What is a workation?

Workation

A workation is a modern concept that combines traditional work routines with the freedom and relaxation of vacationing. It emerged from the adaptability of the modern digital era, where connectivity and technology allow you to work from anywhere you have internet access—an option available to an estimated 92 million people in the U.S. alone. With a workation, you can experience different cultures, visit local attractions, or enjoy a new and unique environment—while still working. This article explores what workations really mean, their benefits for both employees and employers, and how to plan one that balances productivity with personal enrichment.

Want facts and figures on how global employment can impact your business? Check out Oyster's Global Employment Report.

What is a workation

A workation combines work and vacation—you do your regular job from a new, inspiring location instead of your usual workspace. Unlike traditional vacations where you disconnect completely, workations let you stay productive during work hours while exploring a new place in your free time.

What are the benefits of a workation?

So, what are the actual benefits of taking a workation? Here are the key advantages:

Change of scenery: A new environment can boost both productivity and creativity
Burnout prevention: Breaking routine helps re-energize your career and mental health, as workers in their preferred location are more likely to report good or excellent mental health.
Cultural immersion: Longer stays let you deeply explore different cultures and perspectives
Better work-life balance: You maintain professional responsibilities while prioritizing personal growth, addressing a common issue where a third of workers feel they don't have enough flexibility at work to maintain balance.

Types of workations

Workations aren't one-size-fits-all. They can be adapted to fit different needs, timelines, and work styles. Here are a few common types:

Short-term workation: A brief trip, often for a week or two, to a nearby city or domestic location. It's a great way to test the concept without long-term commitment.
Long-term workation: An extended stay in a new location, lasting a month or more. This allows for deeper cultural immersion and is popular with digital nomads.
Team workation: A company-organized retreat where an entire team works together from a shared location. This can help foster collaboration and team bonding in a distributed workforce.
Solo workation: An individual trip planned by an employee to work from a location of their choice, focusing on personal well-being and productivity.

Workation statistics

Last year, Passport Photo Online surveyed over 1,000 Americans to better understand their thoughts on workations. Here are some of the primary takeaways:

67% of Americans took a workation to recharge mentally and emotionally
86% of respondents "agree" or "strongly agree" that a workation boosted their productivity
81% of respondents said that a workation helped them become more creative
69% are less likely to quit their job after taking a workation
83% "agree" or "strongly agree" that a workation helped them better cope with burnout

Workation trends

Workation trends are reshaping how we think about work and location. Here's what's driving the movement:

Destination infrastructure: Cities and rural areas are building remote-friendly amenities like coworking spaces and high-speed internet to attract digital workers.

Hospitality packages: Hotels and service providers now offer all-in-one workation deals with accommodations, workspaces, and essential tech setup.

Government support: Many countries offer digital nomad visas to attract remote workers for longer stays.

Corporate policies: Companies are implementing flexible workation policies, recognizing their impact on employee morale and retention, especially since workers not in their preferred location are more likely to report a desire to quit.

How to plan a workation

A successful workation requires a bit of planning. It's not just about packing a laptop and leaving. Here are a few key steps to consider:

Set clear goals: What do you want to achieve? Whether it's finishing a big project, exploring a new city, or simply recharging, having a clear purpose helps structure your trip.
Choose your destination wisely: Consider factors like time zone differences, cost of living, and internet reliability. A two-hour time difference might be manageable, but an eight-hour one could disrupt team collaboration.
Communicate with your team: Let your manager and colleagues know your plans, your working hours, and your availability. Transparency is key to maintaining trust and productivity.
Prepare your tech: Ensure you have all the necessary equipment, from chargers and adapters to a reliable VPN for secure internet access.

Workation considerations for employers

Thinking about allowing workations at your company? For People Ops leaders, workations are a double-edged sword—they boost morale and retention but come with compliance risks.

The solution? Start with a formal workation policy that covers:

Tax implications: An employee working from another country for an extended period can create tax liabilities for both the individual and the company.
Immigration and visas: Working on a tourist visa is often illegal. Your policy should clarify what types of visas are required for international workations.
Data security: Outline requirements for using secure networks and company equipment to protect sensitive information.

