6 Hidden costs of traveling abroad

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Double check your travel budget before your next adventure.

Key Point

• Traveling to other countries is a great way to see more of the world and enjoy new experiences.
• When traveling internationally, you should be aware of potential additional costs before you leave so you can approximate your vacation budget.
• Foreign transaction fees, checked baggage fees, and data roaming charges are additional costs that can make your trip more expensive.

Traveling abroad is exciting, but it takes planning. Before you go on vacation abroad, it’s a good idea to outline your itinerary and prepare all the necessary expenses for your upcoming adventure.

If you’re not careful, you can incur hidden costs, and these costs can put a strain on your budget and make your trip stressful.

1. Foreign Transaction Fee

When traveling abroad, pay in local currency. Purchases can quickly become expensive if you are not using a credit card with no foreign transaction fees. Most cards that charge these fees charge 3% of the purchase price. Keep your vacation budget under control with a credit card with no foreign transaction fees.

2. Checked Baggage Charges

Unless you’re a light packer, it’s expensive to fly with checked baggage. Some airlines charge a fee per piece of checked baggage, depending on the route. It costs over $30 per bag each way. If your ticket doesn’t include checked baggage, using an airline credit card with checked baggage benefits is an easy way to reduce additional charges.

3. Taxes and Fees

If you travel to other countries, please also be aware that additional taxes and fees may apply when checking into your accommodation.

For example, many European cities impose a city or tourist tax. It is usually collected when you arrive at the hotel or home rental rather than on top of what you have already paid.

Please keep this in mind when booking so that you can budget for these additional charges.

4. Data roaming charges

It would be nice if your cell phone could be used worldwide at no extra charge, but that’s not always the case. Many mobile service providers charge a fee for using data abroad. This cost can be expensive if you are not careful.

Before your next international trip, check to see if your service provider offers travel-friendly plans, or consider switching to a better mobile service provider for global data.

Another option is to purchase a local SIM card once you arrive at your destination to continue using your phone at an affordable price.

5. Currency Exchange Fee/ATM Fee

If you go abroad, you must use the local currency when paying with cash. Planning how to get your hands on local currency is essential. It may be more affordable to withdraw foreign currency from your home bank.

Another option is to exchange cash upon arrival. If you plan to do this, consider your conversion rate and the fees you’ll be charged, then make sure you’re making a smart choice.

If you plan to use an ATM to obtain currency upon arrival, you should also consider whether ATM fees will be charged.

6. Wi-Fi charges

Plenty of Wi-Fi is available in public spaces, shops, restaurants and cafes in many international destinations, but not in all destinations. It’s worth researching whether you can easily connect to your destination at no extra cost when traveling to your destination. You may need to spend extra money where you are.

Considering these potential costs can help you better plan your vacation budget. When booking, consider using a travel credit card to pay for your trip. Earn valuable rewards.

If you’re new to travel rewards, check out our list of the best travel rewards credit cards to see how you can benefit from using this type of credit card.