Inspired Travel Group is a full-service corporate travel agency servicing clients right the way across North America. Our people first approach to travel ensures only the highest levels of personalized, attentive service.
Ever found yourself scratching your head over terms like “GDS” or “LRA” when planning a business trip? You’re not alone. The world of corporate travel comes with its own language and understanding it can make a world of difference in how smoothly your business trips run. Whether you’re an experienced travel manager or an employee getting ready for your first business trip, understanding these terms is crucial for efficient travel planning and management.Â
This comprehensive guide is designed to demystify the language of business travel. We’ll break down essential terms, explain key concepts and provide insights into emerging trends that are shaping the future of corporate travel in Canada and beyond.
Corporate travel encompasses all business-related trips taken by employees on behalf of their company. This includes client meetings, conferences, training sessions and site visits. According to the Global Business Travel Association (GBTA), global business travel spending reached $1.33 trillion in 2019, highlighting its significant economic impact.
GDS platforms connect travel agencies, online booking tools and travel suppliers. The three major GDS providers are Amadeus, Sabre and Travelport. These systems allow for real-time inventory access and booking across multiple airlines, hotels and car rental companies.
OBTs are web-based platforms that allow corporate travelers to book their own travel within company policy parameters. Popular OBTs include Concur Travel, Egencia and TripActions. A 2021 GBTA survey found that 89% of travel managers reported their company uses an OBT.
While some companies allow employees to book directly with suppliers, managed travel through a TMC offers benefits such as policy compliance, consolidated reporting and duty of care support. A 2020 study by Festive Road revealed that 76% of companies use a managed travel program.Â
A corporate travel policy outlines the rules and guidelines for business travel within an organization. Key components typically include:
This legal and moral obligation requires companies to ensure the safety and well-being of their employees during business travel. It includes risk assessment, traveler tracking and emergency response planning. The International SOS Foundation provides comprehensive resources on duty of care best practices.
This involves identifying, assessing and mitigating risks associated with business travel. It encompasses everything from natural disasters to political unrest and health concerns. The ISO 31030 standard, released in 2021, provides a framework for travel risk management systems.
A daily allowance for expenses incurred during business travel, often covering meals and incidentals. The National Joint Council of the Public Service of Canada provides travel directive rates for domestic and international travel, which many Canadian companies use as a benchmark.
The process by which employees are paid back for out-of-pocket expenses incurred during business travel. Many companies now use digital expense reporting tools to streamline this process.
Specialized credit cards issued to employees for business expenses. These cards often come with benefits such as travel insurance and rewards programs tailored to corporate needs.
Software solutions that automate the expense reporting process. Popular options include SAP Concur, Expensify and Chrome River. A 2021 Gartner report found that 63% of companies use automated expense reporting systems.
Global partnerships between airlines that allow for seamless travel across multiple carriers. The three major alliances are:
Many airlines offer loyalty programs that reward travelers with points or miles for their flights. These programs often include elite status tiers with additional perks for frequent travelers. The Skytrax World Airline Awards is an international recognition program for airline excellence, including categories for best loyalty programs.
Negotiated hotel rates for businesses based on volume. These rates often include added benefits such as free Wi-Fi or breakfast. According to a 2020 GBTA survey, 78% of travel managers reported having negotiated corporate hotel rates. This trend is consistent across North America, including Canada.
Accommodations designed for longer trips, typically featuring kitchenettes and living areas. Brands like Residence Inn by Marriott and Homewood Suites by Hilton specialize in this segment.
The practice of combining business travel with leisure time. A 2019 Expedia Group study found that 60% of business trips included a leisure component.
Services like Uber for Business and Lyft Business offer corporate accounts with centralized billing and reporting. A 2021 Certify report found that 73% of ground transportation expenses were for ride-sharing services.
Dedicated transportation services for employees, often used by large companies to move workers between office locations or to/from airports.
Mobile applications designed to assist business travelers. Popular options include TripIt for itinerary management and Concur Mobile for expense tracking.
Digital payment solutions that generate unique credit card numbers for each transaction, enhancing security and simplifying reconciliation. Providers include Conferma Pay and Sabre Virtual Payments.
AI is increasingly used in corporate travel for tasks such as predictive analytics, chatbots for traveler support and personalized recommendations. A 2021 Phocuswright report found that 73% of travel managers believe AI will have a significant impact on corporate travel in the next five years.
Programs that allow companies to invest in environmental projects to balance out the carbon emissions from their travel. Organizations like Less Emissions, a Canadian carbon offset provider, offer carbon calculators and offset options for businesses.
Corporate policies that prioritize environmentally friendly travel options. This may include preferring rail over short-haul flights or selecting eco-certified hotels. The Global Sustainable Tourism Council offers criteria for sustainable travel that many companies use as a guideline.
Accommodations and transportation options that meet specific environmental standards. Certification programs like LEED for hotels and the Global Reporting Initiative for transportation providers help identify sustainable options.
Metrics used to evaluate the effectiveness of a travel program. Common KPIs include:
The process of examining travel expenditures to identify trends, opportunities for savings and policy compliance issues. Tools like Traxo provide enhanced data capture for more comprehensive analysis.
Measuring the return on investment for corporate travel. While challenging to quantify, a 2019 Oxford Economics study found that for every dollar invested in business travel, companies realize $12.50 in incremental revenue.
The practice of combining business trips with leisure time is becoming increasingly popular. A 2019 National Car Rental survey found that 90% of Millennials have engaged in bleisure travel.
The rise of remote work is changing the nature of business travel, with some employees choosing to work from various locations. A 2021 MBO Partners study found that the number of digital nomads in the U.S. grew by 49% in 2020.
While not replacing all in-person meetings, VR and AR technologies are being used to enhance remote collaboration. Platforms like Spatial offer immersive virtual meeting spaces.
For quick reference, here’s a glossary of key terms:
Mastering corporate travel terminology is essential for anyone involved in business travel, from travelers to travel managers. By familiarizing yourself with these key terms and concepts, you’ll be better equipped to navigate the complexities of business travel, make informed decisions and optimize your company’s travel program.
At Inspired Travel Group, we’re dedicated to helping our clients excel in corporate travel management. Whether you’re looking to implement a new travel policy, enhance your duty of care program or explore sustainable travel options, our team of experts is here to assist you. For personalized guidance on your corporate travel needs, reach out to us. Let’s collaborate to enhance your business travel experience and drive success for your organization.
