Guess which Australian city is, globally, the most expensive city for business travellers?
Following from yesterday’s report on Sydney’s cost to expatriates, Brisbane has been found to be the most expensive city for business travel, followed closely by Sydney, Perth and Melbourne, a report from Concur uncovered.
The report, which focuses on corporate travel and entertainment (T&E) expenses, aggregated expense report data for 2012, covering a wide breadth of anonymous information from companies and individuals.
The Concur Expense IQ report uncovered that Brisbane hotels cost US$305.05/night on average, in comparison with New York where a hotel room costs and average of US$194.62/night.
Additionally, a meal in Australia is, on average, US$70, compared to Paris – a city known for its culinary expenses – that averages at US$49.
Poor exchange rates, as well as higher prices on the average meal, has meant organisations are reluctant to spend when traveling to Australia, reducing T&E budgets.. However, logistical expenditure – such as ground transportation and lodging – has increased.
Of interest is the worldwide shift towards ‘close to home’ T&E expenditure, in which clients and employees involved in meetings or conferences are provided transport to nearby accommodation, and then using video conferencing to connect. This ‘telepresense’ has resulted in an overall dip in airfares, meals and entertainment, while personal car and hotel expenses dropped the least.
SMEs have greater expenditures compared to larger companies, with more frequent transactions. Concur believes this underscores the need for organisations to have deeper understandings of T&E so they can better negotiate prices, policies and efficiencies.
Concur stated that T&E is often the most poorly managed category of expenditures, and companies must move towards measuring and benchmarking their spending patterns against trends, providers and other organisations.
Key HR takeaways
Concur provided their tips on how organisations can manage their T&E expenses more effectively: