The Hidden Cost Of Travel

TL;DR

Tourism companies often charge hidden fees, such as baggage fees and resort fees, that can add up quickly. Travel smart by using rewards programs, co-branded credit cards, and checking your insurance coverage.

Transcript

hello and welcome to investing at channel TV where we help you with your investment decisions to assist you in getting ahead today we're going to take a look at the hidden costs of tourism and help you to travel smart now tourism and travel is an extremely competitive business there's huge pressure on companies to be competitive in price for flight... Read More

Key Insights

• 🤱 Hidden fees in the tourism industry, such as baggage fees, can significantly increase travel costs.
• 💳 Using rewards programs, rewards credit cards, and checking websites can help minimize resort fees.
• 🛄 Southwest Airlines offers two free checked bags, helping travelers avoid costly baggage fees.
• 💳 Applying for credit cards without foreign transaction fees can save money when traveling abroad.
• 🤱 Careful planning or choosing airlines like Southwest can help avoid expensive ticket change fees.
• 💳 Rental insurance fees can often be unnecessary if you have existing auto insurance or credit card coverage.

Questions & Answers

Q: What are some hidden fees that can be expected while traveling?

Some hidden fees include resort fees, baggage fees, credit card foreign transaction fees, airline ticket change fees, car rental fees, and cell phone roaming charges.

Q: How can I avoid resort fees?

Resort fees can be avoided by booking hotels with low or no fees through reward programs, rewards credit cards, or resort fee checking websites.

Q: Are there any airlines that do not charge baggage fees?

Southwest Airlines is one airline that provides all ticket holders with two free checked bags, eliminating baggage fees.

Q: How can I avoid high foreign transaction fees?

To avoid high foreign transaction fees, check the terms and conditions of your credit and debit cards, and consider applying for a credit card without these charges.

Q: How can I avoid airline ticket change fees?

Avoiding airline ticket change fees requires careful planning or booking with Southwest Airlines, the only airline that does not charge for changes. Additionally, all airlines must allow free changes within 24 hours of purchase.

Q: What can I do to avoid unnecessary car rental fees?

Check your own auto insurance policy and credit card coverage before agreeing to rental insurance fees. In many cases, these policies will cover any rental damage.

Q: How can I avoid high cell phone roaming charges while traveling abroad?

To avoid high cell phone roaming charges, check your mobile plan for international service options and consider relying on Wi-Fi instead of using data outside of the US.

Summary & Key Takeaways

• In 2017, Airlines made $7.5 billion from charges for baggage and ticket changes, revealing the hidden costs in the travel industry.

• Resort fees, originally charged by resorts, have become widespread, with 8% of city hotels also imposing them. They can be avoided by using reward points, rewards credit cards, or checking websites for hotels with low or no fees.

• Baggage fees can lead to additional charges, but some airlines, like Southwest, offer free checked bags. Using co-branded credit cards or planning ahead can help avoid fees.

• Credit cards often charge foreign transaction fees, but applying for a card without these charges can save you money.

• Airlines impose ticket change fees, which can be as expensive as the fare itself. Avoiding these fees requires careful planning or choosing airlines like Southwest that do not charge for changes.

• Rental companies often push for pricey insurance fees, but your own auto insurance or credit card coverage may already protect you.

• Cell phone roaming charges can lead to exorbitant costs. Check your mobile plan and make necessary changes to avoid high call and data charges by relying on Wi-Fi.