Credit card fees
Most credit cards are now accepted globally, but keep a close eye on the charges. When you use your card abroad, you’re likely to be charged between three and five per cent of your transactions as a ‘conversion fee’. If you use an ATM, you’ll also pay a withdrawal fee and will accrue cash withdrawal interest until the card is paid off in full. For example, HSBC’s Classic credit card includes a 2.8 per cent processing fee, Dh10 to Dh20 withdrawal charge, and three per cent cash advance fee (minimum Dh100).
Tip: Use cash exchanged before you travel if possible. If you’re withdrawing cash, use your debit card - there’ll still be a withdrawal fee, but you won’t be charged interest.
Converting cash
If you want to take cash, shop around for the best rates - while a no-commission deal may look good, it often comes with a lower exchange rate, which means you’ll lose out if you’re converting larger sums. Some exchange houses also charge a flat administration fee, so be sure to ask upfront. Avoid leaving it to the last minute, as airports invariably offer a low exchange rate and high fees.
The solution: Research the best deals online before you buy in advance and compare to a currency converter such as XE.com. Speak to your bank - they may offer preferential rates with no commission or fees for customers.
Airline surcharges
Some airlines will exclude surcharges and taxes from advertised ticket rates, so you’ll only discover them at the final payment stage. While this is a common feature for budget airlines, it’s also used by larger carriers for certain flights.
The solution: Never take ticket price at face value - you’ll only get a full idea of the price when you have totalled all of the charges, including baggage, taxes and additional surcharges.
Reservation and cancellation changes
Many airlines charge a fee for flight changes or cancellations, and you’ll also be penalised if you change a flight booked through a frequent flyer scheme. While Emirates doesn’t charge extra for standard fares changed online (not counting discounted or promotional tickets), you will have to pay the difference and any additional taxes. Some airlines, such as British Airways, also offer a 24-hour cooling off period for booking amendments.
Tip: If you’re unsure about your travel dates, don’t choose an inflexible discounted fare, which usually come with high change fees. Also consider separate one-way tickets if your itinerary is prone to change.
Travel insurance
While travel insurance is an essential part of your pre-travel prep, always research the best coverage before you commit. Some flight operators and online booking services offer additional travel coverage but don’t always offer the best deal to cover your needs or concerns - there should always be an ‘uncheck’ option if it’s not right for you.
Tip: Check that you’re not already covered. Some premium credit cards and international health insurers offer international travel insurance as part of their general coverage plans.
Baggage fees
Packing light is never easy during the festive season. While the majority of the region’s international carriers offer free checked baggage for passengers, weight allowances can vary depending on your destination or if your itinerary includes flights operated by another airline. Many budget airlines levy a charge for checked bags - Air Arabia, for example, charges Dh30 per passenger for a 20kg bag.
Tip: If you know you’ll be going over your baggage limit, paying in advance often costs much less than airport excess baggage charges.
Car hire
Hiring a car can often come with a raft of hidden extras. While insurance is usually included, look out for excess charges in the small print, which can be in excess of Dh10,000. An ‘empty fuel policy’ indicates that you’ll need to pay for a full tank before you drive away - often at an over-inflated cost. Further unexpected extras could include perceived damages to the vehicle once returned and a mileage limit.
Tip: Always book your car hire in advance to research the best policy. When you receive the car, do a thorough check for damage, taking photos if necessary. You can also purchase separate excess charge coverage which is usually much cheaper than that offered by the hire company.
Roaming charges
If you’re using your mobile phone abroad, bills can quickly mount up. Standard roaming fees for in-country calls from your mobile through Etisalat and Du begin at a minimum Dh1 per minute depending on location, and you’ll also be charged for receiving calls. Beware of your phone’s data consumption too - many smartphones automatically switch to 3G or 4G when out of Wi-Fi reach, activating background data, updates and apps, which all rapidly accrue data charges.
Tip: Purchase a roaming package before you travel - both Etisalat and Du offer bundles for calls and data. To limit data usage, restrict background data on your smartphone, and set a data limit with alerts. If your phone is unlocked, buy a local sim at your destination.
Pricey Wi-Fi
While Dubai has taken the lead as one of the world’s most connected cities, the international hospitality industry is slow to follow suit. Many hotels still charge for an in-room internet connection, which can cost upwards of Dh80 per day, and some charge for use of their business facilities, too.
Tip: If you’re dependent on being connected during your travels, consider a hotel chain that offers free WiFi access (including Four Seasons, Hyatt, Ramada and Best Western). If constant access isn’t an issue, head out to your nearest local coffee shop.
Tourism taxes
Many cities levy a tourism tax for hotel stays, which is additional to the advertised room rate. In Paris, for example, the figure ranges from €0.20 to €1.50 per person per night (Dh0.78 to Dh5.84) depending upon the accommodation, while in New York, hotel stays incur a 5.88 per cent occupancy tax, plus a unit fee, and state and city sales taxes (which can add another 15 per cent to your bill in total).
Tip: This tax is mostly unavoidable, although it is often waived for business travellers. London and the rest of the UK currently don’t charge a tourism fee, however this may be set to change in the coming years.
