SpendSmart has released new data on the top brands expensed by business travelers based on $3.3 billion in transactions during 2018.
Unsurprisingly the most money is spent on airlines, and the largest airlines are among the most frequent vendors expensed by business travelers — but no one airline is dominant. Delta is most popular among business travelers, and with a revenue premium, however world’s largest carrier American Airlines is expensed about as frequently as Delta.
Southwest of course is the largest carrier of domestic passengers and so expensed more frequently than United Airlines which has been rebuilding its domestic route network under President Scott Kirby.
| Company | Expense % | Avg Cost | ||
| 1. Uber | 12.04% | $25.19 | ||
| 2. Starbucks | 3.94% | $13.88 | ||
| 3. Amazon | 3.78% | $129.20 | ||
| 4. Delta Air Lines | 3.50% | $446.73 | ||
| 5. American Airlines | 3.50% | $354.23 | ||
| 6. Lyft | 3.50% | $23.94 | ||
| 7. Southwest Airlines | 2.79% | $279.35 | ||
| 8. United Airlines | 2.64% | $377.17 | ||
| 9. Walmart | 2.64% | $61.19 | ||
| 10. Shell | 2.32% | $33.72 | ||
| 11. McDonald’s | 1.94% | $10.20 |
I fully recognize that McDonald’s is more or less everywhere, and it’s quick which I suppose is helpful for busy business travelers. Hopefully making this list though represents breakfast, with travelers running late and where the food is reasonably edible, and not either lunch or dinner. When someone else is paying I certainly hope no one would consciously choose to eat at McDonald’s for lunch or dinner (even if McDonald’s is indispensable for their restrooms).
Though not among the top expensed brands, Marriott took top spot for hotels, National for car rentals, and Grubhub for food delivery.
Very much *not* surprised that the best of the “Big 3” U.S. carriers is at the top among airlines, and with a revenue premium.
I’m a little surprised at the $13.88 avg ticket at Starbucks. Probably pushed up by groups buying coffee for 2 or more people…but my avg ticket is like $5.
I wonder where this data even comes from. I use to work for Accenture and we just got a flat per diem per day based on the city. So nothing was individually expensed.
Hotels and airfare were booked separately through the corporate booking tool.
So much for the narrative that WN is as expensive as the Big 3. Averages can lie (like all statistics), but not sure how to explain this one away without really making excuses for the revenue premiums on the Big 3.
Why are business travelers spending money at Amazon and Walmart?
@roundtree – Southwest doesn’t fly international (Carribean and Mexico not withstanding). That alone should more than explain the $100-150 difference in average expense. I don’t think that’s making excuses for the Big 3.
@jack – It comes directly from the Certify app, helps track expenses/receipts. I see no reason to not trust it.
Interesting that the average on Delta is so comparatively high.
Butbutbut Delta is only a 4% margin in NYC! UA is sooooooo much better at EWR!!!
I must confess that when I was in Montreal on business last month that I expensed A&W for dinner. BBut I ate well the other five nights…
Steve S. The Starbucks average is also likely pushed up by their breakfast and lunch sandwiches etc. as that’s a solid quick breakfast or lunch on the go. Also Starbucks is of course used for hosting casual business meetings, even more so, I imagine when travelling and lacking a home office in which to host.
@Steve S – what the heck is the “Certify app”? Certainly not something that I’ve ever heard of a multinational corporation using. And the $3.3B expense figure, while impressive-sounding up front, is likely less than what some of the largest professional services firms run through in expenses by themselves.
I’m guessing that this is mostly small business data, hence the prevalence of McDonald’s, Walmart, and Amazon.
No hotels or rental cars? Hotels often times comprise of the largest travel expense. Perhaps the number of hotel chains explains this answer, but when it comes to rental cars, hard to believe Avis, Hertz are not on this list.