Xi’an, China

Lurking beneath the exchange rates, mini bars and ATM withdrawals of every journey are a series of hidden fees that can really screw up your bank account and your travel budget if you aren’t careful. A lot of travelers get duped into paying extortionate fees when they travel quite simply because they aren’t aware that the fees are being imposed in the first place. In the interest of saving you money (and stress), here are a few ways to avoid the hidden fees when you’re travelling.

Hotels

Hotels are some of the worst culprits when it comes to duping unsuspecting travellers into paying hidden fees. Aside from the obvious costly extras, such as the hugely-marked up (but enticing!) items in your mini bar, many hotels have the nasty habit of charging guests a few quid here and there for things like “groundskeeping fees” and use of the business centre. They also often scam guests by charging for items that appear to be free, such as that bottle of mineral water next to the bed or even the newspaper that you are “given” in the morning. Likewise, if you order room service, expect the gratuity to be added in already and skip the tip.

To avoid these hidden fees, first avoid the tempting items offered in your room, such as the mini bar items and the on-demand movies. Next, when you check out, carefully look through your bill to make sure of the fees you’re being billed for. Ask the desk clerk if there are any extra fees that haven’t been mentioned on your bill. If you see something on the bill, such as a charge for using the safe or extra gratuities, contest any services you didn’t use.

Financial Institutions

Thinking of exchanging your currency in the airport? Think again. According to Martin Lewis of MoneySavingExpert.com, airport exchange bureaus charge some of the highest fees for exchanging currency. Even those that claim to offer a “no commission” service often simply up the exchange rate and take the extra for themselves. Likewise, private bureaus de change on the street tend to charge hefty commissions for their exchange services, so avoid them, too. Furthermore, you might unwittingly be paying a myriad of extra fees for using your credit or debit cards abroad, so make sure to ask your bank for a full statement about use of your cards abroad before you start to spend. Withdrawing cash from an ATM is one of the worst culprits for extra hidden fees, while many credit cards also impose extra percentages on top of the exchange rates each time you use your card.

To avoid these pesky fees imposed by financial institutions when you travel, start by getting educated about your bank and your cards. If necessary, invest in a pre-paid credit card that secures your exchange rate up front, such as the Cash Passport. Plan ahead and exchange currency at your local bank at home before heading off so that you have some spare cash for things like taxis from the airport, bus fare or parking fees.

Shopping

There are several ways that local shops take advantage of unsuspecting tourists, and the primary one is that ever attractive question, “Would you like to pay in pounds or [x local currency]?” as soon as you hand over your credit card. For some reason, this question leads travellers to believe that they might be getting some kind of special deal if they choose to pay in pounds. In reality, what happens is that the shop offers its own conversion rate on the currency exchange, which is often horrifyingly high. Instead, always pay in local currency and let your own bank do the exchange, in which case you’ll at least have the advantage of a defined rate.