Handle Business Travel Costs Brilliantly
You made the big sale, and it looks great… until you realize travel costs are going to eat you alive. That hurts, especially when you’re a small business. It’s awful when times are bad and margins are poor, or when (as in this image) you unexpectedly have to use a more expensive mode of transport than you anticipated and priced into your offer.
So don’t let travel costs get you down. Make sure you and your client agree up front to handle business travel fairly, not in ways that empty your pocket.
Set the Rules Up Front
Determine how travel costs will be handled before starting a contract with a customer. Leaving it unsettled until too late can ruin your relationship with your customer!
Issues to Settle No Matter Where You Go
General issues that apply whether you do business locally, nationally or internationally
- Will you drive your own car? If so, how will the cost of using your car be reimbursed? Must you drive a rental vehicle, perhaps because a car will not do (as in the photo) or perhaps because your insurer insists you cannot use a personal vehicle? In either case, is any special insurance required–and if so who pays for it?
- What constitutes travel time? Can you bill only for actual time at a client site, or portal-to-portal? Portal-to-portal means your billing clock starts when your worker departs to go to a client site, and ends when the worker returns. This issue can be worth a lot to a business that does local on-site work and spends a lot of its working time just going from site to site.
- It is also crucial if you might have to spend time waiting at the client site. A student in one of my non-credit courses has an ice business–and has the equipment to “make snow.” In Houston, Texas, that’s highly prized for grand openings and fancy parties. It is also needed by filmmakers because snow in Texas isn’t common enough to count on when a crew is filming. The first time a filmmaker hired a few hours of snowmaking, it was for some scenes shot 200 miles away in Austin, Texas. The ice company put in a fixed price bid to cover travel time there and back, and the few hours of snowmaking. They didn’t realize the few hours of snow would be spread over two to three days. They had to absorb the cost of paying their crew for all that time, putting them up in a hotel, feeding them, and keeping the refrigeration equipment running. They still provide snow for filmmakers (and love doing it), but they price the cost of waiting into the travel portion of their bids.
- That brings up another question. Can you bill for time spent traveling at the regular rate? If not, can you bill for it at a reduced rate? Is it subject to a daily ceiling?
- Will travel expenses be direct billed to the client, or must you submit travel costs on invoices for later reimbursement by your client? Direct billing to the client is wonderful for you. It cuts your financial risk on travel costs to nearly zero because you have hardly any travel cost to absorb for a billing cycle. Smart clients use this to their benefit, too. I have seen a client do it to maximize their discounts from airlines and hotel chains as a high volume source of travel business.
- Does the client want you to use their favorite agency and discount programs, or will you make your own travel arrangements?
- Will air travel be first class, business class or coach? Does this apply to long flights too, or does the class of travel depend upon the duration of the journey? Does it apply to train travel? How about ferries or ships?
- If your client requires you to use discount tickets, who pays extra costs for any necessary changes that cause financial penalties?
- Will lodging and meal expenses be on a reimbursement basis, or a per diem (flat rate per day) basis? Per diem is easier in terms of paperwork, but may not be feasible in some countries.
- For per diem or mileage reimbursement rates, what will be the source of the rates? In the USA, the federal General Services Administration publishes tables of per diem rates each year that will be accepted by the Internal Revenue Service on tax returns. You can get this at www.gsa.gov. Similarly, in the USA the IRS publishes standard mileage reimbursement rates each year. Not all countries publish such standardized guidelines.
- How much travel will you need to do? Setting limits on travel is necessary in fixed price contracts. Otherwise, a customer that insists upon extra on-site attention could rapidly eliminate your profit margin for the project. If your contract is not fixed price, excessive travel could tie up key staffers so much that they are unable to satisfy other clients. When you set limits on travel, you can include a clause that allows additional travel on specified terms. If more site visits are needed in mid-project, the client will be able to book them and will know in advance how much that will add to the bill.
International Travel is More Challenging
Don’t be like I once was–don’t find yourself on the other side of an ocean, realizing your contract doesn’t require the customer to pay your way back home if they terminate a project while you’re far far away!
Issues to Settle for International Travel
Crossing borders makes travel more interesting (and more complex).
- Who pays and arranges for special requirements such as visas, vaccinations, traveler’s medical kit, and insurance that is valid in a foreign country? (By the way, health insurance is not the only kind to consider. For example, in some regions, kidnap insurance is recommended.) One of my clients sent another consultant and his family from the USA to the UK for a six month assignment. The consultant assumed our client arranged visas. The client didn’t. For his entire family, landing at Heathrow was Immigration Hell.
