12 Travel Budget Planning Tips to Enjoy More While Spending Less
You’re going away again? For that long?
It must be nice to be able to afford that!
I’ve been hearing those comments a lot lately as I gear up for my next overseas trip.
Travel IS an expense, no argument there!
Costs can quickly add up and trips require a financial commitment which prevents many people from thinking they can afford to travel at all. And while some people don’t think they can afford it, others throw financial caution to the wind and play the YOLO card too often. They make great memories along with mounting debt.
If you’re new to my blog, hello! I’m a budget-conscious traveller who loves to travel with my husband, or with a girlfriend, or on my own, solo. Since my husband’s retirement and my semi-retirement, we have had the privilege of both time and a pension. We’ve worked hard over many years to eliminate debt, live in a small, modest home, and share one vehicle. We have consciously chosen to prioritize our money on the things that bring us joy. Scratch that, not things, but travel experiences!
What kind of traveller are you?
I delight in longer and more frequent trips so I appreciate strategies that stretch my budget. You, on the other hand, might prefer shorter and less frequent trips and love to go for full luxury with the goal of ease, relaxation, and pampering. To each her own! Usually, I happily forego such luxuries if it means I can travel farther and longer!
Everyone’s financial picture is different, too. You might be “rollin’ in it,” or have found ways to work and travel, or, like us, have an active savings account called “the travel fund.” There is not ONE WAY to make travel happen and after much trial and error, I’m finding ways to make my lengthy and amazing-to-me trips a reality for much less than I ever thought.
Before any travel planning and definitely before any travel booking, take time to define your travel goals and purpose. This is often a missed step, but your goals will have huge implications on decisions that cost money. If they aren’t defined, chances are your money may be spent on things that don’t matter as much to you. Are you looking for an escape? An opportunity to indulge in local cuisine, to immerse yourself in nature, to experience a culture, or to see the sights? Clarify your top reasons for an upcoming trip and allow those priorities to influence how you maximize your travel dollars.
My simple quiz might help identify your biggest motivation!
Where to Find Travel Savings
There are four primary travel costs: transportation, accommodation, food and activities. Admittedly a basic framework, but this is where the bulk of travel dollars are spent. This is where you can find the biggest opportunities to save on overall costs or to allocate finite travel dollars ( with intention) to things that matter most to you.
Whether you build and follow a strict budget or simply give yourself a ballpark figure to help plan your next trip, think about your travel wallet needing four deep but not limitless pockets. Determine which of those pockets (transportation, accommodation, food or activities) matters the most for your next trip to help determine which pocket gets the most money, and which can be tightened up. For example, if the purpose of the trip is to experience the energy of a famous city, live theatre tickets might be more important than high-end accommodation, so you find ways to shift some accommodation dollars to support other priorities. Conversely, if the trip is for self-care, you might prioritize beautiful, luxurious accommodations over activities.
Thus, budget-conscious travel is really about using money-saving strategies to maximize your travel dollars, so you take the trip that brings you the most joy.
Expenses like cell phone coverage, travel insurance, souvenirs, and what you pack have a cost, but the biggest costs are still getting around, sleeping, eating, and having fun!
Let me unpack these 4 areas further and share some money-saving tips. Not all of the strategies will apply to you or for every trip. Exploring these cost areas, though, will ensure your travel dollars are spent on things YOU care about and might make your next trip feel more possible financially! I’ve created a Travel Budget Calculator to use before the trip or after - as a post-mortem of your travel spending!
Read on if saving money to travel is sweet music to your ears!
Travel Budget Planning Strategies
1. Transportation: Getting Around
Be as Flexible as Possible
Flexibility with your dates and travelling during shoulder seasons or mid-week can substantially lower costs, as these times tend to have less demand, resulting in better deals. For years we were restricted to high-season travel due to our work schedules but still tried to stay as open and flexible as possible.
Read: Off Season Travel Makes Me Happy
If you use travel rewards or airline points (which offer an incredible opportunity to save money), flexibility with dates helps you leverage travel rewards more effectively. A day or a week here or there may allow you to capitalize on promotions, discounts and bonus offers, maximizing the value of your rewards and reducing out-of-pocket expenses. Be flexible with your departure and arrival airports to save you money too. For example, on a recent trip, I found it significantly less to fly from a small airport than the large city airport in my region. It takes some vigilance with online booking systems - but if you have the stomach for it, there are deals to be had.
