International travel is often fraught with surprise expenses that can blow even the best-planned budget in a heartbeat. While the really savvy traveler may plan for major expenses such as flights and accommodations, there are plenty of lesser-known charges that can add up fast on your trip.
These vary from the subtle, usually currency conversion fees to surprising local taxes and can really dent your travel money. Knowing and preparing for such hidden costs will enable you to keep your budget intact and minimize financial stress during your foreign escapades.
Let’s delve deeper into such sneaky expenses and learn practical strategies on how to minimize or avoid them altogether.
Dynamic Currency Conversion Traps
That ‘helpful’ offer to pay in your home currency rather than the local one comes with a hefty hidden markup of 3-7% on occasion. Always pay in the local currency when putting charges on your credit card abroad, and your bank’s conversion rate will likely be much more advantageous.
Some merchants automatically default to dynamic currency conversion unless you specifically decline it. Be extra vigilant at restaurants and hotels, where this scam is very common.
Get into a habit of carefully reviewing your receipt before signing and asking them politely to charge in local currency.
Bank ATM Alliance Gaps
While your bank may advertise ‘free international ATM withdrawals,’ this often only applies to specific partner banks abroad. Using non-partner ATMs can result in charges from both your bank and the local ATM operator, often totaling $5-12 per transaction.
Research your bank’s international partners before traveling and mark their locations on your offline map. Consider opening an account with banks known for global ATM partnerships, such as Charles Schwab or Capital One.
Plan larger, less frequent withdrawals to minimize transaction fees.
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Cell Phone Roaming Surprises
Even with international plans, data usage adds up fast from background app refreshing and automatic cloud backups. Your phone may pick up maritime and aircraft networks without notice, and rack up extreme charges.
Disable data roaming and auto app updates before heading out, and explore local SIM card options. Google Maps and other critical information can also be downloaded in advance for offline use.
Some of the biggest blows to travelers occur from cruise ships and in-flight roaming, which can reach over $10 per megabyte.
Hotel Tourism Taxes
Many cities have tourist taxes that are usually not reflected in the room rates and will add 15% or more to the bill. Various hotels also have local ‘city’ or ‘bed’ taxes that do not appear anywhere up front and thus only at the check-out stage.
Research local tourism taxes well in advance and include such in your budget estimations. Consider neighboring municipalities with reasonable tax rates, more so for prolonged stays.
Some hotels normally waive these for business travelers on presentation of proper documentation.
Hidden Airport Transfer Fees
Many hotels offer ‘airport transfers,’ but frequently, there is an unpublished additional charge for late-night arrivals, excess luggage, or more than one passenger. Some transfer services add a fuel surcharge or toll fees to the quoted rate.
Research options using public transportation and private transfer alternatives before booking. Consider joining hotel loyalty programs that include legitimate free transfers.
Always confirm in writing what is included and what may incur an additional charge before arrival.
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Rental Car Insurance Gaps
Standard travel insurance and credit card coverage frequently exclude certain countries or vehicle types, leaving travelers unexpectedly liable. Many rental companies charge usurious daily rates for insurance that may duplicate coverage you already have.
Call your credit card company and insurer before departing to know precisely what’s covered. If you travel a lot, an annual third-party car rental insurance policy may be worth buying.
Document all existing damage to the vehicle thoroughly before leaving the rental lot.
Visa Processing Surprises
Visa fees vary wildly depending on processing speed, points of entry, and length of stay. Sometimes, express processing can triple the usual fee, and a multi-entry visa may be cheaper per entry than multiple single-entry visas.
Do your research well in advance, and apply for longer-validity visas if you will make multiple visits. Some countries are offering e-visas at a lower cost than going via an embassy.
Be very wary of non-official sites that frequently charge exorbitant service fees.
Restaurant Service Charges
Many overseas restaurants include service charges in their bills that may not necessarily be noted on menus, especially in tourist areas. Some also include a service charge and then add a suggested additional tip on the bill.
Always check to see if service is included before adding gratuity. Research local tipping customs prior to your trip.
Some countries view tipping as offensive, while others rely heavily on service charges as part of the employee’s wages.
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Foreign Transaction Fees
Credit card foreign transaction fees typically range from 1-3% but can quickly add up over a trip. Some banks charge these on any transactions in your home currency if the merchant is international.
Consider getting an international travel credit card with no foreign transaction fees. Keep track of which cards charge these fees, and use them strategically.
Watch for foreign transaction fees on refunds, which can reduce the amount you get back.
