Traveling internationally for work can be an expensive but necessary endeavor and is increasing in popularity. In 2024, 6.5% of all Americans traveling abroad were going for work. This equated to around 7 million people per year.
While flights and accommodation are often booked well in advance, traveling outside the US means navigating a web of regional regulations, hidden fees, and cultural differences that could quietly increase the overall cost of international travel. This could potentially trigger hours of shadow work, the ‘work behind the work’, which can negatively impact budgets and resources.
From a small business with strict budgets to larger organizations with frequent flyers, understanding the on-the-ground realities of different parts of the world is essential to help travel managers understand the hidden costs of international work travel. As Mexico and Canada have many similarities with the US, this guide focuses primarily on the differences between the UK and Europe.
Choosing your destination hub
For US teams, the default choice is often to fly into a bustling hub like London Heathrow (LHR), Paris Charles de Gaulle (CDG), or Frankfurt (FRA). While there is some degree of convenience with this approach, these airports are incredibly busy and may also come with high fees and "last-mile" transport costs to match their popularity.
Instead, shift your strategy towards secondary hubs that will reduce the overall cost of travel. For example, flying into London Gatwick (LGW), London Stansted (STN), or London Luton (LTN) are comparatively smaller and more affordable alternatives, depending on which routes are available from your city.
Ireland is another excellent example of a cost-effective entry point into Europe, as Dublin Airport offers a US Preclearance service, saving time on your return journey.
Cost of entry and documentation
A significant international travel consideration is changing entry processes. The increased implementation of digital authorization systems in the EU means the requirements for entry are changing in many countries. Your travelers must be prepared with the correct documentation.
While visas are not necessarily required, systems like electronic travel authorisation (ETA) in the UK and The European Travel Information and Authorisation System (ETIAS) for the EU need to be completed before travel. Failure to complete this step could result in significant delays and unexpected costs relating to denied boarding, rebooking flights, and potentially rescheduling meetings.
Starting in February 2026, all US citizens traveling to the UK for work will require an ETA to travel. This must be applied for before traveling, and you may be denied boarding without it.
ETAs cost £20 (around $27) and are valid for two years, or until your passport expires.
ETIAS are an active requirement for all short-term US visitors to Norway, Cyprus, or any of the 29 Schengen countries in Europe.
An ETIAS application costs €20 (around $24) and lasts for three years, or until your passport expires.
Passports
Passports are an essential that should be properly managed to avoid delayed or canceled trips.
A general rule is that many countries require a passport to be valid for 6 months beyond the departure date, but in reality, it varies by region. Below is a table of requirements for popular destinations, sourced from the Department of State’s guidance.
Passport regulations for US travelers
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Make use of local transport
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“While taxis and short-haul flights might feel like the default option for US work travelers, they can often be ineffective and expensive, especially in a gridlocked city. “ Says Perk Product Manager Audra Cirkelyte.
“If you have to travel a long distance in Europe, consider using local transport, such as trams or trains. While Amtrak is a popular choice for the Northeast Corridor, European equivalents like Eurostar, TGV, or AVE operate at a much higher frequency and speed.”
For example, a flight from Lyon to Paris might only take an hour, but security, baggage claim, and taxis make the overall journey take much longer. An equivalent train could take you directly center-to-center in around two hours.
Beyond the financial savings, using trains instead of flights can significantly reduce your company’s carbon footprint for the trip. Trains are also often more spacious, allowing travelers to remain productive on the journey.
Taxes and tolls
With group travel, it is especially important that local charges are fully researched before the trip begins. Unexpected, day-to-day costs could erode travel budgets quickly if they are not factored into travel planning.
Tourist tax
Many European cities are adopting ‘tourist taxes’, which are charged per night at hotels. These are often paid locally rather than when booking, making them an important consideration for multi-night stays or large groups.
One of the most high-profile cases can be found in Barcelona, where the charge doubled for 2026, to 15 euros ($17.70).
Toll roads
Americans who choose to drive in the UK and Europe should be prepared for a range of toll systems. These can often be automated, so awareness of the travel restrictions in your area could be the difference between unexpected charges or fines. In some regions, a prepaid sticker or digital registration is required to use the motorway.
Barrier booths are common in Central Europe, but may not accept forms of American credit cards, so make sure to carry cash or a chip-and-PIN card in these areas.
In addition to toll roads, US drivers should also be aware of another type of toll. London is one of hundreds of cities that operate a Congestion Charge, intended to reduce traffic and pollution. This is charged at £18 ($24) per day per vehicle.
Tipping culture
It might be an instinctive habit for US travelers to add 20% on top of the check, but doing so internationally could result in significant unnecessary spending.
Understanding tipping culture is a key consideration internationally, as the culture can vary significantly from country to country.
Generally, in the EU and UK, tipping is not expected, and service charges are included in the check. However, a tip of around 10% for a large group meal is considered to be polite.
Despite the traditional approach to tipping, it is increasingly common for contactless card payment machines to ask if you want to leave a tip. This is becoming particularly common in major cities in tourist hotspots, but is not required.
Tax recovery
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One of the biggest savings finance teams can make on work travel is through Value Added Tax (VAT) or Goods and Services Tax (GST), which can often go unclaimed. For an itinerary that crosses multiple countries, this could represent around 20% of the overall spend being left on the table unnecessarily, simply because manual recovery takes too much time.
Perk’s centralized platform will help to categorize these expenses in real-time to make VAT recovery simple. This is done by streamlining reconciliation and accounting, providing full visibility of your travel spend, and generating customized insights to maximize your international VAT returns.
Per diems and expenses
Awareness of the differences between destination cities could result in more ‘out of policy’ spending if the standard per diem allowances are insufficient.
For example, multi-city trips should factor in which cities are high-cost and provide a larger daily allowance for those stages of the journey.
With dynamic per diems and real-time visibility, Perk can help finance teams by using location and dates to generate compliant, daily allowances for meals and incidentals based on the trip’s itinerary, allowing for both budget control and flexibility.
Managing international spend with Perk
Navigating the hidden costs of international business travel, from ETIAS fees to transport and regional taxes, may seem daunting, but it provides a significant opportunity to unlock savings and improve the experience for travelers.
By utilizing Perk’s travel and expense management platform alongside strategic travel and expense planning, you can ensure that travel budgets are not inflated by inefficiencies.
Request a demo to see how Perk can handle the complexities of global travel.
Written by
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Growth Marketing Director
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