When most people think of travel expenses, they imagine flights and hotels. But in reality, silly fees and extra charges on the ground can quickly add up to expenses in the triple digits. The good news is that most of these are avoidable with careful planning and a bit of bargaining, so聽instead of wasting money on parking or ATM transactions, you can use your cash for an epic day of SCUBA diving or a night of unlimited Mai Tais.聽
叠耻诲驳别迟颈苍驳听
The easiest way to wreck your travel budget? Not having one in the first place. Besides paying taxes and taking out the trash, budgeting is easily one of the most despised parts of everyday life鈥攈ence why it鈥檚 the last thing most people want to do when planning a vacation. For most people, a budget tells you what you can鈥檛 spend, but I like to look at it as a roadmap for telling you all the fun things you can do with your cash.聽
Setting a travel budget is the best way to avoid overspending and set priorities on your holiday. For example, it鈥檒l stop you from running up the bill at a fancy restaurant when that money is allocated for a day snorkeling instead. Plus, overspending typically leads to credit card debt, attached to interest, which ultimately means you end up spending even more.聽
搁别尘别诲测:听As far ahead as you can, do some research into how much a day鈥檚 worth of basic expenses (food, drinks, lodging, transportation) will be in your destination. Multiply that number by the number of days of your vacation, and add about 20 to 30 percent to pad for unexpected expenses, like tips or that souvenir you just can鈥檛 pass up. Set the total (or as much of the total as you can, if you鈥檙e saving up) aside in a separate high-yield savings account, such as , so you won鈥檛 be tempted to blow in in the meantime. You can even pre-pay your credit card to set a firm amount and track how close you are to hitting your limit. Before you go, download an app like , so you鈥檒l be able to monitor your spending in real-time and see how it鈥檚 tracking against your daily budget goals. If you go over budget, rather than induce spending-stress, the app will suggest costs you can cut back on.
Parking
If you live in a city like Los Angeles, like I do, you only have a few ways to get to the airport: using a ride-share, an airport shuttle, or driving yourself. If your flight gets in at odd hours or you don鈥檛 want to deal with an Uber driver, you鈥檒l probably choose the last option, which can end up eating up a sizable portion of your travel budget. Parking fees range anywhere from $9 to more than $25 per day at most major airports. Multiply that by a long weekend, and you鈥檙e easily looking at $100.聽
Remedy: One of my favorite sites is where you can find rates as low as $5.95 a day at a variety of airports. I always make a reservation at least a week prior to my departure date to score major deals. Also, if you belong to AAA or other membership organizations, such as your college alumni program, always check to see if they offer parking discounts鈥攕ome can go as high as 30 percent, which quickly adds up if you鈥檙e gone a week.
Baggage Fees
If there鈥檚 one thing I hate to spend money on it, it鈥檚 baggage fees. They are almost inescapable these days (unless you鈥檙e traveling overseas, when airlines typically allow聽for one checked bag), and usually cost $25聽or more per bag per person. If you鈥檙e traveling with a family, that comes out to huge expense before you鈥檝e even left the airport.聽
Remedy: One of the easiest (and nowadays, only) ways to avoid baggage fees is to use an airline credit card when booking your plane ticket. I have the , which partners with American Airlines and other associated carriers, and gets me up to four bags free with four passengers. My husband and I routinely save $100 roundtrip just from putting our flight on plastic. Most major airlines have this deal, and sites like sum them up nicely.
Foreign ATM and Transaction Fees
These charges are like gremlins that sneak up on you after your trip and haunt you long after you鈥檝e returned. They can range from brand to brand, but most credit and debit card companies charge around three percent for every meal, drink, and trinket purchased abroad.聽
Why not just use cash instead? Your bank will get you there, too. Domestically, the majority of banks will charge a withdrawal fee for ATMs from other companies. Internationally, they鈥檒l charge that (usually between $2.50 to $5), a foreign exchange fee, on top of an unfavorable exchange rate. Plus you鈥檒l probably get dinged聽by the ATM you鈥檙e withdrawing from. Do that enough, and you鈥檒l wind up paying for your vacation weeks after you鈥檝e returned.聽
Remedy: There are plenty of credit cards that charge nothing for foreign transactions, so make sure you have one in your wallet before setting foot on international soil. A few good ones: , , and . Always make sure you double check with your credit card company before you leave the country so you know what charges you鈥檙e in for and can choose them wisely. Even so, it鈥檚 always good to have some cash when you travel, so choose a bank like or Charles Schwab which are truly free, with zero ATM or foreign transaction fees (Schwab will even reimburse you for withdrawal charges from other ATMs). If you鈥檙e determined to use your regular bank, you can minimize costs by taking out a lot of cash at once鈥攋ust be careful to stash it in different places in case of theft or loss. Or, if you鈥檙e planning to bring money to exchange, opt to change enough to get you by at airport kiosks, which typically give a less favorable rate, and leave the rest for small, local banks.聽
Rental Car聽
Rental companies will charge a premium for the cars best suited for your destination. For example, driving a Jeep around Oahu could cost up to $90 per day. That鈥檚 not including insurance pushed by rental agents that can run as high as $50 a day, a price they can get away with because most people don鈥檛 know there are other insurance options available.聽
Remedy: Despite companies鈥 dire warnings of terrible crashes and freak hail storms, most experts recommend against their insurance.聽There are , like going through your own auto insurance and most major credit cards, or booking through an agency like , which usually offers coverage for as little as $10 a day. Also keep in mind that rental prices change frequently: On a recent trip to Maui, I saved over $150 by continuing to scan prices up to a week before the trip.聽
Lodging
Comparing prices on third-party sites like Kayak, Priceline, and Expedia can sometimes be counterproductive鈥攂udget hotels that offer similar amenities in the same neighborhoods are often priced the same, despite having different standards.聽
Remedy: Most people assume the price posted on a hotel鈥檚 website is non-negotiable, but if you see a lower price on a third-party site like Expedia, call the front desk and ask for a discount if you book through them. Most hotels would rather have you book directly through them versus an online site, and will give you an even better rate.