7 unexpected holiday costs to factor into your budget

Holiday budgets can be a tricky thing. There’s the obvious upfront costs, like your flights and hotel, and on-the-ground spending on food, drinks and attractions – all of which can be fairly simply to estimate.

Then there are those extra fees and charges that sneak their way onto your final bills. These unexpected costs may seem small, but they all add up. And they can take a significant chunk out of your budget.

To help you avoid any nasty surprises and keep your bank account happy, we reveal seven forgotten charges that can drive up your holiday costs.

1. Tourist taxes

To help with the upkeep of a city or location – especially those destinations that see millions of visitors a year – governments across the world will often add a ‘tourist tax’ to your hotel bill.

The tax is generally reinvested into the destination in the name of sustainability, and to combat the effects of overtourism on local infrastructure and historical sites. But if you’ve not already factored it into your budget, it can take a sizeable chunk out of your holiday fund.

For example, Paris charges between €0.65 (55p) and €14.95 (£12.58) per person, per night (pppn), depending on the star rating of your accommodation. The price takes into account campsites right through to palaces, with a three-star hotel costing €5.20pppn (£4.37). For a three-night couples’ escape, that equates to a €31.20 (£34) shock at the end of your stay. You can avoid the surprise and calculate your tax ahead of time here (in French).

Similarly, visitors to certain parts of Spain can expect to see added taxes. Barcelona adds between €5 and €7.50pppn (£4.21 and £6.30). It’s lower in the rest of Catalonia, with taxes between €0.60 and €3pppn (51p and £2.53). In the Balearics, expect charges of up to €4pppn – that’s an extra €56 (£47.15) for a seven-night five-star stay for two adults.

The upside? In many countries, children are exempt from paying the tourist tax. In France, that’s usually anyone under 18; Spain, those under 16; Italy, kids under 14 (12 for Rome) and in Portugal, children under 13. There are also tourist tax exemptions for those with a disability and an accompanying person, but this varies country by country.

Of course, there are some popular destinations that have not yet introduced a tourist tax. Places such as Cyprus and Sweden, and Spanish cities including Madrid, will not add an extra charge to your stay.

Be aware that the tourist tax is often not included in the price of a package holiday and you’ll have to fork out for it at the desk. If you’ve opted to DIY your holiday, the tax may be included in the advertised price of your hotel, but you’ll still pay it separately.

2. Card and transaction fees

Travel money is fraught with rip-offs and relying too much on your plastic abroad could hit your bank account hard. Many banks will charge a 'loading fee' between 2.75% and 2.99% every time you make a purchase on your card. It means, for example, a £60 dinner can cost up to £61.79.

Some banks then add an additional 'purchase fee' between £0.50 and £1.50. These charges may not make a big dent in your budget after one buy, but it'll all add up over the course of your break.

ATMs abroad can be a good shout, but watch out for double-dipping fees from your bank and the local cash machine. To take money out overseas, some banks will add a withdrawal fee of around 2%, plus a fixed amount of about £2.

When you're out and about and a card machine at a shop or restaurant asks if you want to pay in pounds or the local currency, always go local. Choosing your home currency might seem logical, but it's actually a sneaky trick called Dynamic Currency Conversion (DCC). Your bank will almost always give you a better rate, especially if you've got a credit card or a debit card with a good foreign currency exchange rate.

If you're really keen to get ahead of the game, consider a prepaid travel card. Load it up with multiple currencies and you could bag yourself some competitive exchange rates without the fees.

Finally, while those currency exchange booths at the airport look very convenient, unless you fancy paying through the nose for your euros or dollars, give them a wide berth.

3. Roaming charges (or wi-fi fees)

If you like to wind down with an episode of your favourite show after a long day of travel or need to have Google Maps on hand when you’re out and about, be wary of how you’re accessing the internet – you could get hit with a bigger bill when you return.

Since Brexit, roaming charges for Europe have been reintroduced by many telephone companies (O2 and Virgin Mobile are notable exceptions). Now, instead of ‘Roam Like Home’ you can roam for up to £2 a day. For a week’s holiday to Europe, for example, that’s an extra £14, or £28 if you’re travelling in a pair.