- For foreign travel, must you wait until credit card bills arrive before you request reimbursement for those transactions, or can you use a standard formula to estimate reimbursement based on currency conversion from receipts? If the latter, which currency exchange rate table will be applied?
- For a fixed price contract, can you specify that the price is in the currency you prefer, or must you make provisions to cope in case of a rapid fall in the exchange rate for your currency? In 2008, one of my clients had to pay a vendor in another country about 28% extra for a fixed price job because my client’s purchasing department neglected to protect itself from currency fluctuations. (No, that windfall didn’t go into my pocket. It belonged to another vendor.)
- Can the client terminate your contract while you are traveling to perform work for the contract? If so, who is responsible for your travel costs to return home? While abroad on business, my login accounts on my client’s computer systems suddenly quit working. I belatedly realized nothing in my contract would make the client pay my way home across the Atlantic if my contract was canceled in mid-trip. Luckily, a manager had only forgotten to file a routine renewal form.
- Do you need to take any special steps so that you or your client can recover VAT charges on travel costs?
- Will Customs duties be charged on anything that is being hand-carried during travel on behalf of your client? How will you recover the cost of those duties? Are there any particular steps you need to take to satisfy Customs officers, such as carrying special paperwork? Perhaps most importantly, is it legal to transport everything you are expected to transport across borders?
- How much access to cash and credit will you need while traveling on behalf of your client? Are there limitations on how much you can take with you? Are there safety considerations that require you to bring money in a specific manner, such as using traveler’s checks that cannot be used by anyone else if they are lost or stolen? Do those incur fees, and if so, who pays the fees?
What About Visas and Permits?
International business travel often requires entry visas or work permits. Pin down who will pay for them!
Your Credit Cards May Not Work in Another Country
Do you live in the USA and plan to go to the UK on business? Your credit cards will not be accepted by an increasing number of merchants because they do not have European chip-and-PIN security. Make plans to be able to get cash in case you can’t use your business credit cards while on travel for business abroad.
Further Information


Get Paid!: As Much As You Deserve, and On Time
The material in this article is from just one slice of what is in my book for small businesses that want to get their customers to pay fairly. This book is a complete rewrite, update and major expansion of the material in the first half of my wider ranging 2003 book.
Although this book is USA oriented, a colleague in the UK has been using the ebook version of it. He has three businesses and is generally successful with them. He apologized for not having finished the ebook quickly “because every few pages, I realize there’s something else I need to do for my business, so I have to run off and do it!”
If it has done that for him (not even in the country it was written for) and helped me collect thousands that would otherwise have been late or never paid, imagine what it can do for you!
Bonnie Huval Personal Website Cookie Notice
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Privacy & Cookies Policy
{"id":null,"mode":"form","open_style":"in_place","currency_code":"USD","currency_symbol":"$","currency_type":"decimal","blank_flag_url":"https:\/\/bonniehuval.com\/wp-content\/plugins\/tip-jar-wp\/\/assets\/images\/flags\/blank.gif","flag_sprite_url":"https:\/\/bonniehuval.com\/wp-content\/plugins\/tip-jar-wp\/\/assets\/images\/flags\/flags.png","default_amount":500,"top_media_type":"featured_image","featured_image_url":"https:\/\/bonniehuval.com\/wp-content\/uploads\/2025\/02\/close-up-glass-with-money-as-tips-scaled-133x200.jpg","featured_embed":"","header_media":null,"file_download_attachment_data":null,"recurring_options_enabled":true,"recurring_options":{"never":{"selected":true,"after_output":"One time only"},"weekly":{"selected":false,"after_output":"Every week"},"monthly":{"selected":false,"after_output":"Every month"},"yearly":{"selected":false,"after_output":"Every year"}},"strings":{"current_user_email":"","current_user_name":"","link_text":"Leave a tip","complete_payment_button_error_text":"Check info and try again","payment_verb":"Pay","payment_request_label":"Bonnie D Huval","form_has_an_error":"Please check and fix the errors