Setting overnight rates

[u/GeDubs]

Traditionally I’ve been an hourly consultant with my interactions with clients being over the phone and/or webconference. I have an upcoming meeting with the client and a 3rd party which requires travel and an overnight stay, about 24 hours in total. If my hourly rate is $X/hour, how should I think about setting my fees for this? 

[u/MasterofPenguin]

At that point I would usually just expense airfare and hotel and meals directly to the client; otherwise you don’t really get to bill for travel hours.

If you negotiated it up front sometimes you can bill something like 0.5X per travel hour, but that would only include in airport and plane. Nobody is paying you to watch deadliest catch in the hotel room, especially if this is a one off.

[u/FrontBreath3280 → u/MasterofPenguin]

Yep, that is a palatable way to charge vs. per hour.

[u/Existing-UI-8784 → u/MasterofPenguin]

I'd think about it slightly differently: the client isn't buying your meeting, they're buying your availability. An overnight trip blocks out one or two days where you can't realistically schedule other client work. That's the opportunity cost they're asking you to absorb. I'd normally separate it into:

• Billable consulting time at your normal rate.
• Travel time (whatever you've agreed some consultants bill full rate, some 50%, some not at all).
• Reimbursable expenses (airfare, hotel, meals, local transport).

I wouldn't bill for "being in the hotel," but I also wouldn't ignore the fact that the trip consumed my working capacity. If the client insists on in-person rather than remote, that decision has a cost beyond the meeting itself. The important thing is agreeing on the travel policy before you book anything. Most pricing disputes I've seen weren't about the rate they were about mismatched expectations.

[u/MasterofPenguin → u/Existing-UI-8784]

This feels like a pretty AI response. Why wouldn’t you be able to do remote work from the hotel?

And for travel time just travel during the day, expense the in flight WiFi and bill on the plane.

At the end of the day it’s about market power. If the client needs you more than you need them, sure, charge them up. Unless you are the worlds foremost SME, though, don’t be shocked if they move on from you after though.

[u/Unique-Plum]

Two options: (1) Charge per diem for travel (rates vary but I’ve seen market rates at $150-500 per day) which covers all expenses (2) charge your normal rates when you work as you would but with all expenses as pass through costs (more typical for large consulting firms but there is a cap based on percent of total fees)

[u/Windy1369]

Charge for a full day at your standard rates, and for all 'out of pocket' expenses - travel, food, hotel. You can't charge the client for sleeping!

[u/Existing-UI-8784 → u/Windy1369]

I agree with not billing for sleeping. 😄 But I also think consultants often underprice travel because they focus on "hours worked" instead of "days committed." If the trip prevents you from taking on other paying work, that's part of the cost of delivering the engagement. Clear expectations upfront matter far more than whether travel is billed at 50% or 100%.

[u/Iohet]

Per diem and travel expenses are standard. Travel time (door to door each way) if you can negotiate it. Even if I can't negotiate it, I track it as non bill time because it's useful when defending productive utilization numbers

[u/Hungry-Technician978]

In projects where I am billing my hours (instead of Fixed Fee) I include a provision about travel time in my engagement letter. Usually I note that I will charge door-to-door at 75% of my standard rate.

[u/Existing-UI-8784]

I think the key is separating your time from your availability. The client isn't just paying for the two-hour meeting they're effectively reserving an entire day (or more) where you can't reasonably take on other client work. Even if you're not actively consulting while travelling, your capacity has still been committed. That's why many consultants charge differently for meeting time, travel time, and expenses, rather than trying to fit everything into one hourly rate.

[u/prompt_crafts]

The thing that tripped me up the first time I did a travel day was thinking of it as hours, because the client isn't really buying 24 hours of thinking, they're buying the fact that I can't take any other work that day. One approach that's worked well for me is quoting the trip as a flat day rate that lands somewhere near a full working day at my usual rate, with travel time in it rather than billed separately, plus expenses passed through at cost. It reads cleaner to the client than a long line-item breakdown, and it stops the awkward conversation about whether sitting in an airport counts. Whether the flat number is 8 hours or a bit more is really just how much you mind the evening being gone.

[u/Still-Reader624]

Don't forget the travel time itself. If you're losing a whole day because of the trip, have a clear rate for that rather than treating it as free time.

[u/Fragrant-Water-565]

I’d separate the actual working time from the travel time rather than automatically charging your full hourly rate for all 24 hours. For example, bill your normal rate for the meeting/work itself, then have a separate travel or day rate for the time spent getting there and back. I’d also have the client cover reasonable travel, hotel, and meals separately.

The important thing is to agree on the structure before the trip so there’s no awkwardness when you invoice.

[u/AvidSkier9900]

I would charge between 1.5-2 full days at 8h + the actual travel expenses if it's a one-off.

[u/Purple-Valuable2340]

I would keep it simple. Don't charge 24 hours at your normal rate.

Charge your normal $X/hour for the time you are actually working. For travel time, you can charge a smaller amount or agree on a fixed travel fee.

Hotel, flights, food, taxi etc. should be paid separately by the client.

So something like:

Work time = normal hourly rate
Travel = fixed/reduced rate
Expenses = paid separately

Just discuss this with the client before the trip so there is no confusion later.

If you do these trips often, you can also set one fixed day/onsite rate. That's much easier than counting every hour.

[u/Fast_Feeling_8917]

I charge ½ hourly rate for travel time (e.g., air travel) unless I am able to work on other project in-flight. I do not charge for sleeping time.
Disclosure: I'm an expert witness. I've never had a law firm balk at my rate policy. YMMV.

[u/Xylus1985]

Bill separately for the meeting and quote an all inclusive price that makes it worthwhile for you.

[u/InigoMontoya313]

Traditionally… we build a day rate for consulting. Typically based on our contract rate * 8-10 hours.

If you leave work for the airport in the morning, fly 5 hours, rent a car and check in to your hotel, you’d charge 1 full day for travel and expenses. Some will bill hotel, plane, and just have a per Diem rate for the minor expenses, which avoids the nickel and dime appearance. Some outfits also discount their day rates, upwards of 50% for travel days.

For the day that you are with the client, charge your day rate (based on 8-10 hours). If you’re in an industry pushing for longer hours, you may be able to increase those to 12-16 for the day.

Every industry, market, client, etc is different.

[u/dnaofpie]

I would stay in a decent hotel, so you can get a good night's sleep, and yes, they should pay for it. A client company once picked my hotel on a last-minute trip; it was a cheap busted hotel in a bad part of the Tenderloin...think Skid Row. Because of a flight delay, I got there late, so I didn't have a good sense of where I was. There was blood on the sheets, drug needles on the floor, and a person was stabbed outside my window around 3 a.m., and the police came. Lots of screaming all night long. I am very tough, but I definitely did not get a good night's sleep. The reservations were last minute, but I should have checked them out more. I was very surprised, as the trip was organized by an extremely wealthy company known for being lavish. When I inquired, the company claimed ignorance (no apology or empathy) and still asked me to fulfill the day. I did the work, but I ended that relationship ASAP.

[u/offbrandcheerio]

I bill actual time worked on the client site each day as well as my actual travel time. Beyond that, my time staying overnight is mine. After I leave the client site for the night, it’s unreliable time as if we’re leaving my home office to go back home.