision and strategic goals, increase the added value of the tourism sector, improve and diversify its market components and optimize its attractiveness and benefits both for visitors and the local community in a sustainable perspective.

Consistency : Logical and numerical coherence.

Country of reference : The country of reference refers to the country for which the measurement is done. ( IRTS 2008, 2.15 ).

Country of residence : The country of residence of a household is determined according to the centre of predominant economic interest of its members. If a person resides (or intends to reside) for more than one year in a given country and has there his/her centre of economic interest (for example, where the predominant amount of time is spent), he/she is considered as a resident of this country.

Country-specific tourism characteristic products and activities : To be determined by each country by applying the criteria of IRTS 2008, 5.10 in their own context; for these products, the activities producing them will be considered as tourism characteristic, and the industries in which the principal activity is tourism-characteristic will be called tourism industries ( IRTS 2008, 5.16 ).

Cultural tourism : Cultural tourism is a type of tourism activity in which the visitor's essential motivation is to learn, discover, experience and consume the tangible and intangible cultural attractions/products in a tourism destination. These attractions/products relate to a set of distinctive material, intellectual, spiritual and emotional features of a society that encompasses arts and architecture, historical and cultural heritage, culinary heritage, literature, music, creative industries and the living cultures with their lifestyles, value systems, beliefs and traditions.

Data checking : Activity whereby the correctness conditions of the data are verified. It also includes the specification of the type of error or of the condition not met, and the qualification of the data and their division into "error-free data" and "erroneous data".

Data collection : Systematic process of gathering data for official statistics.

Data compilation : Operations performed on data to derive new information according to a given set of rules.

Data confrontation : The process of comparing data that has generally been derived from different surveys or other sources, especially those of different frequencies, in order to assess and possibly improve their coherency, and identify the reasons for any differences.

Data processing : Data processing is the operation performed on data by the organization, institute, agency, etc., responsible for undertaking the collection, tabulation, manipulation and preparation of data and metadata output.

Data reconciliation : The process of adjusting data derived from two different sources to remove, or at least reduce, the impact of differences identified.

Destination (main destination of a trip): The main destination of a tourism trip is defined as the place visited that is central to the decision to take the trip. See also purpose of a tourism trip ( IRTS 2008, 2.31 ).

Destination management / marketing organization (DMO) : A destination management/marketing organization (DMO) is the leading organizational entity which may encompass the various authorities, stakeholders and professionals and facilitates tourism sector partnerships towards a collective destination vision. The governance structures of DMOs vary from a single public authority to a public/ private partnership model with the key role of initiating, coordinating and managing certain activities such as implementation of tourism policies, strategic planning, product development, promotion and marketing and convention bureau activities. The functions of the DMOs may vary from national to regional and local levels depending on the current and potential needs as well as on the decentralization level of public administration. Not every tourism destination has a DMO.

Documentation: Processes and procedures for imputation,  weighting,  confidentiality  and suppression rules, outlier treatment and data capture should be fully documented by the  survey provider.  Such documentation should be made available to at least  the body financing the survey.

Domestic tourism : Domestic tourism comprises the activities of a resident visitor within the country of reference, either as part of a domestic tourism trip or part of an outbound tourism trip ( IRTS 2008, 2.39 ).

Domestic tourism consumption : Domestic tourism consumption is the tourism consumption of a resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Domestic tourism expenditure : Domestic tourism expenditure is the tourism expenditure of a resident visitor within the economy of reference, (IRTS 2008, 4.15(a)).

Domestic tourism trip : A domestic tourism trip is one with a main destination within the country of residence of the visitor (IRTS 2008, 2.32).

Domestic visitor : As a visitor travels within his/her country of residence, he/she is a domestic visitor and his/her activities are part of domestic tourism.

Durable consumer goods : Durable consumer goods are goods that may be used repeatedly or continuously over a period of a year or more, assuming a normal or average rate of physical usage. When acquired by producers, these are considered to be capital goods used for production processes, as is the case of vehicles, computers, etc. When acquired by households, they are considered to be consumer durable goods ( TSA:RMF 2008, 2.39 ). This definition is identical to the definition of SNA 2008, 9.42 : A consumer durable is a goodthat may be used for purposes of consumption repeatedly or continuously over a period of a year or more.

Dwellings : Each household has a principal dwelling (sometimes also designated as main or primary home), usually defined with reference to time spent there, whose location defines the country of residence and place of usual residence of this household and of all its members. All other dwellings (owned or leased by the household) are considered secondary dwellings ( IRTS 2008, 2.26 ).

Ecotourism : Ecotourism is a type of nature-based tourism activity in which the visitor's essential motivation is to observe, learn, discover, experience and appreciate biological and cultural diversity with a responsible attitude to protect the integrity of the ecosystem and enhance the well-being of the local community. Ecotourism increases awareness towards the conservation of biodiversity, natural environment and cultural assets both among locals and the visitors and requires special management processes to minimize the negative impact on the ecosystem.

Economic analysis : Tourism generates directly and indirectly an increase in economic activity in the places visited (and beyond), mainly due to demand for goods and services thatneed to be produced and provided. In the economic analysis of tourism, one may distinguish between tourism's 'economic contribution' which refers to the direct effect of tourism and is measurable by means of the TSA, and tourism's 'economic impact' which is a much broader concept encapsulating the direct, indirect and induced effects of tourism and which must be estimated by applying models. Economic impact studies aim to quantify economic benefits, that is, the net increase in the wealth of residents resulting from tourism, measured in monetary terms, over and above the levels that would prevail in its absence.

Economic territory : The term "economic territory" is a geographical reference and points to the country for which the measurement is done (country of reference) ( IRTS 2008, 2.15 ).

Economically active population : The economically active population or labour force comprises all persons of either sex who furnish the supply of labour for the production of goods and services as defined by the system of national accounts during a specified time-reference period (ILO, Thirteenth ICLS, 6.18).

Economy (of reference): "Economy" (or "economy of reference") is an economic reference defined in the same way as in the balance of payments and in the system of national accounts: it refers to the economic agents that are resident in the country of reference ( IRTS 2008, 2.15 ).

Education tourism : Education tourism covers those types of tourism which have as a primary motivation the tourist's engagement and experience in learning, self-improvement, intellectual growth and skills development. Education Tourism represents a broad range of products and services related to academic studies, skill enhancement holidays, school trips, sports training, career development courses and language courses, among others.

Employees : Employees are all those workers who hold the type of job defined as "paid employment" (ILO, Fifteenth ICLS, pp. 20-22).

Employer-employee relationship : An employer-employee relationship exists when there is an agreement, which may be formal or informal, between an entity and an individual, normally entered into voluntarily by both parties, whereby the individual works for the entity in return for remuneration in cash or in kind ( BPM6, 11.11 ).

Employers : Employers are those workers who, working on their own account with one or more partners, hold the type of job defined as a "self-employment job" and, in this capacity, on a continuous basis (including the reference period) have engaged one or more persons to work for them in their business as "employee(s)" (ILO, Fifteenth ICLS, pp. 20-22).

Employment : Persons in employment are all persons above a specified age who, during a specified brief period, either one week or one day, were in paid employment or self-employment (OECD GST, p. 170).

Employment in tourism industries : Employment in tourism industries may be measured as a count of the persons employed in tourism industries in any of their jobs, as a count of the persons employed in tourism industries in their main job, or as a count of the jobs in tourism industries ( IRTS 2008, 7.9 ).

Enterprise : An enterprise is an institutional unit engaged in production of goods and/or services. It may be a corporation, a non-profit institution, or an unincorporated enterprise. Corporate enterprises and non-profit institutions are complete institutional units. An unincorporated enterprise, however, refers to an institutional unit —a household or government unit —only in its capacity as a producer of goods and services (OECD BD4, p. 232)

Establishment : An establishment is an enterprise, or part of an enterprise, that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added ( SNA 2008, 5.14 ).

