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Business Travel and Expense Definitions

Whether you’re a seasoned professional or a newcomer to the corporate travel and expense landscape, this resource is your go-to guide for understanding key terms and concepts in the industry. 

Explore the definitions, gain insights, and elevate your expertise in the language of business travel and expense management.

A

Accrual accounting is a method of recording financial transactions when they occur, regardless of when the cash transactions happen, ensuring that revenue and expenses are matched in the period they arise.
What is actual expense reimbursement and when does it beat per diem? Learn the IRS rules, documentation requirements, and where companies lose time.
An advance purchase excursion (APEX) fare is a type of airline fare discounted due to certain usage restrictions.
An agent-assisted booking (AAB) takes place when a travel agent helps book any travel needs.
Airline policy refers to a set of rules, guidelines, and procedures established by an airline to regulate various aspects of passenger and operational conduct, safety protocols, and customer service standards.
Airline regulations encompass a set of government-imposed rules and standards that govern various aspects of aviation, ensuring safety, security, and compliance within the aviation industry.
Airline reservation systems (ARS) are digital platforms owned by airlines used to manage flight inventory, real-time seat availability, ticket sales, and traveler data; it is the core technology that makes modern airline distribution possible.
What is an airport lounge and how do business travelers access one? Explore lounge types, corporate benefits, and how Navan maximizes every trip.
How do you get airport lounge access? Five paths from credit cards to elite status — and how to track benefits you already have.
Amortization is the gradual reduction of a debt over a period of time through regular payments covering both principal and interest.
What are ancillary fees and how do they affect corporate travel budgets? Learn the types, costs, and strategies finance teams use to control them.
The Airlines Reporting Corporation (ARC) is responsible for supervising payments from travel agencies to airlines and issuing tickets to consumers.
Artificial intelligence (AI) is a field of study focused on computer systems that can learn, reason, and make decisions in ways that mimic human intelligence, often improving over time.

B

A balance sheet is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health and liquidity.
Basic economy is the lowest-priced airline fare class, which has heavy restrictions on changes, refunds, baggage, and seat selection compared to standard economy.
Best available rate (BAR) is the lowest publicly available rate a hotel or car rental provider offers for a specific room or vehicle at a given time.
Billback is a hotel billing method where the hotel charges a company or its travel management company directly instead of the traveler paying at checkout.
A blanket purchase order is a long-term agreement between an organization and a supplier to deliver goods or services on a recurring basis over a specified period, optimizing ordering efficiency and reducing costs.
Bleisure travel is a portmanteau of business travel and leisure travel that describes the process of adding leisure or personal time to a scheduled business trip.
Blended travel is any trip that mixes business and leisure, from adding vacation days to a work trip to working remotely from another location.
What is boarding priority and how can business travelers get it consistently? Learn which factors determine boarding order and how loyalty status helps.
A booking engine is a web-based tool that lets users search, compare, and reserve flights, hotels, trains, and cars online in real time.
Boutique hotels are small, independent hotels, usually with under 100 rooms, known for their unique design, personalized service, and strong local character.
Business continuity is the process of planning and preparing so a company can keep operating during and after disruptive events.
Business travel is any travel conducted by employees for business purposes, including but not limited to travel for events and conferences, company offsites, client meetings, trade fairs, and office visits.

C

What is cabin pressure and why does it matter for business travelers? Discover how aircraft pressurization affects your health, comfort, and productivity.
What is CapEx and when does a purchase qualify as a capital expense? Discover how the CapEx versus OpEx distinction shapes budgets and tax treatment.
What is a car rental agreement, and why do fine-print clauses matter for business travelers? Learn key terms, coverage types, and mileage rules.
Carbon emissions are greenhouse gases, mainly carbon dioxide, released into the atmosphere from activities like flying, driving, and using energy.

Carbon Footprint

A carbon footprint is the total amount of greenhouse gases, particularly carbon dioxide, that are emitted directly or indirectly by an individual, organization, event, or product throughout its lifecycle, indicating its impact on the environment and climate change.

Card Security Code (CSC), Card Verification Code (CVC), Card Verification Value (CVV)

A Card Security Code (CSC), Card Verification Code (CVC), or Card Verification Value (CVV) is a security feature on credit and debit cards. The three- or four-digit code is used to enhance the security of online and over-the-phone transactions by verifying that the person making the purchase has physical possession of the card.
Carry-on policy refers to the rules established by an airline regarding the size, weight, and number of bags a passenger may carry onto the airplane without checking them into the baggage compartment. These regulations are designed to maximize onboard storage efficiency and to ensure passenger safety and comfort during the flight.x
What is categorization in T&E, and why do miscoded receipts break forecasting? Learn how labels link spend to ledgers, audits, and tax rules.

Centralized Billing

Centralized billing is a form of billing in which the customer receives a consolidated invoice of all travel charges.

Chain Discounts

A chain discount is negotiated between businesses and entire hotel chains. If the company is large enough, it may be able to receive a blanket discount at all chain properties.
A chart of accounts is a structured listing of all the general ledger accounts used by an organization to categorize and record financial transactions systematically.

