Planning your budget around global per diem rates in 2025? Here’s what you can expect based on the latest government per diem rate guidelines and recent international travel cost data.

While, yes — at least in the United States — private companies can set their own per diem rates, many choose to follow the U.S. General Services Administration’s recommended rates. These rates apply to federal government Travelers and typically provide a good standard for other organizations to follow in terms of giving Travelers what is considered a “reasonable” amount for expenses for each travel day, depending on geographic location. Rates are intended to cover lodging, meals and incidentals. Rates went into effect in October.  

So, what can you expect for per diem rates in 2025?

This year, rates are going up, as Business Travel News reported in August. Due primarily to increases in meal and incidental costs — the first of such increases in several years — the overall per diem rates have risen by $12. 

When you break down the standard rates, the lodging rate is up $3, from 2024’s $107 to the new $110. (Last year, the lodging rate increased by $9, in comparison.) The standard meal and incidentals allowance, though, did rise $9 for 2025, up to $68 from $59. 

While this might be unfortunate news for some Travel Managers hoping to keep their travel budgets more or less the same in 2025, for the travel industry, this could result in big investments. As Business Travel News noted, the American Hotel & Lodging Association expects per diem rates in 2025 to result in $100 million in new revenue.

However, it’s worth noting that the standard per diem rates aren’t necessarily even a realistic view of travel spending despite the increases. If you’re a Traveler who’s traveled a fair amount in 2024, you likely know this.

If you want a more realistic idea of business travel spending versus the U.S. government’s per diem rates in 2025, there is another resource. Business Travel News’ 2024 Corporate Travel Index provides per diems for 200 global cities. These per diems are, according to the publication, based on “actual corporate booked hotel and car rental rates using data from managed travel sources, not consumer data, to reflect actual managed travel activity as opposed to theoretically available rates.” 

Let’s see how some of these actual data-based rates measure up to the standard per diem rates for 2025. 

For Q2 2024 travel in New York City, the average daily spend on a midscale hotel was just over $391, while the average daily spend on meals was just over $117. This is a far cry from the government standard for 2024 of $107 for lodging and $59 for meals. 

Looking at a less-expensive city overall — Toledo, Ohio — costs are still higher than the recommended standard: $158 for lodging per day and over $81 for meals per day.

On an international scale, average rates are a bit closer to the U.S. standard. They sit at an average of $140 for lodging per day and an average of $119 for meals per day. However, international destinations vary wildly in terms of Traveler costs in various destinations.

According to the BTN data, your costs can range anywhere from $57 per day for lodging in Kyiv, Ukraine, to $265 per day for lodging in San Juan. They could range from $53 per day for meals in Bangalore to $233 per day for meals in Geneva. All in all, for Q2 2024, BTN noted that, when comparing per diems, Kyiv is the most affordable destination for business Travelers. London is the most expensive.

What does this tell us? 

Essentially, the government standard per diems are a good place to start. If, though, you or your Travelers frequently visit certain destinations, it’s worth utilizing tools like these. Look at actual travel data to determine how much of a travel budget is truly necessary. The countries and cities your Travelers are more likely to visit will heavily influence your travel budget.

How to Plan for Per Diem Rates in 2025

The per diem rates for 2025 just underline what we’ve known for a while. Travel costs have steadily risen, year over year, and will continue to do so in 2025.

According to an article recently published by Skift, global airfare is expected to rise 0.6% in 2025. Hotel room rates are expected to rise by 2.6% in 2025. Car rental prices are expected to rise 2.4% in 2025.

Looking at regional cost increases, Skift said to expect travel expenses to rise about 1.5% overall in Asia-Pacific, Europe, the Middle East, Africa and Latin America.

So how can a Travel Manager or Traveler adjust? For one, it may be helpful to simply accept some costs and realize that they aren’t going away. Increased travel prices are likely to stay that way. New costs include those associated with the rising demand for sustainable travel.

However, also look for ways in which recent trends may help you to cut costs. The last few years have driven the normalcy of remote work and meetings. As such, in-person work, events or meetings that may have required travel in the past may be unnecessary. They could be performed just as efficiently in a virtual setting. Likewise, as your teams embrace sustainable travel, you may use that as a reason for cutting some travel from teams’ calendars completely. You may use it as a reason to forgo pricey airfare and opt for other modes of travel instead.

Need Help Managing Your Travel Costs and Expenses?

JTB Business Travel can help. Whether you’re putting together a travel policy for 2025 that helps you stick to a brand-new budget or you’re wrapping your head around your team’s expenses, JTB Business Travel has a tool or service to fit your needs.

Find out more now.