Travel Mistakes Costing You Money
Are you making any of these costly mistakes when you travel?
These are some of the biggest travel mistakes that cost you money that you should avoid!
As someone who spends six-plus months per year traveling abroad, I see other travelers making these mistakes frequently. These are things that are easy to overlook, but can end up costing you a lot of extra money. And there’s nothing worse than wasting your hard-earned money while traveling.
Luckily, all of these mistakes are also pretty easy to avoid. You just have to know what to look out for. Many just involve one small tweak to make sure they don’t impact you on your next trip.
Without further ado, let’s take a look at the biggest travel mistakes that are costing you money:
1. Credit cards with foreign transaction fees
If you are using a credit card with foreign transaction fees, you are literally throwing money away every time you travel abroad. That 3% transaction fee might not seem like much when tacked onto a $10 purchase, but over the course of a whole trip, it can add up to a hundred dollars or more.
There’s no reason to waste money on foreign transactions when so many credit cards these days offer no foreign transaction fees. So if you’re still using a credit card with foreign transaction fees, switch to one that doesn’t have them before your next trip. (I use the Chase Sapphire Preferred credit card.)
2. Exchanging money instead of using ATMs
I’m literally shocked at how many people don’t realize that the currency exchange kiosks at the airport or in touristy areas are total rip-offs. Bringing lots of US dollars to exchange abroad is very often a horrible idea. Don’t be fooled by the promise of “zero commission” on currency exchanges.
You might not technically pay a commission, but these places always charge a crazy markup and exchange your money at a terrible conversion rate. Using a local ATM will always give you a better exchange rate. (Just be sure to select “Decline conversion” on the screen, or else you’ll still be charged a markup by the machine. You want to use the actual exchange rate set by the bank instead.)
3. Debit cards that charge ATM fees
Speaking of using ATMs abroad, another mistake is using a debit card that charges ATM fees. With many debit cards, when you use an out-of-network ATM, you’ll be charged a fee of around $5, plus a 3% foreign transaction fee on the withdrawal amount. This can still be cheaper than using a currency exchange place, but if you make multiple large withdrawals during a trip, it can really add up.
But just like with credit cards, there’s no reason to pay fees for debit cards, either. It’s less common, but some banks offer debit cards with no foreign transaction fees and refund any ATM fees at the end of the month. I use the Schwab Bank Investor Checking debit card as my “travel account” for this reason.
4. Not using a travel rewards credit card
This one is not much about throwing money away as it is about leaving money on the table. You don’t need to get super serious about travel hacking, but having one credit card with good travel rewards is a no-brainer. (Just make sure to always pay off your bill in full each month and never pay interest, though!)
Personally, I use the Chase Sapphire Preferred credit card for all my everyday purchases, including travel spending. It has no foreign transaction fees (naturally), and you earn Chase Ultimate Rewards points for every dollar you spend, which can later be redeemed for free flights, hotels, and other travel bookings.
5. Planning travel before booking flights
One of the easiest ways to blow your travel budget is deciding on a rigid itinerary before looking at flights. I see people get excited and make this mistake all the time. Don’t start planning your trip, requesting time off from work, and booking hotels and activities before you’ve figured out flights.
If you do, you might be locked into paying exorbitant airfare. Flexibility with dates when booking flights is the best way to save money on what’s often the biggest expense of an international trip. Figure out the cheapest dates to fly first using a tool like Google Flights, then build your itinerary around that.
6. Surprise fees at the airport
The last thing you want to do is arrive at the airport and find out your luggage doesn’t meet the airline’s size or weight requirements and have to pay a hefty fee to check it. Some budget airlines will even charge you a fee at the airport check-in counter if you haven’t already checked in online or printed your boarding pass at home. These sneaky fees are a huge waste of money and a major annoyance.
Be sure to research your airline’s specific rules in advance to avoid any unpleasant surprises at the airport. If you’re worried about excess baggage fees, it might even be worth purchasing a cheap portable luggage scale to double-check it and make sure you’re in the clear before you go to the airport.
7. Using your phone plan abroad
Although many US phone plans offer the ability to use your data plan abroad for a “reasonable” daily fee of $10 or $15, that can add up very fast. And making phone calls abroad can easily cost you $0.25 to $0.50 per minute. Luckily, there is an easy alternative to this, and it’s getting an eSIM.
It’s much more cost-effective to purchase a local eSIM through an app like Airalo. You can often get unlimited data for a week for just $30 or so — much better than paying $70 to $105 if you use your phone plan from home. For phone calls, stick to FaceTime or WhatsApp, which work over Wi-Fi and data.
8. Forgoing travel insurance
It’s tempting to skip travel insurance to save money, but this can actually end up costing you more in the long run if anything goes wrong on your trip. It’s up to you whether you want to gamble by forgoing travel insurance. In almost every situation, having travel insurance is worth the peace of mind.
From flight cancellations to lost luggage to emergency medical expenses abroad, having travel insurance can offer a big safety net. It’s often quite affordable too. Just be sure to read all the fine print before buying a policy, because sometimes certain events or situations are not covered by travel insurance.
9. Nonrefundable tours and activities
In the excitement of planning a trip, it can be easy to get swept away and book every single guided tour, museum ticket, and excursion months in advance. But the last thing you want to do is lock yourself into nonrefundable bookings. Plans can change, and if they do, you’ll be stuck and lose money.
That’s why I always use Viator and GetYourGuide when booking any tours and activities abroad. You can even use it to buy tickets for popular museums and tourist attractions. Not only can you get great deals, but both platforms also offer free rescheduling and cancellation up to 24 hours in advance.
10 Nonrefundable flights and hotels
Finally, in a similar vein, booking nonrefundable flights and hotels can cost you more in the long run. While it might save a few bucks to get the most basic airfare or the nonrefundable hotel rate, it locks you into a corner. You won’t have any flexibility and could end up losing a lot of money.
If your plans should change at all, or if you find a better deal elsewhere down the line, you’ll be out of luck. Even though I like saving money, I’ll always opt to pay a little more for the flexible, refundable rate for flights and hotels. This is one of those areas where it’s just not a good idea to cut corners.
Travel Mistakes Costing You Money
This guide showed you some of the most costly travel mistakes to avoid.
Being budget-conscious when traveling abroad doesn’t mean you have to sleep in sketchy hotels or skip out on experiences you want to do. It just means being smart about where your money is actually going and making small changes when needed so you avoid these common travel budget pitfalls.
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