Charting in rail travel is the official finalization of the passenger list, seat allocations, and preparation of the train's final ticket chart before departure.

What is checked baggage, and when should business travelers check a bag vs. carry on? Learn fees, weight limits, and corporate reimbursement rules.
A city pair is the origin and destination combination on a flight route, expressed as a pair of airport or city codes. In corporate travel management, city pair data helps organizations analyze travel patterns, negotiate airline contracts, and optimize travel spend.

Class of Service (COS)

Class of service (COS) refers to different categories or levels of accommodation, seating, or service provided by airlines or hotels. COS often includes distinctions like basic economy class, business class, and first class in air travel, or standard rooms versus suites in hotels.

CLEAR

CLEAR is a biometric identity verification system used at airports and other venues in the United States, allowing pre-registered individuals to bypass traditional security lines by verifying their identity through fingerprint or eye scans.
What is a codeshare flight and whose rules apply when you board? Learn how codeshares affect baggage, miles, and corporate booking.

Computer Reservation System (CRS)

A computer reservation system (CRS) is a central platform used by travel agents, airlines, hotels, and other travel service providers to manage and facilitate reservations and bookings.

Consortia Rate

A consortia rate is a discounted rate agreement between an agency and a hotel. Consortia rates are negotiated by travel management companies, making them available to all the agency’s travelers and can include various value-adds.

Content

In the travel industry, content refers to the comprehensive information on flights, accommodations, and other travel services provided by airlines and suppliers, accessible through distribution platforms for travel agencies and other stakeholders.

Corporate Negotiated Rate (CNR)

Corporate negotiated rates are special discounts that companies negotiate with certain hotels, usually with the help of a travel management company.
What should a corporate travel policy include and how is it enforced? Learn policy components, compliance benchmarks, and modern enforcement approaches.

Corporate Travel Program

A corporate travel program is a company’s formal structure to facilitate business travel, typically done in partnership with a travel management company.
Cost allocation is the process of identifying, aggregating, and assigning costs to various departments, projects, or activities within a company to accurately reflect resource usage and facilitate financial management.
What is a cost center and why does every finance team need one? Learn the types, real examples, and how cost center coding connects to T&E.
What is cost control in T&E, and how do finance teams make it work in real time? Learn the monitoring cycle that keeps business spending on track.

Credit Card Authorization (CCA)

A credit card authorization (CCA) is a review, usually through a credit card processor, that checks if the customer has sufficient funds on their card to pay for the transaction.

Customer Channels

Customer channels are inventory sources such as the Expedia Affiliate Network and Priceline Partner Network.

Customer Data Fields (CDF)

Customer data fields (CDFs) are used to collect specific company information such as an employee’s role and department.

D

Data integration is the process of combining data from different sources into a single, cohesive view to enhance accessibility and reliability of business insights.
A deadhead is an off-duty airline or rail crew member who is traveling in a passenger seat, usually to reposition for their next working assignment.
What is a departure gate, and why does gate location matter for business travel? Learn how assignments affect lounge access, boarding, and connections.
What is depreciation and how do businesses calculate it? Learn MACRS methods, recovery periods, and how depreciation applies to T&E assets.
A designated booker is someone who is authorized to book travel on behalf of other employees, such as an assistant who books trips for executives or a team coordinator.
What is a destination airport and why does airport choice matter for business travel? Learn how selecting the right airport affects cost and travel time.
What are direct costs and how do they differ from indirect costs? Learn the formula, real examples, and why accurate tracking matters for T&E.
What is a direct flight and how does it differ from nonstop or connecting? Learn when direct flights save time and money in business travel.
What counts as a discretionary expense for businesses? Learn the difference from fixed costs, see real examples, and discover how to manage non-essential spend.
Distribution platforms are technology systems and standards, like global distribution systems (GDS) and New Distribution Capability (NDC), that connect travel suppliers with agencies and booking tools to sell and manage travel services.
Dunning refers to the process of systematically communicating with customers to help ensure the collection of accounts receivable owed to a company.
Duplicate expense detection is an automated process used to identify and flag repeated expense claims within financial systems to prevent fraud and enable accounting accuracy.
What is duty free, and when does it actually save money for business travelers? Learn the rules, exemption limits, and corporate expense implications.
What is duty of care in corporate travel and what are the employer's legal obligations? Learn the requirements, best practices, and risk management strategies.
Dynamic pricing is when airlines, hotels, and other travel suppliers constantly adjust prices using algorithms that react to demand, competition, and inventory.

E

Expense fraud is the deliberate misrepresentation or falsification of business expenses for personal gain.
What is economy class and how does it compare to other cabin classes? Learn seat specs, fare structures, and corporate travel policy implications.

Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT)

Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT) is a standardized communication protocol created in the 1980s to exchange data between systems. Travel management companies rely on this standard to communicate with travel providers via the global distribution system (GDS) and source travel options for their customers.
What is an electronic funds transfer and how does EFT work? Learn about ACH, wire transfers, and how businesses use EFT for expense reimbursement.
What are electronic receipts, and when does the IRS require one for business expenses? Learn how e-receipts simplify expense reporting and audits.

