New business travel study says average per diem is now $319/day

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The average daily cost for meals, car rentals, and hotels for business travel in the U.S. rose to $319 per day according to the recently released 2016 Corporate Travel Index compiled by Business Travel News.. For the third straight year San Francisco edged New York City as having the highest priced city per diems in the U.S. at a whopping $547 a day followed by New York City $523; Boston $502; Seattle $418 and Washington D.C at $411. Norfolk, VA was the lowest priced per diem of the top 100 cities at $248 a day and Omaha came in #59 at $295 a day. For a complete look at the 2016 Corporate Travel Index please CLICK HERE.

Every time a business sends a traveler on a flight it costs $1,444 –

Many businesses focus their attention on the cost of an airline ticket, ($487 average in 2015) when they figure out what the cost is to send a business traveler on a business trip. Using the per diem cost of $319 a day and figuring the average business trip lasts 3 days mean that $957 will be spent on meals, car rental and hotels plus an average of $487 for an airline ticket for a total of $1,444 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 $1,444 of value out of this trip”?

Hotel cost increases 5.6% with average of $172 a night –

The 2016 Corporate Travel Index study also showed that the average daily hotel cost in the top 100 U.S. cities increased 5.6% in 2015 resulting in an average of $172 per night. San Francisco was at the top at $370 followed by Boston $344; New York City $327; Seattle, $253; and San Jose at $246. Three cities that our company does a lot of work in were Omaha, Nebraska came in at #62 at $152 a night: St. Louis came in at #43 at $167 a night; and Dallas came in at #31 at $183 a night. I always expect San Francisco and New York to be at the top of the list of hotel costs. Usually I think of Washington D.C. as having high hotel costs however they are almost 25% lower than the top two cities. The average taxes you will pay per night is an amazing $22.13. Looks like 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 $172 a night equals a total hotel cost of $516. Compare that to the $487 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 2016 Corporate Travel Index. Car rental prices actually stayed flat in 2015. Taxes and fees now make up an amazing 34% of the total car rental prices. That means you pay an average of $12 in taxes and fees per day for every car rental.

Business meals now average $98 a day –

One of the hardest areas to control costs is in the area of meals on the road. The 2016 Corporate Travel Index says that business travelers spend an average of $16.06 on breakfast, $25.17 on lunch, and $57.39 on dinner in the top 100 cities. 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.

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