There’s a considerable amount of ongoing chatter in the travel media about how to cut expenses on your holiday, on how to maximize your travel budget. The issue is that most of that guidance centers on the wrong aspects. They focus on minor details rather than what truly influences budget travel: your choice of destination.
In an earlier book of mine, I noted in *Make Your Travel Dollars Worth a Fortune* that the greatest effect on your budget will stem from where you go, rather than how you get there. Of course, there are numerous crucial factors that determine how much you will spend on your journeys, whether it’s a one-week getaway or a year-long global adventure. However, the most significant factor is the location you opt to enjoy.
This has held true for 20 years, 10 years, and last year. It will likely continue to be the case unless airfares skyrocket or rising sea levels submerge half the destinations we could visit. The place you choose to go has a far greater influence on your expenses, and the longer the trip, the more significant this becomes.
### Prioritize travel destination, logistics can wait (unless a major airfare deal arises)
Regardless of how meticulously you plan your journey to Singapore or Norway, and despite how favorable the flight price may be, it’s going to cost you a significant amount compared to, say…Ecuador.
There was a feature in *Budget Travel* magazine where they provided two writers with a budget of $1,200 to travel. The challenge was to journey at least eight hours away for four nights and stay within that budget. One visited Tokyo while the other went to Quito. You can probably guess how that turned out.
Essentially, the individual who traveled to Quito, Ecuador enjoyed a fantastic experience, dined well, and stayed in high-quality accommodations. He described his final evening at one of the top restaurants in the city: “From the ceviche sampler to the grouper in a spicy cream sauce, everything was exceptional. Along with champagne, dessert, half a bottle of sauvignon blanc, and gratuity, my total was $75.”
Conversely, the person who traveled to Tokyo—during a time when the exchange rate was less favorable than it is today—had to exercise extreme caution with his finances. He stayed in a tiny room measuring 8′ by 10′ for $70 and largely subsisted on ramen noodles and food from vending machines. “I kept my expenses down through a three-part strategy: dining in places without waitstaff, never hailing a taxi, and interacting with the locals.” He still enjoyed his trip, but making the numbers work was challenging.
Ramen noodle meal plan or dining out for every meal? Capsule hotel/hostel accommodation or boutique hotel with comfortable linens and luxurious toiletries? Taking taxis at your convenience or waiting for public transportation? Surprisingly, these two options can cost the same. It all depends on your destination.
There are certainly exceptions. There are luxury hotels nearly everywhere, so spending a fortune is possible anywhere if you choose to go first class. Nonetheless, a suite in a chain hotel in Quito will cost significantly less than a similar one in Oslo. If you downgrade to a 3-star or hostel level, the difference is even more pronounced.
Additionally, flight costs can influence expenses for a shorter trip. If you find a round-trip flight to Ireland for $700 and one to India at double that price, it might even out in total costs for a week’s stay since you won’t have enough time for all other expenses to balance out. If any international destination is under $500 from your local airport in the USA or Canada, it often makes sense to seize that opportunity.
### The most affordable travel spots will make you feel affluent
I just spent two months exploring Europe, and aside from 17 days in Hungary, I wasn’t in any of the budget-friendly locations highlighted in *The World’s Cheapest Destinations* book. Therefore, when dining in countries like the Netherlands, Germany, or Italy, it was typical to spend $50 or $60 on a meal. A meal that would have cost half or less in Bulgaria, Albania, or Montenegro.
The last time I visited Ireland, I was quite pleased that I didn’t attempt to go there during my backpacking years. Prices matched what I would spend in a U.S. city, but they’re in euros, not dollars. Since the area is inundated with affluent tourists, hotel rates are steeper than one might expect. If you then head to London from there, prices increase further.
I paid more than I have in quite some time for nightly hotel costs in Italy and Spain on this recent trip, like $150 per night for something that would have been $50 or $60 in Greece.