Planning a vacation in 2025? You might want to brace yourself for more than just the sticker price of flights and hotels.
According to CNBC, a recent Bankrate survey reveals a drop in summer vacation plans for 2025, with only 46% of respondents intending to travel compared to 53% in 2024, while hidden fees and taxes continue to catch travelers off guard, underscoring the need for careful budgeting and considering travel insurance.
Fewer Americans are packing their bags for 2025. The Bankrate survey shows a clear decline, driven by financial pressures. A striking 65% of those skipping travel next year point to money as the main hurdle.
Beyond the obvious costs like airfare and lodging, travelers face unavoidable taxes and fees in many destinations worldwide. These charges often support local infrastructure, but they can still sting if you’re not prepared.
“These taxes are generally intended to support local tourism infrastructure and services,” said Melissa Ulrich, travel advisor and owner of You Pack, We Plan. “They are legitimate fees and it’s important to be aware of those so there are no surprises at checkout,” she added.
Travel experts urge vacationers to set aside funds for these potential costs when planning trips for 2025. Whether it’s a summer getaway or a fall escape, budgeting smartly can save you from a financial hangover.
Hidden fees come in many forms, starting with restaurant service charges. Common outside the U.S., these fees replace tipping but differ from gratuities, as they go to the employer, not directly to workers.
Resort fees are another sneaky cost, often undisclosed during booking and slapped on at check-in. In places like Hawaii, most hotels impose mandatory daily fees, leaving travelers no choice but to pay up.
Parking fees also blindside many, especially for those renting cars. In Hawaii, hotels and condos often charge $40-$50 per night for parking, a cost rarely included in the initial price quote.
Using your credit card abroad? Watch out for foreign transaction fees that banks tack on per purchase. “Using your card abroad can feel like you’re being charged just for spending your own money,” said Kristin Harwell from THK Travel Advisors. These fees can quietly erode your travel budget if you’re not vigilant. Experts suggest paying in local currency for better rates, a small but effective way to keep costs down.
“You always work out better to pay in the local currency for the best rate,” advised Chelsea Gambino, a Fora Travel advisor. Staying financially savvy abroad is key to avoiding unnecessary losses.
Travel insurance isn’t a hidden fee, but experts call it a must-have. It’s a safety net against unforeseen disruptions, especially when trips cost thousands.
“What I like to tell my clients is it’s better to have and not need it than need it and not have,” said Chelsea Gambino. “For example, say the trip is $1,000, ‘Are you okay with lighting $1,000 on fire and just completely losing that money?’ And if you’re not, then you should probably have travel insurance,” she explained.
For the financially curious, this is a call to action. Build a travel budget that accounts for hidden costs and insurance—don’t let government-backed tourism taxes or corporate fees drain your hard-earned wealth. Plan, research destinations, and protect your liberty to enjoy a vacation without fiscal surprises.