So you’re all excited about your holidays! Shopping, arranging for your pets to be looked after, getting someone to take care of your plants, planning your vacation wardrobe, perhaps filling in prescriptions to take with you, buying gifts if you’re visiting family and friends – all these can eat up a huge chunk of your energy and time.
One of the things that you probably started working on right at the beginning of your planning is your travel budget. It gives you better control on your finances and helps you to make the best of your holiday.
Travel Budgets: Why and How to Make Them
Whether it’s a weekend getaway, business trip or your months-long dream vacation, a major concern would be managing your money. We know all too well that once the fun ends, we need to continue living normally in the way we are used to. This is where budgeting comes in.
The goal is to stay within a reasonable budget without compromising on the quality of your experience. You don’t need to bust your bank account, avail of loans with exorbitant interest or feel frustrated that you couldn’t afford that extra river cruise.
Travel budgets are designed to help you to become cognizant of how much money you can realistically spend on this particular occasion without forfeiting other important financial goals in your life. You may be saving to purchase a home, children’s education, insurance, business ventures or a major life event such as retirement or marriage. Your travel budget should keep these aspects in mind.
To create a working budget, first analyze the duration of your holiday and allot a particular sum for every day/week. Budget for food, transportation, shopping, medical emergency and a little extra. Once you have this firmed up, the fixed costs can be built in. These would include transportation to and from your primary destination, with visa costs if required. If you need to pay a travel agent for these, put that down in your budget.
Accommodation and activities costs must be calculated separately. Budget for vaccinations and medical certificates if required. Check if you need special clothing and footwear. You may need SIM cards and an international credit card. Don’t forget to set aside funds for extra treats and souvenirs.
Share travel budgets with your family to make things more equitable and so that everyone can get the most out of their holiday. Incorporate useful suggestions.
Hidden Travel Costs: Five Worst Culprits
Transportation
While booking your tickets, watch for trends, peak seasons, times and days, taxes, surcharges, cancellation and reservation change fees, travel insurance, in-flight meals and more. Read the fine print, and go through customer reviews to get the lowdown on how airlines can sneak in hidden charges.
Airport parking charges are quite high and can take you by surprise if you didn’t do your homework. Check out the best Melbourne Airport parking rates here. Avoid purchasing food and beverages at the airport because they’re priced sky-high. In-flight charges can sometimes spring up while you’re on board. These include costs for blankets and pillows, use of WiFi, choice of seat and more.
Baggage
Always weigh your bags before you leave home. Check the airline’s rules for cabin and checked-in bags. Some airlines have restrictions on luggage size/dimensions. You could end up paying a massive amount for heavier or larger bags.
Tipping
Though this seems like a trivial cost, it can actually blow your travel budget. Some countries have fixed rates for tipping but in most cases, it’s fly by wire.
Tipping is not just in restaurants, but it may be needed in hotels, taxis and other services. Confirm with your travel agent, a reliable guidebook or people who have traveled to these regions and build this cost into your budget.
Washrooms
Toilets in public places may not always be free. Though the charges for each use are not significant, they can build up when you’re on a long holiday and traveling with your family. Costs can spiral when traveling with kids and senior citizens. Check with a guidebook or reliable sources about restroom usage costs in the country or countries you’re traveling to.
Experienced travelers will tell you that there are free toilets in many restaurants and hotels if you have a meal there. You can scope out these free toilets along your route and use them to save a good chunk of your travel budget.
Resorts and Accommodation
Read the fine print thoroughly before you book your hotel, resort, Airbnb or bed n breakfast accommodation. Some of the charges may be extra and could appear only when you settle the final bill. Watch out for minibar charges, room-service, use of club-house facilities, taxes, cleaning fees, laundry and even for online booking which may not be immediately clear when you book.
If you plan to use the parking slot in the hotel, check the rates beforehand. You may also be charged extra if you consume the snacks, fruit, water or juice left on your bedside table.
Don’t assume that they are complementary – call the front desk and confirm before you tuck in. Some hotels provide free towels and toiletries in the bathrooms, but charge you for use of towels in the gym or pool.
Final Thoughts
Apart from these 5 culprits, money exchange is easily one of the biggest rip-offs for travelers. Airport currency exchange is one of the highest rates, so carry some local currency to pay for immediate necessities such as cab fare or snacks. It is better to use a local bank or an exchange facility in the city after arrival.
There are conversion fees levied on credit and debit cards and on ATM cash withdrawal. Talk to your bank before you travel and ensure that you know how to use bank affiliated services in a foreign country.
