Don't Let Hidden Fees Upend Your Travel Budget: What to Know

Traveling can be an exhilarating experience, but hidden fees can quickly turn your dream vacation into a financial nightmare. As a seasoned travel journalist, I've encountered my fair share of unexpected expenses and hidden fees. Here are the most common hidden fees travelers face and strategies to minimize them.



Foreign Transaction Fees

Using a credit card abroad is convenient, but it can come with a catch. Foreign transaction fees are charges imposed by your bank for converting a foreign currency to U.S. dollars. These fees can add up quickly, especially if you're not aware of them. To avoid these fees, opt for a travel-friendly credit card that doesn't charge foreign transaction fees. The Chase Sapphire Preferred card, for instance, is a popular choice among travelers. While it has an annual fee under $100, the savings on foreign transaction fees can quickly outweigh the cost.

Roaming Fees

Staying connected while traveling is essential, but roaming fees can be a significant drain on your budget. Before your trip, check your cell phone plan to see if it covers international service. If not, consider switching to a more comprehensive plan or getting a local SIM card. eSIMs are also a convenient option, allowing you to use a local number and data plan without changing your physical SIM card. For example, Airalo offers international eSIMs that can be activated for a few days or up to a month, depending on your needs.

Excess Rental Car Costs

Renting a car can be a necessary expense, but it's essential to read the fine print. Many car rental companies charge additional fees for renting a car at the airport, adding a driver, or for drivers under 25. To avoid these fees, consider finding a rental agency nearby or using a ride-sharing service to pick up your car. Additionally, be aware of gas prices at your destination and ensure the rental car is filled before returning it to avoid exorbitant fees.

Vacation Rental Cleaning Fees

Staying in a vacation rental can be a cost-effective alternative to hotels, but beware of hefty cleaning fees. These fees are often not clear until checkout and can be as much as staying an additional night. To avoid these fees, consider staying in a hotel instead or opting for a vacation rental with transparent pricing.

Hotel Amenity Fees

Hotels often advertise low room rates but make up for it with hidden amenity fees. These fees can include charges for using the pool, gym, or Wi-Fi. To avoid these fees, research hotels that offer complimentary amenities or factor these costs into your overall budget.

The FTC's New Junk Fees Rule

The U.S. Federal Trade Commission (FTC) has adopted a new rule prohibiting hotels from hiding mandatory fees when advertising prices. The rule aims to provide transparency for consumers and save them billions of dollars in hidden fees. Under the new rule, all short-term rentals and hotels must "clearly and conspicuously disclose the true total price inclusive of all mandatory fees whenever they offer, display, or advertise any price" and cannot "misrepresent any fee or charge" when advertising to consumers. This rule is expected to go into effect after a period of public comment and potential legal challenges.

In conclusion, hidden fees can significantly impact your travel budget, but with careful planning and awareness, you can minimize these unexpected expenses. By using a travel-friendly credit card, checking your cell phone plan for international coverage, reading the fine print in rental agreements, and researching gas prices and rental car insurance options, you can avoid hidden fees and enjoy a more budget-friendly trip. The FTC's new Junk Fees Rule will also help travelers by requiring businesses to disclose the true total price upfront, saving consumers billions of dollars in hidden fees.