above","general_server_error":"Something isn't working right at the moment. Please try again.","form_title":"Bonnie's Tip Jar","form_subtitle":"entirely optional","currency_search_text":"Country or Currency here","other_payment_option":"Other payment option","manage_payments_button_text":"Manage your payments","thank_you_message":"Thank you *so much* for supporting what I offer here!","payment_confirmation_title":"Bonnie D Huval","receipt_title":"Your Receipt","print_receipt":"Print Receipt","email_receipt":"Email Receipt","email_receipt_sending":"Sending receipt...","email_receipt_success":"Email receipt successfully sent","email_receipt_failed":"Email receipt failed to send. Please try again.","receipt_payee":"Paid to","receipt_statement_descriptor":"This will show up on your statement as","receipt_date":"Date","receipt_transaction_id":"Transaction ID","receipt_transaction_amount":"Amount","refund_payer":"Refund from","login":"Log in to manage your payments","manage_payments":"Manage Payments","transactions_title":"Your Transactions","transaction_title":"Transaction Receipt","transaction_period":"Plan Period","arrangements_title":"Your Plans","arrangement_title":"Manage Plan","arrangement_details":"Plan Details","arrangement_id_title":"Plan ID","arrangement_payment_method_title":"Payment Method","arrangement_amount_title":"Plan Amount","arrangement_renewal_title":"Next renewal date","arrangement_action_cancel":"Cancel Plan","arrangement_action_cant_cancel":"Cancelling is currently not available.","arrangement_action_cancel_double":"Are you sure you'd like to cancel?","arrangement_cancelling":"Cancelling Plan...","arrangement_cancelled":"Plan Cancelled","arrangement_failed_to_cancel":"Failed to cancel plan","back_to_plans":"\u2190 Back to Plans","update_payment_method_verb":"Update","sca_auth_description":"Your have a pending renewal payment which requires authorization.","sca_auth_verb":"Authorize renewal payment","sca_authing_verb":"Authorizing payment","sca_authed_verb":"Payment successfully authorized!","sca_auth_failed":"Unable to authorize! Please try again.","login_button_text":"Log in","login_form_has_an_error":"Please check and fix the errors above","uppercase_search":"Search","lowercase_search":"search","uppercase_page":"Page","lowercase_page":"page","uppercase_items":"Items","lowercase_items":"items","uppercase_per":"Per","lowercase_per":"per","uppercase_of":"Of","lowercase_of":"of","back":"Back to plans","zip_code_placeholder":"Zip\/Postal Code","download_file_button_text":"Download File","input_field_instructions":{"tip_amount":{"placeholder_text":"How much would you like to tip?","initial":{"instruction_type":"normal","instruction_message":"How much would you like to tip? Choose any currency."},"empty":{"instruction_type":"error","instruction_message":"How much would you like to tip? Choose any currency."},"invalid_curency":{"instruction_type":"error","instruction_message":"Please choose a valid currency."}},"recurring":{"placeholder_text":"Recurring","initial":{"instruction_type":"normal","instruction_message":"How often would you like to give this?"},"success":{"instruction_type":"success","instruction_message":"How often would you like to give this?"},"empty":{"instruction_type":"error","instruction_message":"How often would you like to give this?"}},"name":{"placeholder_text":"Name on Credit Card","initial":{"instruction_type":"normal","instruction_message":"Enter the name on your card."},"success":{"instruction_type":"success","instruction_message":"Enter the name on your card."},"empty":{"instruction_type":"error","instruction_message":"Please enter the name on your card."}},"privacy_policy":{"terms_title":"Terms and conditions","terms_body":"Some of what I make available here took quite a bit of work to pull together. If you want to use any of the material on my website, please use it with attribution and a link to it. Please avoid putting it on websites with a policy of feeding whatever they get into their AI engines. (Facebook and X are examples of such content hogs.) They would steal my work through you, and neither you nor I would like what they do with it. Thanks!","terms_show_text":"View Terms","terms_hide_text":"Hide Terms","initial":{"instruction_type":"normal","instruction_message":"I agree to the terms."},"unchecked":{"instruction_type":"error","instruction_message":"Please agree to the terms."},"checked":{"instruction_type":"success","instruction_message":"I agree to the terms."