The average daily cost for meals, car rentals, and hotels for business travel in the U.S. is now $312 per day according to the recently released 2019 Corporate Travel Index compiled by Business Travel News. The most expensive city is no surprise to many as New York City. It has the highest priced city per diems in the U.S. at a whopping $645 a day, up almost $36 from last year. San Francisco came in second at $534; Boston $489; and San Jose, CA ($446) jumped in front of Washington D.C. ($429) to round out the top five.. Biloxi, MS was the lowest priced per diem of the top 100 cities at $228 a day and Omaha came in #53 at $290 a day. For a complete look at the 2019 Corporate Travel Index please CLICK HERE.
Every time a business sends a traveler on a business trip it costs $1386 –
Many businesses focus their attention on the cost of an airline ticket ($450 average) when they figure out what the cost is to send a business traveler on a business trip. Using the per diem cost of $312 a day and figuring the average business trip lasts 3 days means that $936 will be spent on meals, car rental, and hotels plus an average of $450 for an airline ticket for a total of $1386 every time someone gets on an airplane for a business meeting. The next time a supervisor sends someone on a business trip you need to ask yourself, “Will we get more than $1386 of value out of this trip”?
Hotel costs an average of $170 a night –
The 2019 Corporate Travel Index study also showed that the average daily hotel cost in the top 100 U.S. cities was $170 which includes taxes. New York City was at the top at $422 followed by San Francisco $362, Boston $318; San Jose, CA, $283 and Washington D.C., $272. Three cities that our company does a lot of work in were Omaha, Nebraska at #67 at $143 a night: St. Louis at #36 at $173 a night; and Dallas at #26 at $190 a night. The average taxes you will pay per night is an amazing $23. Looks like the government has found the goose that lays the golden egg.
Think about it! It costs more for your hotel room than your airline ticket –
Once again many companies focus the majority of their attention on trying to lower the cost of the airline ticket for their business travelers when the average hotel cost is now more than your airline ticket. Take a 3 night stay times $170 a night equals a total hotel cost of $510. Compare that to the $450 cost for the airline ticket. If a company wants to get serious about managing the cost of their business trips then hotel cost should be their number one priority.
Average car rental cost is $47 a day –
This is one of the big bright spots in the 2019 Corporate Travel Index. Car rental prices actually have stayed flat for the last four years. Taxes and fees now make up an amazing 36% of the total car rental prices. That means you pay an average of $16.92 in taxes and fees per day for every car rental.
Business meals now average $94 a day –
One of the hardest areas to control costs is in the area of meals on the road. This seems a little high to me but I also realize this can go much higher if a business traveler has to entertain on the road.
Now I must do a little bragging –
Executive Travel is excited that we are one of the premier companies today that businesses engage to help them build a comprehensive travel management plan that implements systems that can dramatically reduce the cost of your travel expenses. If saving money spent on business travel is part of your job you should call me at 402-435-8888. You will be amazed at how much money we can save your company and how easy we can make the system work for you.