5 Hidden Costs of Business Travel in India (And How to Avoid Them)

When budgeting for a business trip to India, most companies account for flights and hotels. But the real budget-busters are often the small, unreceipted, or hidden costs that add up to significant amounts.

1. The Foreign Transaction (FX) Fee Trap

Every time your employee swipes an international corporate card, banks charge a foreign transaction fee ranging from 3% to 5%. On a $5,000 trip, that's $150-$250 wasted on fees alone.

The Fix: Use a local payment solution like Expatly that offers interbank exchange rates and zero markup on transactions.

2. The "Cash-Only" Premium

In many Indian cities, local transport (autos, some cabs) and smaller vendors are cash-only or UPI-only. Employees forced to withdraw cash from ATMs face:

• ATM withdrawal fees ($5-$10 per transaction)
• Poor exchange rates on cash withdrawals
• Risk of theft or loss

3. Data Roaming Charges

International roaming plans are notoriously expensive. A week of moderate data usage can easily cost over $100. Local SIM cards are cheap but require complex paperwork (KYC) that is difficult for short-term visitors.

4. GST Compliance Leakage

India has a Goods and Services Tax (GST) of 18% on most services. If your company is registered in India, you can claim this back as input credit. However, most international booking platforms don't provide GST-compliant invoices, meaning you lose that 18% straight away.

5. Productivity Loss

The biggest hidden cost isn't monetary—it's time. Hours spent:

• Figuring out local transport apps
• Waiting for cabs that cancel
• Dealing with payment failures
• Manually entering expenses

"We estimated that our travelers were losing 2 hours a day just dealing with logistics and payments. That's 25% of their productive time on a trip."

— CFO, Global Consulting Firm

How Expatly Eliminates These Costs

Expatly is designed to tackle these specific inefficiencies:

• Zero FX Fees: Transparent, real-time exchange rates.
• UPI Access: Pay digitally everywhere, eliminating the need for cash.
• GST Invoices: Automated collection of compliant invoices for tax credits.
• Integrated Travel: Book cabs, hotels, and flights in one app with vetted providers.