Money, Some Travel Advice

By Bill

During the last four years, I have traveled to four continents and nine countries.  One of my principal planning issues has always been money.  How will I pay for airline tickets, car rental, accommodations, meals, gifts, and tips? How can I take advantage of using combinations of money and reward accounts? 

Some good tools for currency conversion, locating ATMs, and advice on credit cards can be found on our Resources Menu.

Here are some considerations:

• Credit Cards.
• Debit Cards.
• Traveler's Checks.
• Cash.
• Personal Checks.
• Frequent Flyer Account.
• Hotel Reward Account.
• Wire Transfers.

First, I never use Traveler's Checks.  They are difficult to cash.  Most vendors don't like them.  And, when you are using a different currency, your option is usually to find a bank to cash them.  While in Slovakia doing so was one of the most interesting and trying experiences of my life.  It wasn't easy. In other words, Traveler's Checks, while offering protection to you during travel, are not convenient to use.

I use Credit Cards for airline tickets, car rental, accommodations, and meals.  The reason I do this is to get cash back from my purchases.  Having a cash back card means that for every dollar you expend, you can get back as much as 5% of what you spend.  That amounts up over time.  One excellent card is the American Express Blue Cash Card. Another excellent card by American Express lets you transfer points to 11 frequent flyer programs.

I use my Debit Card for cash.  I never exchange currency.  The reason is that most currency exchange stations in international airports will cost you substantially more than using an ATM at the airport and paying the fee that the ATM charges.  It is usually less than what it will cost you to exchange money.  Make certain that you consult with your banking institution before you travel about how much you can withdraw from your account using your Debit Card.  In the past, I ran into problems with getting enough cash in a single day.  I got my bank to raise the amount I can withdraw daily.  The reason for doing this is simple, one never knows when you will need a larger amount of cash, such as a medical emergency, or making a purchase for something special, like a gift.

Cash can be problematic.  One should never carry large amounts of cash.  But, in some travel tours, tips are expected.  For example, on my recent trip to the Galapagos Islands I found it necessary to pay the Captain of my boat a large amount of cash for tips.  In Tanzania, the practice is to tip your guide or driver each day, the amount can vary, but is usually based on how well your guide performed that day.  Tipping at camps for services is expected as part of your travel tour.  So, having small amounts of cash for tips is always a consideration.  And, if you are like me, cash can be hard to come by if you are in the middle of the Serengti and the nearest ATM is 300 miles away!  On safaris one can expect to tip as much as $100 per day or more.

Cash is also good for bartering.  I always barter for stuff.  I never pay what a vendor asks.  I always inquire if paying for something with cash will result in a discount.  In Scotland recently, I bought a bracelet for 10% less because the vendor offered that discount for cash.  It was a simple matter to find an ATM nearby and return to the shop with cash.  So, using cash can save you money for your expenditures.  Always ask.  Always barter.

Some vendors will not accept Credit Cards.  They want cash only.  There are cash economies all over the world.  That was my experience in Slovakia and to a certain extent was true in Ecuador.  Thoughout South Africa, cash is necessary to pay for fuel, credit cards are not accepted.

Personal Checks are often accepted by vendors.  I always ask.  Sometimes you get discounts for Personal Checks versus using a credit card.  In Alaska, I got a 10% discount for a personal check versus using a credit card.  Always ask.

Airline Frequent Flyer Accounts.  Make certain you have one.  Those miles add up and can be used for getting free airline tickets, upgrades, or special services such as access to airline lounges.

Hotel Reward Cards.  I use mine for all my hotel stays.  And, as a result, I have stayed free at some very expensive hotels in Europe.  Some vendors allow you to double dip.  That is, get both frequent flyer miles and hotel reward points at the same time.  Always ask.

Wire Transfers.  Sometimes a travel agency or tour company will require a wire transfer from your bank to theirs.  This happened to me recently on my trip to Ecuador.  The tour company would take a credit card but let me know that a fee would be added for the service.  Fortunately, my bank made a wire transfer at no charge.  Some tour companies do not accept credit cards at all. Wire transfers are safe and can be handled quite easily.  You will need the proper codes from the vendor to whom you are sending money but this should be an issue if the vendor is reputable.

Wire transfers using Western Union are  very expensive.  Sometimes it is necessary when you want to transfer money to an individual.  But be aware that such transfers will cost you considerably more than transferring money directly to another's bank account.

Think about what you are doing when you travel.  Use your money to your advantage.

But be smart and travel safely.  Never carry large amounts of cash unless it is absolutely necessary.