Why you need to manage employees combining business and personal travel

The rise of remote work and changing employee expectations has fundamentally transformed corporate travel. What once were clear-cut business trips have evolved into complex journeys that blend professional obligations with personal experiences. This shift toward dual-purpose or "bleisure" travel presents significant challenges for organisations that must now navigate uncharted territory in travel management, risk assessment, and regulatory compliance.
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​Understanding the New Travel Landscape
​The traditional model of corporate travel—where employees departed for business, conducted their work, and returned home—has given way to a more fluid approach. Today's travellers extend business trips for personal reasons, combine conferences with family visits, or incorporate leisure activities into their business trips. The widespread adoption of remote work has further blurred these boundaries, as employees can now work from virtually anywhere, making it difficult to distinguish between business and personal travel.
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​This evolution reflects broader changes in workplace culture and employee expectations. Modern workers increasingly value flexibility and work-life integration, viewing travel as an opportunity to explore new destinations while fulfilling professional responsibilities. However, this shift creates complex challenges for organisations that must balance employee satisfaction with duty of care, financial responsibility, and regulatory compliance.
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​Risk Management: The Duty of Care Challenge
​The most pressing concern for organisations managing dual-purpose travel is maintaining duty of care—the legal and ethical obligation to ensure employee safety and well-being. When employees extend business trips for personal reasons or work remotely, organisations face unprecedented challenges in understanding where their people are and ensuring their safety.
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​Consider a scenario where an employee travels to Thailand for a conference but extends their stay for a holiday. If a natural disaster strikes or political unrest emerges, the organisation needs to know whether their employee is still in the country and requires assistance. Without proper tracking and communication protocols, companies may struggle to locate and support their employees in this type of situation.
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​This challenge is compounded by the fact that employees on dual-purpose trips may venture into areas not originally planned for business—regions that might carry different risk profiles or lack the same level of infrastructure. Organisations must therefore implement travel tracking systems that capture both the business and personal components of these journeys, ensuring they can fulfill their duty of care obligations regardless of the trip's purpose.
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​The consequences of inadequate risk management can be severe, ranging from employee endangerment to legal liability and reputational damage. Organisations that fail to track and support employees on dual-purpose trips may find themselves unable to respond effectively to crises, potentially facing regulatory scrutiny, reputational damage and legal action.
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​Insurance Coverage: The Protection Gap
​Insurance coverage represents another area of concern. Corporate travel insurance policies are typically designed to cover employees during business-related activities, but the coverage may not extend to personal activities undertaken on the same trip. This creates potentially dangerous gaps in protection that could leave both employees and organisations financially exposed.
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​When an employee combines business and personal travel, determining which activities are covered under corporate insurance becomes complex. If an employee suffers an injury while participating in personal activities during a business trip, the organisation's insurance may not provide coverage, leaving the employee to rely on personal insurance or bear the costs themselves. This situation becomes even more complicated when employees work remotely, as standard corporate policies may not cover extended stays or activities outside the scope of traditional business travel.
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​The financial implications can be substantial. Medical emergencies abroad can cost tens of thousands of dollars, and if corporate insurance doesn't cover personal activities, organisations may face pressure to cover these costs anyway to maintain employee relations and avoid negative publicity. Additionally, organisations may find themselves liable for damages or injuries that occur during the personal portion of dual-purpose trips, particularly if they haven't established clear policies addressing this.
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​To meet these challenges, organisations must work closely with their insurance providers to understand policy limitations and explore options for extended coverage. This might involve purchasing additional insurance products specifically designed for dual-purpose travel or negotiating policy modifications that provide clearer coverage for these trips.
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​Tax Implications: Fringe Benefits and Compliance
​The tax implications of dual-purpose travel present another layer of complexity that organisations must navigate carefully. When employees combine business and personal travel, portions of the expenses may be considered taxable fringe benefits, potentially creating significant tax liabilities for both the organisation and the employee.
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​Fringe benefits tax (FBT) applies when an organisation provides benefits to employees or their associates in respect of employment. In the context of dual-purpose travel, this could include situations where the organisation pays for flights that enable personal travel, accommodation that exceeds business requirements, or other expenses that provide personal benefit to the employee. The tax treatment of these expenses depends on various factors, including the primary purpose of the travel, the proportion of business versus personal activities, whether the personal proportion of the trip is in a different location, and the specific arrangements made by the organisation.