Estimation : Estimation is concerned with inference about the numerical value of unknown population values from incomplete data such as a sample. If a single figure is calculated for each unknown parameter the process is called "point estimation". If an interval is calculated within which the parameter is likely, in some sense, to lie, the process is called "interval estimation".

Exports of goods and services : Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents (OECD GST, p. 194)

Frame : A list, map or other specification of the units which define a population to be completely enumerated or sampled.

Forms of tourism : There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism. These can be combined in various ways to derive the following additional forms of tourism: internal tourism, national tourism and international tourism.

Gastronomy tourism :  Gastronomy tourism is a type of tourism activity which is characterized by the visitor's experience linked with food and related products and activities while travelling. Along with authentic, traditional, and/or innovative culinary experiences, Gastronomy Tourism may also involve other related activities such as visiting the local producers, participating in food festivals and attending cooking classes. Eno-tourism (wine tourism), as a sub-type of gastronomy tourism, refers to tourism whose purpose is visiting vineyards, wineries, tasting, consuming and/or purchasing wine, often at or near the source.

Goods : Goods are physical, produced objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets ( SNA 2008, p. 623 ).

Gross fixed capital formation : Gross fixed capital formation is defined as the value of institutional units' acquisitions less disposals of fixed assets. Fixed assets are produced assets (such as machinery, equipment, buildings or other structures) that are used repeatedly or continuously in production over several accounting periods (more than one year) ( SNA 2008, 1.52 ).

Gross margin : The gross margin of a provider of reservation services is the difference between the value at which the intermediated service is sold and the value accrued to the provider of reservation services for this intermediated service.

Gross value added : Gross value added is the value of output less the value of intermediate consumption ( TSA:RMF 2008, 3.32 ).

Gross value added of tourism industries : Gross value added of tourism industries (GVATI) is the total gross value added of all establishments belonging to tourism industries, regardless of whether all their output is provided to visitors and the degree of specialization of their production process ( TSA:RMF 2008, 4.86 ).

Grossing up : Activity aimed at transforming, based on statistical methodology, micro-data from samples into aggregate-level information representative of the target population.

Health tourism : Health tourism covers those types of tourism which have as a primary motivation, the contribution to physical, mental and/or spiritual health through medical and wellness-based activities which increase the capacity of individuals to satisfy their own needs and function better as individuals in their environment and society. Health tourism is the umbrella term for the subtypes wellness tourism and medical tourism.

Imputation : Procedure for entering a value for a specific data item where the response is missing or unusable.

Inbound tourism : Inbound tourism comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip ( IRTS 2008, 2.39 ).

Inbound tourism consumption : Inbound tourism consumption is the tourism consumption of a non-resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Inbound tourism expenditure : Inbound tourism expenditure is the tourism expenditure of a non-resident visitor within the economy of reference ( IRTS 2008, 4.15(b) ).

Innovation in tourism : Innovation in tourism is the introduction of a new or improved component which intends to bring tangible and intangible benefits to tourism stakeholders and the local community, improve the value of the tourism experience and the core competencies of the tourism sector and hence enhance tourism competitiveness and /or sustainability. Innovation in tourism may cover potential areas, such as tourism destinations, tourism products, technology, processes, organizations and business models, skills, architecture, services, tools and/or practices for management, marketing, communication, operation, quality assurance and pricing.

Institutional sector : An aggregation of institutional units on the basis of the type of producer and depending on their principal activity and function, which are considered to be indicative of their economic behaviour.

Institutional unit : The elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function.

Intermediate consumption : Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital ( SNA 2008, 6.213 ).

Internal tourism : Internal tourism comprises domestic tourism and inbound tourism, that is to say, the activities of resident and non-resident visitors within the country of reference as part of domestic or international tourism trips ( IRTS 2008, 2.40(a) ).

Internal tourism consumption : Internal tourism consumption is the tourism consumption of both resident and non-resident visitors within the economy of reference. It is the sum of domestic tourism consumption and inbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

Internal tourism expenditure : Internal tourism expenditure comprises all tourism expenditure of visitors, both resident and non-resident, within the economy of reference. It is the sum of domestic tourism expenditure and inbound tourism expenditure. It includes acquisition of goods and services imported into the country of reference and sold to visitors. This indicator provides the most comprehensive measurement of tourism expenditure in the economy of reference ( IRTS 2008, 4.20(a) ).

International Standard Industrial Classification of All Economic Activities : The International Standard Industrial Classification of All Economic Activities (ISIC) consists of a coherent and consistent classification structure of economic activities based on a set of internationally agreed concepts, definitions, principles and classification rules. It provides a comprehensive framework within which economic data can be collected and reported in a format that is designed for purposes of economic analysis, decision-taking and policymaking. The classification structure represents a standard format to organize detailed information about the state of an economy according to economic principles and perceptions (ISIC, Rev.4, 1).

International tourism : International tourism comprises inbound tourism and outbound tourism, that is to say, the activities of resident visitors outside the country of reference, either as part of domestic or outbound tourism trips and the activities of non-resident visitors within the country of reference on inbound tourism trips ( IRTS 2008, 2.40(c) ).

International visitor : An international traveller qualifies as an international visitor with respect to the country of reference if: (a) he/she is on a tourism trip and (b) he/she is a non-resident travelling in the country of reference or a resident travelling outside of it ( IRTS 2008, 2.42 ).

Job : The agreement between an employee and the employer defines a job and each self-employed person has a job ( SNA 2008, 19.30 ).

Measurement error : Error in reading, calculating or recording numerical value.

Medical tourism : Medical tourism is a type of tourism activity which involves the use of evidence-based medical healing resources and services (both invasive and non-invasive). This may include diagnosis, treatment, cure, prevention and rehabilitation.

Meetings industry : To highlight purposes relevant to the meetings industry, if a trip's main purpose is business/professional, it can be further subdivided into "attending meetings, conferences or congresses, trade fairs and exhibitions" and "other business and professional purposes". The term meetings industry is preferred by the International Congress and Convention Association (ICCA), Meeting Professionals International (MPI) and Reed Travel over the acronym MICE (Meetings, Incentives, Conferences and Exhibitions) which does not recognize the industrial nature of such activities.

Metadata : Data that defines and describes other data and processes.

MICE : See meetings industry.

Microdata : Non-aggregated observations, or measurements of characteristics of individual units.

Mirror statistics : Mirror statistics are used to conduct bilateral comparisons of two basic measures of a trade flow and are a traditional tool for detecting the causes of asymmetries in statistics (OECD GST, p. 335).

Mountain tourism : Mountain tourism is a type of tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities.

National tourism : National tourism comprises domestic tourism and outbound tourism, that is to say, the activities of resident visitors within and outside the country of reference, either as part of domestic or outbound tourism trips ( IRTS 2008, 2.40(b) ).

National tourism consumption : National tourism consumption is the tourism consumption of resident visitors, within and outside the economy of reference. It is the sum of domestic tourism consumption and outbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

National tourism expenditure : National tourism expenditure comprises all tourism expenditure of resident visitors within and outside the economy of reference. It is the sum of domestic tourism expenditure and outbound tourism expenditure ( IRTS 2008, 4.20(b) ).

Nationality : The concept of "country of residence" of a traveller is different from that of his/her nationality or citizenship ( IRTS 2008, 2.19 ).

Non-monetary indicators : Data measured in physical or other non-monetary units should not be considered a secondary part of a satellite account. They are essential components, both for the information they provide directly and in order to analyse the monetary data adequately ( SNA 2008, 29.84 ).

Observation unit : entity on which information is received and statistics are compiled.

Outbound tourism : Outbound tourism comprises the activities of a resident visitor outside the country of reference, either as part of an outbound tourism trip or as part of a domestic tourism trip ( IRTS 2008, 2.39(c) ).

