Everyone likes to save money when traveling, right? For some that means looking for great deals and for others it can mean taking notice of unnecessary expenses. One category of unnecessary expenses are those pesky fees that can crop up on both spending or accessing money when traveling. Many of these fees can be avoided!
Let’s take a closer look at some tips for saving money and keeping spending costs low. There’s also no reason to spend money on fees you can easily avoid.
Saving Money When Traveling: 6 Best Ways
1. Minimize transaction costs
It’s important to be aware of incurring transaction fees. They are easy to forget about. Credit and debit card issuers may charge foreign-transaction fees. These can add an extra 1-3% to a purchase price.
You might be charged ATM fees for taking cash from machines.
On the surface these fees might seem small; however, over the course of a holiday with day-to-day spending incurring fees can add up quickly.
It’s also possible that you will be charged two fees. Sometimes the bank that issued the credit card charges a fee but so does the bank providing you cash at the ATM.
Make sure when traveling you understand all (if any) fees you’ll be charged. Sure, we all make mistakes from time to time because we forget to take our favorite credit card (the one that charges a foreign transaction fee) out of our wallets before we start our trip. But making that mistake over and over again just costs too much!
2. Find the best exchange rate
Fees and commissions vary a lot. I’m sure you’ve noticed this! Look at some of the exchange rates posted when you walk through airports and you’ll see what I mean.
For cash even ATM rates can vary, so it’s good to shop around. Perhaps ask at your hotel or place of lodging. The staff can often lead you to the best rates. One time in Bangkok a hotel employee walked me all the way to the ATM for a great rate because the machine location was pretty well hidden and she didn’t think I could find it. She was not only gracious but right 🙂
Some folks like to leave home with their foreign currency already in hand. It’s best to know whether or not your bank keeps the currency on hand because in some cases they may need to get it for you. Be aware, though, that banks typically don’t exchange currencies for free.
I’ve been pleasantly surprised a few times that hotel exchange rates were competitive. Never hurts to ask.
3. Beware of “dynamic currency conversion”
Have you noticed something odd when you gets bills for items you’re purchasing? For “convenience” people are now receiving bills in USD. I’ve noticed this happening more and more, particularly in restaurants.
This is called dynamic currency conversion. Beware because it can give you an unfavorable exchange rate, add on transaction fees, or both.
So, when asked if you want to pay a bill in the local currency or in U.S. dollars, go with the local option. If you are sure the cost of using U.S. currency is negligible or at least worth the convenience of not having to convert in your head, take that option. I’ve yet to find it a good deal, though. If you have, let me know!
Pro Tip: Do you Pruvo all your hotels stays? If not, do what I do and let Pruvo monitor your reservations for price drops. It’s free and it’s the easiest way to save money on all your hotel rooms.
4. Take advantage of built-in benefits
Here’s a way to save money on travels that is easy to overlook. Many credit cards and debit cards offer money-saving travel-related perks. For example, there are credit cards that offer hotel reservation discounts, restaurant reservation assistance, free Wi-Fi access on eligible flights, and even discounts on certain types of accommodation and transportation.
Take stock and from time to time review your credit and debit card benefits. Unlock some of the ones you haven’t been using!
5. Consider travel insurance to cover risk
I have friends who buy travel insurance for most, if not all, of their trips. And then I know others who never buy travel insurance. Maybe you’d say, “It depends” when asked if you buy travel insurance. Whichever type of traveler you are, it can not only offer peace of mind but when needed, be a blessing.
And it can save you money!
Disruptions such as cancellations, delays, or missed flights or other scheduled activities can create extra expenses. So can lost baggage or theft, accidents, or illness requiring medical care.
It’s true that your credit cards can provide coverage for some of these risks. Sometimes, though, the additional protection is a good idea.
The price of travel insurance is typically about 4%–6% of your travel cost.
When you purchase the insurance it’s in the spending category. However, when you need to use it, the initial cost can save you money big time.
Don’t MISS OUT on the BEST current travel credit card offers!
6. Secure your information
While traveling, have you or someone you know had their wallet stolen? Or maybe it went missing. That will take the wind out of your traveling sails and fast.
It’s a good idea to take a picture of the contents of your wallet, including the fronts and backs of credit, debit, and insurance cards so you can find all of those important phone numbers to call in case of emergency. Keep multiple copies along with pictures of your passport and any other important documentation.
Many people don’t realize that cell phone companies have different options and packages for using data when traveling.
It’s possible that your plan at home may not work when you’re traveling. This often depends on destinations. You might also find money saving options to use while traveling.
Before leaving home many travelers activate transaction or fraud alerts for all accounts that offer them. This means that you’ll be notified of suspicious activity. Even when you still have your credit and debit cards and they haven’t gone missing, suspicious activity still happens.
This has happened to me multiple times, so unfortunately I speak from experience.
It’s also possible set up a travel notice to have your bank monitor your accounts for fraudulent activity. When travel monitoring is active, the banks scrutinize debit and credit cards for high-risk transactions.
What tips would you add to these 6? Let us know in the comments below.
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