What are considered incidentals for travel?

What is considered an incidental expense? The Federal Travel Regulation Chapter 300, Part 300-3, under Per Diem Allowance, describes incidental expenses as: Fees and tips given to porters, baggage carriers, hotel staff, and staff on ships.



In the travel industry, incidentals refer to secondary expenses that are not included in the primary cost of your room, flight, or rental car. At a hotel, common incidentals include room service, minibar snacks, laundry services, valet parking, and movie rentals. When you check in, the hotel usually places an "incidental hold" on your credit card (often $50–$100 per night) to ensure they can cover these potential costs. For business travelers, the "Incidentals" portion of a per diem often covers small, necessary costs like tips for bellhops or housekeepers, baggage handling fees, and small personal supplies. In car rentals, incidentals might include toll road charges, GPS rental fees, or fuel surcharges if the car is returned empty. Essentially, incidentals are the "pay-as-you-go" extras that enhance your trip but aren't part of the base fare. It is important to review your final bill at checkout to ensure that no "incidental" charges were added by mistake, such as a minibar item you didn't actually consume, as these holds can take several business days to disappear from your bank statement.

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Incidentals are costs related to other, larger business costs. These include expenses such as fees and tips to hotel staff, transportation between your hotel and a meal, and the cost of mailing a business-related gift.

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What this breaks down to, essentially, is allotting percentages of your anticipated monthly income into one of three categories: Essential Expenses (50% of monthly income) Savings/Debt Payment (20% or more of monthly income) Incidental Expenses (30% or less of monthly income)

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However, some hotels still accept cash, especially smaller independent hotels or budget accommodations. It's worth noting that even if a hotel accepts cash, they may still require a credit card or a cash deposit for incidentals such as room service or damages.

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Typically, incidental expenses are the additional costs that come with meals, hotel lodging and travel while you're doing business. According to federal guidance, they include things like fees and gratuities paid to hotel staff, drivers, baggage carriers and porters.

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Incidental Charges are considered any extra charges that you have not already paid like your room and taxes. Usually we hold certain amount of money to cover potential Food & Beverage charges to the room, phone calls, parking, movies, etc.

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If you're in a hurry, here's the quick answer: Hotels do refund unused incidental fee deposits, but it often takes 7-10 days after checkout for the hold to fully drop off your account.

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When you check-in, a card is usually requested, which will be used as a guarantee for incidentals, but also in some cases for the cost of the hotel itself (unless you paid at tile of booking, of course). Some hotels will simply not accept anything else. Others will just block any incidentals on your room.

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Transportation expenses on a business trip are deductible If you drive your own vehicle, you can usually take actual costs or the IRS standard mileage rate. For 2023 the rate is 65.5 cents per mile. You also can add tolls and parking costs onto your deduction.

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