Outbound tourism consumption : Outbound tourism consumption is the tourism consumption of a resident visitor outside the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Outbound tourism expenditure : Outbound tourism expenditure is the tourism expenditure of a resident visitor outside the economy of reference ( IRTS 2008, 4.15(c) ).

Output : Output is defined as the goods and services produced by an establishment, a) excluding the value of any goods and services used in an activity for which the establishment does not assume the risk of using the products in production, and b) excluding the value of goods and services consumed by the same establishment except for goods and services used for capital formation (fixed capital or changes in inventories) or own final consumption ( SNA 2008, 6.89 ).

Output (main): The main output of a (productive) activity should be determined by reference to the value added of the goods sold or services rendered (ISIC rev.4, 114).

Pilot survey : The aim of a pilot survey is to test the questionnaire (pertinence of the questions, understanding of questions by those being interviewed, duration of the interview) and to check various potential sources for sampling and non-sampling errors: for instance, the place in which the surveys are carried out and the method used, the identification of any omitted answers and the reason for the omission, problems of communicating in various languages, translation, the mechanics of data collection, the organization of field work, etc.

Place of usual residence : The place of usual residence is the geographical place where the enumerated person usually resides, and is defined by the location of his/her principal dwelling (Principles and recommendations for population and housing censuses of the United Nations, 2.20 to 2.24).

Probability sample : A sample selected by a method based on the theory of probability (random process), that is, by a method involving knowledge of the likelihood of any unit being selected.

Production account : The production account records the activity of producing goods and services as defined within the SNA. Its balancing item, gross value added, is defined as the value of output less the value of intermediate consumption and is a measure of the contribution to GDP made by an individual producer, industry or sector. Gross value added is the source from which the primary incomes of the SNA are generated and is therefore carried forward into the primary distribution of income account. Value added and GDP may also be measured net by deducting consumption of fixed capital, a figure representing the decline in value during the period of the fixed capital used in a production process ( SNA 2008, 1.17 ).

Production : Economic production may be defined as an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services ( SNA 2008, 6.24. ).

Purpose of a tourism trip (main): The main purpose of a tourism trip is defined as the purpose in the absence of which the trip would not have taken place ( IRTS 2008, 3.10. ). Classification of tourism trips according to the main purpose refers to nine categories: this typology allows the identification of different subsets of visitors (business visitors, transit visitors, etc.) See also destination of a tourism trip ( IRTS 2008, 3.14 ).

Quality of a tourism destination : Quality of a tourism destination is the result of a process which implies the satisfaction of all tourism product and service needs, requirements and expectations of the consumer at an acceptable price, in conformity with mutually accepted contractual conditions and the implicit underlying factors such as safety and security, hygiene, accessibility, communication, infrastructure and public amenities and services. It also involves aspects of ethics, transparency and respect towards the human, natural and cultural environment. Quality, as one of the key drivers of tourism competitiveness, is also a professional tool for organizational, operational and perception purposes for tourism suppliers.

Questionnaire and Questionnaire design : Questionnaire is a group or sequence of questions designed to elicit information on a subject, or sequence of subjects, from a reporting unit or from another producer of official statistics. Questionnaire design is the design (text, order, and conditions for skipping) of the questions used to obtain the data needed for the survey.

Reference period : The period of time or point in time to which the measured observation is intended to refer.

Relevance : The degree to which statistics meet current and potential users' needs.

Reliability : Closeness of the initial estimated value to the subsequent estimated value.

Reporting unit : Unit that supplies the data for a given survey instance, like a questionnaire or interview. Reporting units may, or may not, be the same as the observation unit.

Residents/non-residents : The residents of a country are individuals whose centre of predominant economic interest is located in its economic territory. For a country, the non-residents are individuals whose centre of predominant economic interest is located outside its economic territory.

Response and non-response : Response and non-response to various elements of a survey entail potential errors.

Response error : Response errors may be defined as those arising from the interviewing process. Such errors may be due to a number of circumstances, such as inadequate concepts or questions; inadequate training; interviewer failures; respondent failures.

Rural tourism : Rural tourism is a type of tourism activity in which the visitor's experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing. Rural tourism activities take place in non-urban (rural) areas with the following characteristics:

• Low population density;
• Landscape and land-use dominated by agriculture and forestry; and
• Traditional social structure and lifestyle

Same-day visitor (or excursionist): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Sample : A subset of a frame where elements are selected based on a process with a known probability of selection.

Sample survey : A survey which is carried out using a sampling method.

Sampling error : That part of the difference between a population value and an estimate thereof, derived from a random sample, which is due to the fact that only a subset of the population is enumerated.

Satellite accounts : There are two types of satellite accounts, serving two different functions. The first type, sometimes called an internal satellite, takes the full set of accounting rules and conventions of the SNA but focuses on a particular aspect of interest by moving away from the standard classifications and hierarchies. Examples are tourism, coffee production and environmental protection expenditure. The second type, called an external satellite, may add non-economic data or vary some of the accounting conventions or both. It is a particularly suitable way to explore new areas in a research context. An example may be the role of volunteer labour in the economy ( SNA 2008, 29.85 ).

SDMX, Statistical Data and Metadata Exchange : Set of technical standards and content-oriented guidelines, together with an IT architecture and tools, to be used for the efficient exchange and sharing of statistical data and metadata (SDMX).

Seasonal adjustment : Seasonal adjustment is a statistical technique to remove the effects of seasonal calendar influences on a series. Seasonal effects usually reflect the influence of the seasons themselves, either directly or through production series related to them, or social conventions. Other types of calendar variation occur as a result of influences such as number of days in the calendar period, the accounting or recording practices adopted or the incidence of moving holidays.

Self-employment job : Self-employment jobs are those jobs where remuneration is directly dependent upon the profits (or the potential of profits) derived from the goods or services produced.

Self-employed with paid employees : Self-employed with paid employees are classified as employers.

Self-employed without employees : Self-employed without employees are classified as own-account workers.

Services : Services are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. They cannot be traded separately from their production. By the time their production is completed, they must have been provided to the consumers ( SNA 2008, 6.17 ).

Social transfers in kind : A special case of transfers in kind is that of social transfers in kind. These consist of goods and services provided by general government and non-profit institutions serving households (NPISHs) that are delivered to individual households. Health and education services are the prime examples. Rather than provide a specified amount of money to be used to purchase medical and educational services, the services are often provided in kind to make sure that the need for the services is met. (Sometimes the recipient purchases the service and is reimbursed by the insurance or assistance scheme. Such a transaction is still treated as being in kind because the recipient is merely acting as the agent of the insurance scheme) (SNA 2008, 3.83).

Sports tourism : Sports tourism is a type of tourism activity which refers to the travel experience of the tourist who either observes as a spectator or actively participates in a sporting event generally involving commercial and non-commercial activities of a competitive nature.

Standard classification : Classifications that follow prescribed rules and are generally recommended and accepted.

Statistical error : The unknown difference between the retained value and the true value.

Statistical indicator : A data element that represents statistical data for a specified time, place, and other characteristics, and is corrected for at least one dimension (usually size) to allow for meaningful comparisons.

Statistical metadata : Data about statistical data.

Statistical unit : Entity about which information is sought and about which statistics are compiled. Statistical units may be identifiable legal or physical entities or statistical constructs.

Survey : An investigation about the characteristics of a given population by means of collecting data from a sample of that population and estimating their characteristics through the systematic use of statistical methodology.

System of National Accounts : The System of National Accounts (SNA) is the internationally agreed standard set of recommendations on how to compile measures of economic activity in accordance with strict accounting conventions based on economic principles. The recommendations are expressed in terms of a set of concepts, definitions, classifications and accounting rules that comprise the internationally agreed standard for measuring indicators of economic performance. The accounting framework of the SNA allows economic data to be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policymaking ( SNA 2008, 1.1 ).

