There’s a great deal of ongoing chatter in the travel media about how to cut costs on your vacation and how to maximize your travel budget. The issue is, most of that guidance is concentrated on the less important aspects. They’re fiddling with minor details instead of focusing on what truly influences a budget trip: your destination.
$2 bed, $3 lunch in Nepal
In one of my earlier publications, I mentioned in Make Your Travel Dollars Worth a Fortune that the most significant effect on your budget will stem from where you choose to travel, not how you do it. Yes, numerous vital factors contribute to how much you spend on your travels, whether it’s a weeklong getaway or a year-long journey around the globe. The most crucial one, however, is the location you opt to enjoy.
This fact was accurate 20 years ago, 10 years ago, and last year. It will likely remain true unless airfares surge dramatically or if rising sea levels inundate many travel destinations. The location plays a larger role in determining your expenses, and the longer the trip, the more relevant it becomes.
Travel destination first, logistics second (unless a major airfare deal pops up)
No matter how meticulously you organize your trip to Singapore or Norway, and regardless of how advantageous the flight pricing may be, it will still cost you a significant amount of money compared to, say, Ecuador.
Once, Budget Travel magazine published an article where two writers were given a budget of $1,200 to travel. The guidelines were to go at least eight hours away for four nights and not exceed that budget. One chose Tokyo, and the other opted for Quito. You can probably guess how that turned out.
Essentially, the individual who traveled to Quito, Ecuador, had a fantastic experience, dined well, and lodged in very comfortable accommodations. He described his last evening at one of the finest restaurants in town: “From the ceviche sampler to the grouper in a zesty cream sauce, everything was remarkable. Including champagne, dessert, half a bottle of sauvignon blanc, and gratuity, my total was $75.”
A $2.50 haircut or a $15 massage in Quito
The writer who went to Tokyo—during a time when the exchange rate was not as favorable as it is now—had to be exceptionally cautious with his finances. He slept in a room measuring 8′ by 10′ for $70 and primarily consumed ramen noodles and snacks from vending machines. “I kept my spending low by employing a three-pronged strategy: dining at places without waitstaff, never using taxis, and interacting with locals.” He still had an enjoyable experience, but making the numbers work was challenging.
Ramen noodle budget or dining out for every meal? Capsule hotel or hostel bed versus boutique hotel with luxury linens and high-end toiletries? Taxis at your convenience or waiting for public transport? Surprisingly, these two options can cost the same. It all hinges on your destination.
Of course, there are some exceptions. There are nearly five-star hotels everywhere, so it is possible to spend a significant amount in any location if you opt for luxury accommodations. Nevertheless, a suite at a chain hotel in Quito will cost much less than a similar one in Oslo. When you scale down to a 3-star or hostel level, the price difference becomes even greater.
Additionally, airfare can influence costs on a quick trip. If you find a round-trip flight to Ireland for $700 and one to India at double that rate, it may balance out in total spending for a week’s vacation because you won’t have enough time for other expenses to offset the difference. If any international destination is under $500 from your local airport in the USA or Canada, it likely makes sense to take that opportunity.
The most affordable travel spots will make you feel affluent
$20 for two with wine and tip in Buenos Aires
I just spent two months journeying through Europe and aside from 17 days in Hungary, I was not in any of the budget-friendly locations highlighted in The World’s Cheapest Destinations book. Consequently, when dining in countries like Holland, Germany, or Italy, it was not unusual to spend $50 or $60 on dinner. A meal that would have cost half that or less in Bulgaria, Albania, or Montenegro.
The last time I visited Ireland, I was thankful I didn’t attempt to go there during my backpacking days. Prices were comparable to what I would spend in a U.S. city, but they were in euros instead of dollars. With an influx of wealthy tourists, hotel rates are higher than one might expect. Then, traveling from there to London, prices climb even further.
I spent more than I have in a long time on nightly