What is the average cost of business travel?

If you’re responsible for managing corporate travel expenses, you may be wondering about the average business travel cost per day. How should you budget for your travel program, and how can you judge if business travel spending is reasonable?

There’s no simple way to measure the average business trip cost.; business travel costs can vary widely depending on each travel destination and the duration of the stay. However, there are certain factors you can consider to help give you an idea of average travel expenses for a small business.

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 the US

According to Statista, total US travel spending grew to 1.13 trillion U.S. dollars in 2024, and that figure is forecast to reach 1.22 trillion by 2026. The average US business trip costs $1,446, while it costs an average of $354.55 for domestic trips in most major American cities (including California and Massachusetts). The average cost of an international business trip is around $2,600.

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 Asia Pacific Region

China is one of the biggest global players in business travel with a predicted business tourism spend of 500 billion U.S. dollars by 2027.

Within the Asia Pacific region, some of the most expensive cities for business travel include Hong Kong, Singapore, and Sydney. Daily costs in Hong Kong average $520, while average daily costs in Singapore are $515.

A few of Asia’s cheaper cities include Bangkok, Ho Chi Minh City, and Jakarta.

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.

Optimize business trip reporting with our template. Make corporate travel paperwork a breeze.

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.

Discover how TravelPerk helped Netcentric efficiently organize and streamline travel logistics for employees coming from multiple cities across Europe for a large-scale event!

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.

How TravelPerk makes tracking travel spend simple

The only way to truly stay on top of your business travel budget is with access to real-time reporting. With TravelPerk's sophisticated reporting tools, you can break down costs by employee, team, travel type, average trip cost, recoverable VAT, and more.

You can also use our dynamic budgets feature to set more accurate and realistic caps on each travel and accommodation vertical (flight costs, hotel costs, etc.) In the travel industry, prices and hotel rates can vary significantly as travel trends change throughout the year, but this tool is designed to help travelers get the best deal they can at any given time.

You can also reduce business travel costs and improve your expense management by having the right travel policies in place and tightening up your business travel approval process.

Fortunately, the ROI on business travel tends to be fruitful: In 2024 alone, customer meetings returned up to $19.99 for every dollar spent, while conferences and trade shows returned $4 to $5.99 per dollar.