Total tourism internal demand : Total tourism internal demand, is the sum of internal tourism consumption, tourism gross fixed capital formation and tourism collective consumption ( TSA:RMF 2008, 4.114 ). It does not include outbound tourism consumption.

Tourism : Tourism refers to the activity of visitors ( IRTS 2008, 2.9 ).

Tourism characteristic activities : Tourism characteristic activities are the activities that typically produce tourism characteristic products. As the industrial origin of a product (the ISIC industry that produces it) is not a criterion for the aggregation of products within a similar CPC category, there is no strict one-to-one relationship between products and the industries producing them as their principal outputs ( IRTS 2008, 5.11 ).

Tourism characteristic products : Tourism characteristic products are those that satisfy one or both of the following criteria: a) Tourism expenditure on the product should represent a significant share total tourism expenditure (share-of-expenditure/demand condition); b) Tourism expenditure on the product should represent a significant share of the supply of the product in the economy (share-of-supply condition). This criterion implies that the supply of a tourism characteristic product would cease to exist in meaningful quantity in the absence of visitors ( IRTS 2008, 5.10 ).

Tourism connected products : Their significance within tourism analysis for the economy of reference is recognized although their link to tourism is very limited worldwide. Consequently, lists of such products will be country-specific ( IRTS 2008, 5.12 ).

Tourism consumption : Tourism consumption has the same formal definition as tourism expenditure. Nevertheless, the concept of tourism consumption used in the Tourism Satellite Account goes beyond that of tourism expenditure. Besides the amount paid for the acquisition of consumption goods and services, as well as valuables for own use or to give away, for and during tourism trips, which corresponds to monetary transactions (the focus of tourism expenditure), it also includes services associated with vacation accommodation on own account, tourism social transfers in kind and other imputed consumption. These transactions need to be estimated using sources different from information collected directly from the visitors, such as reports on home exchanges, estimations of rents associated with vacation homes, calculations of financial intermediation services indirectly measured (FISIM), etc. ( TSA:RMF 2008, 2.25 ).

Tourism destination : A tourism destination is a physical space with or without administrative and/or analytical boundaries in which a visitor can spend an overnight. It is the cluster (co-location) of products and services, and of activities and experiences along the tourism value chain and a basic unit of analysis of tourism. A destination incorporates various stakeholders and can network to form larger destinations. It is also intangible with its image and identity which may influence its market competitiveness.

Tourism direct gross domestic product : Tourism direct gross domestic product (TDGDP) is the sum of the part of gross value added (at basic prices) generated by all industries in response to internal tourism consumption plus the amount of net taxes on products and imports included within the value of this expenditure at purchasers' prices ( TSA:RMF 2008, 4.96 ).

Tourism direct gross value added : Tourism direct gross value added (TDGVA) is the part of gross value added generated by tourism industries and other industries of the economy that directly serve visitors in response to internal tourism consumption ( TSA:RMF 2008, 4.88 ).

Tourism expenditure : Tourism expenditure refers to the amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips. It includes expenditures by visitors themselves, as well as expenses that are paid for or reimbursed by others ( IRTS 2008, 4.2 ).

Tourism industries : The tourism industries comprise all establishments for which the principal activity is a tourism characteristic activity. Tourism industries (also referred to as tourism activities) are the activities that typically producetourism characteristic products. The term tourism industries is equivalent to tourism characteristic activities and the two terms are sometimes used synonymously in the IRTS 2008, 5.10, 5.11 and figure 5.1 .

Tourism product : A tourism product is a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle.

Tourism ratio : For each variable of supply in the Tourism Satellite Account, the tourism ratiois the ratio between the total value of tourism share and total value of the corresponding variable in the Tourism Satellite Account expressed in percentage form ( TSA:RMF 2008, 4.56 ). (See also Tourism share).

Tourism Satellite Account : The Tourism Satellite Account is the second international standard on tourism statistics (Tourism Satellite Account: Recommended Methodological Framework 2008 –TSA:RMF 2008) that has been developed in order to present economic data relative to tourism within a framework of internal and external consistency with the rest of the statistical system through its link to the System of National Accounts. It is the basic reconciliation framework of tourism statistics. As a statistical tool for the economic accounting of tourism, the TSA can be seen as a set of 10 summary tables, each with their underlying data and representing a different aspect of the economic data relative to tourism: inbound, domestic tourism and outbound tourism expenditure, internal tourism expenditure, production accounts of tourism industries, the Gross Value Added (GVA) and Gross Domestic Product (GDP) attributable to tourism demand, employment, investment, government consumption, and non-monetary indicators.

Tourism Satellite Account aggregates : The compilation of the following aggregates, which represent a set of relevant indicators of the size of tourism in an economy is recommended ( TSA:RMF 2008, 4.81 ):

• Internal tourism expenditure;
• Internal tourism consumption;
• Gross value added of tourism industries (GVATI);
• Tourism direct gross value added (TDGVA);
• Tourism direct gross domestic product (TDGDP).

Tourism sector : The tourism sector, as contemplated in the TSA, is the cluster of production units in different industries that provide consumption goods and services demanded by visitors. Such industries are called tourism industries because visitor acquisition represents such a significant share of their supply that, in the absence of visitors, their production of these would cease to exist in meaningful quantity.

Tourism share : Tourism share is the share of the corresponding fraction of internal tourism consumption in each component of supply ( TSA:RMF 2008, 4.51 ). For each industry, the tourism share of output (in value), is the sum of the tourism share corresponding to each product component of its output ( TSA:RMF 2008, 4.55 ). (See also Tourism ratio ).

Tourism single-purpose consumer durable goods : Tourism single-purpose consumer durables is a specific category of consumer durable goods that include durable goods that are used exclusively, or almost exclusively, by individuals while on tourism trips ( TSA:RMF 2008 , 2.41 and Annex 5 ).

Tourism trip : Trips taken by visitors are tourism trips ( IRTS 2008, 2.29 ).

Tourist (or overnight visitor): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Tourism value chain : The tourism value chain is the sequence of primary and support activities which are strategically fundamental for the performance of the tourism sector. Linked processes such as policy making and integrated planning, product development and packaging, promotion and marketing, distribution and sales and destination operations and services are the key primary activities of the tourism value chain. Support activities involve transport and infrastructure, human resource development, technology and systems development and other complementary goods and services which may not be related to core tourism businesses but have a high impact on the value of tourism.

Travel / traveller : Travel refers to the activity of travellers. A traveller is someone who moves between different geographic locations, for any purpose and any duration ( IRTS 2008, 2.4 ). The visitor is a particular type of traveller and consequently tourism is a subset of travel.

Travel group : A travel group is made up of individuals or travel parties travelling together: examples are people travelling on the same package tour or youngsters attending a summer camp ( IRTS 2008, 3.5 ).

Travel item (in balance of payments): Travel is an item of the goods and services account of the balance of payments: travel credits cover goods and services for own use or to give away acquired from an economy by non-residents during visits to that economy. Travel debits cover goods and services for own use or to give away acquired from other economies by residents during visits to other economies ( BPM6, 10.86 ).

Travel party : A travel party is defined as visitors travelling together on a trip and whose expenditures are pooled ( IRTS 2008, 3.2 ).

Trip : A trip refers to the travel by a person from the time of departure from his/her usual residence until he/she returns: it thus refers to a round trip. Trips taken by visitors are tourism trips.

Urban/city tourism : Urban/city tourism is a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business.

Usual environment: The usual environment of an individual, a key concept in tourism, is defined as the geographical area (though not necessarily a contiguous one) within which an individual conducts his/her regular life routines ( IRTS 2008, 2.21 ).

Usual residence : The place of usual residence is the geographical place where the enumerated person usually resides (Principles and recommendations for population and housing censuses of the United Nations, 2.16 to 2.18).

