For everyone Money matters: keeping an eye on the costs of travel
Recently, I was fortunate enough to spend five weeks in Europe. This involved a mix of car, train and boat travel, and along the way I encountered a number of financial decisions.
First and foremost, the importance of adequate travel insurance. For some years I have used the travel insurance offered by my credit card, which meets my needs. If you’re a Teachers Health member, they also offer good-value insurance.
If you have any pre-existing medical conditions, check if you can pay extra to have them covered. Also remember that Australia has medical reciprocity agreements with several countries, including Italy. If you plan to visit them, take your Medicare card.
Take some cash in the local currency. It can be handy for small transactions and travel. One taxi operator told me the credit card surcharge was 18%!
Credit cards generally offer a currency exchange rate that is competitive, but the issuer of the card will charge a fee of around 3% on each transaction. Alternatively, you can use a debit card or a travel money card, such as Wise.
A travel money card allows you to load foreign currencies prior to travel, at favourable exchange rates, then access that currency through an ATM overseas and/or pay for purchases in the local currency you have loaded on your card. The Canstar website offers excellent, comparative summaries of the costs and fees of various products.
Some overseas businesses still offer travellers the option to pay in Australian dollars rather than the local currency. This process is called Dynamic Currency Conversion and, whilst it sounds convenient, it can add up to 10% to the cost.
Some accommodation providers also apply a ‘tourist tax’ when you settle your account. It can range from one to seven euros per person per night. It can apply to camping grounds all the way through to luxury hotels, so budget for it.
One way to rack up a huge cost is the failure to maintain appropriate settings on your mobile phone. Data charges can be horrendous – especially on cruise ships, which use satellites for communication services. Restrict data use to wi-fi by turning off ‘Mobile Data’. On cruises, also switch to ‘Aeroplane Mode’ to block phone calls and messaging.
WhatsApp is great for SMS and calls. In some countries, it is also a common way to communicate with drivers and guides. You could also consider getting an e-sim for phone data, so you can use maps and search for info stress-free. ‘Simify’ has a good e-sim with a range of reasonably priced packages.
Remember, too, that if your hotel or other wi-fi shows up as an unsecured network, don’t risk undertaking any activities such as banking. Wait till you can access a secure service. Take care and bon voyage!