Electronic System for Travel Authorization (ESTA)

Electronic System for Travel Authorization (ESTA) is an automated system that determines the eligibility of visitors to travel to the United States under the Visa Waiver Program.
What is an emergency exit row and who qualifies? Learn the FAA rules, legroom benefits, and what corporate travel policies say about seat fees.
Expense accrual refers to the accounting practice of recording expenses in the period they are incurred, regardless of when they are actually paid.
What is expense allocation, and which method reduces misclassification errors at month-end close? Learn headcount, ABC, and other core approaches.
Expense analytics is the process of systematically analyzing spending data to optimize cost management and enhance financial decision-making.
What is expense approval and how do approval workflows work? Learn about approval hierarchies, automation, and best practices for corporate expense policies.
What is an expense claim and how does it differ from an expense report? Learn what qualifies, how approval works, and why claims get rejected.
What is expense forecasting and why do most companies get their T&E budgets wrong? Learn the methods, inputs, and tools that improve forecast accuracy.

Expense Management

Expense management refers to the systems companies deploy to process, pay, audit, and reimburse employee-initiated expenses.

Expense Management Software, Expense Management System, Expense Management Solution

Expense management software is technology utilized by companies to authorize, manage, and process employee expense claims. This software is also useful for implementing practices for employee expense reimbursement.
What is expense reconciliation and why do finance teams spend so much time on it? Learn the matching process, common discrepancies, and automation approaches.

Expense Reimbursement

Expense reimbursement is compensation paid by a business to employees, customers, or third parties that incur out-of-pocket expenses or overpayments on transactions made on behalf of that company.
What is an expense report and why does processing one take so long? Learn what goes on one, how approval works, and where companies lose time.

Expense Report Software

Expense report software is the technology used to automate and streamline the process of filing an expense report. When an expense is obtained by an employee, that software can automatically recognize, reconcile, and potentially reimburse as a function of the policy constraints within the software.
What is expense tracking and why do finance teams need it? Learn methods, error costs, and how automation cuts processing time by 80%.

F

Fair Market Price

The fair market price is the optimal fare for hotel rooms or airfares based on current prices. It is determined by the specific location, date, and demand at the time of the search.

Fare Basis Code

A fair basis code is an alphabetic or alpha-numeric code used by airlines to identify a fare type and allow airline staff and travel agents to find the rules applicable to that fare.
Financial close is the process by which a company finalizes its financial transactions and balances at the end of an accounting period for accuracy and compliance in its financial reporting.

Fintech

Fintech, or financial technology, is an industry that leverages innovative technology and software to enhance and streamline financial services. It encompasses areas such as digital payments, online banking, and automated investment platforms.

First Class

First class refers to the premium, most luxurious cabin class on an airline. It’s characterized by superior amenities, more spacious seating, enhanced services, and priority treatment for passengers.
What is a fiscal year, and why does your T&E budget depend on it? Learn how fiscal year timing shapes travel spend, reporting cycles, and year-end close.
What is a fixed expense and how does it differ from variable costs? Learn fixed expense types, budgeting impact, and how they affect financial planning.

Fixed-Rate Negotiations

Fixed-rate negotiation is a hotel rate that a company has negotiated with a fixed price and set of amenities that remain in place throughout the year, such as last room availability, cancellation, or check-in flexibility.

Flag Carrier

A flag carrier is an airline registered within a specific country or sovereign state, which may allow it certain preferential rights or privileges.
What is the flat tire rule? Learn how this informal policy can get you rebooked for free when you miss a flight.
Flight delayed? Know what you're owed under EU261, UK261, and the new U.S. DOT rules, and whether that money belongs to you or your employer.
Flight disrupted? Know which events trigger compensation, what airlines owe your travelers, and how to manage disruption costs in T&E.
What is foreign currency exchange? Learn how FX fees, DCC charges, and exchange rate risk affect corporate travel budgets and T&E programs.
What are frequent flyer miles and how do they work? Learn how miles are earned, redeemed, and managed within corporate travel programs.
Your frequent flyer number unlocks miles, upgrades, and lounge access. Learn how to find, manage, and auto-apply yours across every airline.
What are fringe benefits and which ones are taxable? Learn the IRS rules, common types, exclusions, and how they connect to travel and expense programs.

Full-Service Hotel

A full-service hotel is an accommodation facility that provides a comprehensive range of amenities and services beyond the basic lodging found at a limited-service hotel. These may include on-site restaurants, room service, concierge assistance, meeting and event spaces, fitness centers, and other additional features to cater to the various needs and preferences of guests.

G

What is a GDS and how does it power corporate travel? Discover how the Global Distribution System connects travel buyers and suppliers.
What is a general ledger and how does it connect to expense management? Learn GL structure, account types, and why T&E integration matters for financial close.
Global Entry is a U.S. Customs and Border Protection service that allows pre-approved, low-risk travelers to receive expedited clearance through automatic kiosks at select airports upon arrival into the United States.
Guest travel is the act of booking travel for guests, including friends and family or company guests, such as interview candidates or clients.

