Tips for Unexpected Travel Expenses

Medical Expenses

We get excited about the activities, food and drinks, and the worst is emergency medical expenses. These unexpected expenses may be the source of frustration, and I do not want you to ruin your trip. If this happens, do not panic and assess the situation first, there may be alternative options that you can do. Be mindful of the following expenses, so you can adjust your spending habits and prevent similar unexpected expenses. By being aware of the common unexpected expenses during travels, you can prepare better and set aside a budget for them. It is always better to have an emergency fund.

Kay Escobia, Chief Marketing Officer of Liox

Transport Expenses

Many countries run almost solely on card payments these days, but you’d be surprised when it comes to Southeast Asia, it’s a cash zone.This is especially true when it comes to visiting remote islands which typically don’t even have a single ATM cashpoint.

Unexpected travel costs like transport to and from the island, the higher cost of food and drinks, and even hotel payments accepted only in cash can catch many first-time travelers out. For this reason, I tend to stick with the rule, figure out how much cash you need for your planned stay and add 50% to it.

Josh Shephard, Writer of The Lost Passport

Think Ahead

Make a budget for travel, meals, hotel, and other costs after doing some research on the location.

Maintain An Emergency Fund

Have some extra cash on hand to cover unforeseen costs like hotel overages or travel delays.

Exchange Rates

When visiting another country, keep an eye on exchange rates, profit from card features, and use ATMs to get local cash.

Thomas Villalpando, Co-founder of IPet Guides

1. Foreign Cash Withdrawal Fees

Many banks and ATMs abroad charge fees for withdrawing cash, but not all do. If you’re in a reasonable-sized place with several ATMs, there’s a good chance that at least one of these will allow you to withdraw cash without charging any fees.

Whenever I arrive in a new place, I always scout out the local ATMs to see if there’s a machine that lets me take cash out for free. Make a note of which bank it is and use this as your go-to whenever you need to withdraw cash.

2. International Data Roaming

Unless your network provider includes free international data roaming, it can be very expensive to use your phone when abroad. Always check whether your package includes international roaming (sometimes you can pay a bit extra for international “add-ons”).

If it doesn’t, be sure to switch off roaming on your phone to avoid being charged fees. If you’ll be abroad for a while, it might make sense to purchase a local SIM card and data package. These are often quite cheap, and many providers allow you to purchase “e-SIMs” which allow you to leave your usual SIM card in your phone.

Alex Tiffany, Founder of Just Go Exploring

Travel Insurance

Consider purchasing travel insurance to make sure your prepaid travel expenses, your health and your stuff are protected when away from home. Faye Travel Insurance does just that with whole-trip travel insurance, plus every policy holder has access to their support team (real humans) 24/7 for emergencies, advice and even tips on where to eat and stay. Not to mention, Faye’s base policy covers many water activities including scuba diving. But if your diving depth will exceed 40 meters, you can tack on the Adventure & Extreme Sports add-on for even more protection.

Lauren Gumport, Vice President at Faye Travel Insurance

One unexpected travel expense you hope never happens is lost luggage or medical emergencies. That is why I always recommend purchasing travel insurance. While this is an expense you may not use for your travels, you’ll be grateful if an emergency happens. Travel insurance covers travel related changes such as trip interruption or cancelation, baggage delay or loss, and unexpected changes to your reservations. Even if these disruptions occur due to weather, the right travel insurance helps. I’ve used travel insurance due to hurricanes in the past. It can also cover medical expenses. If your insurance doesn’t cover 100% in other states or countries, travel insurance provides supplemental coverage. Additionally, the travel insurance carrier may provide concierge services that assist with medical evacuation and changing your flights and other reservations.

Tonya Denmark, Creator of Detail Oriented Traveler

30% More

In terms of unexpected travel expenses, my best advice for first-time travelers is to bring or prepare at least 30% more than you expect to spend. You’ll have a cushion for unexpected expenses, and you’ll be able to enjoy your vacation without worrying about money.

Notify Your Credit Card Company

It would also be beneficial to notify your credit card company of your travel plans so that international charges are accepted. This way, you will have an option if there are additional charges that your emergency fund cannot cover..