}},"email":{"placeholder_text":"Your email address","initial":{"instruction_type":"normal","instruction_message":"Enter your email address"},"success":{"instruction_type":"success","instruction_message":"Enter your email address"},"blank":{"instruction_type":"error","instruction_message":"Enter your email address"},"not_an_email_address":{"instruction_type":"error","instruction_message":"Make sure you have entered a valid email address"}},"note_with_tip":{"placeholder_text":"Your note here...","initial":{"instruction_type":"normal","instruction_message":"Attach a note to your tip (optional)"},"empty":{"instruction_type":"normal","instruction_message":"Attach a note to your tip (optional)"},"not_empty_initial":{"instruction_type":"normal","instruction_message":"Attach a note to your tip (optional)"},"saving":{"instruction_type":"normal","instruction_message":"Saving note..."},"success":{"instruction_type":"success","instruction_message":"Note successfully saved!"},"error":{"instruction_type":"error","instruction_message":"Unable to save note note at this time. Please try again."}},"email_for_login_code":{"placeholder_text":"Your email address","initial":{"instruction_type":"normal","instruction_message":"Enter your email to log in."},"success":{"instruction_type":"success","instruction_message":"Enter your email to log in."},"blank":{"instruction_type":"error","instruction_message":"Enter your email to log in."},"empty":{"instruction_type":"error","instruction_message":"Enter your email to log in."}},"login_code":{"initial":{"instruction_type":"normal","instruction_message":"Check your email and enter the login code."},"success":{"instruction_type":"success","instruction_message":"Check your email and enter the login code."},"blank":{"instruction_type":"error","instruction_message":"Check your email and enter the login code."},"empty":{"instruction_type":"error","instruction_message":"Check your email and enter the login code."}},"stripe_all_in_one":{"initial":{"instruction_type":"normal","instruction_message":"Enter your credit card details here."},"empty":{"instruction_type":"error","instruction_message":"Enter your credit card details here."},"success":{"instruction_type":"normal","instruction_message":"Enter your credit card details here."},"invalid_number":{"instruction_type":"error","instruction_message":"The card number is not a valid credit card number."},"invalid_expiry_month":{"instruction_type":"error","instruction_message":"The card's expiration month is invalid."},"invalid_expiry_year":{"instruction_type":"error","instruction_message":"The card's expiration year is invalid."},"invalid_cvc":{"instruction_type":"error","instruction_message":"The card's security code is invalid."},"incorrect_number":{"instruction_type":"error","instruction_message":"The card number is incorrect."},"incomplete_number":{"instruction_type":"error","instruction_message":"The card number is incomplete."},"incomplete_cvc":{"instruction_type":"error","instruction_message":"The card's security code is incomplete."},"incomplete_expiry":{"instruction_type":"error","instruction_message":"The card's expiration date is incomplete."},"incomplete_zip":{"instruction_type":"error","instruction_message":"The card's zip code is incomplete."},"expired_card":{"instruction_type":"error","instruction_message":"The card has expired."},"incorrect_cvc":{"instruction_type":"error","instruction_message":"The card's security code is incorrect."},"incorrect_zip":{"instruction_type":"error","instruction_message":"The card's zip code failed validation."},"invalid_expiry_year_past":{"instruction_type":"error","instruction_message":"The card's expiration year is in the past"},"card_declined":{"instruction_type":"error","instruction_message":"The card was declined."},"missing":{"instruction_type":"error","instruction_message":"There is no card on a customer that is being charged."},"processing_error":{"instruction_type":"error","instruction_message":"An error occurred while processing the card."},"invalid_request_error":{"instruction_type":"error","instruction_message":"Unable to process this payment, please try again or use alternative method."},"invalid_sofort_country":{"instruction_type":"error","instruction_message":"The billing country is not accepted by SOFORT. Please try another country."}}}},"fetched_oembed_html":false}
{"date_format":"Y\/m\/d","time_format":"H:i","wordpress_permalink_only":"https:\/\/bonniehuval.com\/articles-and-essays\/business\/travel-cost-wisdom\/","all_default_visual_states":"inherit","modal_visual_state":false,"user_is_logged_in":false,"stripe_api_key":"pk_live_519vjE3HhU5m2IX7D6TDyZL7m2F5hu8GsJ5FSMdz5lokbMXEWqc2k7CHmCS7TiMfX1Wt7ZwAJ12HozPb9YoWA65iO00HwDOJx7Z","stripe_account_country_code":"US","setup_link":"https:\/\/bonniehuval.com\/wp-admin\/admin.php?page=tip-jar-wp&mpwpadmin1=welcome&mpwpadmin_lightbox=do_wizard_health_check","close_button_url":"https:\/\/bonniehuval.com\/wp-content\/plugins\/tip-jar-wp\/\/assets\/images\/closebtn.png"}
Leave a Reply