H

Hand luggage refers to the smaller bags or suitcases passengers are allowed to carry into the cabin of an airplane or other forms of transportation. These items must fit into overhead bins or under seating areas and adhere to size and weight restrictions set by the transportation provider.
What is hidden city ticketing and when should business travelers consider it? Learn the risks, rules, and smarter fare alternatives.
Hotel brands are collections of hotel chain properties with similar levels of service and offerings that are grouped together under one name (e.g., Hilton’s Waldorf, Curio, and DoubleTree). Chains may develop their own brands or acquire smaller chains.
Hotel chains are the largest organizing structure of a hotel group (e.g., Accor, Best Western, Choice, Hilton, IHG, and Marriott). Each chain contains multiple hotel brands and may operate hundreds or thousands of properties across many markets.
A hotel program is a catch-all term a company’s travel manager uses to describe all the rooms and rates available to their travelers.
What is a hub airport and how does the hub-and-spoke model work? Learn why airlines concentrate flights through central hubs and what it means for business travel.
A hush trip happens when an employee conducts business from somewhere other than their normal location and does not tell their employer.

I

What is in-flight entertainment (IFE) and why does it matter for business travelers? Explore IFE types, Wi-Fi, and how Navan maximizes every trip.

Incidental Expenses

Incidental expenses refer to miscellaneous costs or small, unforeseen expenditures that arise in the course of travel (e.g., tips for service, ground transportation costs, or fees for minor services).

Independent Hotels

Independent hotels are properties that are not affiliated with a chain or brand. Although these hotels may have certain agreements with chains, they retain their name and complete autonomy over property management.
What are indirect costs and why do they matter for budgeting? Learn the types, allocation methods, and how they differ from direct costs.

Intercontinental Travel

Intercontinental travel is travel between two continents, such as travel from the U.S. to Europe.

Interline

Interline is a very basic form of agreement between airlines where check-ins and baggage handling can be done together, so a traveler only needs to check in once and does not have to worry about moving checked bags despite changing carriers during a trip.

International Air Transport Association (IATA)

The International Air Transport Association (IATA) is a trade association for many of the world’s airlines.

International Airline Travel Agent Network (IATAN)

The International Airline Travel Agent Network (IATAN) is the only widely accepted form of legitimate travel agent identification.
An International Driver’s License is a permit that allows individuals to drive legally in foreign countries.

Intracontinental Travel

Intracontinental travel is travel within a continent, such as travel between the U.S. and Canada.
Invoice matching is the process of comparing and verifying the details of a vendor's invoice with corresponding purchase orders and received goods/services documents to ensure accuracy and compliance before processing payment.

Irregular Operations (IROP)

Irregular operations are disruptions or deviations from normal flight schedules and operations, often caused by factors such as weather events, technical issues, or other unexpected events.
A travel itinerary acts as your personal guide for a trip, outlining your destinations, activities, transport, and accommodation. Creating a well-planned itinerary can significantly improve your travel experience, helping you manage your time effectively and ensuring you don’t miss any important meetings or sights.

J

Jet lag is a temporary sleep disorder that occurs when an individual's internal body clock is disrupted due to crossing multiple time zones, often experienced after long flights. Symptoms typically include fatigue, insomnia, and sometimes digestive issues, which generally resolve as the body adjusts to the new time zone.
What is a journal entry in accounting and why does it matter? Learn the components, types, and how automated entries speed up financial close.

K

Known Traveler Number (KTN)

A Known Traveler Number (KTN) is a unique identification code issued by trusted traveler programs, such as TSA PreCheck, which enables individuals to undergo expedited airport security screening processes.

L

Land Arrangements

Land arrangements are all non-flight reservations in a travel itinerary, (e.g., car rental, hotel, and excursions).

Last Room Availability (LRA)

Last room availability (LRA) is a hotel industry practice that ensures a hotel will provide a travel agency or booking platform with the last available room in its inventory, even during peak periods or high demand, allowing for maximum booking flexibility.
What is a layover and how long should one be? Learn minimum connection times, domestic vs. international rules, and how to avoid missed connections.

Leakage

Leakage occurs when employees book business travel outside the preferred channels; a lot of leakage in a managed travel program can lead to missed cost-savings opportunities and weaken duty of care capabilities.
Lease accounting is the management and reporting of financial information related to leased assets, to ensure compliance with accounting standards.

Leisure Travel

Leisure travel refers to the activity of individuals or groups taking trips for relaxation, enjoyment, and recreation, typically for non-business purposes.
What is liability in business finance? Learn how current, non-current, and accrued T&E obligations affect your balance sheet and year-end close.

Limited-Service Hotel

A limited-service hotel offers a more streamlined range of amenities and services compared to full-service hotels. These hotels typically provide essential facilities (e.g., rooms, basic housekeeping, and possibly continental breakfast), but may lack features like on-site restaurants, extensive meeting spaces, or other additional services commonly found in full-service hotels.

What is liquidation in travel and expense management, and how does it affect reimbursements and financial close? The T&E process explained.

