Business travel can often seem straightforward—book a flight, reserve a hotel, hire a car, and head off to your destination. However, hidden costs can creep in, turning a well-planned trip into a budgetary headache. From unexpected hotel fees to car hire surcharges, these expenses can catch even the most seasoned business travellers off guard.

This guide will help you identify some of the most common hidden costs in business travel and provide tips to minimise them, ensuring your journey remains smooth and cost-effective.

Hotel Resort Fees and Local Taxes

Hidden hotel fees are one of the biggest frustrations for business travellers, particularly when they only appear at check-out. These charges can be especially tricky when travelling abroad, where local tax structures vary widely.

What to Watch For:

• Resort Fees: Even if you’re not staying at a resort, hotels may charge daily fees for amenities such as Wi-Fi, pool use, or gym access. These can range from £10 to £50 per night.
• Local Taxes: Certain countries or cities impose tourism or occupancy taxes that are often excluded from the quoted room price. For example, in the United States, sales taxes and city-specific levies can add a significant amount to your final bill.

How to Avoid Them:

• Book Carefully: Check the terms and conditions or contact the hotel directly to clarify whether resort fees are included in your rate.
• Corporate Negotiations: Businesses often negotiate waived fees as part of corporate travel agreements—ensure your company is taking advantage of this.
• Opt for Inclusive Hotels: Choose accommodation that bundles these charges into an upfront rate, particularly for international trips where taxes can be complex.

Car Hire Insurance and Cross-Border Fees

Car hire is essential for many business trips, but it’s also an area rife with hidden charges that can quickly inflate your costs.

What to Watch For:

• Insurance Coverage: Basic insurance is usually included in your hire agreement, but extras like collision damage waivers, theft protection, or tyre and windscreen cover are often upsold at the counter.
• Cross-Border Fees: Driving across international borders may incur additional charges or require extra insurance coverage.
• Incorrect Vehicle Class: It’s not uncommon to be offered a different vehicle class than booked, which can result in unexpected charges.

How to Avoid Them:

• Know Your Coverage: Check if your business travel insurance or credit card includes car hire protection, and decline unnecessary add-ons.
• Plan for Cross-Border Travel: If driving across borders, inform the hire company in advance to include any required fees upfront.
• Double-Check the Agreement: Confirm the vehicle provided matches your booking and verify the terms before leaving the depot.

Airline Add-Ons and Seat Selection Fees

Airline fares may seem competitive, but add-ons like seat selection and luggage charges can significantly increase the cost, particularly on budget carriers.

What to Watch For:

• Seat Selection Fees: Many airlines, including premium carriers, now charge for pre-selecting seats, even in higher fare classes.
• Baggage-Only Fares: With the rise of basic economy or hand-luggage-only fares, travellers often face high fees for checked baggage.

How to Avoid Them:

• Understand Your Fare: Check the airline’s baggage and seat selection policies before booking, particularly for short-haul or low-cost flights.
• Use Loyalty Programmes: Frequent flyer status can often waive these fees or provide free upgrades.
• Corporate Agreements: Ensure your company negotiates fare classes that include essential services like baggage and seat selection.

Meals and Incidentals

Travelling for work often means eating on the go, but unplanned meals and incidental expenses can lead to unexpected costs, particularly at hotels.

What to Watch For:

• Room Service Charges: Room service often includes steep mark-ups, service charges, and delivery fees, making even simple meals costly.
• Incidentals: Mini-bar charges, parking fees, or late check-out fees can sneak onto your bill if not carefully monitored.

How to Avoid Them:

• Set Clear Per Diems: Establish a daily allowance for meals and incidental expenses to prevent overspending.
• Pre-Book Meal Plans: Look for hotels that include breakfast or offer meal packages.
• Track Spending: Use an expense management app or corporate expense system to monitor and control costs.

Tips for Avoiding Hidden Costs Altogether

• Use a Travel Management Company (TMC): A TMC like ITG Business Travel can help identify and manage hidden costs, negotiating better rates and providing upfront clarity.
• Plan Ahead: Always review the terms and conditions of bookings, including accommodation, flights, and car hire agreements.
• Keep Receipts: For international trips, ensure you collect proper documentation for VAT refunds or reimbursements, where applicable.

Hidden costs in business travel can feel unavoidable, but with the right strategies, you can minimise their impact and stay within budget. From understanding the fine print on bookings to leveraging corporate travel agreements, taking proactive steps ensures a smoother travel experience.

For smarter business travel solutions and expert advice, get in touch with us today.