How to create a vacation budget
Creating an appropriate vacation budget is harder than it seems. There are a lot of variables to consider and each trip is different. You don’t want to skimp on the thing you look forward to most!
Determine the why and goal of the trip. Is it for rest and relaxation, honeymoon, special occasion, girls trip, family gathering, etc.? It helps determine your budget, but it also helps line up with those who are most important to go on the trip too. Not everyone is on the same spending page.
One of the first things I ask clients is: what is your budget? It’s critical to have a sense of the financial commitment clients are comfortable spending since it drastically alters the recommendations we can make for their trip and what destination(s), accommodations, and transportation options we can book. There are so many options out there for every kind of budget but it comes down to what each individual person is comfortable spending.
For a travel advisor to propose the ideal trip and show value for your money, a reasonable budget is the first step for the style of trip you're looking for. Don’t be afraid to ask your travel advisor for an estimate for the length of travel and destination based off your desires.
So, how do you create a travel budget for your next trip? Below is a list of questions to get you started that will help you start to plan your trip and get a realistic idea of what’s feasible.
List of questions to ask yourself:
Where do you want to go and why?
Who is traveling with you? Solo, group, significant other, multi-gen?
Where are people traveling from i.e. one airport, multiple points and stops?
Where do you want to splurge? This ties back to the why.
When are you going? Is it peak season? Are you flexible on dates?
Dynamic pricing for hotels, airlines, and many activities will fluctuate depending on dates and season, which is dictated by demand. Don’t let any of these points scare you off. Just plan ahead and start your travel budget tracker now - usually using an Excel format where you can keep tabs on the sum and keep all the elements in one place.
Consult a Travel Advisor
If you don’t know where to start, ask a travel expert (like me!) about the realistic budget for the destination and style of trip you’re trying to create. It’s fun when clients come to me open to recommendations based on their feedback. The planning and inspiration phase can be a lot of fun! Leave the budget spreadsheet to me.
Painless Ways to Start Saving
Start a travel fund that is separate from your other accounts. Set up a regular direct deposit each month, or bi-weekly then watch your travel potential grow, which is what I do. Start a trip jar if you want your kids to get involved and create some excitement.
Budgeting for your itinerary
Depending on your style and if you’re type A, I would recommend a spreadsheet. I typically use Google Sheets (Excel) whereby I can add other people to contribute and it be an active shareable budget document with ideas, prices, and dates. Another great tool to track budgeting is Mint - owned by Intuit / Quickbooks - which I use for my business and personal expenses.
While on the trip, you can create a group Splitwise if you want to make sure no one feels like they’re always picking up the tab or it’s uneven.
Flights
In many cases, the flights can be the biggest fluctuating variable. We all want shorter hauls and less connections, which can increase the price significantly. If you’re near a major airport or airline hub, it will play a positive role in more options and advantageous flight routes. With the flight chaos right now, I highly recommend cutting down connections and getting to a major airline hub airport.
Tip: Set up flight alerts for your desired dates to keep track of any changes in airfare costs and be able to quickly take advantage of any deals that come up. Or you can work with a travel advisor’s air department which can get consolidator pricing or with the tour operator/cruise line you book with.
The best places to start your flight search and set up alerts are:
Hopper
Google Flights
Kayak
Momondo
Scott’s Cheap Flights
This will help you get a sense of what the airfare will cost and provide you with an average for the route of your flight. Rome2Rio is another good place to search how to get to point a to b which includes various modes of transportation (flight, bus, train, etc.)
Accommodations
Hotel accommodations are another big ticket item that can really add up. However, there’s plenty of variety and choice. Think back to your “why” question. Are you going to relax during your honeymoon? You might want to upgrade your hotel selection. Are you going with your whole family and you want to have common area spaces and have a kitchen to cook? Go with an Airbnb, Villa or rental with all the amenities you need.
Location is a big consideration. Do you want to be right in all the action or close proximity to walk to major attractions? Think of all these things ahead of time because you don’t want to spend your vacation going from point a to b or feeling cramped just to save a buck. Let your hard-earned money do something nice for you.
Meals
Lots of people travel for the food - think Italy, Morocco, Japan, France, and Lebanon. Dining can be a big part of your immersion and experience in a destination. Make sure you save a few meals where you really go all out. Breakfasts in many cases can be included in hotel accommodations and aren’t really the meals you want to splurge on. Consider breakfast as a way to save a few bucks and opt for light lunches when you have a busy day so you can indulge when you want to try an exciting new restaurant
Don’t be afraid to fit food tours into your itinerary so you get to experience the region by eating local. Look for long lines of locals at food trucks and local restaurants. That’s when you know the place is really good and not overpriced.
Activities
When you’re going to a place like Rome, consider the highlights you want to see: Vatican, Colosseum, food tours, and more. Are you going to Africa? Make sure to schedule safari game drives, time for a hot air balloon ride, or visit the penguins in South Africa. If you’re going somewhere for the first time, you may want a more action-packed itinerary vs. a relaxation trip to enjoy the beach with a good read. Consider everyone on the trip (age, interests, fitness level, etc.), and give yourself some cushion for last-minute decisions. You may arrive somewhere and find a tour that’s really interesting or meet a trustworthy local who offers to show you some off-the-beaten-path spots. Leaving some room for spontaneity is part of enjoying the ride.
Shopping in certain cities like Paris, Italy, Turkey, and more can be a part of the experience. Allow for extra expenses and fun money to enjoy the place or pick up some souvenirs.
Once you get to the key highlights and focus on the why, the budget will start to fall into place. The more you plan, the more trips you can take - a win-win scenario.
Get everyone’s buy-in and happy planning!
