London becoming more cost effective for non-UK businesses despite Brexit

Central London has dropped to the third most expensive business travel destination according to a study by data specialists ECA International. Falling from second place last year, it has come as a surprise to experts expecting London to become a less favourable destination following last year’s EU referendum. The results show that the capital city was only just pricier than Paris, with London nearly dropping two places within the last year.

Judging cities based on the affordability of transport, prices of meals as well as the amount of four star hotels, Swiss cities filled the top ten list. The most expensive business travel spot, Geneva, was revealed as being almost a fifth more expensive than UK’s capital, with a typical day in the city costing around $706 (around £580) on average. Europe’s cheapest destination is Sarajevo, where four star hotels are 72% cheaper on average than Geneva.

A major factor for London is the prices of hotels, which launches the city nine places. When hotel pricing is detracted from the ranking system, London plummets to 12^th place, while Geneva, Zurich and Bern maintain their spots in the top five. On average, British countries across the board have fallen around 19 places, something which owes to the pound’s decline in strength against the US dollar. In fact, Brexit and the weaker pound have led to an increase in business and tourism as many try to take advantage of the cheaper visits, something that many London organisations are aware of as hotel prices inflate.

“Central London has actually become more expensive over the last 12 months with four-star hotels, meals and transport costs increasing, which is bad news for UK nationals travelling to the capital,” said Simon Franklin, daily rates manager for ECA International.

“As we have seen over the past 12 months, with Zurich overtaking London as the second-most expensive location, it’s important companies review allowances or reimbursement rates for travelling employees regularly to make sure they are neither under- nor over-compensating for business trips.”