Book Some Things in Advance
Booking ahead is another smart strategy for many transportation options including flights using points (start looking a year out), trains in Europe, and anything that goes on sale. While I don’t want to encourage overplanning a trip, if you identify the key transportation routes and create a structure for your itinerary, you can secure train, bus, or ferry tickets early, often with an advanced booking discount, and gain peace of mind knowing your travel arrangements are in place.
Watch for annual sales on travel. Black Friday and Boxing Day are notorious for having great prices on flights or tours, so be prepared to press buy if something aligns with your plans. I scored a great discount on Eurail passes during their anniversary sale. I wasn’t going to be using them for 10 months, but I took advantage of the great price and by the time my trip came around, they had been bought and paid for!
The Slower the Better
My personal opinion is that travel experiences are enhanced when you slow down! This includes taking trains instead of flying, using buses instead of taxis, and walking whenever possible. Public transportation systems in European cities are typically excellent and city passes or transportation cards can offer further discounted fares on buses, trams, metros and trains. While these choices often create a few more travel wrinkles and take more time, they enrich your experience of a place. I’d argue that anyone who doesn't take public transportation in a new city is missing out!
Read: Finding a New Rhythm In Slow Travel - Spanish Style
2. Saving Money on Hotels / Other Accommodation
Location matters
Choosing budget-friendly destinations is a savvy strategy that can significantly stretch your budget. While it is all relative to where you come from, I have found that as a Canadian traveller, Spain and Portugal proved to be very budget-friendly compared to the UK, Italy and France. In more expensive or popular locations, opt for off-the-beaten-path itineraries to yield cost savings, as tourist-heavy areas tend to have higher prices. For example, we found southern Italy was generally less expensive than Rome just as Andalusia in Spain was less expensive than Barcelona. We also stayed just outside Amsterdam and took transit into the city, which was a wonderful daily routine! World economics is a complex system and tourism is only one piece of the equation but I feel good spending my dollars in communities where local residents benefit directly from my visit.
Prices Drop in the Off and Shoulder Season
Comparing Rome in March vs. April
While the shoulder season is disappearing with the rise of tourism, choose to visit a country outside the busiest times for many benefits, not just economic ones. Off-season may compromise on things like weather, when flowers are in bloom, whether you can swim in the sea, and if there are concerts or public events scheduled… but you may, instead, have fewer crowds, moderate temperatures, and smaller costs. You have to weigh the pros and cons for yourself.
I was shocked at the price increase of apartments in Rome in March as compared to April! A one-month difference saw places triple in price! In large, iconic cities with lots of tourism, this rate hike will be a common story. So as a budget-conscious traveller, what did I do? I decided to spend only 4 nights in Rome instead of the original plan of 10. In hindsight, I wish I had flipped my itinerary around to spend the full 10 days in Rome in March and avoided the city when the high season hit in April. Next time!
Shop Around for More Savings
When I book accommodations I start by checking out multiple sites (booking.com, hotels.com, VRBO, and AirBnB). It can get very overwhelming, but I have found that with a little research, I can cut the options down to something my brain can reasonably sort through. The key is to research the city or town for the personalities and amenities of different neighbourhoods. I look at public transit routes and choose accommodation in travel-friendly neighbourhoods that are an easy walk from a train station and with easy access to the places I want to spend my time - preferably by foot or by quick public transit.
I try to play the loyalty game strategically with accommodation booking sites. Some offer a free stay after a certain number of nights, some offer extra discounts with more bookings, and some have great sales. I find this fun…but others find it agonizing. Only spend the time finding savings this way if you like travel bargain-hunting!
Evaluate the Extras
Views, terraces, space, beach access, a central location, and charm all cost more. I don’t compromise on these factors when they are a priority for a trip or place. I also read reviews carefully for clues as to if/how these extras might add to the experience. For example, we stayed in one place that had a sweet photo of a cafe table and chairs surrounded by plants. I didn’t find a single review that said anything about this outdoor space - good or bad. We stayed there for other reasons and, as expected, it was a cute display but not very functional and didn’t add any value to our stay. Typically I balance what I’m after with how much I’m willing to spend, and what’s available.
