What Is Considered a Business Travel Expense?

By Michael Ferguson

A business travel expense is an expense incurred by a business or its employees while travelling on official business. This could include airfare, hotel accommodation, car rental, meals, entertainment and other related costs. Businesses are increasingly looking to save money by controlling their travel expenses and ensuring that they are only spending on necessary items.

Travel expenses are one of the largest costs for any business, so it’s important to ensure that they are kept within budget. The first step in doing this is to plan ahead and make sure that the travel itinerary is well planned out.

Businesses should ensure that their employees book flights and hotels in advance in order to save money. Additionally, businesses should look into group rates for hotels and flights in order to save even more money.

When it comes to meals and entertainment, businesses should take into consideration the cost of these items relative to the purpose of the trip. If a business is travelling for a client meeting or conference, then it’s understandable that some meals or entertainment may be necessary for networking purposes. However, if there is no need for these items then businesses should look into other ways to save money such as packing their own lunches or utilizing public transportation instead of renting cars.

Finally, businesses should have clear policies in place with their employees regarding travel expenses and what is considered acceptable spending when travelling on official business trips. Employees should be aware of what is expected of them when it comes to spending while travelling on company time and what expenses will be reimbursed by the company upon returning from the trip. This will help ensure that all employees understand what is considered a legitimate business travel expense before taking a trip.


In conclusion, a business travel expense can include airfare, hotel accommodation, car rental, meals, entertainment and other related costs incurred while travelling on official business trips. It’s important for businesses to plan ahead when it comes to travel expenses so they can stay within budget while still ensuring that their employees have all the necessary resources available during their travels. Additionally, businesses should create clear policies regarding what is considered an acceptable expense when travelling on behalf of the company.