U.S. cities: The most and least expensive for business travel

A stagnant economy and technological innovation have curbed business travel on the whole; but when face-to-face meetings are necessary, companies can dramatically reduce travel costs by carefully selecting the destination.

The US Travel Association reported that American companies spent upside of $200 billion on business travel in 2008 – and that was during the height of the financial crisis. But these costs are well spent; according to a study by Oxford Economics USA, for every dollar spent on business travel, companies generate $12.50 in revenue and $3.80 in new profits. The study went on to report that slowing business travel could potentially result in a loss of company profits. Another study conducted by ISH Global Insight found similar results, concluding that for every dollar spent on business travel, companies would on average make $15 in profits.

But despite the upside companies realise from business travel, the global recession has caused companies to cut travel-related expenses. According to the US Travel Association, between 2008 and 2009 business travel expenditures dropped by about $29 billion to $215 billion.

Recession-related cuts are expected to decline as the economy stabilises, but companies will likely continue to scale back on business travel as technology shrinks the world and virtual meetings replace the need for many in-person meetings.

But even in the face of an unstable economy, and despite technological advancements that serve as cost-efficient substitutes for face-to-face meetings, there remain instances in which travel is necessary. For those times when face-to-face meetings are crucial – conferences, networking events, sales meetings or meetings to pitch a potential client or partner – there are still ways for companies to cut down on business travel costs.

Expenses differ from city-to-city. The cost of a weekend business trip to Myrtle Beach, SC, for example, varies vastly from the cost of attending a conference or trade event in New York City.

For the autumn back-to-work season, here are the top 10 most and least expensive U.S. cities (per diem) according to the US General Services Administration:

Most Expensive Cities For Business Travel in Fall (Per Diem)

1. Manhattan, New York

Lodging rate: $296

Meals & incidental expenses rate: $71

Total: $340

2. Washington, D.C.

Lodging rate: $211

Meals & incidental expenses rate: $71

Total: $282

3. Boston/Cambridge, Massachusetts

Lodging rate: $206

Meals & incidental expenses rate: $71