The amount you’ll pay is capped by the government at £45 a month to help ensure you don’t run up a huge bill – unless you reach the limit and you opt in to continue paying. This regulation applies globally, not just in the EU.

If you want to return home without a hefty bill, check if your provider offers any roaming add-ons, such as Vodafone’s eight-day pass, which costs £12. Otherwise, stick to downloading your films and TV shows before you leave home and download up any maps each morning with free hotel or café wi-fi.

Also keep in mind that some hotels (strangely, it’s the luxury stays that do this) may still charge for wi-fi. In some cases, you may be able to waive the fee by becoming a member of their loyalty program or you could always just treat yourself to breakfast at a local café and make use of their free wi-fi instead!

4. Road tolls

Paying to use highways and motorways isn’t that uncommon, but it can be costly if you’re going to be on the road for a while, so it pays to be prepared.

Across Europe, road tolls can be charged by either the day, the year or distance driven. For example, in Spain, Portugal and Italy, road tolls work out to roughly €9 (around £7.58) per 100km depending on your route.

On top of the road tolls, some European countries charge fees for the use of major tunnels and bridges. With some tunnels between Italy and France costing up to €52.30 (£44) to use, they can hike up your road trip costs significantly.

Elsewhere, tolls in Australia can cost up to AUD$12 (£6.27) and there are 38 states in the US that also charge for roads, bridges and express lanes. However, many rental car companies include an electronic tag with your vehicle at a flat rate per day so you’ll know the cost of your travel upfront.

It is possible to avoid, or at least minimise, the cost of road tolls. A handy feature on many map apps is the ability to change the suggested driving route to avoid toll road (and motorways). So why not take the scenic route on your next road trip?

5. ‘Resort’ and destination fees

‘Resort’ fees have long been common practice in the US, particularly in destinations such as Las Vegas and Florida.

They are generally charged per room, per night and are typically added to cover upkeep of facilities and additional amenities such as ‘free’ newspapers, wi-fi and pool access. These daily mandatory charges are often added on by the hotel, sometimes in addition to the first advertised price you see.

In some places in the US, notably New York, this can also be known as a ‘destination’ fee, which combines a fee for amenities with a location charge and can cost as much as USD$51 (almost £39) per night.

Many booking websites now wrap up these fees into the initial price you see, showing you the breakdown of costs as you move through the process. But they can also be added on later by hotels, which can come a shock when you come to pay your bill.

Fees vary by hotel, but you can get an idea of how much your hotel will charge check early on in your holiday booking process by using this resort fee checker tool.

They are not to be confused with tourist taxes, which are levied by local governments – these also exist in the US. Again, you should be able to get a full breakdown of what you are paying for from your hotel.

6. Airport transfer fees

Getting caught up in the excitement of heading abroad can mean some costs, like getting from A to B, may slip your mind.

This forgotten fee can be a big one, too, especially if your instinct is to grab a taxi.

Local trains and buses can be a cheaper alternative if travelling in a small group. Or, you can pay off this cost ahead of time by pre-booking an airport transfer. Getting in with your booking early can save you up to 30%.

7. Tipping

We've all been there – you've just finished a lovely meal, the waiter brings the bill and suddenly you're fumbling with your phone's calculator app trying to work out the right tip. But hold on – have you checked if there's already a service charge included?

Many restaurants, especially in tourist hotspots, sneakily add a service charge to your bill. Miss this and you could end up tipping twice. Always give your bill a thorough once-over before reaching for your wallet.

Tipping customs are as varied as the cuisines you'll encounter on your travels. In Japan, tipping is considered rude. Many European countries include service in the bill, making extra tipping optional. And we all know that the USA is a whole different ball game.

If you're heading stateside, brace yourself for tipping expectations that might make your eyes water. While 15% used to be the norm, in certain parts of the US, such as NYC, it's now customary to tip at least 20% in restaurants.

And with both 2024 presidential candidates, Kamala Harris and Donald Trump, promising to make all tips free of federal income tax, we might see tipping percentages skyrocket even further.

So before you jet off, do a bit of homework on local tipping customs. When in the US, be prepared to dig a little deeper into your pockets. And always, always check your bill for sneaky service charges.