Yes, paying in the local currency is always a better deal than allowing the merchant to do the conversion!
Also, when I travel I generally try to use a credit card that doesn’t tack on a currency conversion percentage (known as FX fees or foreign transaction fees) at all.

There are a few such cards in Canada (the Scotiabank Passport Visa Infinite being my fav), and as I understand it there are many more such options in the U.S. (I believe the Chase Saphire Preferred is a general fav for travelers).

It’s important to know exactly what benefits you’re entitled to, since – as both you and I have experienced – sometimes it’s necessary to advocate for them.

My travel cards offer good exchange rates-usually better than the rate you will get if the card is charged in U.S. dollars because the merchant will do the conversion at their own arbitrary rate. Maybe I don’t always get the best rate, but I have done well by insisting on paying in the local currency where possible.

Happened to me once, too. An American airline at Chicago-O’Hare. They straightened it out, but I did not appreciate the hassle.

LOL Thank goodness for small blessings!
Though I have found that departure tax in some countries depends on the airline you fly with. For example on leaving Colombia, I had to pay the tax in cash at the gate, but only because the super-budget airline I was flying with didn’t include it in their price for some odd reason.

So, Bali now includes departure tax in tickets? That’s great. When I was there just last year I believe it was still required in cash at the airport.

Hi Dorota,
Yes, food is a bit of a weak point for me too, especially since I’m a big foodie, and to me food is a big part of cultural exploration.
So, perhaps if you keep your budget low in other ways, you can allow a “splurge” in the food department. Everything in moderation! 🙂

Rob,
Ha ha! I hadn’t thought of that. Which means, no, I haven’t had any trouble with it. 😉

Nice article!