An all-inclusive stay removes many small payments, but it does not remove all of them. You will still meet taxis, tours, tips, spa treatments, souvenirs and the occasional charge at checkout. How you pay for these can change what the holiday costs, and the choices are not obvious until you are standing at a counter being asked a question. This guide covers cash, cards and currency in plain terms, so you can decide before you leave home.
Work out what you will actually pay for
Start by listing the costs that sit outside your resort rate. Typical examples are airport transfers if not included, excursions, spa services, premium drinks, gratuities and meals off property. Our guide on all-inclusive resort fees and hidden costs explains how much a headline price can leave out. Once you have the list, you can decide how much needs to be paid in cash and how much is easier on a card.
Cash: small notes matter
Cash is useful for tips, local taxis, market stalls and small entry fees where cards are not accepted. Many resorts and destinations accept US dollars in tourist areas, but the exchange rate you are given for change can be poor, and some places will only give change in local currency. Carry a mix of small denominations rather than a few large notes, because change for a large bill is not always available. Our guide to how tipping and gratuities actually work at all-inclusive resorts shows where small notes are expected and where they are not.
Do not carry more than you need. Keep a day’s cash in your pocket and leave the rest in the room safe if the resort provides one. Never leave a stack of cash visible in a beach bag.
Cards: choose the right one
Before you travel, find out whether your card charges a foreign transaction fee. Some cards add a percentage on every purchase made outside your home country, while others charge nothing. If you hold more than one card, take one with no foreign fee as your main option and carry a second as a backup in a different place from the first. Tell your bank or card provider where you are going if they ask you to, so a normal purchase abroad is not blocked as suspicious.
Check your card’s limits too. A resort can place a hold on your card at check-in for incidental charges, and the hold reduces your available credit until it is released. Our guide on how incidental holds and security deposits work at resort check-in explains how long a hold can last, and why a card with a low limit can run into trouble.
The currency question at the till
When you pay by card abroad, the terminal may offer to charge you in your home currency instead of the local one. This is often called dynamic currency conversion. It looks convenient because you see a familiar number, but the rate applied by the merchant or its processor can be less favourable than your own card issuer’s. In most cases the better choice is to pay in the local currency and let your bank do the conversion. If you are unsure, ask the staff member to change the setting or decline the conversion and choose the local currency option.
ATMs and exchange counters
If you need local currency, a bank-run ATM inside a bank branch or a shopping centre is generally safer than a freestanding machine on a street. Expect a fee from the ATM operator and possibly from your own bank. Withdrawing a larger amount less often can reduce repeated flat fees, but it also means carrying more cash, so balance the two. Airport exchange counters usually offer weaker rates than other options, so change only what you need to reach your resort. Street money changers are best avoided. Our article on common travel scams and the habits that close them off covers the shortchange and counterfeit tricks that tend to cluster around cash.
Check your bill and keep your receipts
Read your folio before you pay at checkout and keep any signed slips. If something does not match, raise it with the front desk straight away and then with your card issuer if it is not fixed. Our guide to how to dispute a resort billing error or unexpected charge sets out the order to follow.
A simple plan
- Check foreign transaction fees and daily limits on your cards before you fly.
- Carry a small amount of cash in small notes for tips and taxis.
- Keep a second card and a copy of your card details in a separate bag.
- Pay in the local currency when a terminal offers a choice.
- Use bank ATMs when you can and avoid street exchange.
- Review your resort bill before checkout and keep the receipts.
Read our guide on what travel insurance actually covers to see whether lost cash or cards would be reimbursed, and our guide to what to do if you lose your passport for another document problem worth planning for.
Our take
None of this is complicated, but it saves money and stress. The most useful single habit is to decide how you will pay for each category of cost before you land, rather than at the counter. Rules on fees and cards vary by bank and country, so check the terms from your own provider.