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- It can be much more expensive to make several short stops in different places during a trip.
- Before you travel abroad, check what foreign transaction fees apply to your credit card.
- Forgoing travel insurance can leave you facing an unexpected and costly emergency.
While average prices for airfare, hotels, and car rentals have been on an upward trajectory over the past few years, actual demand for travel has not slowed. According to a study by MMGY Travel Intelligence, 76% of Americans plan to travel in the next 12 months and 64% still plan to travel in the next six months.
Fortunately, there are countless ways for travelers to satisfy their wanderlust without spending a fortune, such as using rewards credit cards, shopping around, and booking travel packages. Consumers can also save money on travel by avoiding the biggest financial mistakes people make when booking travel.
1. Visiting too many destinations in one trip
Stephanie Montague of the military travel blog Poppin’ Smoke says a big mistake she sees travelers make is trying to visit too many different places on the same trip. Worse yet, they decide to change hotels without staying in the same one for more than a day or two at a time.
She says you can save money on travel by choosing one place as a base and taking day trips from there instead of spending money (and time) on a train or plane every few days. You can also get a better deal on a short-term apartment rental with a weekly rate instead of a hotel stay, and you can save money by preparing some of your own meals.
2. Not checking your credit card fees
Financial educator Nia Adams says many travelers never think about the extra fees they may have to pay for using their credit or debit card abroad. The biggest of these fees are foreign transaction fees, which typically add about 3% to every purchase made outside the United States.
“Depending on the terms of the bank or credit card, foreign transaction fees can really add up,” he said.
To avoid these fees, consumers can apply for a credit card with no foreign transaction fees well in advance so they can have it in their hands before international travel.
3. Not using a travel agent
Planning your own trip can make traveling more stressful and confusing, but it can also cost you more money in the end. That’s one reason why so many consumers turn to a travel agent to help them figure out the stages of their trip and get the best prices on everything from hotels to tours. Many travel agents even offer their services for free. They receive commissions on the professional accommodations and tours they book on behalf of their clients.
According to travel agent Krissy Yoder of Be Our Guest Travel Company, turning to a trusted travel advisor is the key to avoiding making many costly mistakes. “A travel professional can guide their clients through the options and make sure they are comfortable with the inclusions in their package and understand other costs they may incur.”
4. Traveling without health coverage
Travel agent Erica Wood of Daybreak Travel Co. says many travelers don’t realize that their health insurance typically doesn’t accompany them when they travel to other countries. So if something unfortunate happens, they end up with thousands of dollars (and possibly more) in unexpected medical bills.
“A broken bone, a heart attack and other problems would have to be paid for out of pocket during the trip,” Wood said.
On the other hand, if you purchase travel medical insurance in advance, you can ensure that you receive the care you need without breaking the bank. Most travel insurance policies offer at least $15,000 or $25,000 in coverage for emergency medical expenses that may apply abroad, but you can also find policies with much higher medical coverage limits.
5. Not investing in a comprehensive travel insurance policy
Other inclusions in a travel insurance plan can prove crucial. For example, these plans can provide coverage for lost or delayed baggage, travel delays, missed connections, trip cancellations and interruptions, and more. You can even purchase cancellation for any reason coverage that allows you to cancel your trip and recover a percentage of prepaid travel expenses no matter the reason you are unable to travel.
Christina Schlegel, travel agent at Bluetail Travel, says it’s also a good idea to have emergency medical evacuation coverage before a trip. This type of coverage can pay for emergency transportation by ambulance, plane or helicopter if you’re injured and need transportation to the nearest medical facility or even back to your home country.
“It can save you thousands, or even hundreds of thousands of dollars, in the event of an emergency medical evacuation,” Schlegel said. “Just like you wouldn’t drive your car without insurance, what an adult should do is consider and purchase travel insurance, especially for overseas travel.”
