Business travel isn’t cheap – it will never be. But it turns out that a trip for a meeting in Caracas, Venezuela, will cost you more than if you go to London. And that is even before you consider the cost for airfares. In fact, Caracas is the most expensive city for business travelers, according to a new study, which has estimated that an individual spends the unbelievable $611 a day in the South American city.
The capital of Venezuela, which struggles with economic problems, corruption and crime, has been named the most expensive city for business travelers in a recent report from online business-to-business sourcing service Expert Market. Researchers have estimated that employees who stay in Caracas spend an average of $611 a day! This may sound unbelievable, but the cost doesn’t actually represent prices for average hotels and meals as one would think. Of course, Caracas has some of the cheapest hotels on earth. But business travelers usually look for higher level services than a regular tourist would be glad to have. Thus, the study takes the prices of mid-range to luxury travel options – accommodation, car rentals, and food costs.
As if the cost of stay in Caracas isn’t surprising enough, U.S. cities don’t even make it to the top 20 most expensive cities in the study. Second on the list comes Geneva, where you will spend $547 a day, followed by Stockholm with $528. London ranks 7th, as a business traveler there will spend an average of $508. Other interesting picks are Moscow (No.12) with $490, Singapore (No.13) with $478, and Sydney (No.18) with $461. The costliest U.S. cities are San Francisco (No.23) with daily costs of $444,66, New York (No.24), and Boston (No.31) with $413.
Interestingly, the most expensive city in the Middle East is Saudi Arabia’s capital Riyadh, where a business traveler spends on average $495. The city is also ranked 10th overall, while Oman’s Muscat follows closely with $491. And Dubai, which is known for its love for luxury and gold and whose popularity as a business travel destination is growing, is ranked 25th overall. It means that if you stay in the city for a conference or a meeting, you will spend $438 for your hotel, food and taxis each day. Comparing it with other cities around the world, it’s still quite expensive. But let’s take a look at the places where your company will have to pay the most:
- Caracas ($611)
- Geneva ($547)
- Stockholm ($528)
- Stavanger ($524)
- Hong Kong ($523)
- Zurich ($509)
- London ($508)
- Paris ($502)
- Oslo ($497)
- Riyadh ($495)
In contrast, Guatemala City is the cheapest place for a business trip out of the 79 cities analyzed with average daily expenses at $209. And if it’s just not your destination, then you should also consider San Salvador, Tianjin, New Delhi, San Jose, Mexico City, Panama City, Kuala Lumpur and Hanoi, where you or your employer will spend less than $270 a day.
So, why is business stay in Caracas most expensive? The costs in the city have risen rapidly in recent years due to Venezuelan government’s strict price and exchange controls. Locals and expats there see some of the highest costs of living in the world – one notable example is the price of food. It’s extremely high, whether it is restaurant meals or even basic supermarket goods. For instance, a liter of milk costs $5.14, or 336% more than in New York. The study makes an interesting comparison between Caracas and San Francisco. Taxis in the American city are around 70% cheaper than in Caracas, while typical meals at restaurants – 30% cheaper.
And here’s one amazing fact – a McDonald’s combo meal at a price of $7.56 in San Francisco will cost you $25.50 in Caracas. That’s an increase of 237%!