Vacation home : A vacation home (sometimes also designated as a holiday home) is a secondary dwelling that is visited by the members of the household mostly for purposes of recreation, vacation or any other form of leisure ( IRTS 2008, 2.27 ).

Valuables : Valuables are produced goods of considerable value that are not used primarily for purposes of production or consumption but are held as stores of value over time ( SNA 2008, 10.13 ).

Visit : A trip is made up of visits to different places.The term "tourism visit" refers to a stay in a place visited during a tourism trip ( IRTS 2008, 2.7 and 2.33 ).

Visitor : A visitor is a traveller taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited ( IRTS 2008, 2.9 ). A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Wellness tourism : Wellness tourism is a type of tourism activity which aims to improve and balance all of the main domains of human life including physical, mental, emotional, occupational, intellectual and spiritual. The primary motivation for the wellness tourist is to engage in preventive, proactive, lifestyle-enhancing activities such as fitness, healthy eating, relaxation, pampering and healing treatments.

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• Corporate Finance

Corporate Business Travel: Everything You Need to Know

Katie Miller is a consumer financial services expert. She worked for almost two decades as an executive, leading multi-billion dollar mortgage, credit card, and savings portfolios with operations worldwide and a unique focus on the consumer. Her mortgage expertise was honed post-2008 crisis as she implemented the significant changes resulting from Dodd-Frank required regulations.

Corporate business travel involves the movement of individuals representing their organizations for work-related reasons. Whether it’s attending client meetings, industry conferences, or sealing business deals, this practice covers a range of activities essential for professional growth.

In the interconnected global business environment, where face-to-face connections matter, corporate business travel plays a central role in sustaining and expanding enterprises across borders. Businesses face challenges in optimizing this crucial element of their operations. Strategic considerations must be taken into account to use this element of business to its greatest potential.

Key Takeaways

• Corporate business travel can unlock new opportunities for business growth, offering the possibility of reaching new markets, connecting with a wider pool of prospects, or developing brand presence and reputation.
• Traveling for business has many benefits for individuals as well, providing them the chance to meet fellow employees, grow their career by participating in different opportunities, and network within the industry, not to mention experience new destinations.
• Business traveler safety and security are top priorities during corporate travel.
• To ensure that travel goes smoothly and stays within budget, companies should implement corporate travel policies and best practices for employees traveling on behalf of the company.

Importance of Corporate Business Travel

There are many business-related reasons to travel. It can encourage team building, promote learning, offer different perspectives, provide connection to a wider network, open up new markets, and drive sales. And whether or not the trip is for a specific purpose (such as a conference or a retreat), the benefits for employees and companies alike can extend beyond the stated intent of the trip, building confidence, cultural competency, relationships, and company reputation.

Many employees consider the opportunity to travel for work a desirable job perk, as it can offer the chance to venture somewhere that they may not ordinarily go, or to have a trip paid for by their company. And although expenses are associated with travel from a corporate perspective, they may be well worth the return on investment in terms of potential leads or sales—plus, many travel expenses are tax- deductible .

Types of Corporate Business Travel

Corporate travel can take many forms, including the chance for employees and executives to attend events, such as meetings, conferences, industry networking sessions, and fairs. Or a trip may take advantage of educational opportunities such as training sessions, seminars, and workshops. Retreats and guided trips can make for valuable team-building time in new contexts that unlock different perspectives and strengthen working relationships.

Businesses may send their employees to a different location to network, sell, teach, learn from, or generally connect with external contacts or internal employees in regional offices, or to act on behalf of the company in some way.

Additionally, from a client perspective, business travel may occur as a form of due diligence , ensuring that your vendors or suppliers are legitimate, legal, and compliant organizations—for example, traveling for regular audits to confirm that what you think is happening at your supplier organizations is actually happening.

Creating a Corporate Travel Policy

From a company perspective, travel can be a challenge to administer and manage . Costs can easily balloon out of control; travel logistics can be time-intensive to arrange; employees traveling on behalf of the company must be granted a great deal of trust; and like any form of travel, business travel can open up risks to safety, security, and health.

No matter the size of the business or the frequency or complexity of travel, a corporate travel policy can be a helpful tool for any company to set expectations for its employees, communicate guidelines and processes, keep expenses within budget, and streamline booking and logistics.

In creating a corporate travel policy, companies might consider the following for both domestic and international travel, as applicable:

• Purpose(s) of travel
• Which employees are eligible to travel
• Booking and expense approval processes
• Risks and liabilities of travel and how to manage them
• Expectations for employee behavior, including acceptable and secure uses of technology, personal vs. leisure time, communication, and entertainment while traveling
• Eligible expenses for employees while traveling, including per diem rates if applicable
• Determine if employees will be reimbursed for their expenses or given a corporate credit card to use
• Financial tracking, record-keeping, and reimbursement processes
• Acceptable booking practices and costs, including preferred agents or vendors
• Travel insurance

Of course, policies must also be communicated and enforced to ensure compliance and fairness. Including a travel policy as part of a corporate handbook or reviewing it in an onboarding or training module can be a good way to ensure that all employees receive and understand the information. Making it easily accessible for future reference on a shared drive or company portal will encourage employees to refer to it often.

Business travel managers estimate, on average, that spending on domestic and international corporate travel is at 77% and 74%, respectively, of where it was before the COVID-19 pandemic.

Setting a Corporate Travel Policy

Corporate Business Travel Best Practices

There are many best practices that both employees and companies can keep in mind around corporate business travel to ensure that it is a successful experience. These encompass everything from administration and financing to employee behavior and well-being.

Booking Corporate Travel

Booking travel can be labor-intensive and time-consuming. To improve the booking process, save on costs, and streamline expense reporting, it can be helpful to designate preferred travel agencies, online platforms, vendors, and lodgings for employees and executives to book with. If the size of the company allows, it can also be helpful to hire an employee or team specifically to oversee and administer corporate travel, or designate this duty as part of an employee’s broader job description.

Managing Travel Expenses and Budgeting

There are many financial considerations when it comes to corporate business travel, and expenses and budgets must be carefully managed to keep costs under control. Many travel expenses are tax-deductible and can be written off, representing potentially significant savings for a company. Setting a budget and clear guidelines for employees about what can be an expense and what cannot is a must, as is creating and enforcing policies and procedures around tracking and reporting expenses.

Many corporate credit cards offer travel rewards and cost-saving opportunities for business travel, as do many other vendors and suppliers in the corporate travel industry. Businesses can take advantage of these to reduce inefficiencies and save on costs.

How to Manage Corporate Travel

Ensuring Traveler Safety and Security

As with any trip, business trips are not without safety and security risks, including the potential for political or civil unrest, crime, illness, injury, accidents, emergencies, natural disasters, cybersecurity breaches, or theft.

To protect their employees against unexpected and undesirable circumstances, at a minimum, businesses will want to have a travel insurance plan in place. It’s also helpful for businesses and employees to undertake some form of travel risk assessment to aid them in navigating potential risks, and outline safety and emergency preparedness guidelines within a corporate travel policy.

Employees should also know how to call if something goes sideways, such as hotel booking issues. A travel agent? A supervisor? If there’s a hurricane, you don’t have a car, and your flight is canceled, can you book another last-minute flight to get around the weather to get home? These details should be planned ahead for.

Maximizing Productivity During Business Trips

The overlap of business and leisure, sometimes referred to as “bleisure,” is one of the main draws of corporate business travel. However, there can also be pitfalls associated with this gray area. It can be difficult to stay productive while working remotely, whether due to the many distractions of a new environment (positive and negative), or because the trip entails an increased workload or time spent away from day-to-day job duties.

Employees looking to manage their time efficiently while away should get clarity on the intended purpose and expected outcome of their trip, and their employer’s and teammates’ expectations for their workload and communication frequency. They can also plan ahead to make the most of their travel time and downtime, and anticipate time zone differences to ensure smooth communication and adjustment to jet lag.

It’s important for employees to maintain work-life balance while traveling on behalf of work. Researching food, entertainment, and fitness options and preparing accordingly can pay off in terms of mental and physical wellness, especially for frequent travelers.

Tips for Business Travel Etiquette

Traveling anywhere, whether domestically or internationally, comes with responsibilities and expectations regarding employee behavior. Perception is one of the most important factors to remember when traveling as a representative of your company. You represent your company out in the public, so you need to ensure you’re displaying any key values that your company represents when interacting with vendors, clients, and peers.

This applies to cultural sensitivity as well. Travelers should do research in advance of their trip to ensure that they can be mindful of local customs and professional etiquette and behave with awareness and respect. Even the basics, such as learning appropriate forms of greeting or how to handle money and payment, and committing a few common words or phrases to memory can go a long way toward demonstrating good intentions and building a new relationship across cultures.

Sustainable and Responsible Business Travel

Recognizing that corporate travel can have a negative impact on the environment, many businesses and individuals are reexamining their travel practices and policies to see where they can make improvements. One example is reducing emissions by booking different means of transportation when possible. In general, seeking out vendors or companies that promote sustainable travel practices and responsible tourism, and that support local communities and ecosystems, can be a good first step to reduce environmental impact.

Technology and Tools for Corporate Business Travel

Software and technology tools can be immensely useful across all aspects of corporate business travel. Travel management and booking platforms; apps for tracking expenses, navigation, or converting currency; and translation and communication tools are all things that employees and businesses alike can take advantage of before, during, and after traveling.

When it comes to technology, it’s important to account for cybersecurity risks and only bring what is necessary to reduce the potential impact of damage, loss, or theft.

Managing Business Travel Expenses

What Is an Example of Corporate Business Travel?

There are many work-related reasons to travel, but many businesses will have their employees travel for conferences, events, sales and networking, seminars, meetings, team building, retreats, and to open up new business growth potential.

How Does Corporate Business Travel Work?

Corporate travel is simply travel for business-related purposes, so the nature of the trip will depend on its length and purpose. Companies whose employees travel frequently on behalf of the business should consider creating a corporate travel policy with information and guidelines for their employees.

Who Handles Corporate Business Travel?

Some businesses employ internal teams or individuals to manage corporate travel and business trips. At other times, employees are responsible for making their own arrangements within guidelines laid out by the company. There are also corporate travel agencies that businesses can leverage to streamline and optimize their bookings and costs.

The Bottom Line

Corporate business travel can be an invaluable path to both business growth and individual career development, building strong relationships and teams. No matter what form it takes, it’s prudent for companies to collect, implement, and communicate best practices for business travel to their employees in a company handbook or corporate travel policy. This should incorporate areas such as expense and booking management, safety and security, productivity, sustainability, technology, and employee behavior and etiquette.

Michela Buttignol / Investopedia

Internal Revenue Service. “ Understanding Business Travel Deductions .”

Global Business Travel Association. “ GBTA Business Travel Industry Outlook Poll .”

Harvard Business Review. “ How to Work and Travel at the Same Time .”

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Business tourism , also known as corporate travel or MICE (meetings, incentives, conferences, and events), refers to the travel of individuals for business-related activities, such as attending meetings, conferences, trade shows, and other events. Business tourism is a significant contributor to the global economy, and is often organized by travel agencies, event planning companies, and corporate travel departments. Business tourism can also include activities such as team-building retreats, company off-sites, and other corporate events.

Business tourism is a natural development of growing global economy and need to international cooperation. As a number of business travels increased significantly over the years, it was necessary to name for this phenomenon of travelling, categorize it as type of tourism. Globalization was one of the factors that led to state where business trips are popular and necessary in global economy. Nowadays business tourism is one of the fastest growing form of tourism and has a significant role on global market .

Generally travelling for meetings, trade fairs, incentive travels, attending conferences abroad and exhibitions creates phenomenon of business tourism and first letters of those four words - meetings, incentive, conferences and exhibitions make popular used abbreviation and name for business tourism - MICE.

Leisure activities are also part of business tourism. However they are not main motive for travel, they are important part of services as individuals who travel in work related affairs need to relax after the meetings, exhibition, speeches, need to eat and drink as any other kind of tourists. Hotels dedicated to business tourists have usually spa and sport facilities.

• 1 MICE: Meetings, Incentives, Conferences, Events
• 2 Examples of business tourism
• 3 Examples of business tourism mixed with other types of tourism
• 4 Characteristics of business tourism and travellers
• 5 Effects of business tourism on tourism market
• 6 References

MICE: Meetings, Incentives, Conferences, Events

MICE stands for Meetings, Incentives, Conferences, and Events. It is a type of business tourism that includes organizing and hosting professional events such as:

• Meetings : These are typically held for the purpose of discussing business-related topics, such as strategy , product development, and team building. Meetings can be held in various forms, such as board meetings, staff meetings, and company-wide gatherings.
• Incentives : These are events or programs designed to motivate and reward employees, customers, or partners for achieving specific goals or targets. Incentives can include things like team-building retreats, company-wide bonuses, and other rewards.
• Conferences : These are large events that bring together professionals from a specific industry or field to share ideas, network, and learn about the latest developments in their field. Conferences can be held in various formats, such as lectures, workshops, and panel discussions.
• Events : These can be any type of professional or social gathering, such as product launches, networking events, trade shows, and gala dinners. Events are often used to showcase a company or organization 's brand, products, or services.

MICE events are often organized by travel agencies, event planning companies, and corporate travel departments, and can take place in various locations such as hotels, conference centers, and other venues. These events can be beneficial for businesses by creating opportunities to network, learn new information and skills, and establish new relationships.

Examples of business tourism

There are many examples of business tourism, some of which include:

• Meetings : Business leaders and employees may travel to attend company-wide meetings, board meetings, or staff meetings. These meetings may take place in a company's headquarters, a conference center, or a hotel.
• Conferences : Professionals in a variety of industries may travel to attend conferences related to their field. These events can bring together experts to share ideas, network, and learn about the latest developments in their industry.
• Trade shows : Businesses may send representatives to attend trade shows to showcase their products or services and connect with potential customers.
• Incentive travel : Companies may organize incentive travel programs for their employees or customers as a reward for achieving specific goals or targets. These trips can include team-building retreats, all-expense-paid vacations, or other rewards.
• Corporate events : Companies may organize events such as product launches, networking events, or gala dinners to showcase their brand and connect with potential customers or partners.
• Business travel for education : Business travelers may travel to attend seminars, workshops, or other training events to learn new information and skills.
• Business travel for research and development : Business travelers may travel to visit other companies or research institutions to conduct research, develop new products, or explore potential business opportunities.
• Business travel for negotiation and signing of contracts : Business travelers may travel to meet with potential partners, clients, or suppliers to negotiate and sign contracts.

Examples of business tourism mixed with other types of tourism

An example of a business trip that incorporates elements of other types of tourism is a company-wide retreat that combines business meetings and team-building activities with leisure activities. The retreat could include:

• Business meetings : The retreat would likely include meetings where the company's leadership team would discuss strategy, product development , and other business-related topics.
• Team-building activities : To foster teamwork and collaboration among employees, the retreat may include activities such as team-building exercises, problem-solving challenges, and other activities designed to promote teamwork and collaboration.
• Leisure activities : To provide a break from the business-related activities, the retreat may include leisure activities such as golfing, spa treatments, hiking, or other outdoor activities that allow employees to relax and enjoy their surroundings.
• Cultural activities : The retreat could also incorporate cultural activities such as visiting local museums, historical sites or cultural centers.
• Adventure tourism : To add an element of adventure, the retreat could include activities such as rock climbing, white-water rafting, or other adventure sports.
• Eco-tourism : The company could choose a location that is eco-friendly and sustainable such as a nature reserve, and organize activities that promote environmental awareness and conservation.