Consider Accommodation Alternatives
I have stayed in many hotels during my career. For me, luxury was delightful when it wasn’t out of my pocket but after a while, I noticed that big hotels have a standardized feel. I remember staying in a lovely luxury hotel in Ottawa, thinking I could be in Vancouver, London, California, or anywhere! It was very nice but had limited local personality. On my own dime, I am continuing to explore alternative accommodation options to both save a substantial amount of money AND make my travels unique, interesting, and with a local flair.
Accommodation has the potential to be the biggest percentage of a travel budget. On a 10-week trip to Spain and Portugal, we made choices that brought this down considerably, leaving more for activities (and buying Christmas presents!). On the trip we:
Used reward points for 5 nights
Received incredible discounts of 40%off for two, month-long bookings
Stayed for free on a spontaneous week-long side trip to France using Home Exchange
In an upcoming trip to the UK and France, we are paying “real money” for 6 nights out of 21. The rest are a combination of Home Exchange, reward nights, and 3 nights at a friend’s home.
Curious about Home Exchange? Read this article!
Also consider pet or house sitting, workaways, volunteer gigs, or other creative ways to stay for less or for free.
3. Saving Money on Food
Get a Kitchen (or Free Breakfast)
Sampling local cuisine is a highlight of any trip, but high dining every meal will strain a budget. Staying in an apartment or a place that offers kitchen access is where accommodation and food budgets can help each other out. During our travels, my husband and I like to eat out, on average, once per day. Our daily plans help determine if it is lunch or dinner, with lunch being usually less expensive.
Cooking your own meals while travelling creates a healthy balance financially and nutritionally! We eat local by shopping at markets or grocery stores - which is an experience in itself! Some of our favourite simple meals are very affordable, fresh and locally inspired including:
Fresh mushroom ravioli with pistachio pesto (Sicily, Italy)
Steamed clams fresh from the fish market (Portugal)
Sliced market tomatoes, cucumbers and/or peppers with a drizzle of olive oil - often with tuna (Spain)
Sandwiches with bakery bread, salami, cheeses, and veggies (France)
Yes, you have to do the dishes when you cook… so if you are travelling to get away from all those responsibilities you might want to put more money into your food budget. For us, cooking in a foreign place is both a pleasure AND it frees up money for other activities. We splurge on some amazing restaurant meals as an intentional part of our experience versus satisfying a simple need to eat.
When we stay somewhere for shorter than 4 days, a “hotel” type arrangement often makes more sense. In those places, I look for accommodation with a well-rated free breakfast. This REALLY paid off in Catania, Italy when BNB Landolina’s morning spread went WAY beyond our expectations….. I highly recommend this place - book here
Avoid Getting Hangry
I have a tendency to get hangry quickly. It’s not pretty. I’m learning ways to prevent those situations. You’d think at 50+ years I’d have figured this out. Not yet! The thing with getting hangry (other than being a grump) is that I tend to make hasty food decisions that are usually too expensive, not enough, not healthy, and not tasty.
Here are my current strategies.
Pack a snack.
Consider meal times when planning the day. Better yet plan a fun food experience or food tour as part of the day’s events.
Don’t satisfy your hunger in the tourist areas. If you are beckoned in to sit and shown an English menu in a non-English speaking country - know you could do WAY BETTER! If my hunger-grump is long past reasonable, I get a drink and a nibble instead of a meal to tie me over.
4. Saving Money on Activities: Having Fun!
Be Selective with Tours
We value the depth that having a local guide provides, but due to the expense, we pick and choose where and when we want to take advantage of them. If it is a high priority, the information from a local guide is incredible! For example, we went up Mt. Etna with a local geologist who offered a completely unique perspective. It was an excellent experience and worth every Euro. The tour also included lunch and transportation, so we also solved our challenge of how to get up a volcano with no car!
We very much enjoy and utilize audio guides. If there is a free Rick Steves audio tour, we use it! VoiceMap is another low-cost audio tour option developed by local guides. Free walking tours are a favourite too, although we always pay as it is a tip-based service and I’ve never been disappointed!