By creating a clear framework, companies can offer the flexibility employees want while protecting the business from compliance headaches.

Workation destinations

A workation can take you anywhere that has reliable internet access. From another part of your home city to the opposite side of the globe, you should consider all your options. There are a few essentials to keep in mind when deciding on a location:

Reliability of internet access
Proximity to your primary residence
Cost of living
Local business laws

Here are some of the most popular workation destinations:

Chiang Mai, Thailand
Buenos Aires, Argentina
Bengaluru, India
Medellín, Colombia
Kaohsiung, Taiwan
Lima, Peru
Ho Chi Minh City, Vietnam

Read our "top workation locations" blog post for more location ideas and tips for determining whether a workation is right for you. This is just a tiny sampling of what the world offers—keep an open mind as you research and compare all your options.

Building a global workforce that thrives anywhere

The workation movement reflects a bigger shift in how we think about work and life balance. It proves that productivity and well-being don't have to compete—they can actually strengthen each other, as research shows that fully remote workers are globally the most likely to be engaged at work.

Ready to embrace this new era of work? Whether you're planning workation policies or building a fully distributed team, managing global talent requires the right partner. Oyster's platform handles the complex stuff—international hiring, payroll, and compliance—so you can focus on what matters most: building great teams. Start hiring globally and discover what's possible when talent has no borders.

Download Oyster's free Employee Expectations Report 2022

FAQ’s

Is “workation” different from “workcation” (and how do you pronounce it)?

They’re the same idea. “Workation” is more common in HR and policy language, while “workcation” shows up a lot in travel content and on forums. Pronunciation is typically “work-AY-shun,” like “vacation,” and the spelling you choose matters less than being clear in your policy and approval process about what is—and isn’t—allowed.

What are the biggest legal risks for employers when someone takes an international workation?

Most companies fixate on Wi-Fi and forget the real risk: you can accidentally create compliance exposure by letting an employee work from another country without guardrails. The big three are immigration status (working on a tourist status is often not permitted), tax and payroll exposure (an extended stay can trigger individual tax residency questions and, in some cases, employer reporting obligations), and employment-law complexity (local rules can apply based on where work is performed, even temporarily). The safest approach is to treat international workations as a compliance workflow, not a perk, with clear duration limits, pre-approval, and a documented record of where and when work will be performed.

How long is “too long” for a workation before taxes or compliance get complicated?

There isn’t one universal threshold because tax residency tests, payroll obligations, and corporate “permanent establishment” risk vary by country, role, and facts on the ground. Here’s the practical rule: the longer the stay and the more “business-like” the activity (client meetings, revenue-generating work, managing local staff), the more your risk increases. If you want to allow longer workations, you’ll typically need a formal review that covers immigration permissions, tax exposure, and what activities the employee will perform in-country—otherwise you’re guessing, and guessing is expensive.

What should a solid workation policy include beyond “get manager approval”?

If you want the policy to actually protect the business (and not just look good in the handbook), it should define eligibility, the allowed destinations, and the maximum duration, and it should spell out a pre-approval workflow that includes HR and, when needed, legal or finance. It also needs enforceable requirements around data security, equipment use, and working hours expectations, plus clarity on who pays for what if something goes wrong (flight changes, medical issues, coworking fees, or emergency return travel). Finally, include consequences for unapproved location changes—because the “I just extended a week” scenario is where compliance surprises show up.

What’s a “workation package,” and what should employers watch out for?

A workation package is usually a travel or hospitality bundle that includes lodging, a workspace setup, and sometimes coworking access, community events, or local support. They can be great for employee experience, but employers should be cautious about treating them like a simple benefit. If the company is paying, you may need to think about taxable benefits, reimbursement rules, and whether the arrangement creates expectations of availability outside normal working hours. From an HR perspective, the biggest pitfall is offering a shiny package without aligning it to your workation policy, security requirements, and location approvals.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.