Companies in the U.S. will spend $111.7 billion to send employees on over 117 million business trips in 2019.
Business travel costs have increased steadily in recent years and this trend is expected to continue in 2020. Runzheimer performed a study to see how business trip costs vary around the U.S. and which is Most Priciest US Business Travel Destination. top business travel destinations
The report from relocation company Runzheimer found that Hawaii has the highest business travel costs of any US state, followed by Massachusetts, California, Vermont, Washington, Rhode Island, New Jersey, New Hampshire, Connecticut, and New York.
Most Priciest US Business Travel Destination
New York, Boston, San Francisco, Seattle and San Jose were the most expensive cities for business travel, while Denver and Cleveland were notably cheaper.
The most expensive US business travel destinations can be as high as 55 per cent above the $1,293 average cost of a business trip, according to Runzheimer.
The report, prepared by travel expense management firm Motus, found that business travel costs have increased steadily in recent years and predicts that the trend will continue in 2020.
Airfare is anticipated to increase between 0.5 and 1 per cent, ground transportation is expected to rise 2 per cent, and hotel prices are predicted to jump 2 to 3 per cent, the report said.
The report noted that airfare only accounts for about a third of the cost of a business trip, while 28 per cent goes to lodging, 19 per cent goes to meals, and 18 per cent goes to ground transportation.
Average business travel trip cost: $1,293 top business travel destinations
The average domestic U.S. business trip lasts about three days. Many people think of airfare as the major business travel expense, but it only makes up 34% of a typical business trip cost. Lodging, meals and ground transportation make up most of a business traveler’s expenses today. This is expected to remain the same through 2020.
While on Hawaii, do not miss:
MOST EXPENSIVE CITIES FOR BUSINESS TRAVELERS
Prices can vary widely between cities themselves and the areas that surround them. Add up the
costs of lodging, ground transportation and meals for a three-day/two-night trip in a major city.
It’s likely to cost up to 55% more than the average destination. Taking a city-by-city approach is
the most accurate way to analyze business travel expenses.
New York City, San Francisco and Honolulu have gained deserved reputations for being expensive areas. But some of the most expensive cities are surprising. Many of these cities are expensive for business travel because of high hotel costs, but the reasons behind these rankings are not always the same.
For example, New York City has higher meal and hotel costs, but below average car rental costs. Boston has above-average costs for car rental, meals and hotels. Spending a little extra on a hotel may be a good investment – hotel experience is a big piece of employee trip satisfaction.