A fixed expense is a regular, predictable cost in corporate travel that does not change with trip volume, such as travel insurance or annual service fees.
What is fixed expense? In corporate travel, it’s a cost that remains constant regardless of how many trips are taken. Examples include annual travel management company (TMC) retainers, subscription fees for booking tools, contracted airport lounge access, or fixed-rate service agreements.
These expenses are easier to budget because they don’t fluctuate with travel activity. Understanding fixed expenses helps travel managers separate them from variable costs, improve forecasting accuracy, and make informed decisions about resource allocation in a corporate travel program.