12 Biggest Wastes of Money When Traveling
There are many ways to waste your money while on vacation. From paying more for hotels in popular areas to overpriced souvenirs that will only collect dust and exchanging money in places where the rate is less than favorable, there’s no lack of places where you can lose your money.
If you want to save your hard-earned dollars, follow these simple tips to help you travel smarter, save money, and avoid tourist traps.
1. Eating in Popular Restaurants
One of the biggest wastes of money is eating in restaurants that are in busy areas. This rule applies to many tourist hot spots, whether it’s Dubrovnik Old Town, Trastevere neighborhood in Rome, or La Rambla Street in Barcelona.
While it can be cool to sip on a cup of latte in a cafe in the middle of a popular area, this same latte will likely cost less a few blocks down the street.
If you see a restaurant full of tourists, skipping it might be a good idea, or at least check Google reviews. Some restaurants are busy because they have phenomenal food and atmosphere worth a high price tag.
But sometimes a place is busy only because it’s in an area with a ton of foot traffic, and tourists will stop there because of its convenient location.
As a rule of thumb, try to eat where locals eat. As soon as you step away from popular areas, you will encounter more low-key establishments where you can dine inexpensively and enjoy bigger portions.
More often than not, food quality in these places is just as good if not better than in touristy restaurants.
2. Staying in Popular Areas
Staying in popular neighborhoods could cost you a pretty penny. That’s not to say that you should stay in bad areas, but the key to scoring good deals on accommodations is to look for places within a 10-15-minute walk from the center. I can personally vouch for this one because I’ve done it many times and it works!
As soon as you start looking at places slightly off the beaten track you will see a price difference.
Staying away from the crowded area is a win-win scenario because you will enjoy a more tranquil stay and save cash.
If you are set on spending your vacation in a popular hotel, use a bonus system through your booking provider, so you can at least get some points for your stay.
3. Staying in Resorts
staying in luxury accommodation is part of the experience in some destinations like the Maldives and Cabo San Lucas known for their resorts.
However, staying in a resort could be a huge waste of money, depending on your travel style. If you want to explore the area and don’t plan on sticking around, paying for a resort is honestly not worth it, because you will not take advantage of all the amenities included in the price you pay.
However, a resort could pay off if you want to take it easy, chill by the pool, and enjoy dining and relaxation.
4. Exchanging Money in Busy Areas
If you want to exchange some money, do a quick Google search to avoid places with poor exchange rates. Unlike banks or more established exchange offices, currency exchange offices in tourist-heavy areas often offer less favorable exchange rates.
In addition, there’s a higher chance of encountering scams or counterfeit bills in crowded tourist zones. Less reputable exchange vendors may not provide legitimate bills or may shortchange you.
Currency exchange offices in tourist areas often rely on the fact that many tourists won’t take the time to seek better deals elsewhere. This may lead to you paying more simply for convenience.
5. Tipping When You’re Not Supposed to
Tipping is part of the American culture, but it’s not always the case in other parts of the world. In some countries, tipping is not expected, and service charges are included in the bill.
Outside the United States, it’s not uncommon for waiters and waitresses to make enough money to sustain themselves instead of relying on tips.
For example, tipping is often considered rude in Japan. Good service is expected as part of the job, and tips can be seen as an insult. In Denmark, tipping isn’t expected, and service charges are included in the price of services. If service exceeds expectations, a small tip will do, but it’s unnecessary.
If you’re in Singapore, you’re not supposed to tip because a 10 percent service charge is usually included in the bill.
6. Paying Huge ATM Fees
If you travel internationally, you should get a debit card with no ATM fees. Otherwise, be ready to pay fees whenever you need to withdraw cash from an ATM.
Many debit cards have at least minor fees for foreign transactions, but Schwab Bank offers a high-yield account that reimburses all fees charged by ATM operators.
7. Buying Souvenirs You Don’t Need
Most of us are guilty of buying at least a few souvenirs we didn’t need. Just think about those magnets or postcards at the bottom of your kitchen drawer.
While getting little trinkets for your friends and family isn’t going to break the bank, buying more expensive souvenirs can be a waste of money. Most souvenirs have emotional value, so before you buy something, ask yourself what you’ll do with it.
Additionally, buying souvenirs in airports and tourist hot spots will be more expensive than buying souvenirs in less busy places.
8. Buying Bottled Water
Some countries have old pipes and poor filtration systems, so buying water is necessary, while other countries have excellent tap water, and you can save money on bottled water.
For example, you can’t drink tap water anywhere in Mexico, but Switzerland’s tap water has excellent quality. Always research before traveling to a new country to find out if tap water is safe to drink. If that’s the case, bring a reusable water bottle that you can carry with you.
9. Taking Taxis
Taxis are one of the biggest wastes of money because they are more expensive than any other type of transportation.
In some places, taxi drivers prey on tourists who don’t know the area, as they try to sell them expensive rides costing as much as a daily car rental. Use a taxi only if rideshares like Uber, Lyft, or Bolt aren’t available.
If you decide to take a taxi, negotiate the rate with the driver beforehand, and if a taxi driver has a meter, make sure that it’s set to zero when you begin the ride.
10. Skipping Public Transportation
While avoiding public transportation could be a matter of safety in some destinations, you could miss out on a cheap ride in others. Many European countries have excellent public transportation networks that you should take advantage of, save on your trip, and get a cultural experience.
If you plan to use public transportation frequently, you can often buy weekly or monthly passes just like locals do.
11. Traveling During Busy Holidays
Traveling during holidays is never cheap. Avoid busy travel dates like the Fourth of July, Thanksgiving, and Christmas. Airline tickets are always more expensive during this time, and you should plan your travel around those dates whenever possible.
12. Traveling During Peak Season
You’re guaranteed to spend more money during the peak season. Airfare, hotels, tours, and just about everything is expensive because everyone is trying to make a dollar off tourists before the busy season ends.
In Europe, summer is the busiest season, while winter is the prime season for tour operators and hotels to make money in the coastal parts of Mexico.
Carefully research bay times of your dream destination, and think about whether visiting during the busy season outweighs any potential drawbacks that might come with it.
