Summer has finally arrived and regardless of where you spent the winter, it was one of the tougher ones in several years. To recover and turn the page, many individuals and families have planned summer trips. International travel specifically is near all time highs and some early indications are that U.S. outbound international travel will be up double digits over last year.
While international travel provides priceless opportunities to discover new places and cultures, it also requires some additional planning and precautions to consider.
Travel Insurance
Things happen and travel delays are unfortunately part of the travel experience. An international trip might involve different layovers or the trip taking place on different airlines. Missing a connecting flight because of weather or long delays out of your control can result in uncomfortable hours or even days stuck at the airport. It’s a good idea to ask your travel agent if you can purchase or add travel delay insurance to your reservation.
Losing your luggage can also put a damper on vacation plans, but fortunately most major credit cards offer lost luggage coverage. Be sure to ask your provider before your trip if this is a service offered.
Staying Connected
Some travelers prefer to be off the grid while on vacation, but most want to stay in touch with their family and friends.Whether you’re posting your travel photos and videos to social media or sending them to loved ones by text message, there may be a cost.
Many of the major mobile phone companies offer international and roaming coverage, but the cost of coverage will vary significantly depending on your phone carrier and plan. In order to avoid large, surprise fees and charges, travelers should contact their mobile phone provider well in advance of their trip to make sure they have the most appropriate coverage and phone settings in place.
If you choose not to use cellular coverage and instead prefer publicly available Wi-Fi hotspots, it’s important to consider internet security. Many VPN providers (virtual private network) such as Express VPN or Nord VPN, to name a few, offer mobile apps that allow you to secure your Wi-Fi connection while using your device.
Physical Security
Many of us have heard of or even experienced the unfortunate circumstance of being in a public place where pickpocketting has taken place. While this might be the last thing we want to think about when planning a trip or vacation, it’s important to take steps to avoid or minimize the risk of this happening. Wearing clothes with buttoned or zippered pockets will help, but using a backpack or “fanny pack” in the front of the body may reduce a bad actor’s ability to steal your valuables.
Also, consider keeping your expired driver’s license, credit and debit cards in your wallet while travelling. If you happen to have the unfortunate circumstance of having your wallet stolen, expired cards and ID’s won’t be of much use to a thief. It’s also a good idea to keep your credit card or cards in your digital wallet on your mobile phone. This eliminates the need to carry physical cards and, as long as your phone’s home screen has a security timeout, you’re able to reduce the risk of theft.
Spending While On Your Trip
Arriving at your vacation destination is only the first step in what will hopefully be a wonderful trip. But once you arrive, you’ll be spending on meals, tourist attractions and maybe even some gifts before your return trip home. If you plan on travelling outside of the U.S., there are a few more important considerations related to making purchases.
In recent years, many major U.S. credit companies stopped charging cardholders foreign transaction fees on credit card purchases made outside the U.S. But many credit card companies still charge foreign transaction fees and even markup the exchange rate, causing your U.S. Dollar to be worth less when converted to a foreign currency. After booking your trip, it’s recommended you speak with your financial institution and credit card company to understand your options and costs.
If you’re not satisfied with the information you’re provided, all hope is not lost. Financial technology companies such as Wise and Revolut provide cross-boarder and multi-currency payment platforms typically used for international transactions and payment services. Once the new account has been opened, you can link your U.S. bank account to move money to the new account and convert U.S. dollars into the foreign currency you will need for your trip.
Travel is a great and unique way to become familiar with the world and all it has to offer. But getting in a car, or on a ship or plane is just a small step in starting this journey. The topics covered here are real, and can have major financial and other implications if not considered before and during a trip. It’s best to do some homework and plan ahead so that your trip can be as enjoyable and stress-free as possible.
The foregoing content reflects the opinions of Axis Wealth Partners, LLC and is subject to change at any time without notice. Content provided herein is for informational purposes only. Axis Wealth Partners does not provide tax or legal advice.