How Much Do Companies Spend on Business Travel in 2026?

A company books what looks like a simple work trip. A flight, a few nights in a hotel, meals, and taxis. On paper, it seems manageable, but then the receipts come in, and the total is far higher than expected.

Business travel costs add up fast. Flights shift in price, hotels vary by city, and meals, transport, and last-minute changes push the total even higher. Most people underestimate the real cost of a single trip.

This guide breaks down how much companies spend on business travel using real data and clear examples. You will see what a typical trip costs, what drives those costs, and where companies find savings.

How much do companies spend on business travel?

Business travel is a massive global expense. In 2026, total spending is projected to reach about $1.64 trillion.

At the individual level, the numbers become more tangible.

• The average business travel cost per trip ranges from $1,771 to $1,986
• Large companies spend about $2,095 per trip
• Mid-size companies spend between $1,549 and $1,783
• Daily spend averages around $800 per traveler

These numbers show how quickly costs grow. A three-day trip can easily reach $2,000 to $3,000, so multiply that across teams, departments, and a full year, and business travel becomes a major part of a company’s budget.

Even short trips carry real weight. A quick client visit or project meeting still includes flights, accommodation, meals, and local transport, and each piece adds to the total.

What does a typical business trip actually cost?

To understand where the money goes, it helps to break down the cost of a business trip.

Flights often take the largest share and account for 40 to 60 percent of the total cost, especially for last-minute bookings or long-distance travel.

Accommodation comes next. Hotels or other stays make up about 25 to 35 percent of the total, and average hotel rates are expected to sit around $165 per night, though this climbs fast in major cities. Meals and per diem costs usually fall between 10 and 15 percent, including daily allowances or out-of-pocket spending for food and drinks. Transport and extras make up the remaining 5 to 10 percent with taxis, rideshares, parking, and small incidental costs.

When you add these together, the full picture becomes clear that a single trip is not one expense, it is a series of smaller costs that build quickly. For international travel, the total often exceeds $2,000 per traveler.

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How spending changes by company size and role

Not every company spends the same amount on travel. The size of the business and the role of the traveler both influence the final cost.

Large enterprises tend to spend more per trip as they often allow flexible booking, last-minute changes, and premium travel options. These choices increase overall cost but support speed and convenience.

Small and mid-size businesses usually manage travel budgets more closely, and they book earlier, set clearer limits, and look for ways to reduce cost per trip.

Role also matters. Senior employees often cost more to send on the road as they may need flexible tickets, better flight times, or upgraded accommodation to match tight schedules. Junior staff usually follow stricter policies with lower budgets.

This variation explains why average business travel expense numbers differ so much across companies.

What drives business travel costs higher

Several factors push travel costs up, often without companies realizing it at first.

Last-minute bookings are one of the biggest drivers as flights booked close to departure often cost far more than those planned in advance. Location also plays a major role because high-demand cities with strong business activity tend to have higher hotel rates and transport costs. Trip length matters as well, as each additional day adds accommodation, meals, and local travel expenses, so a longer stay increases total spend quickly.

Meetings and events add another layer. Average daily costs for events are expected to reach about $169 per attendee, which adds to the overall trip cost.

International travel introduces even more expenses. Visas, insurance, longer stays, and higher airfare all increase the total.

Airfare alone often makes up more than half of the cost of a trip. When combined with accommodation, these two categories dominate the corporate travel budget. 

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Where companies can reduce travel costs without cutting trips

Companies are not trying to eliminate travel, they are trying to manage it better.

One of the most effective ways to reduce costs is through managed travel programs. These programs help companies control bookings, track spending, and enforce policies, and they often reduce total travel costs by 20 to 30 percent.

Other practical strategies include:

• Booking flights and stays earlier to secure lower rates
• Using preferred vendors to negotiate better pricing
• Planning longer stays more efficiently instead of multiple short trips
• Reducing daily expenses with better accommodation choices

Accommodation plays a key role here. When travelers have access to a kitchen, they spend less on meals, and when they have a dedicated workspace, they avoid extra costs tied to working in cafés or shared spaces.

Furnished apartments support these savings because they lower nightly rates over longer stays and reduce daily spending at the same time.

Why accommodation choice has a big impact on total spend

Where someone stays can change the total cost of a trip more than most people expect.

Hotels work well for short stays because they are convenient, easy to book, and familiar. But costs rise quickly over longer trips. Nightly rates stay high, meals are often purchased outside, and space is limited.

Furnished apartments offer a different setup. The cost per night often drops over longer stays, and travelers have a full kitchen, which reduces food spending. They also have space to work, relax, and maintain a routine.

For a five to seven day trip, the difference becomes clear. A hotel stay continues to add costs each day while an apartment helps stabilize those costs and reduce daily spending.

For companies managing travel budgets, this shift can lead to meaningful savings without reducing travel itself.

If you want to compare your next business trip cost with a furnished apartment, it helps to look at the full picture, not only the nightly rate. Compare your next business trip cost with a furnished apartment.

FAQs about business travel costs

What is the average business travel expense

The average business travel expense per trip ranges from about $1,771 to $1,986, depending on company size and travel type.

That total often includes airfare, accommodations, meals, ground transportation, and other incidental expenses. Costs can vary significantly depending on the destination, length of stay, and whether the traveler is attending conferences, client meetings, or training events. International travel typically comes with a higher price tag than domestic trips.

How often is 20% travel for a job

A role with 20% travel usually means traveling about one week per month or a few days every couple of weeks.

The exact schedule depends on the employer and industry. Some employees may take one longer trip each month, while others travel more frequently for shorter periods. During busy seasons, travel requirements may temporarily exceed the typical 20% expectation.

What is a reasonable per diem for business travel

A reasonable per diem varies by city, but many high-cost areas average around $300 per day for meals and expenses.

Many organizations use federal per diem guidelines or create their own travel policies based on destination costs. Travelers visiting major cities such as New York, Boston, or San Francisco often receive higher allowances than those traveling to smaller markets. The goal is to cover necessary expenses without requiring employees to pay out of pocket.

What are 5 common startup costs for a business

Common startup costs include rent, equipment, payroll, marketing, and software or tools.

Many businesses also budget for legal fees, insurance, website development, and travel expenses during their first year. Startup costs can vary widely depending on the industry, location, and growth plans. Creating a realistic budget early helps businesses avoid unexpected financial challenges.

If you are planning upcoming work trips, you have options.

While transportation often receives most of the attention, accommodations can have a major impact on overall travel costs. For longer stays, furnished apartments often provide more space, flexibility, and value than traditional hotels. Choosing the right accommodation can help both travelers and employers get more from their business travel budget.

About The Author

Lauren

Lauren, a passionate marketing professional from Vancouver, Canada, has an insatiable love for travel. Whether it’s camping off the grid in a secluded forest or enjoying the bustling streets of Manhattan, New York, she embraces every adventure with enthusiasm.