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Complete guide for Companies

What is business travel?

Complete guide for Companies

If you're wondering what business travel is, you've come to the right place. Broadly, business travel is any trip taken for work-related reasons. These trips are taken on behalf of your employer. You may be meeting in person with clients or customers or attending a conference or trade show.

But why is business travel important for companies? Well, there are just some things that must happen face-to-face as opposed to over email, phone, or even video calls. Business travel is important for companies to develop and strengthen their business by networking and building real-life connections. These stronger relationships can foster both business growth and employee development.

In this article you'll learn:

three cars suitable for business trips

What counts as business travel?

Before we get into how business travel works, it’s important to understand what does and doesn’t count as business travel.

Personal travel vs. business travel

There are several differences between corporate travel and personal travel:

Trip element Business travelPersonal travel

Purpose of travel

Primarily work-related reasons, such as attending a meeting or conference

Primarily fun and relaxation based on your personal preferences

Accommodation

Booked by the company based on convenience, business amenities, and proximity to the work site

Booked by you based on your budget and preferences

Trip planning/management

Handled by the company or a travel agent chosen by the company

Handled by you or a travel agent of your choice

Tax-deductible and usually handled by the company

Non-tax-deductible and handled solely by you

It’s also important to mention that some trips inevitably end up being a hybrid of personal and business travel—this is known as bleisure travel. Let’s say your job is sending you somewhere for a certain amount of time, but you’re extending the trip past what’s necessary for work. In these cases, your company has a duty of care, or is responsible for, the necessary expenses during the business portion of the trip, and you are responsible for them as soon as the business portion ends. This is increasingly becoming a business travel trend with the rise in remote work.

What is considered business travel for tax purposes?

The definition of corporate travel, like most things, is a little more specific when it comes to taxes. Here’s what is considered business travel for tax purposes according to the IRS:

  • You’re traveling for work that requires your presence away from your tax home or main place of work, and you’ll be there for significantly longer than a normal work day.
  • You need to sleep while you’re away in order to meet the demands of your work.

In these cases, business travel tax deductions are available for things like transportation, lodging, business-related meals, laundry, and other necessary, non-entertainment-related expenses.

What is business travel? Different types

When you think of corporate travel, what comes to mind? Most people probably picture someone in a suit carrying a briefcase on their way to an important meeting. In some cases, that might be correct. However, business travel can take many forms:

  • Corporate events: Your company might be sending you to attend a conference, convention, trade fair, or other event. This type of business travel helps companies grow their networks, drive sales, and reach new markets.
  • Education: Companies may send employees to educational events such as trainings, workshops, or seminars. This form of corporate travel invests in employee development.
  • Internal meetings: If your company has offices in multiple locations, you may be sent to another work site to collaborate on necessary projects. This strengthens the internal team across multiple locations.
  • Client or customer meetings: This type of business travel primarily strengthens relationships between your company and clients/customers. You may travel to their offices to close deals or demonstrate products.
  • Company retreats: This type of business travel toes the line between work and a type of vacation. You may attend off-site teambuilding events or retreats to strengthen relationships and foster a sense of community within the workplace.
  • Bleisure travel: This involves extending your business trip to include some leisure time. As mentioned before, this is becoming increasingly popular with the rise of remote work.

The ins and outs of business travel

Now that we know what business travel is—and isn’t—your next question may be this: How does business travel work? The specifics of business travel management depend largely on your company, but there is a general format that most corporations follow. Let’s break your business trip down into three sections: before, during, and after, and explore some business travel tips:

1) Before you go: Pre-planning

The pre-planning stage depends on your company. Some companies may book travel, accommodations, and meetings without asking for your input, while others may give you guidelines and leave the actual bookings up to you.

No matter what, there are certain things to take care of before the trip:

  • Travel arrangements: How are you getting to where you’re going? Your plane tickets need to be booked or your rental car reserved.
  • Accommodations: Your hotel or rental apartment should be booked.
  • Travel in the location: Once you arrive, you still need to get from place to place. Will you take taxis, rent a car, or use public transport?
  • Itinerary planning: If there are specific events and meetings you’re required to attend, these should be outlined before you hit the road. Think about the goals of the trip: What are they, and what needs to be done to accomplish them?
  • Budgeting: Your company will outline budgets for necessary expenses.
  • Policy outlines: It’s important to understand your company’s travel policies before you go. For example, what are the reimbursement procedures? Are there emergency protocols and risk management policies?

One of the most important parts of a business trip is reliable and flexible transportation. Without it, you may miss meetings or events, end up stranded in an unfamiliar place, or be left without the ability to add things to your itinerary. This is why renting a car is a smart solution for business travelers: It allows you to get where you need to go on your own terms, without having to rely on public transportation or taxis.

2) During the trip: Accomplish your goals

Now, it’s time to do what you’ve set out to do. Think back to the goals and the itinerary that were set down during pre-planning. How can you best accomplish these? For example, if you’re attending conferences and client meetings, it’s important to put your best foot forward. Arrive on time, maintain a professional appearance and demeanor, and do your research beforehand.

No matter the goal, it’s always important to be flexible. Unexpected cancellations and delays can happen, and they should be handled with grace and professionalism. You can also be flexible in your conversations with people; compromise is a key to networking and closing deals.

And don’t forget recordkeeping. While you’re away, keep track of your expenses: meal receipts, taxi bills, gas payments, etc. You can use a company system for this or opt for a mobile app. Diligent recordkeeping will make expense management when you get back much easier.

