Out-of-Town Per Diems for Executives Rise 11% in Year

NEW YORK —  Out-of town per-diem expenses for corporate executives averaged $152.84 last year, an 11% increase over 1984, a nationwide survey reported Monday. It said that New York ranked as the most expensive city and Roanoke, Va., as the cheapest.

The annual corporate travel index study by Corporate Travel magazine said it cost $277.16 for a hotel room, three meals and a rental car in New York, compared to $116.93 for Roanoke.

The survey, conducted for the magazine by the national business consulting firm of Laventhol & Horwath, ranked the daily expenses for corporate executives doing out-of-town business in 100 U.S. cities, based on the cost of lodging in the central business district, food and a rental car.

The nation’s largest cities were among the most expensive, the survey showed. Besides New York, the six costliest were: Washington, $235.43; Boston, $218.59; Philadelphia, $206.50; Chicago, $205.67; Newark, N.J., $193.56, and San Francisco, $189.53.

Los Angeles ranked ninth with a per-diem cost of $188.74, an increase of 7.6% over the previous year. It ranked below several smaller cities, mainly due to lower rental-car rates.

The survey also found that some of the least expensive U.S. cities are in Florida, where low car-rental rates hold down overall costs. They included Tallahassee, $121.84; Tampa-St. Petersburg, $119.51, and Daytona Beach, $119.11.

The overall cost of per-diem expenses increased an average of 11% over 1984 figures, the survey said, but the greatest increases were in New York, at 20.6%, and Washington, at 18%. The most modest increases were in Newark, up 2.9%; Boston, 7.3%, and Dallas, 4.5%, it said.

In three cities, the cost of a day’s business decreased over 1984, the survey showed. Rates for Rochester, N.Y., dropped by 4.6%; Miami, 3%, and Spokane, Wash., by 0.1%.

Food costs reflected the most dramatic differences in expenses. In New York, where daily food costs average $92.72, prices run more than one-third higher than in Washington, the No. 2 city for food costs.

The next most expensive cities for eating were Dallas-Fort Worth, $66.10; San Francisco, $64.75; Santa Barbara, $61.15, and Houston, $61.01.

The average $47.73 daily meal cost was composed of $6.53 for a breakfast of two eggs, meat, toast, juice and coffee; $10.73 for a lunch of soup, turkey club sandwich, pie, soft drink and coffee; $22.26 for a dinner of shrimp cocktail, prime rib, salad, vegetable, ice cream and coffee; $1.98 for tax, and $6.23 for tips.

Researchers based the prices on menus from hotel restaurants.

Corporate Travel is an industry publication catering to financial officers and budget administrators as well as travel agencies that handle major corporate travel accounts.

COSTLIEST BUSINESS DESTINATIONS

Cost % Change per day from ’84 New York $277.16 +20.6% Washington 235.43 +18.0 Boston 218.59 +7.3 Philadelphia 206.50 +11.2 Chicago 205.67 +11.5 Newark, N.J. 193.56 +2.9 San Francisco 189.53 +8.8 New Orleans 189.14 +9.0 Los Angeles 188.74 +7.6 Baltimore 180.84 +9.1

Source: Laventhol & Horwath