Lodge Card

A lodge card is a virtual or physical payment card lodged with a travel management provider. Typically it is issued for an entire company or entire cost center to ensure all pre-trip expenses are charged to one card number.

Loss Damage Waiver (LDW)

Loss damage waiver is supplemental car rental insurance that covers theft, vandalism, and accident damage.

Lowest Logical Fare (LLF)

The lowest logical fare (LLF) is the least expensive, nonrefundable fare with the minimum number of stops at the time of booking.

Loyalty Program

A loyalty program is a marketing strategy that rewards customers for their repeat business and brand loyalty by offering incentives, such as discounts, points, air miles, or exclusive perks, encouraging ongoing engagement and repeat purchases.

M

Machine Learning

Machine learning refers to the application of artificial intelligence techniques that enable systems to automatically analyze and derive insights from large datasets.

Managed Travel

Managed travel refers to an organization’s strategic and coordinated approach to overseeing and controlling their employees’ business-related travel activities. It encompasses aspects such as travel policies, expense management, supplier negotiations, and the use of travel management companies or tools to optimize travel-related processes and costs.

Metal

In aviation slang, the term “metal” refers to the airplane of the operating carrier of a flight. For example, if you book a flight with one airline, but the flight is operated by a different airline, the operating carrier’s aircraft is often colloquially referred to as “metal.” This distinction is particularly relevant in codeshare agreements or when airlines collaborate, allowing one airline to operate flights on behalf of another.
What is mileage reimbursement and how do companies set the right rate? Learn IRS rules, tax treatment, and how to automate mileage tracking.
A mileage run refers to a trip taken solely for the purpose of accumulating frequent flyer miles or points, usually to maintain or achieve elite airline status. This involves booking flights primarily for the rewards rather than the destination.

Minimum Connect Time

The minimum connect time is the shortest time required to successfully transfer to a connecting flight at an airport.
What is minimum connection time, and who sets it? Discover how MCT affects corporate itineraries and what to do when delays tighten your layover window.
What is mobile expense reporting and how does it reduce reimbursement time? Learn how smartphone-based expense capture eliminates paper receipts and speeds up approvals.

Multi-Carrier Support

Multi-carrier support refers to a system or service’s capability to accommodate and interact with multiple carriers or transportation providers. In the context of travel management, it refers to the ability to book your departure and return flights with any airline combination.

Multi-City Flight

A multi-city flight is a single travel booking that combines flights between several cities into one itinerary.

Multi-Fare Class Support

Multi-fare class support is the ability to mix and match cabin fares on a single ticket (e.g., book basic economy class on the flight out and business class on the way home).

N

Net Fare, Net Rate

A net fare or net rate refers to the base price or cost of a travel service, such as a flight, hotel room, or tour, excluding additional fees, commissions, or markups.

Net Promoter Score (NPS)

Net promoter score (NPS) is a metric used to measure customer loyalty and satisfaction based on the likelihood of customers recommending a company’s products or services to others. NPS is a strong indicator of the health of a corporate travel program, along with adoption and traveler satisfaction.

Next Generation Storefront (NGS)

The Next Generation Storefront (NGS) is a set of data standards that enable distribution channels to better present, sort, and find the airline products and services travelers are looking for.
What is a no-show fee and when do airlines and hotels charge one? Learn the rules, how fees accumulate in corporate travel, and how to avoid them.

Non-Last Room Availability

As opposed to last room availability, non-last room availability means hotels do not need to guarantee a company’s negotiated rate can be used for their last available room. That means a traveler may see that a room is available at a hotel but may not find an associated corporate negotiated rate at that hotel.

Non-Rev

A non-rev (revenue) passenger is an airline employee (i.e., deadhead), or their friends or family, traveling on a deeply discounted airline ticket. These flights are generally on a standby basis only and for personal needs.
What is a non-stop flight and how does it differ from a direct flight? Learn the definitions, cost tradeoffs, and why nonstop routes matter for business travel.

Non-Transferable

A non-transferable ticket can only be used by the person who was originally scheduled to fly.

O

O&D

In the travel and aviation industry, O&D typically refers to the specific origin and destination points of a journey, representing the cities or locations where a traveler begins their trip and where they ultimately intend to go.

Occupancy Rate

The occupancy rate is a metric that indicates the percentage of available rooms or units that are currently being used or rented out.
What is off-peak travel and how do companies use it to cut costs? Explore booking windows, pricing patterns, and policy strategies that matter.

Offline Connection

An offline connection refers to a travel itinerary where passengers have to change planes at an intermediary airport, requiring a separate ticket for each leg of the journey and often necessitating self-transfer and recheck of luggage.

Offsite

An offsite is an occasion when a group of employees gather together away from their office, especially for team-building or business purposes.

Online Booking Tool (OBT)

An online booking tool (OBT) is a corporate-approved software tool that lets organizations book, manage, and monitor their business trip itineraries.

Online Travel Agency (OTA)

An online travel agency (OTA) is a travel website that helps travelers book flights, hotel rooms, ground transportation, or other travel-related products and services.
Operating expense refers to the day-to-day costs incurred by a business to support its operational activities, excluding costs associated with direct production or manufacturing.

