This World Traveler

Monday, December 01, 2008

What's With "Local Payments?"

Many adventure travel companies offer easy ways to see the world beyond the big city, fancy hotel method that most travelers are accustomed to. By venturing into smaller cities and lesser known locales, these companies can often give you a wonderful valuable time, and usually for a relatively decent price. But what's with that "local payment?"

On its surface, it sounds like a hidden charge and a way for the tour company to milk a few extra dollars out of you along the way. The truth is that this fee is actually a great way to save money, and a hallmark of a responsible travel company. Local payments stay local, and when the order of the day is putting together an out of the way location, its often the easiest way to get the money to the local hosts and hotels.

"Local payment is common in Adventure Travel," says Robert Sharp of Out Adventures. "It helps keep cash in the local communities and the costs down because the money would otherwise have to be wired over." In many cases, these far and away hotels and restaurants do not have the ability to accept credit cards or bank checks and even wire transfers can be difficult to estimate. "Group leaders pay for meals in smaller locations and keeps cash flowing in the local communities." Sharp estimates that without the local payments, the total cost of the trips would be five to ten percent higher on top of building in the local payments

These payments generally run between 10 and 15 percent of the cost of your travel package. Although it may feel like a hidden cost, in the end its only hiding good things.

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Roger, 10:46 AM

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