Estimating the average cost of business travel: what is a reasonable cost for a business trip?
Average cost of business travel by region
Travel expenses vary significantly across the world. You may be surprised to learn which countries spend the most on business travel, and which are the most expensive for business travelers.Business travel costs in Europe, the Middle East, and Africa (EMEA)
Europe, the Middle East, and Africa (EMEA) recorded an average ticket price of $785 in 2023.Germany is the largest market for business travel in EMEA. In 2024, the average business traveler in Germany spent €158 per day, according to Statista.Since the EMEA region includes dozens of countries with vastly different economies, business travel costs vary widely. Some of EMEA’s most expensive cities for business trips include Geneva, Stockholm, and Stavanger (Norway), while relatively cheaper cities include Dubai, Amsterdam, and Helsinki.Business travel costs in the Americas (outside the US)
Outside the US, business travel costs are fairly low in the Americas. However, the most expensive cities for business travel in the Americas include Rio de Janeiro, Calgary, and Sao Paulo. Some of the cheapest cities are San Jose (Costa Rica), San Salvador, and Guatemala City.How to budget for business travel: understand and track corporate travel costs
Now you have a better idea of the average cost of business travel in different parts of the world. But how can you apply this directly and create a realistic business trip budget for your company?The costs of corporate travel and small business travel depend on different factors. One of the simplest ways to reduce costs from corporate travel is to explore one of the many small business travel services on the market.Here’s what to keep in mind when budgeting for business trips:Types of business travel expenses
1. Accommodation: Will travelers be staying in high-end, mid-range, or budget hotels? What kind of hotel prices do you expect? Would you also consider alternative accommodation options such as Airbnb?When booking accommodation, you’ll need to consider:- Price point
- Proximity to destination
- Amenities (such as internet, printing, 24-hour reception)
- Comfort of travelers
- Privacy (will individuals have to share hotel rooms or other spaces?)
- Safety
2. Transportation: How will travelers reach their destination city (plane, car, train, bus?) How much should you budget for airfare, etc.? Once they’ve arrived will they need ground transportation such as rental cars, taxis, or public transit?When deciding which types of transportation to use, consider:- Price point
- Time spent in transit
- Commitment to sustainability goals
- Comfort and safety of travelers
3. Food:- How many meals will travelers need?
- How expensive is food in the destination city?
- Will travelers have additional food and beverage expenses (for example, business dinners with clients?)
4. Insurance and Safety:- Do all travelers have health insurance, or will they need temporary travel insurance?
- Does the destination carry an elevated health or safety risk that might incur additional healthcare expenses (e.g. private security, pre-trip vaccines, or medications)?
- What is your employee travel policy on travel mishaps and emergencies (such as missing a flight and having to book another one last minute?)
5. Visas:Do any travelers need a visa or travel permit? What are the costs of procuring these?6. Additional Expenses:- Conference and other event fees
- Paid internet (e.g. on trains or in hotels)
- Roaming charges from mobile providers (if using a company phone)
If employees will be traveling internationally, don’t forget to factor in the foreign exchange rate when calculating total costs.Ways to reduce business travel costs
As you can see, there are many factors involved in planning business travel. But if your travel booking tools (or travel management company) don’t offer expense reports, you might not know how much you’re currently spending, and how business travel costs are impacting your bottom line.If you want to get a better handle on your travel budget, reimbursements, and expense management, it’s a good time to upgrade to a dedicated business travel management software. With TravelPerk’s real-time reporting feature, you’ll have a complete overview of all your costs.?)
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