Please keep in mind that international fees will undoubtedly apply. However, that pales compared to being trapped in a foreign land or country with no way out.

Patrick Cohen, CEO of CarCover

Mobile Data Fees

Today, we live in a global village and want to be allowed to use our phones wherever we go. It’s not always viable to do this though when traveling. Turn off roaming on a phone to save money on bills when a person returns home from a trip. When and where it is possible, use Wi-Fi; alternatively, consider getting a SIM card when you get there. In this heading, we’ll go over this technique as well as some others for utilizing your phone abroad. Cell phone use when traveling is frequently unavoidable or unavoidable, but it might come with incredibly expensive roaming fees. When people pay by the minute or the megabyte for data or minutes, a brief scroll on social media, use of a navigation app, or a check-in phone call will result in a hefty payment. Turning off roaming before a trip is highly worthwhile and advised to prevent unintentional charges. When possible, use WiFi to access the internet, and if making frequent phone calls is anticipated, consider getting a regional sim card.

Faizan Ahmed, Head of Marketing at Ubuy Qatar

The worst unexpected travel expense is arriving home to see expensive roaming charges on your cell phone bill. Prevent roaming charges by switching off your primary data plan and instead using a local eSIM (digital SIM card) in the country you’re visiting. You can buy eSIMs online, and add as much prepaid data as you need – no surprises, no extra fees. It’s a great way to stay online internationally, without needing to find Wi-Fi.

Heather Clarke, Marketing & Communications Manager at aloSIM

Over Budget

Our best advice for beginner travelers for a smooth experience would be to always over budget for every trip and track finances as you go. If you keep track of your finances everyday, you can see where you spend your money and if you are overspending in one particular category. For example, if you are overspending on food, try to eat in or find cheaper restaurants. Or if you are overspending on accommodation, maybe you need to find a cheaper alternative? By taking charge of your finances from the beginning, you will have a better trip in the long run. We have been able to travel long term for years because we track our expenses and have learned where we tend to overspend.

Mark and Kristen, Creators of besthotelsanywhere.com

It’s important to keep an emergency fund of a few hundred to five hundred just in case you have any unexpected travel expenses arise. Having an emergency fund can prevent any stress or worry of having to spend money on things like a new flight you weren’t prepared for or luggage items in case your luggage gets lost.

Brittany Mendez, CMO of FloridaPanhandle

• Secure travel insurance:

Consider travel insurance as an investment rather than an extra cost. Given that you can utilize it in an emergency, it might save you a ton of money in the long run. Being insured allows you to avoid paying for lost or stolen luggage or medical expenses. Consider investing your savings in a way that will make you money so you can take your next holiday!

• Look for secondary destinations:

Your budget trip can be more colorful with secondary destinations. When visiting Thailand, for instance, you can decide to visit Chiang Mai rather than Phuket or Bangkok. This is due to Chiang Mai’s affordability, cooler climate, and distinctive attractions. Explore the mountain, go to the elephant camp, and shop at the renowned night market. Stay at a tiny motel; most of them are in convenient locations with cheap dining options nearby.

• Plan ahead:

Planning is possibly the most important aspect of any trip. You must devise a plan that will allow you to spend the least amount of money possible to meet your demands when traveling if you want to keep your costs down.

Frederick Lansky, Founding Owner at Points Panda LLC

Separate Funds

When we took our last sabbatical around Southeast Asia, we set aside a pot of emergency funding, outside our main bank account, which was to be used only in the event something came up that we hadn’t planned for. Having reversed a hire car into a tree stump in Laos, we had to dip into this pot, moving the money across until the travel insurance paid out, then moving it back in again.

It’s a good idea to have this in a separate account that cannot be accessed in the event your card gets stolen, or even to get a friend or relative to hold the money so they can wire it to you quickly if you have a phone but no internet access when on the road.

I suggest building up an emergency fund of about a week’s expenses if possible, to make sure you always have seven days to resolve issues if you come across them.

Ben Reeve, Travel Writer and Blogger of TheSabbaticalGuide

Check For Discounts

 Look for discounts specific to RV travelers before booking a campsite or paying for repairs or services along the way. These can help reduce unexpected travel fees significantly! 

