Back to Blog
travel bugdeting

Travelling as Costs Rise

money tips moneymindset travel budgeting Jul 12, 2023

Travelling is meant to be fun.  It is also expensive and there are lots of things that can go wrong, where the costs go up a lot more than you expect.  I have been travelling my whole life.  My first overseas trip was with my parents when I was 4 years old.  As a grown up, I have gone overseas at least every second year, and sometimes multiple times in a year.  Then, the borders closed and we couldn't go anywhere.

This year travelling overseas was back, and then came planning and the costs in a post-pandemic world.  I hadn't been over to Europe in 5 years, and I really noticed how much more expensive everything was.  Food, petrol, even the flights over, transport.  Literally everything.

Travelling as a family also means that you need to consider how you travel, especially with a young child.  So, in this episode I take you through how I tried to keep costs down, without spoiling the fun.  Some of it is being patient and researching.  Some of it is looking at things with a different lens and, dare I say it, mindset.

Here are the main areas of travel that you need to consider when it comes to cost:

  • Transport (both getting to your destination, and once you're there)
  • Insurance (travel insurance is important, especially in this day and age)
  • Accommodation (unless you can stay with friends or relatives)
  • Car Hire (sometimes this is cheaper than taking public transport, if there are 3 or more of you)
  • Equipment Hire (things like skis, ski gear, golf clubs, etc.)
  • Entry fees (theme parks, museums, monuments, observation decks, galleries, castles, etc.)
  • Entertainment (the theatre, concerts, etc.)
  • Activities (sky diving, white water rafting, cooking class, boat ride, etc.)
  • Meals (breakfast, lunch, dinner, snacks, chocolate!, drinks, etc.)
  • Souvenirs (this could be anything!).

I could go on, but I'm sure you get my point.  There are a lot of things you can spend money on when you're on holiday.  From my last holiday, and drawing on my experience from previous trips, here are some ways you can save money:

  • Play with your dates.  This is especially relevant for flights to and from your main destination. The flights for the trip I just went on changed by $1,500 PER PERSON when I adjusted the dates by just a few days.  You can either do this yourself, or you can pay a travel agent to do the research.  The message though is, it pays to be flexible.
  • Travel Insurance.  This is something that I always have, and so far have never needed.  I feel much more comfortable though having it, especially if something medical is required.  It pays to shop around, and to check your fine print.  Some credit cards will offer it either free or at a discount to customers.  If you are going skiing, or driving in the snow - definitely make sure you are covered.
  • Accommodation.  Look beyond hotels.  This is especially helpful if you are travelling as a family.  When I was single, or travelling with my husband, we would stay in little 3-star hotels, that were cute, clean and cheap. They aren't overly suitable for children though, as they often can't accommodate an extra bed, and they generally don't have any cooking or food preparation facilities.  I now stay a lot in AirBnBs, and while they can be hit and miss, I've found most have been pretty good.  What I do love though is having a kitchen or kitchenette, so we have the choice of making food.  Plus, when travelling with 2 kids we have more space.
  • Car hire is a tough one.  It depends how long you're going for, where you're going and how many of you there are.  Often it is cheaper to drive if there are 3 or more of you, as buying multiple train tickets gets expensive.  You can also look at rail passes in places like Europe, although their train systems are not as reliable as they once were.
  • For entertainment, entry fees and activities, it can often pays to plan ahead.  In some cases you have to. When we went to London, we wanted to see inside Buckingham Palace.  There is a limited window of time when this is even possible, and the tickets sell out months in advance.  On my recent trip to Italy, there was a day spa I wanted to go to, and the appointments sell out, so I booked my treatment months ahead.
  • Meals is where I find you can really save money, especially if you have a kitchen or some way to prepare food.  While a breakfast buffet at a hotel would be nice, they are often pretty expensive, and not all hotels do this nowadays anyway.  I love going to foreign grocery stores, and seeing what is on offer.  Rather than seeing this as an exercise in frugality, I see it as an opportunity to try new foods, and expand my palate.  Breakfasts though are often pretty standard though - museli and either almond milk or yoghurt with berries.  My daughter thankfully also likes museli, so that makes things easier.  We also buy bread to make sandwiches for lunch, and it's amazing how handy this actually comes in.  On this last trip we would find ourselves hiking over a mountain, and by the time we got to our destination we were too hungry to brave crowds of other tourists to find somewhere to eat.  So, we found somewhere with a nice view or atmosphere and there was lunch!
  • Souvenirs is a very personal thing. When I was younger I used to bring home "dust collectors", whereas now I prefer to buy clothes or jewellery that when I wear it back home, I'm reminded of the trip.  It really depends on what you like though, so this one individual.

Hopefully that has given you some ideas, and at the very least inspired you to plan a holiday!  Remember to save into a "Fun Fund", or "Travel Fund" for it though!