This type of trip would provide employees with an opportunity to bond as a team, learn new information and skills, and have fun together, all while also achieving business objectives.

Characteristics of business tourism and travellers

Business tourism is characterized by several key elements:

• Professional Purpose : Business tourism is typically organized for professional reasons, such as attending meetings, conferences, trade shows, and other events. The purpose of business travel is to conduct business-related activities, rather than leisure.
• Short-term stays : Business trips are generally shorter than leisure trips, with travelers usually staying for a few days to a week.
• High spending : Business travelers tend to spend more money than leisure travelers, as they often stay in higher-end hotels and restaurants and may engage in more expensive activities such as golfing or spa treatments.
• Flexibility : Business travelers often have more flexibility in terms of travel dates and itineraries, as they can adjust their plans based on the needs of their business.
• Corporate responsibility : Business travelers are often more conscious of their corporate responsibility, such as minimizing their carbon footprint, choosing sustainable options and opting for more eco-friendly accommodations and transportation.
• Meeting-centered : Business travelers frequently participate in meetings, conferences, and other professional events, which are the main purpose of their trip.
• Solo or group travel : Business travelers can travel alone or in groups depending on the purpose of the trip, but group travel is more common in MICE.
• Pre-planning and organization : Business travel often requires a significant amount of pre-planning and organization, including booking flights and accommodations, arranging transportation, and coordinating activities.

Effects of business tourism on tourism market

Business tourism can have a significant impact on the tourism market, both positively and negatively. Some of the effects of business tourism on the tourism market include:

• Economic impact : Business tourism can have a positive economic impact, as it can generate significant revenue for local businesses such as hotels, restaurants, and transportation companies. Business travelers tend to spend more money than leisure travelers, which can lead to increased economic activity in a destination.
• Job creation : Business tourism can also create jobs, as more workers are needed to accommodate the increased demand for services such as lodging, transportation, and event planning.
• Reducing seasonality : Business tourism can help to reduce seasonality, as business travelers tend to travel throughout the year, rather than just during peak leisure travel seasons. This can help to stabilize the tourism market and provide a steady source of income for local businesses.
• Infrastructure development : Business tourism can also lead to the development of infrastructure such as conference centers, transportation systems, and other facilities that are necessary to support business travelers.
• Environmental impact : Business tourism can also have a negative impact on the environment , as increased travel can lead to increased emissions and other environmental impacts.
• Crowding : Business travel can lead to increased crowding in popular destinations, which can make it harder for leisure travelers to find available lodging and other services.
• Local culture and lifestyle : Business tourism can also have an impact on local culture and lifestyle, as it can lead to an increase in commercialization and a decrease in authenticity.

Overall, business tourism can have a significant impact on the tourism market, and it is important for destination marketers and policymakers to consider the potential impacts and take steps to minimize any negative effects while maximizing the benefits of business tourism.

• Davidson, R. (1994). Business travel . Pitman Publishing Limited.
• Hankinson, G. (2005). Destination brand images: a business tourism perspective . Journal of Services Marketing , 19(1), 24-32.
• Inbakaran, Robert & George, Babu & Jackson, Mervyn & Melo, FRE. (2012). Identifying resort tourism market segments based on visitor demographics: a study . Academica Turistica. 5. 85-94.
• Lawson, F. R. (1982). Trends in business tourism management . Tourism Management, 3(4), 298-302.

Author: Emilia Maciejczyk

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What Is Business Tourism?

Business tourism is the use of travel services, hotel facilities and other amenities by people who are traveling on business. Business tourism is on the increase, and the tourism industry separates business tourism from leisure tourism in an effort to promote the former by offering particular services for business people.

Business people travel and stay in hotels when attending conferences, meetings and training programs. During their stays, these travelers often visit restaurants, souvenir shops and local tourist spots, meaning they are a source of revenue for the community. The International Trade Center estimates that business tourism accounts for about 9 percent of all tourism and that business people spend approximately twice as much as leisure tourists.

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

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

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

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

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

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

Booking business travel

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

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

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

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

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

Preparing for the trip

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

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

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

On the trip

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

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

After the trip

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

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

It’s a trip!

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

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

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What is a business trip? Definition and examples

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

Collins Dictionary has the following definition of the term :

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

Business trip vs. business travel

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

Business travel

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

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

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

Business trip

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

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

Reasons for business travel

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

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

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

Negatives and positives of business travel

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

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

Regarding the survey, Perotta wrote :

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

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

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

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

Haileysus added:

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

Corporate travel is a huge market

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

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

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

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

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Like the entire tourism sector, business travel suffered greatly amid the coronavirus (COVID-19) pandemic. But the initial fears of a complete replacement of face-to-face meetings with online events have faded as corporate travelers rediscovered the value of conducting business in person when the restrictions were finally lifted. This does not mean a complete comeback to the old ways of traveling. On the contrary, the online solutions developed during the health crisis will keep contributing to the overall business travel experience. Travel expense management, flexible hotel and flight bookings, car sharing, and collaboration tools are some of the services in which corporate travelers enjoy the benefits of digitalization. In terms of business travel expenditure, a full recovery would still need some years. As of early 2023, companies around the world were still catching up with pre-pandemic spending on work-related trips.

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Market size, market segments, industry trends, industry leaders, regional overview, state of the industry, industry definition.

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

Further details: Visit original statistic Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

The expenditure on business trips worldwide rose steadily in the last decade, reaching approximately 1.3 trillion U.S. dollars by 2019. However, this figure fell dramatically with the onset of the coronavirus (COVID-19) crisis, dropping to the same levels of spending recorded in 2004 and 2005. As forecast, global business travel spending could surpass pre-pandemic levels only in the mid-2020s.

Average trade show budget according to industry professionals in the United States from 2020 to 2023 (in 1,000 U.S. dollars)

Further details: Visit original statistic Average trade show budget according to industry professionals in the United States from 2020 to 2023 (in 1,000 U.S. dollars)

Attending exhibitions and trade shows is one of the main purposes of work-related trips. This format allows businesses to promote outside the digital world products and services to a range of stakeholders. However, companies strongly reduced the resources destined for such meetings in the past years because of the impact of the coronavirus (COVID-19) pandemic.

Most sustainable convention centers in the United States in 2022, based on green score

Further details: Visit original statistic Most sustainable convention centers in the United States in 2022, based on green score

With the environmental challenges of our time, more and more travelers are increasingly looking for sustainable solutions for transport, accommodation, and other tourism services. These sentiments have also arisen in the business travel and meetings industry, driving providers to implement changes to minimize their environmental footprint.

Leading companies for business travel spending in the United States in 2022, by booked air volume (in million U.S. dollars)

Further details: Visit original statistic Leading companies for business travel spending in the United States in 2022, by booked air volume (in million U.S. dollars)

Amazon and FedEx led the list of the biggest U.S. spenders on business travel in 2021. The ranking includes companies and institutions from different industries, like e-commerce, media, finance, and tech. Among the travel companies with the highest sales revenue, two online travel agencies (OTAs) took the lead that same year by a wide margin. However, the rest of the top ten companies in the ranking operate in business travel, indicating the importance of this segment for the entire travel indus

Expenditure of business tourists in G20 countries in 2021 (in billion U.S. dollars)

Further details: Visit original statistic Expenditure of business tourists in G20 countries in 2021 (in billion U.S. dollars)

In 2021, the business travel spending in the United States was higher than the combined sum of the following eleven G20 members in the list – excluding the European Union. With the lifting of travel restrictions in Europe and most Asian countries in the following year, as well as the border opening in China in early 2023, this gap is expected to shrink.

Business travel is the branch of the tourism industry focusing on trips taken for business purposes. It comprises the segments such as accommodation, transport, travel management, meetings and events. Business travel accommodation encompasses tourism establishments mainly dedicated to corporate travelers. This market particularly focuses on hotels. Business travel spending includes all expenses associated with trips, such as transport, accommodation, and food costs. The meetings and events sector covers meetings, conferences, exhibitions, and incentive travels. To efficiently manage logistical and financial aspects of business travel, companies rely on travel managers, namely employees taking care of travel programs, travel policies, and travel & expense (T&E) reporting. Usually, big companies decide to outsource this job to so-called travel management companies (TMC). The main players in this field are American Express Global Business Travel, BCD Travel, and CWT.

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What is tourism? A definition of tourism

Disclaimer: Some posts on Tourism Teacher may contain affiliate links. If you appreciate this content, you can show your support by making a purchase through these links or by buying me a coffee . Thank you for your support!

Whilst most of us have been tourists at some point during our lives, you might find yourself asking ‘what is tourism?’ or ‘what is the definition of tourism’?

Having studied, worked in and taught tourism management for many years, I can tell you that there is no straight-cut answer to this question! In fact, I do tell you- in this YouTube video below!

The tourism industry is argued to be the largest industry in the world, providing more employment than any other industry. Note, however, the use of the word ‘argued’. You see, the tourism industry is somewhat grey in nature. Elements that some may consider ‘tourism’, others may not. Some people believe they are ‘ tourists ‘, when others do not. Some things are black and white, and others are not.

In this post I will explain why there is no simple explanation in answer to the question ‘what is tourism?’. I will explain the diversity of the tourism industry and provide a range of definitions of tourism that have been developed by academics and practitioners.

What is tourism?

Tourism is the generic term used to cover both demand and supply that has been adopted in a variety of forms and used throughout the world. 

Tourism essentially refers to the activities undertaken by visitors, also known as the visitor economy. The tourism industry encompasses all activity that takes place within the visitor economy.

This includes activities that are directly related to the tourist, such as staying in a hotel, ordering a meal or visiting a tourist attraction. It also includes indirect activities, such as the transport company which delivers the food to the restaurant in which the tourist eats or the laundry company that has a contract with the hotel for cleaning bed sheets.

It is largely due to the indirect contributions to tourism, that defining and measuring the tourism industry is so difficult!

Tourism comes in many different shapes and sizes and there are many different types of tourism . There is mass tourism , niche tourism and special interest tourism. There is domestic tourism and international tourism . There is inbound tourism and outbound tourism .

Whilst there is a range of different forms of tourism, they all come under the broad tourism umbrella, nonetheless. This is because they all revolve around visitors and they all feed the visitor economy in one way or another.

A definition of tourism

Tourism is a phenomenon with no universally accepted definition, owing to the complexity and individualism of the travellers themselves and the activities that they choose to undertake.

The most widely utilised definition of tourism, proposed by the World Trade Organisation (WTO) and United States (UN) Nations Statistics Division (1994), prescribes that in order to qualify as a tourist one must travel and remain in a place outside of their usual residential environment for not more than one consecutive year for leisure, business or other purposes.

Matheison and Wall (1982) on the other hand, do not impose a timeframe, simply stating that one must travel to a destination temporarily.

Leiper (1979) believed that defining tourism is more complex than this, proposing that there are three approaches that can be taken. The economic stance focuses on tourism as a business, the technical stance focusses on the tourist in order to provide a common basis by which to collect data and the holistic stance attempts to include the entire essence of the subject.

The Cambridge Dictionary define tourism quite simply as; ‘the business of providing services such as transport, places to stay or entertainment for people who are on holiday’.

Read also: – The importance of tourism – Types of tourism: A glossary – Outbound tourism | Understanding the basics – The structure of the tourism industry – Domestic tourism tourism explained – The history of tourism

Whilst such attempts to define the concept of tourism may be useful from a generic perspective, the practical application of such definitions is difficult when applied to specific tourism types, such as those outlined in this post outlining the different types of tourism.

In fact, Robinson and Novelli (2007), in their introduction to the niche tourism phenomena, postulate that tourists have developed as consumers, becoming increasingly sophisticated in their needs and preferences as a result of an emergent culture of tourism.

Despite such acknowledgements of the progressive and adaptive nature of tourism, particularly evident through the limitless introduction of new and niche tourism forms, there appear to have been no attempts to develop the commonly accepted definitions of tourism in parallel.

As such, I would argue that there is a need the definition of tourism to be revisited by academics and industry practitioner, to ensure that it is representative of the tourism industry that operates today.

How would you define the term tourism?

For more information on what makes up the tourism industry, I recommend the key text Tourism: Principles and Practice by John Fletcher, available from Amazon here .

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• Business Taxes / Business Travel / Personal Taxes

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

by Team Falcon · Published · Updated

Table of Contents

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

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

Introduction

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

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

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

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

What is the definition of business travel?

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

What business travel expenses are tax deductible?

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

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

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

How to Deduct Each Type of Business Travel Expense

Meal and entertainment expenses.

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

How to Deduct as a Business

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

How to Deduct as a Taxpayer

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

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

Travel and Transportation

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

Notes about travel and transportation by personal car.

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

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

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

Personal Car Use

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

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

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

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

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

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

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

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

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

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

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

Other Business Travel Expenses

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

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

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

About Falcon Expenses

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

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

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

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What does Business tourism mean?

Definitions for business tourism busi·ness tourism, this dictionary definitions page includes all the possible meanings, example usage and translations of the word business tourism ., wikipedia rate this definition: 3.3 / 6 votes.

• Business tourism

Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism (traveling), individuals are still working and being paid, but are doing so away from both their workplace and home.Some definitions of tourism exclude business travel. However, the World Tourism Organization (UNWTO) defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Primary business tourism activities include meetings, and attending conferences and exhibitions. Despite the term business in business tourism, when individuals from government or non-profit organizations engage in similar activities, this is still categorized as business tourism (travel).

Wikidata Rate this definition: 2.9 / 9 votes

Business tourism or business travel is a more limited and focused subset of regular tourism. During business tourism, individuals are still working and being paid, but they are doing so away from both their workplace and home. Some definitions of tourism tend to exclude business travel. However, the World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes". Primary business tourism activities include meetings, and attending conferences and exhibitions. Despite the term business in business tourism, when individuals from government or non-profit organizations engage in similar activities, this is still categorized as business tourism.

How to pronounce Business tourism?

Alex US English David US English Mark US English Daniel British Libby British Mia British Karen Australian Hayley Australian Natasha Australian Veena Indian Priya Indian Neerja Indian Zira US English Oliver British Wendy British Fred US English Tessa South African

How to say Business tourism in sign language?

Chaldean Numerology

The numerical value of Business tourism in Chaldean Numerology is: 1

Pythagorean Numerology

The numerical value of Business tourism in Pythagorean Numerology is: 7

Examples of Business tourism in a Sentence

Maurizio Naro :

Milan has turned into a leisure tourism city in the last 10 years exactly to face up to the sharp slump in business tourism .

• ^  Wikipedia https://en.wikipedia.org/wiki/Business_Tourism
• ^  Wikidata https://www.wikidata.org/w/index.php?search=Business tourism

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Are we missing a good definition for Business tourism ? Don't keep it to yourself...

Image credit, the web's largest resource for, definitions & translations, a member of the stands4 network, free, no signup required :, add to chrome, add to firefox, browse definitions.net, are you a words master, (of a flowering plant) having two cotyledons in the seed, Nearby & related entries:.

• business texter
• business thrust sdn bhd
• business to business
• business to business (b to b)
• business to business apprentice
• business transformation
• business transformation grant
• business travel
• business traveler noun
• business trip

Alternative searches for Business tourism :

• Search for Business tourism on Amazon