Baggage Transfer Fees
Flying multiple airlines on one trip can result in unexpected baggage fees when transferring between carriers, even if bags were checked through to your final destination.
Some airlines charge for carry-on bags on international routes or have different weight allowances than domestic flights. Research baggage policies for all airlines on your itinerary, including codeshare partners.
Consider shipping excess baggage for longer trips or multiple destinations. Pack a portable luggage scale to avoid overweight charges.
Public Transportation Zones
Many cities have complicated zone systems for public transportation, with large differences in price depending on how many zones you travel through. Tourists often pay much more than they need to by buying tickets that cover too many zones or the wrong type of pass.
Study transit maps in advance to determine what zones you actually need. Check into day passes or tourist cards that include unlimited travel. Some cities offer lower fares for off-peak hours or for buying in advance.
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Resort Fee Surprises
Hotels increasingly charge mandatory resort fees that are not included in the advertised rate, sometimes adding $50 or more per night. These fees often cover amenities you might not use, like pool access or gym facilities.
Research total costs, including resort fees, before booking and compare true final prices between properties. Some hotel loyalty programs waive resort fees for elite members. Consider booking through travel agents who can sometimes negotiate fee waivers.
International Driving Permit Requirements
Lots of countries require International Driving Permits as well as your own license, and the fines can be huge if you don’t have one. Some car hire companies won’t even tell you this until you arrive.
If you’re planning to drive at all, get an IDP from home before you leave. Check country specifics, as some require permits to be accompanied by certified translations. Scan all driving-related documents and make digital copies for emergencies.
Gaps in Medical Insurance
Many travel insurance policies exclude adventure activities, pre-existing conditions, or travel to certain regions. Others have very high deductibles for international treatment or require approval in advance for non-emergency care.
Pay close attention to policy exclusions and consider supplemental coverage if necessary. Leave copies of insurance cards and emergency contact numbers accessible.
Some countries require visitors to show proof of certain levels of insurance coverage before approving visas.
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Minimums for Currency Exchange
Many currency exchange offices charge higher rates for small transactions or require minimum exchange amounts. Some also add service fees that aren’t reflected in the advertised exchange rate.
Exchange larger amounts less frequently to qualify for better rates. Consider using ATMs instead of exchange offices for better rates on smaller amounts.
Keep some major currencies like US dollars or euros for emergencies or locations where local currency isn’t easily accessible.
City Entry Fees
Some cities require entry fees for tourists, sometimes through the need to purchase tourist cards for access to historic centers. The highly controversial system of entry fees in Venice will go online in 2024, while yet other cities limit access to tourists in peak seasons.
Research all requirements for city access and, where necessary, book entry permits in advance. Consider shoulder season visits when fees may be lower. Some cities offer early morning or evening entry discounts.
Airline Seat Selection Fees
Airlines are increasingly charging to select seats on international flights, even in business and first class. These top $100 for preferred seats on long-haul flights. Consider the comfort vs. cost trade-off, especially flying overnight.
Utilize airline loyalty programs that allow free seat selection. Check in exactly when online check-in opens for better free seat options.
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Hotel Key Deposits
Some international hotels have large deposits for room keys or towel cards and may insist on cash in local currency. These can be quite large and may not have been discussed at the time of booking.
It’s a good idea to call hotels directly in advance to determine what deposits are required. Also, consider bringing an extra credit card with available credit for deposit holds.
Some hotels will accept passport copies and no cash deposit.
Surprise Port Taxes
Cruise passengers often find themselves hit with unexpected port taxes and fees above and beyond the advertised fare. Some ports charge additional entry fees or require tourist cards that must be purchased separately.
Research total costs, including all port charges, before booking cruises. Consider repositioning cruises or itineraries, including fewer ports, to reduce these fees.
Some cruise lines will give credit for port taxes if you skip certain ports.
Local Transportation App Surcharges
Ride-hailing apps often charge a tourist surcharge or premium pricing in some countries without warning. International transaction fees and currency conversion fees may apply with some local transport apps.
Download and set up local transportation apps before arrival. Do an Internet search for local alternatives to taxis and the going prices for common rides.
Some cities have official, regulated taxi apps.
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Making Travel Budgets Work
These are hidden costs that can only be successfully worked through by doing research well in advance, planning carefully, and being prepared for flexibility with international travel.
First, build a buffer into your budget for unexpected expenses and maintain detailed records of all charges on your trip to identify patterns and possible savings.
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