Glossary › Per diem
Per diem
A fixed daily allowance paid to each person on tour for food and incidentals.
A per diem (Latin for "per day") is a fixed daily allowance paid to each person on the tour to cover food and small personal costs. It saves the tour from handling dozens of meal receipts and keeps things fair.
There's no standard rate. Tours set it by budget, the cost of the cities they're in and how often meals are provided. Some pay a lower rate on show days when catering or a buyout is likely.
Example
Six people, a $30 per diem, 14 days: $30 × 6 × 14 = $2,520 for the run. Paid weekly in cash, that's $210 per person each week. (EXAMPLE numbers.)
Tips
Write down what per diems do and don't cover, pay on a regular schedule, have people sign for cash, and ask an accountant how your tour should treat them for tax. Try the per diem calculator.