Consider Alternative Solutions 

Instead of always going with the most expensive option, look for alternate ways to solve your problem that cost less money. This could include buying used parts instead of brand new ones, seeking out cheaper repair professionals, staying at lower-cost campsites, etc. 

Look For Free Entertainment

If you want to save money on entertainment, look for free activities in the area such as local parks or events. This can help alleviate some of the unexpected costs that come with having fun on your trip.

 

Prioritize Needs 

Instead of buying everything that catches your eye while traveling, focus on what’s necessary first and save any extras for later if there’s still money left in the budget. 

Andrew, RV travel blogger at RV Camp Gear

Plan Ahead

When it comes to unexpected travel expenses, the key is to always plan ahead and budget appropriately. Beginner travelers should research the cost of their trip, including the cost of flights, hotels, transportation, and meals. Knowing the currency exchange rates and the cost of goods in the country they are visiting is also important. Additionally, it is important to consider the cost of any additional activities or excursions, as well as any visa or passport fees.

In addition to budgeting, it is important to consider the cost of any insurance you may need to buy. When traveling abroad, it is wise to purchase health, travel, and/or evacuation insurance. Travelers should also make sure to have enough money for emergencies and unexpected expenses. Credit cards are a great option for these types of situations.

Bennett Heyn, CEO of Parker-Marker

Use Rewards Programmes – If you frequently travel, ensure you’re getting your money’s worth. Sign up for frequent flier and hotel rewards programmes to earn points for the future.

Get Travel Insurance – Never be without it! It’s essential for covering unexpected cancellations, medical emergencies, and lost or stolen luggage.

Free Activities – traveling doesn’t have to be expensive. There are plenty of free things to do, from sightseeing to museums and outdoor events.

Currency Conversions – getting caught out here is easy. Be careful when paying with credit cards, exchanging money, or withdrawing cash from ATMs.

Joanne Archer, Senior Content Editor at Expert Home Tips

Research

First and foremost, research all potential costs before you set out, including hotel fees, transportation costs, and taxes. Keep in mind that certain locations may have additional fees that could impact your budget.

Local Currency

If you’re traveling to a foreign country, exchange some of your currency for the local currency before you depart. This can help you avoid costly exchange fees.

Rewards or Points

Take along a credit card that offers rewards or travel points. You can use this card to cover unexpected expenses while also earning points or cash back.

Hidden Costs

Be aware of hidden costs. If you’re staying in a hotel, be sure to read the fine print and ask questions about any hidden fees that may be included in your bill. The same goes for rental cars, airline tickets, and other travel-related services.

Stuart Lewis, Editor of Travel Scoop

Location Of Accommodations

To minimize unexpected travel expenses, I highly recommend paying attention to the location of your accommodation. For example, if you find a cheap hotel further away from the main sites, make sure that there is affordable public transportation available to get you there. Otherwise, you might end up spending more money in taxis and ubers than if you had stayed in a pricier hotel in a more central location.

ATM Fees

I would also recommend for any international traveler to get a debit card that doesn’t charge ATM fees and a credit card without currency conversion fees. Travel specific credit cards are the best. They offer great perks which help to make traveling more affordable such as redeemable points, trip insurance, etc

Patricia Palacios, Co-Founder of España Guide

Emergency Fund In Local Currency

For international travelers, keep local currency on hand! Even if you think most places accept credit cards, you never know when cash is expected.

On that note, no matter where you’re visiting, you should set aside an emergency fund for when you’re traveling. When you have to tap into it, don’t stress; remember that that’s what it’s there for. If you are able to use a credit card for emergency expenses, choose one with benefits so that at least any money you have to spend will get you some points! As an added benefit, certain credit cards offer travel insurance, car rental insurance, and more.

For peace of mind, I always like to get travel insurance for my more expensive trips. I shop around on different travel insurance websites to find which best suits my needs and which has the best reviews.

