There’s a significant amount of ongoing chatter in the travel media regarding ways to economize during your vacation and maximize your travel funds. The issue is, much of this advice targets the wrong aspects. They’re skirting around the edges instead of zeroing in on what genuinely makes a difference when traveling on a budget: your destination.
$2 bed, $3 lunch in Nepal
In an earlier publication of mine, I asserted in Make Your Travel Dollars Worth a Fortune that the biggest impact on your budget will stem from your travel location, rather than the method of travel. Indeed, numerous crucial factors contribute to how much you spend on your journeys, whether for a week-long holiday or an extensive global tour. Yet, the most critical factor remains where you opt to devote your time.
This has been true 20 years ago, 10 years ago, and even last year. It will likely hold true unless airfare triples or rising sea levels engulf many places we could visit. The destination significantly influences your spending habits, especially the longer the trip extends.
Travel destination first, logistics second (unless there’s an extraordinary airfare promotion)
Regardless of how meticulously you plan your journey to Singapore or Norway, and irrespective of how favorable the flight price is, it will still hit your wallet hard compared to, let’s say…Ecuador.
Once, Budget Travel magazine had a feature where two writers were allocated a budget of $1,200 for their travels. The guidelines required them to travel at least eight hours away for four nights, without exceeding their budget. One writer ventured to Tokyo while the other opted for Quito. You can probably guess how that played out.
Essentially, the individual who traveled to Quito, Ecuador enjoyed a lavish experience, dined well, and stayed in excellent accommodations. He described his final night at one of the town’s finest restaurants: “From the ceviche sampler to the grouper in a spicy cream sauce, everything was remarkable. Along with champagne, dessert, half a bottle of sauvignon blanc, and gratuity, my total was $75.”
A $2.50 haircut or $15 massage in Quito
Conversely, the traveler headed to Tokyo—back when the exchange rate wasn’t as advantageous as today—had to meticulously manage his finances. He occupied a room measuring 8′ by 10′ for $70 and primarily consumed ramen noodles and food from vending machines. “I kept my expenses down via a three-pronged approach: dining at places without wait staff, avoiding taxis entirely, and interacting with locals.” He still had an enjoyable experience, but balancing the numbers was a challenge.
Ramen noodle budget or dining out for every meal? Capsule hotel/hostel lodging or boutique hotel with soft sheets and luxurious toiletries? Taxis whenever desired or waiting for the bus? Remarkably, these two scenarios can match in cost. It simply hinges on your destination.
Of course, there are a few exceptions. Five-star hotels exist nearly everywhere, so you can spend a significant amount regardless of location if you go all out. However, a suite in a chain hotel in Quito will cost considerably less than a comparable one in Oslo. Drop it down to a 3-star or hostel level, and the difference becomes even more pronounced.
Additionally, flight prices can influence the balance on a short trip. If you uncover a round-trip flight to Ireland for $700 and another to India that is double that amount, the total expenditure for a week’s stay may balance out because you lack sufficient time for other expenses to bridge the gap. If any international destination is under $500 from your home airport in the USA or Canada, it’s wise to seize that opportunity regardless.
The most affordable travel spots will make you feel wealthy
$20 for two with wine and tip in Buenos Aires
I recently spent two months traveling across Europe, and aside from 17 days in Hungary, I didn’t visit any of the budget-friendly locations highlighted in The World’s Cheapest Destinations book. Thus, when dining out in countries like Holland, Germany, or Italy, it wasn’t unusual to spend $50 or $60 on dinner—a meal that could have cost half as much or less in Bulgaria, Albania, or Montenegro.
During my last visit to Ireland, I was quite relieved I didn’t attempt to go during my backpacking days. The costs were comparable to what I’d spend in a U.S. city, but they’re in euros, not dollars. As the area is inundated with affluent tourists, hotel prices are steeper than they ought to be. Then, if you venture from there to London, prices escalate even further.
I paid more than I have for a long time on nightly.