And it was just one of those CV-mill recruiters. It's pennies compared to what they make if they score, so I'm guessing it's just a matter of being assertive.
Most of the VC-funded startups in SF that we're working with are more than happy to pay for a Southwest flight and a hotel room upfront, rather than doing the reimbursement thing.
As a general rule, the "submit receipts & wait for reimbursement" methodology is a bad idea. If a company truly wants you, they should be rolling out the red carpet, which includes not inconveniencing you.
On the flip side of the coin, we've had 2 separate occasions where the start-ups paid for airfare, only to have the engineers not show up to interview. So it definitely goes both ways...