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​The complexity increases when employees work remotely from international locations. If an employee decides to work from a vacation destination for an extended period, organisations must determine whether this constitutes business travel (and therefore a legitimate business expense) or personal travel with incidental work activities (potentially creating a fringe benefit). The distinction has significant tax implications and requires careful documentation and analysis.
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​Organisations must also consider the tax implications for employees. When travel expenses are treated as fringe benefits, employees may face additional tax obligations, potentially reducing the attractiveness of dual-purpose travel arrangements. This creates a delicate balance between providing flexible travel options and managing tax compliance.
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​Working Remotely: Muddying the Waters
​The widespread adoption of remote work has significantly complicated the landscape of corporate travel management. As employees become accustomed to working from home, the distinction between business and personal travel has become increasingly blurred. Employees may now work from holiday destinations, extend business trips to work remotely from appealing locations, or travel for personal reasons while maintaining their work responsibilities.
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​This shift challenges traditional concepts of what constitutes business travel. If an employee travels to a beach resort for personal reasons but continues to work their regular hours and attend virtual meetings, how should organisations classify this travel? The answer has implications for expense reimbursement, insurance coverage, tax treatment, and duty of care obligations.
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​Remote work has also created new expectations among employees. Many workers now view location independence as a standard employment benefit, expecting organisations to support their desire to work from anywhere. This expectation, while understandable, creates operational challenges for travel management programs that were designed around traditional business travel patterns.
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​Organisations must therefore develop new frameworks for managing remote work travel that address these blurred boundaries while maintaining compliance and risk management standards. This might involve creating specific policies for remote work travel, implementing technology solutions that track employee locations regardless of activities undertaken, or developing new insurance and tax strategies that account for the realities of modern workplace arrangements.
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​Developing Effective Management Strategies
​Successfully managing dual-purpose travel requires organisations to develop comprehensive strategies that address risk, insurance, tax, and compliance considerations. The key is creating clear policies that provide flexibility while maintaining appropriate oversight and protection.
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​Organisations should start by establishing clear definitions of what constitutes business travel, personal travel, and dual-purpose travel. These definitions should address various scenarios, including extended business trips with personal components, remote work from personal travel destinations, and trips that combine multiple purposes. Clear definitions provide the foundation for consistent application of policies and procedures.
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​Technology plays a crucial role in managing dual-purpose travel effectively. Organisations need systems that can track employee locations regardless of activities undertaken on the trip, capture detailed information about trip components, and provide real-time visibility into employee whereabouts. This technology should integrate with existing travel management systems while providing additional capabilities for managing the complexities of dual-purpose travel.
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​Policy development should address approval processes for dual-purpose travel, expense allocation between business and personal components, insurance requirements, and reporting obligations. Organisations should also establish clear communication protocols that ensure employees understand their responsibilities and the organisation's expectations when combining business and personal travel.
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​Training and education are essential components of any dual-purpose travel management strategy. Employees need to understand the implications of dual-purpose travel, including insurance coverage limitations, tax obligations, and safety considerations. Travel managers and finance teams also require training to effectively implement and manage these policies.
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​The Path Forward
​As workplace flexibility continues to evolve, organisations must adapt their travel management strategies to address the realities of dual-purpose travel. The stakes are high—failure to properly manage these arrangements can result in employee endangerment, financial exposure, regulatory non-compliance, and reputational damage.
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​Success requires a holistic approach that balances employee expectations with organisational responsibilities. This means investing in appropriate technology, developing comprehensive policies, securing adequate insurance coverage, and maintaining robust risk management practices. Organisations that take proactive steps to address these challenges will be better positioned to support their employees while protecting their own interests.
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​The future of corporate travel will likely see continued blurring of business and personal boundaries. Organisations that recognise this reality and develop appropriate management strategies will create competitive advantages in employee satisfaction and retention while maintaining the financial and risk management controls necessary for sustainable operations. Those that fail to adapt risk being left behind in an increasingly complex and challenging travel management environment.
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​Managing dual-purpose travel is not just about compliance—it's about creating frameworks that enable organisations to thrive in the modern workplace while ensuring the safety, satisfaction, and support of their most valuable asset: their people.