The cost of a business trip to London has risen by 15 per cent over the past year, with the average price of hotel rooms increasing by 20 per cent per night in the city.
The UK capital is now ranked as the third most expensive business destination in Europe with an average cost of £497 per day – ranking behind just the Swiss cities of Geneva (£597 or €700 per day) and Zurich (£546 or €640) – according to figures from mobility specialist ECA International.
Paris was the fourth most expensive European city for corporate travellers, followed by another Swiss destination Bern, and then Copenhagen, Reykjavik, Milan, Amsterdam and Rome.
Across the globe, New York was the most expensive destination with an average price per day of £678. Washington DC and San Francisco were also in the top five.
London was the eighth priciest city in the world as its hotel rates soared to an average of £286 compared to this time last year.
Alec Smith, benefits and daily rates manager at ECA International, said: “High inflation and increased staffing costs are leading to hotel stays becoming significantly more expensive across the UK.
“London, however, stands out as having some of the greatest rises in hotel costs, up by 20 per cent since last year, while hotels elsewhere in the country show an average increase of just 5 per cent on the previous year.”
Smith added that demand in London had recovered from the huge drop suffered during the Covid-19 pandemic with a weaker pound “making the UK attractive to international visitors”.
“The drop in value of the pound against major currencies over the past year has led to all UK cities falling in our global rankings, despite some pronounced increases in costs in local currency terms,” he said.
The second most expensive UK business destination is the Scottish capital Edinburgh, with a typical trip costing £326 a day, followed by Birmingham (£308), Manchester (£304), Belfast (£285) and Cardiff (£271).