3) After the trip: Assessment

Once you arrive home, it’s time to report your expenses and assess how the trip went. You may need to turn over hard copies of your receipts to your company so they can keep track of the budget and issue any necessary reimbursements.

You will also likely need to communicate your assessment of the trip’s success with your superior. Were your goals accomplished? Did you make any valuable contacts? Sharing key takeaways or new, crucial information with your team is essential. If you were there to network, you can also follow up with new contacts you made during your trip.

Business travel and transportation: Which option is best?

How do you choose the best transportation method for business trips? Planes, trains, and rental cars all have advantages and drawbacks, so it’s important to consider your specific needs. Let’s compare:

Rental carsTrainsPlanes

Pros

  • Flexible method of transportation with no set timetable
  • Take as much luggage/equipment as you can fit in the car
  • More control over your route/itinerary
  • Fast method of transportation between major cities
  • Usually cheaper than flying and no baggage fees
  • Comfortable and more spacious workspace, usually with access to Wi-Fi and charging ports
  • Fastest method of traveling long distances

Cons

  • Subject to traffic delays
  • Can’t work while driving unless you’re just taking a phone call
  • May not stop in your particular destination
  • Could require multiple transfers
  • Subject to weather or mechanical delays
  • Expensive, especially with baggage fees
  • Time-consuming (commute to and from airport, security check, customs if traveling internationally)
  • Can be uncomfortable depending on layovers, flight class, and length of travel
  • Subject to weather and other delays/cancellations

Best for

  • Short- to medium-distance travel
  • Multi-stop trips
  • Medium-distance travel
  • Trips between major cities
  • Long-distance trips

Now that you know the pros and cons of each method of transportation, let’s zoom in on what your company cares about most: costs.

  • Air travel is notoriously expensive—that’s why it should only be used if you’re traveling long distances or if speed is an important factor. This especially applies to last-minute business trips: A last-minute plane ticket can cost $1000 or more depending on where you’re going.
  • Train travel usually isn’t as expensive as plane travel, but it has its own limitations. For starters, passenger trains are few and far between in the US. You could be subject to convoluted routes and longer travel times unless you’re located in the Northeast, where more trains are available. Train tickets also increase in price the closer you get to your departure date, and depending on the route, could cost $200 or more for a simple round-trip journey in coach class—more if you want first class or a roomette.
  • Rental cars are the most cost-effective option, especially if you’re looking to save money on business travel. Not only can you take advantage of corporate discounts like the one offered by SIXT, but the daily cost of a rental car will be much less than a plane or train ticket. With a rental car, you also have more flexibility when it comes to last-minute trips or changes, as you won’t be tied to set itineraries and strict departure times.

When does renting a car for business travel make the most sense? 

A businesswoman is kneeling in front of a rental car

When you’re heading to rural destinations that require high flexibility

If you’re heading to a rural destination, or even a suburban destination, you’ll likely need your own car to get around. Public transportation here is practically nonexistent, taxis are often few and far between, and ride-share apps may be completely unavailable, leaving you with long waits and high costs. If you want a reliable and efficient way to get around, renting a car will be your best bet.

An extract of our electric car fleet.

When you need a cost-effective and sustainable way to travel

It’s no secret that planes can be expensive, and they also heavily pollute the environment. As a result of its high monetary and environmental costs, plane travel just doesn’t make sense unless you’re traveling halfway across the country or farther. If you can drive to your destination within a few hours, renting a car will be the cheaper and greener option for sustainable business travel—especially if you opt for a hybrid or electric rental vehicle.

Two hands are showing some car keys.

When you need to customize your itinerary

If you’re renting a car, you’re not tied to itineraries set by planes, trains, or even local public transportation. With a rental car, you can get where you’re going on your terms, and you can make last-minute plans to your itinerary with ease. You can also customize your itinerary by combining a rental car with another mode of travel. For example, maybe you’re heading from one coast to the other, so you need to book a flight. But once you land, rent a car so you have more flexibility on the ground.

Top 3 tips for successful business travel 

1. Optimize costs

There are plenty of ways to save you and your company money. Consider the following:

  • Book travel and accommodations as far in advance as possible.
  • Take advantage of corporate client discounts on rental cars. SIXT offers up to a 15% discount for registered businesses.
  • Set a clear budget and stick to it.
  • Keep all receipts for expense tracking.

2. Simplify logistics: Book a car rental

Of all travel methods available, a car rental will be the simplest to manage. You don’t have to show up early for security, you don’t have to adhere to a strict itinerary, and you can bring as much luggage as can fit in your car. Need more room? You can rent a larger vehicle.

With a car rental from SIXT, booking, pick-up, and drop-off are easy. Booking and selecting your vehicle can be done in the SIXT business profile—all you have to do then is show up when the time comes. We also have a wide variety of vehicles available. Whether you need a compact car for city driving or a premium vehicle to impress potential clients, we’ve got you covered.

3. Reduce environmental impact: Sustainable solutions

An environmentally friendly rental car can help you meet your sustainability goals on business trips. Consider a hybrid or electric vehicle from SIXT—not only will this save you money on gas, but it also cuts your carbon emissions.

The bottom line: What is business travel and why renting a car is the best solution

Business travel can take many different forms and have many different purposes. What all business travel has in common, though, is the fact that a car rental is often the most flexible, cost-effective solution.

With a car rental as a cornerstone of your business travel strategy, you save money—especially with corporate discounts like the one at SIXT—and have more flexibility in your itinerary. Rental cars offer the opportunity to make multiple stops during your trip, change your schedule at a moment’s notice, and get around on your own terms.

What is business travel: FAQs

A businessman is leaning on a rental car