Optical Character Recognition (OCR)

Optical character recognition (OCR) technology extracts and repurposes data from camera images, scanned documents, or image-only files such as PDFs. The software is capable of singling out letters and numbers on images, such as a photo of a receipt, and then extracting this data for processes like reconciliation.
What counts as an out-of-pocket expense and when are employees entitled to reimbursement? Learn the rules, tax treatment, and how to avoid common gaps.
What is overbooking, and what happens when you're bumped from a flight? Know the compensation rules and your options before your next trip.
What is an overhead bin and what are the size limits? Learn carry-on rules, boarding strategies, and how bin access varies by fare class.
What counts as overweight baggage and what are the fees? Learn weight limits by cabin class, typical surcharges, and how business travelers avoid unexpected costs.

P

What is a P-card and when should finance teams use one instead of a purchase order? Learn how procurement cards cut transaction costs and control spending.

Passenger Facility Charge (PFC)

A passenger facility charge (PFC) is a fee imposed by airports to help fund infrastructure projects and improvements. Airlines collect this fee from passengers and then remit it to the airport.
What is per diem and how do GSA rates actually work? The gap between official allowances and what business travel really costs.

Personal Effects Coverage

Personal effects coverage is additional car rental insurance covering the loss of personal property from the rented vehicle.

Personal Expense

In the context of business expenses, a personal expense refers to a cost incurred by an individual for non-business purposes, which is typically not eligible for reimbursement.

Personal Travel

Personal travel refers to journeys undertaken by individuals for non-business or non-professional reasons, typically for leisure, vacation, or personal obligations.
Petty cash is a small fund kept on hand for minor or incidental expenses in a business.

Phonetic Alphabet

The phonetic alphabet, also known as a spelling alphabet or radio alphabet, is a set of standardized code words used to represent letters of the alphabet in oral communication (e.g., Alpha, Bravo, and Charlie). It is designed to minimize confusion and errors when spelling out words, names, or codes, especially in situations where the clarity of verbal communication is crucial, such as over the phone or in radio communication.

Physical Corporate Card

A physical corporate card is a plastic card issued to employees to spend on work-related purchases. The card is tangible and has a unique 16-digit number, expiration date, and Card Verification Code (CVC).

Pitch

Pitch is the legroom between airline seats as measured from the back of one airplane seat to the seat in front of it.

Point-to-Point

Point-to-point in air travel refers to a flight system where an airline operates direct routes between specific city pairs without requiring passengers to connect through a hub. It provides more direct and nonstop options for travelers.

Points

Points in the context of the travel industry refer to a type of loyalty or rewards program currency. These points are accumulated by customers through various activities, primarily through purchasing flights, hotel stays, and car rentals. Points can typically be redeemed for benefits such as free or discounted travel, upgrades, and other travel-related perks.

Policy Compliance

Policy compliance refers to the adherence of individuals or entities to established rules, regulations, and guidelines, ensuring that they follow prescribed standards and procedures.

Preferred Supplier

A preferred supplier is a specific supplier or service provider with whom a travel agency or travel management company has established a preferred relationship, often based on negotiated terms, pricing, and other mutually beneficial arrangements.
What is a prepaid expense and why is it classified as an asset? Learn the accounting treatment, journal entries, and common examples in business travel.
What is Priority Pass? Discover how this global lounge network fits corporate travel programs, expense policy, and employee perks.
A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods.

Procurement

Procurement is a broad term to describe a range of activities involved in sourcing, obtaining, and purchasing goods, in most cases for business-related purposes.

Pseudo City Code (PCC)

Pseudo city code (PCC) is a unique identifier assigned by a global distribution system (GDS) to travel agencies or other entities that use the GDS to make reservations and bookings for travel services such as flights, hotels, and car rentals. The PCC allows the GDS to track and manage transactions associated with a specific agency or user.

Published Fare

A published fare refers to the standard, publicly available price for a flight ticket set by an airline and typically listed in their official fare tariff. This is the base price before any discounts, promotions, or additional fees are applied.
A purchase order is an official document issued by a buyer committing to pay the seller for specified products or services at agreed prices and terms.

R

What is real-time reporting in expense management? Learn how live spend data replaces month-end scrambles and improves budget forecasting accuracy.
What is receipt management and why does it matter for expense compliance? Learn the IRS rules, capture methods, and best practices for business receipts.
What is expense reconciliation and why does it consume 80% of finance team time? The manual matching problem, and how to fix it.

Record Locator

In airline reservation systems, a record locator is an alphanumeric code or reference number used to access a specific passenger’s booking or reservation.
What is a recurring expense, and how should businesses track them? Learn the types, examples, and strategies that keep recurring costs under control.

Regional Hotel Chain

This is a smaller form of hotel chain with multiple properties, and potentially multiple hotel brands, within its holding. In addition to operating on a much smaller scale, these hotels also operate in a specific region.
What counts as a reimbursable expense and what doesn't? Learn IRS accountable plan rules, common categories, and documentation requirements.
Return on Investment (ROI) quantifies the financial gain or loss generated on an investment relative to its cost.

Round-the-World (RTW) Tickets

Round-the-world (RTW) tickets are flight packages that let travelers visit several destinations “around the world” for one price. These tickets are offered by airline alliances (e.g., oneworld, SkyTeam, Star Alliance, etc.) and all flights must be booked on airlines in the alliance.

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What is a same-day change and how do airline fees and elite status affect business travelers' options? Learn the rules before your next trip.
What is seat width, and why do economy seats vary by over 2 inches? Decode seat dimensions by aircraft type and cabin class before you book.
What is a security checkpoint and how can business travelers pass through faster? Learn how TSA PreCheck, Global Entry, and travel policies reduce delays.

Segment

A segment is a part or leg of an air itinerary, including one takeoff and one landing.

Shoulder Season

Shoulder season is the period between busy and quiet seasons in which prices are typically at a midpoint.

SITI, SITO, SOTI, and SOTO Tickets

SITI (Sold Inside, Ticketed Inside), SITO (Sold Inside, Ticketed Outside), SOTI (Sold Outside, Ticketed Inside), and SOTO (Sold Outside, Ticketed Outside) tickets represent different scenarios in airline ticket sales where “Sold Inside” or “Sold Outside” denote transactions within or outside the country where travel begins, while “Ticketed Inside” or “Ticketed Outside” indicates whether the ticket was issued within or outside of the country.
What is a skycap and why do seasoned business travelers seek them out? Learn how curbside check-in works, what to tip, and when it saves real time.

Smart Card

A smart card is a physical card embedded with a computer chip that hosts intelligent automation functions and security controls. Unlike a typical physical card with a magnetic strip, a smart card can perform multiple functions, since it encrypts additional information to interact with various payment terminals.
What is spend analysis and how does it reduce procurement costs? Learn the process, data requirements, and how travel programs use spend visibility to negotiate better.

Spend Control

Spend control incorporates the processes of enforcing policies, whether manually or through technologies, to monitor and manage purchases made within a company.
A spend cube is a multidimensional data structure that allows companies to comprehensively analyze their spend across various dimensions such as suppliers, categories, and business units, boosting visibility and strategic decision-making in procurement processes.
Spend forecasting is the process of predicting future business expenses using historical data, trends, and economic conditions to optimize budgeting and financial planning.
What is spend management and why does it matter for controlling costs? Learn the process, key metrics, and how leading companies cut procurement waste.

Spend Management Software, Spend Management System, Spend Management Solution

Spend management software is a comprehensive digital solution that helps organizations track, control, and optimize their expenditures by providing tools for budgeting, expense tracking, and analysis of financial transactions.

Split Ticketing

Split ticketing happens when two separate tickets are purchased to build an itinerary, often to obtain a lower price. Travelers do this at their own risk, because if a connecting flight is missed, both airlines may elect not to rebook the traveler unless they purchase a new ticket.

Stopover Paid by Carrier (STPC)

A stopover paid by carrier is a program in which an airline might offer a free stopover to encourage travelers to use a less optimal connecting flight. Typically, the airline covers prearranged hotel, ground transportation, and meals during a stopover.
What is a subscription based expense and how should it be tracked? Learn the accounting treatment, common categories, and management best practices.

Sustainability

Sustainability is the practice of meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. It focuses on environmental stewardship, social responsibility, and economic viability.

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What is tax compliance in T&E, and what happens when reimbursements fail IRS accountable plan rules? Learn the controls that keep spend audit-ready.

Through Passenger

A through passenger is a passenger who remains on the plane at a connecting stop on the way to their final destination.
What is throwaway ticketing and why do airlines prohibit it? Learn the risks, penalties, and smarter alternatives for business travel.
A Ticket Deposit Receipt (TDR) is a preliminary proof of payment for future travel expenses.

Ticketing Agreement

A ticketing agreement is a formal arrangement between airlines or airline alliances that allows for the sale and issuance of tickets for connecting flights operated by different carriers.

Transportation Security Administration (TSA)

The Transportation Security Administration (TSA) is a U.S. government agency responsible for ensuring the security of transportation systems, primarily focusing on aviation, through the development and implementation of screening and security measures.
What is T&E (travel and expense), and how do finance teams manage it effectively? Learn the components, policy best practices, and automation benefits.
What is a travel advisory and how do the 4 levels work? Learn how advisories affect corporate travel policy, duty of care, and booking decisions.

Travel Agency

A travel agency is a business that provides services and assistance related to travel, including booking accommodations, flights, and other travel-related activities, to individuals or groups.
What is a travel agent, and when should companies use one? Discover how agents compare to TMCs and when your travel program may need more.
What is travel booking for business, and how do managed tools cut costs and improve compliance? Explore the processes that keep corporate trips on track.
What is travel cancellation insurance and what does it cover? Learn the difference between standard and CFAR policies, covered reasons, and corporate best practices.
What is travel expense management, and why does it matter? Learn how T&E workflows connect booking, expense capture, and reporting to control costs.

