ECA International calculated the total daily rate for a business trip to Luxembourg City at $410.
The calculation excluded travel to and from the city but included four-star hotel accommodation, meals, laundry, alcoholic and soft drinks, incidental costs and journeys by taxi.
Geneva occupied the top spot with a daily rate of $706 per day, largely because of its high hotel costs which are being pushed up by high levels of tourism. In fact the top ten was dominated by Swiss cities, with Zurich in second place, Bern (5), Basel (6), Lugano (7) and Lausanne (9).
London, where business trip costs fell by 13% over the last year, was pushed from second to third place.
The report found that the cheapest location in Europe for business travel was Sarajevo where four-star hotels are 72% cheaper than those found in Geneva.
In a parallel ranking in which hotel costs were removed, Luxembourg was ranked eighteenth.
Meanwhile, Geneva ranked first, Oslo was ranked sixth in the region, Copenhagen eighth, London twelfth, Paris fourteenth, Stockholm fifteenth and Brussels sixteenth.
The cheapest locations in the region for business travellers, once hotel costs are excluded, are Minsk, Tirana and Chisinau.