12 Travel Blunders That Could Empty Your Wallet
Are you sabotaging your travel budget without even realizing it? Visa’s study found that travelers spend, on average, 20% more on vacations than when they were planning their vacations. Hidden fees and overlooked travel insurance are common mistakes that drain your wallet faster than expected.
Sticking to a budget requires careful planning. Here are 12 trip pitfalls to avoid, along with thoughts and advice on best managing your financials if you want to enjoy the trip of your dreams.
Ignoring Travel Insurance
Travel insurance might seem like a waste of money upfront, but it could be worth thousands later. A flight canceled, luggage lost, or one of the many other possible medical emergencies could derail your plans and budget. Policies can cost as little as 4-10% of your trip’s budget, which makes them a sensible investment.
Tip: Choose insurance with emergency evacuation, trip interruption, and medical care away from home. Review the fine print to ensure that there are no gaps in coverage.
Overpacking and Facing Baggage Fees
Some airlines charge over $50 for a checked bag if it is overweight. There are worse things than overpacking, which complicates travel and leads to outrageous baggage fees.
U.S. airlines charge an average of $30 for each charged bag, with overweight charges that can exceed $100. Before leaving home, weigh your luggage and invest in lightweight, versatile clothing.
Dynamic Pricing on Flights
Dynamic pricing can catch you off guard. Cookies and browsing history allow airlines to raise ticket prices according to demand, sometimes as much as days before your flight.
To avoid this blunder, use incognito mode when browsing for flights and set price alerts with Google Flights or Skyscanner to get the best prices.
Exchanging Money at the Airport
Do you rely on currency exchange at airports? Often, airport currency exchange kiosks are notorious for having alarming rates that give you less than market rates, letting you lose more money.
Use your bank’s ATM or credit card abroad for better exchange rates. Some travel credit cards won’t even charge a foreign transaction fee.
Skipping Local Transportation Options
Riding in cabs or rideshare to reach your destination can also quickly add up, especially in hot tourist spots. Instead, research local transportation like buses, metro, and scooters, which will help you save a lot. Most cities offer day passes or rechargeable transit cards, and many are cheaper.
Forgetting to Notify your Bank
It is essential to notify your bank about your travel plans in advance. Failure to do this may lead to banking inconveniences. Banks have stringent security measures that temporarily flag and shut down your credit card if they suspect any suspicious actions, like sudden location changes. This creates inconvenience and leaves you scrambling for access to funds.
Tip: Inform your bank about your travel dates and locations before you leave. Choose cards that provide market-leading global service networks.
Booking Accommodation Last Minute
Last-minute hotel or rental bookings can leave you with fewer options and higher prices. The best deals are reserved for people who book far in advance, ideally at least one month in advance. Use apps like Hopper or Booking.com to monitor how prices shift over time and when discounts are available.
Ignoring Exchange Rate Fluctuations
Not keeping track of exchange rates can mean spending more than you planned. A slight rate difference can add up, especially for a higher transaction.
Before your trip, you can check the exchange rates with sites like XE or OANDA. However, if you exchange money, do that in favorable rate periods.
The Tourist Traps
Tourist hotspots are known for their overpriced food, souvenirs, and experiences, leaving visitors with little cash to splurge on any worthwhile authentic opportunity.
Find local restaurants, markets, and things to do off the beaten path. Use a review platform like Yelp or TripAdvisor to find hidden food gems.
Failure to Understand Foreign Culture and Tipping Norms
People like to be tipped when they provide services or go out of their way to help. Tipping norms in foreign cultures vary.
Overspending will result if you do not know the tipping customs. Imagine tipping 20% in a country where the customary tip is 10%, which means you’ll keep overspending throughout your trip. Before going, research how to tip at your destination. For a quick cultural overview, you might want to use guide apps such as Lonely Planet.
Overlooking International Roaming Costs
When traveling abroad, connecting your phone without a plan often costs a fortune when roaming internationally.
For cost-effective mobile use, switch to an international roaming plan before your trip or buy a SIM card locally upon arrival.
Not Maximizing Rewards and Cashback Programs
Do you maximize rewards and cashback programs? Maybe you’re not earning miles, points, or cash back when you spend on travel, and it’s costing you money. Use travel credit cards with bonus air miles, hotel discounts, or cashback. Redeem your collected points to save for later travels.
If you avoid these 12 mistakes, you can make your traveling more financially sustainable and not worry about expenses while you build memories. Get informed, plan smart, and get the most out of your next adventure!
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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