Be Flexible

Lastly, go with the flow and be flexible! For example, when you need to book a different flight, just know that these things happen. Don’t think about the money you lost, think about the memories you gained on this trip! Also, be open to changing plans or activities if they are too expensive. If you do incur unexpected expenses and are on a budget, see where else you can cut costs, like using public transportation instead of a rental car, or going to the grocery store instead of eating out.

Jasmine Alley of jasminealley

1. Research the costs of common items at your destination before you go and bring enough cash with you for those expenses. Do a quick currency conversion to make sure you can budget correctly.

2. If you plan on using your credit card, research which cards are best for travel in that destination. Some cards offer great rewards and deals, while others may charge high hidden fees that could quickly add up.

3. Consider organizing a travel budget ahead of time and then tuck away money for emergencies. This gives you access to funds that won’t take a chunk out of your wallet at the moment.

4. Look into travel insurance in advance so you know what to expect if a medical emergency does arise or you need to cancel a trip.

5. Be prepared for unexpected expenses when it comes to getting around, such as local transportation and car rentals. Do your research on the best ways to get around, and if you’re planning on renting a car, look into prepaid options.

Jill Greising-Murschel, Founder of Let’s Travel Family

Expect the Unexpected!

My best advice for beginner travelers regarding unexpected expenses is to “expect the unexpected”. In other words: prepare for unexpected expenses while planning your trip, and before you leave home. With all of the uncertainty that comes with travel, rarely do things go as planned, and you’re bound to incur some surprise costs when you’re away from home.

Put together an overall budget for your trip, and include “Unexpected Costs” as a category. I recommend allocating 5-10% of the total cost of the trip towards this category. If you plan for these kinds of costs ahead of time, you will be more prepared when (and not if!) they occur.

On some trips, extra funds can help solve a problem that arises: lost luggage, for example.. And if nothing goes awry while you’re traveling? That portion of your budget can cover a splurge meal on your last night, an airline seat upgrade on your return flight, or maybe just the cost of take out when you come home to an empty refrigerator. Or best of all: that money can go back in your bank account to put towards your next trip.

Jessica Corson, Founder of The Belle Voyage

1. Over Budget For Every Expense. 

For example, if the average fuel price in a region we plan to travel is $3.50 per gallon, we’ll typically budget for $3.75-$4 per gallon to have some “wiggle room.”

2. If driving, overbudget your total miles and under budget your mpg. 

For instance, we may plan to cover a driving itinerary of approximately 1,000 miles as Google Maps indicates. But we factor in an additional 25% overage for miles in the event we decide to take detours or have to go back and forth between places. Additionally, we track our fuel economy and know that we tend to get between 7.5-8.5 mpg (we’re a big RV!), but I would use 7 mpg for calculating our potential fuel needs.

3. “Roll-over” the leftover. 

Anytime we do not spend the amount that we budgeted for our trip, or part of our trip, using the principles above, we roll the funds over rather than immediately spending the difference. For example, we are in a 6-month leg of our journey that is taking us from where we worked this past summer in South Dakota, to Baja California, Mexico for the winter and then to Florida to visit family in the spring (3 legs of travel).

We budgeted X amount of money for each of the 3 legs of travel. But because of the over-budgeting principle, we had fuel savings leftover from leg 1 (SD to Mexico) that we applied to Leg 2 (down the Baja Peninsula and back up to the US). We will likely have additional savings on our drive north (we’re still in Leg 2 in Baja now) and that will be applied to our fuel budget for Leg 3.

Once we finish this trip, we will likely have 3 levels of extra savings rolled over to whatever we choose to do once we leave Florida. And while the average traveler may not have an extended trip of multiple months and such large geographic footprint like we do, the rollover principle can be applied on a day-to-day or week-to-week basis as well for the general traveler.

4. Use mobile apps to help plan the financial details of the trip.

For example, we use an app like GasBuddy to try and understand the typical range in fuel prices in an area where we want to travel. We will typically use the highest average we see in a region to base the entire region’s budget (example: fuel in Phoenix is generally more expensive than the rest of Arizona so we would plan our entire budget for a trip to Arizona based on the Phoenix prices rather than the lowest). This feeds perfectly into our Tip #1.

Lindsay Harvey of calledtowander