We pay (and sometimes a lot) for special experiences that we identify as important to us. A Flamenco Show, a European Futbol match, cooking classes, entrance tickets, boat rides, and museums when we’re in the mood. This is where knowing your travel intentions along with your unique interests really matter.
Find What is Free
“Going” to all the things (museums, gardens, attractions, etc) costs a fortune. We try to be honest about what sparks our interest as compared to all the things everyone has on a bucket list. For example, Rome has between 60 and 80 museums. Being selective is critical unless you move to Rome!
Europe offers a plethora of free and low-cost attractions, from museums to stunning public parks, historic neighbourhoods, and cultural festivals. Take advantage of these opportunities to enrich your experience without overspending. We always seek out free things and events. We love to walk, to watch the bustle of a busy street or piazza, and to enjoy the things that local people enjoy. It’s hard to top a Sunday afternoon picnic hanging out alongside local families in a park under an ancient aqueduct - a taste of the La Dolce Vita.
Some of our favourite experiences have been FREE! Here are a few.
Travel budget example prepared with the Travel Budget Calculator
Case Study
Let me use our “retirement” trip as an example. By applying all the money-saving strategies and using the Travel Budget Calculator to sort our expenses, we discovered that we spent a total of $9000 for 10 weeks - an average of $900/week for two people. This is the breakdown of where our money went:
~10% transportation - trains, buses, and flights (Victoria - Barcelona, Sevilla - Porto, Lisbon - Bordeaux return, Lisbon - Victoria)
~32% accommodation - 5 nights using travel rewards, two 1-month stays with 40% discounts, and a “free” week away using Home Exchange.
~33% food - we spend a bit less than this normally at home with a combination of groceries and eating out! So using “traveller’s math” - does that even count!?!?😅
~ 19% activities - walking and food tours, entrance fees, 2 cooking classes, futbol tickets, a flamenco show - ALL the things we wanted to do!
~6% “other” - Airalo e-sim cards, travel insurance, gifts, etc…
I share this not to say that these percentages are a target. Instead, I hope you see that YOU can customize and juggle travel expenses in these four categories to make sure that you can:
a) find a way to afford travel.
b) spend money on the things that most matter to you.
c) learn about your spending habits so you can plan better for future trips.
What NOT to Scrimp and Save on
There are a few things I don’t recommend skipping or compromising just to save money.
#1 Travel medical insurance
This is a must! Seriously - don’t think about hedging your bets on staying healthy or avoiding an accident because you just never know! My husband and I had one trip that sadly included an ambulance ride, 2 hospital visits, 26 stitches, a consult with a plastic surgeon, and pain medications. (And a new ballcap to hide the bandaged head!) Thank goodness for insurance!
I’d also recommend ensuring you have trip cancellation coverage. Read about my experience cancelling a trip.
#2 The things that bring you the most joy
If you’ve been dreaming of taking a hot air balloon ride since you were a child, don’t sit on the sidelines and watch - go! If you are someone who is thrilled by history - hire a knowledgeable local guide! If you have been dying to improve your Spanish - take the language lessons! If your comfort level requires an organized tour - book it! It’s about balancing YOUR priorities!
DIY Travel
Smart strategies and thoughtful planning can turn your travel dreams into affordable realities. Travelling doesn’t have to break the bank or leave you with regrets; it can be a fulfilling and enriching experience while staying within your budgetary limits.
Looking at your options with a do-it-yourself attitude plays a big part. Balance ease, convenience and DIY options with independent travel. Sure a flight might be the fastest and easiest way to get to where you're going but there might also be an overnight train for a fraction of the cost with a much more interesting ride. An organized tour might not be your only option to see a site - perhaps you can take public transportation, hire a local guide or use an audio guide, or simply figure it out on your own.
Understand your travel motivations and priorities to inform your travel budget planning. Whether it is stretching your funds for longer trips or indulging in specific experiences, aligning your spending with your values ensures a fulfilling travel experience.
Budget-conscious travel isn’t about being “cheap” but rather about making intentional choices that enhance your journey and create lasting memories without financial stress. And for me…it means being able to travel sooner and longer!
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I hope this article helps you to plan your next adventure! Looking for more guidance?
TRAVEL COACHING: Need a bit of travel coaching to get you started or to fine-tune your travel plans? I’d love to work with you. Check out what travel coaching with me is all about and let’s connect!