B-Leisure – embrace it or clamp down?

As we hit high summer, Sebastian Vanhecke, Chief Product Officer at expense management firm Rydoo, shares how businesses can reap the rewards of offering employees more flexible travel policies, whilst protecting the company against the potential risks.

With hybrid work models and work-from-anywhere policies becoming the norm, employees who travel for work also expect some perks. B-leisure, a blend of business and leisure travel, sees employees tacking personal holiday days onto business trips, often staying a little longer at the destination or arriving earlier to explore. While some companies view it as a liability, others see untapped potential.

Embracing the benefits 

While it may sound counterintuitive, b-leisure can actually save your company money. By allowing employees to fly out earlier or return later, often outside peak business travel time, companies can benefit from cheaper flight prices. For a company with hundreds of employees travelling a lot of the time, for example, big management consultancy firms, this can drive meaningful cost savings.

And hotels have cottoned on. Some big brands have introduced packages that offer discounts for extended stays that blend business and personal use, driving further savings for businesses. Beyond the financial aspect, b-leisure policies can lead to happier, more loyal employees. In a talent market dominated by millennials and Gen Z, benefits that support flexibility and autonomy are key to attracting and retaining top performers.

B-leisure reinforces trust between employees and managers, helps achieve a better work-life balance, and adds a personal incentive to business travel. Happier employees are more productive, and more likely to stay.

Driving good corporate citizenship 

B-leisure has broader benefits too. Firstly, there is a benefit to the local economy. Boosting tourism and increasing the time and money that an employee spends in a particular destination, particularly free time when they are not working and can eat out and visit local attractions, has a positive impact on the local economy.

What’s more, if employees can add a few extra days in the same destination, they end up taking fewer flights, which is a small but meaningful step toward reducing carbon footprints and supporting their company’s ESG goals.

Avoiding the risks to your business 

In order to embrace the benefits that b-leisure can bring, companies must be aware of and mitigate any risks to the business as a result, from blurred expense lines to compliance issues, companies need to know what they could be dealing with.

Our experience shows that communication is key, along with robust policies and smart tools.

The first line of defence is a well-defined expense policy that explicitly addresses b-leisure scenarios. Companies should clearly communicate what expenses are covered by the business, such as flights, accommodation, and meals during the work portion of the trip, and what falls under the employee’s personal responsibility. For example, if an employee chooses to extend their stay for leisure, it should be made clear whether they are responsible for additional accommodation or food costs.

Setting these expectations in advance avoids confusion and protects both the employer and employee from misunderstandings.

Real-time expense tracking can be an invaluable tool 

Waiting until the end of a trip to review expenses is neither effective nor efficient. Businesses should implement real-time expense tracking tools that allow for immediate reconciliation of corporate card spending. This not only reduces the administrative burden but also helps flag any unusual activity early, before it becomes a larger issue.

Real-time visibility gives finance teams the control they need without micromanaging employees, encouraging accountability while also building trust.

Finally, embrace AI to really get the most out of b-leisure. Modern expense platforms equipped with AI and automation are key to managing b-leisure at scale. These tools can detect out-of-policy claims, automatically separate business and personal costs, and even offer employees proactive suggestions to stay compliant. By minimising manual processes and reducing opportunities for error or fraud, these platforms streamline the experience for everyone involved.

Embrace the opportunity, not just the trend

B-leisure is more than a passing travel fad; it’s a reflection of the evolving workplace. With the right policies and systems in place, your company can embrace it as a way to save costs and boost morale. Clamp down too hard, and you risk missing out on a rare win-win for both business and people.

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