Travel Expenses

Travel expenses are goods or services employees incur while traveling for business. Though many expenses may occur during a trip, it is up to the organization to decide what is considered an in-policy business travel expense vs. a personal travel expense.

What does travel insurance cover for business travelers, and when does corporate coverage fall short? Learn which gaps put trips and budgets at risk.
What is a travel management company and when do you need one? Learn TMC services, pricing models, and how modern platforms differ from legacy providers.

Travel Management Software, Travel Management System, Travel Management Solution

Travel management software or travel management system is a specialized digital solution designed to assist organizations in efficiently managing and optimizing their corporate travel processes — including booking, expense tracking, itinerary management, and reporting — to enhance control, compliance, and cost-effectiveness in business travel.

Travel Policy

A travel policy is a set of guidelines and rules established by an organization to govern and regulate employee business travel. It outlines permissible expenses, booking procedures, and other standards to ensure consistency and compliance with the company’s objectives.
What is travel policy compliance and why do programs miss it? Learn compliance benchmarks, enforcement methods, and how top programs reach 90%+.

Travel Program

A travel program encompasses the policies, procedures, and guidelines established by organizations to regulate and optimize travel-related activities. A managed travel program involves centralized control and coordination, while an unmanaged travel program may be less organized and less satisfactory.

Travel Risk Management

Travel risk management involves the systematic identification, assessment, and mitigation of potential risks and hazards associated with business travel, with the aim of ensuring the safety and well-being of travelers while maintaining business continuity.
What are travel services, and how do companies use them to control costs and support travelers? Learn the key components of a corporate travel program.
What is trip interruption insurance and when does it activate? Learn what's covered, how it differs from cancellation insurance, and corporate policy considerations.
A Trusted Traveler Program is a government initiative designed to facilitate expedited travel procedures for pre-approved, low-risk travelers through dedicated lanes and kiosks.
What is TSA PreCheck and how do you get it? Learn application steps, costs, benefits for business travelers, and how it compares to Global Entry.

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U.S. Customs and Border Protection (CBP)

U.S. Customs and Border Protection (CBP) is a federal law enforcement agency within the Department of Homeland Security. It’s responsible for safeguarding America’s borders by enforcing customs, immigration, and trade laws, as well as facilitating legitimate travel and commerce.

Ultra-Low-Cost Carrier (ULCC)

An ultra-low-cost carrier (ULCC) is an airline that offers rock-bottom, no-frill fares. Seat selection, baggage, or drinks on the flight may be charged as an additional fee.
An unaccompanied minor is a child who travels without the presence of a parent or legal guardian.

Universal Air Travel Plan (UATP)

The Universal Air Travel Plan (UATP) is a global payment system specifically designed for the airline industry that allows businesses to issue and manage charge cards for corporate travel expenses and facilitates the centralized payment of airfare and related services. It is also accepted by some hotels, rail providers, and other suppliers.

Unmanaged Travel

Unmanaged travel refers to a situation in which individuals within an organization make independent and decentralized decisions regarding their business-related travel, without a centralized or coordinated approach from the organization. Individuals will often book through consumer websites, such as online booking tools (OBTs), or directly with suppliers. In unmanaged travel, there may be limited control over travel expenses, adherence to travel policies, and optimization of travel-related processes.

Unrestricted Fare

An unrestricted fare refers to a ticket with flexible terms that allows passengers to make changes or cancel flights without incurring significant fees or penalties, providing greater flexibility and freedom in travel plans.

Unused Ticket

An unused ticket is an airline-specific credit generated from canceling a non-refundable flight. These funds are not lost and can be applied toward a future flight on the same carrier.

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Value-Added Tax (VAT)

Value-added tax (VAT) is a consumption tax levied at each stage of the production and distribution chain, ultimately borne by the end consumer and calculated as the difference between the value of goods and services sold and the cost of materials and services used in their production.
What is a variable expense and how does it affect T&E budgets? Learn types, examples, and how real-time tracking keeps variable costs under control.
What is vendor management in corporate travel and how does it reduce costs? Learn supplier strategies, negotiation levers, and program structures.

Virtual Card Number (VCN)

A virtual card number (VCN) is a highly secure, single-use virtual credit card number used to minimize the risk of fraud.

Virtual Corporate Card

A virtual corporate card is a unique 16-digit corporate card number generated digitally. That card number can be used for online checkouts and downloaded to a mobile wallet for in-person purchases where virtual cards are accepted.
The Visa Waiver Program allows citizens from participating countries to visit the United States for tourism or business for up to 90 days without obtaining a visa. The program is designed to foster easier travel while promoting security through a pre-screening process.

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What is a travel waitlist and how does it affect your upgrade chances? Learn how airlines and hotels prioritize waitlisted business travelers.
What is a window seat, and when should business travelers choose one? Discover seat selection strategy, comfort trade-offs, and how Navan helps.

Workcation

Workcation is a portmanteau of work and vacation that describes the act of employees conducting business from locations other than their usual workplace.
Working capital is the operational liquidity available to a business, calculated as current assets minus current liabilities.