The average daily cost for meals, car rentals and hotels for business travel in the U.S. rose to $325 per day according to the recently released 2018 Corporate Travel Index compiled by Business Travel News. The most expensive city is no surprise to many as New York City, which has the highest priced city per diems in the U.S. at a whopping $609 a day, which is $100 a day higher than it was just 3 years ago. San Francisco came in second at $567, Boston $515, Washington D.C. $465, and Seattle rounds out the top five at $447. Biloxi, MS was the lowest priced per diem of the top 100 cities at $246 a day and Omaha came in at #48 at $308 a day. For a complete look at the 2018 Corporate Travel Index please CLICK HERE.
Every time a business sends a traveler on a business trip it costs $1,425 –
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 $325 a day and considering the average business trip lasts 3 days, this means that $975 will be spent on meals, car rental, and hotels, plus an average of $450 for an airline ticket for a total of $1,425 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 $1,425 of value out of this trip?”
Hotel costs average of $180 a night –
The 2018 Corporate Travel Index study also showed that the average daily hotel cost in the top 100 U.S. cities was $180 which includes taxes. New York City was at the top at $392 followed by San Francisco $387, Boston $344; Washington D.C., $325, and Chicago at $279. Three cities that our company does a lot of work with include: Omaha, Nebraska, which came in at; #63 at $155 a night, St. Louis came in at #42 at $172 a night, and Dallas came in at #31 at $188 a night. The average taxes you will pay per night is an amazing $23.30. 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, multiply that by $180 per night which equals a total hotel cost of $540. 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 2018 Corporate Travel Index. Car rental prices actually have stayed flat the last three years. Taxes and fees now make up an amazing 36% of the total car rental prices. That means you pay an average of $12.44 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 2018 Corporate Travel Index says that business travelers spend an average of $15.86 on breakfast, $25.07 on lunch, and $57.16 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 which 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.
FINAL CALL: Join my wife Marie and I as we travel to Iceland, Norway, and Sweden!
My wife Marie and I will be hosting the exceptional “Nordic – Naturally” tour this July, a true bucket-list experience. We have 4 seats left, so do not hesitate to sign up and join us as we visit some of our favorite places in the Nordic region, including Reykjavik, Oslo, Bergen, and Stockholm. Call our friendly Group Department at 402-435-8888 or email me at email@example.com for more details and to sign up. To see the full tour program CLICK HERE – do not wait, travel while you can!
Need information on any of the above?
Call our friendly travel advisors …
Lincoln – 402-435-8888 Toll-free 800-737-0582