There’s a significant amount of ongoing chatter in the travel media about strategies to cut costs on your vacation, particularly about maximizing your travel budget. The issue is, much of that guidance is centered around the wrong aspects. They are tinkering with the periphery instead of concentrating on what genuinely influences budget travel: your destination.
$2 bed, $3 lunch in Nepal
In an earlier publication of mine, I stated in Make Your Travel Dollars Worth a Fortune that the primary influence on your finances will stem from your travel location, not the approach. Certainly, numerous essential elements contribute to how much you spend on your journeys, regardless of whether you’re planning a week-long getaway or an extensive trip around the globe. However, the most important factor is where you choose to allocate your time.
This has been the case 20 years ago, 10 years ago, and last year. It’s likely to remain true unless flight prices soar or climate change inundates a significant number of our potential destinations. The location has a greater effect on your spending, and the longer the duration of your trip, the more crucial it becomes.
Prioritize destination, sort logistics afterward (unless there’s a significant airfare deal)
Regardless of how meticulously you arrange your journey to Singapore or Norway, and no matter how attractive the airfare is, it will still cost you a considerable amount of money compared to, for instance, Ecuador.
Once, Budget Travel magazine assigned two writers a spending limit of $1,200 for a trip. They were instructed to travel a minimum of eight hours away for four nights and not exceed that budget. One writer went to Tokyo, while the other traveled to Quito. You can likely guess how that turned out.
Essentially, the individual who traveled to Quito, Ecuador enjoyed a lavish experience, dined well, and found good accommodations. He recounted his final night at one of the top restaurants in the area: “From the ceviche sampler to the grouper in a spicy cream sauce, everything was extraordinary. With champagne, dessert, half a bottle of sauvignon blanc, and gratuity, my total came to $75.”
A $2.50 haircut or $15 massage in Quito
In contrast, the writer visiting Tokyo—during a time when the exchange rate was less favorable—had to monitor his budget very closely. He stayed in a room measuring 8′ by 10′ for $70 and primarily consumed ramen noodles and snacks from vending machines. “I kept my expenses down using a three-pronged strategy: eating at places that don’t have waitstaff, avoiding taxis, and interacting with locals.” He still enjoyed himself, but making the finances work was challenging.
Ramen noodle budget or dining out for every meal? Capsule hotel/hostel bed or boutique hotel with comfortable linens and high-end toiletries? Taking taxis when desired or waiting for the bus? Interestingly, these two scenarios can cost the same. It purely depends on your destination.
Of course, there are a few exceptions. Luxury hotels exist worldwide, so you can splurge anywhere if you choose the high-end route. Nonetheless, a suite in a chain hotel in Quito will be significantly cheaper than a similar one in Oslo. Reduce it to a 3-star or hostel standard, and the price difference is even more pronounced.
Additionally, airfare can slightly affect the balance for short trips. If you discover a round-trip flight to Ireland for $700 while one to India is double that, the overall costs for a week’s stay will likely even out because there isn’t enough time for all the other expenses to bridge the gap. If any international destination from your U.S. or Canadian home airport is under $500, it’s generally advisable to seize that opportunity.
The most affordable travel destinations will make you feel affluent
$20 for two with wine and tip in Buenos Aires
I recently spent two months exploring Europe, and aside from 17 days in Hungary, I did not visit any of the inexpensive locations highlighted in The World’s Cheapest Destinations book. Consequently, dining out in countries like the Netherlands, Germany, or Italy typically ran us $50 to $60 for a dinner. A meal that would have cost half that or less in Bulgaria, Albania, or Montenegro.
The last time I found myself in Ireland, I was quite relieved I didn’t try to visit during my backpacking years. Prices matched what I would expect to spend in an American city, but they were in euros, not dollars. Since the area is swamped with wealthy tourists, hotel prices are higher than they should be. Then, traveling from there to London, prices escalate even further.
I spent more for accommodation in a long time on a nightly basis.