How I Travel on a Budget
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![Melanie Lockert](https://www.newsweek.com/vault/wp-content/smush-webp/2024/02/MelanieLockertHeadshot-150x150.jpg.webp)
Melanie Lockert
Credit & Credit Cards Expert
Melanie Lockert is a freelance writer with nearly a decade of experience in the personal finance space. She is the founder of the blog and author of the book “Dear Debt” and paid off $81,000 in student loans. She has an M.A. from New York University and is an LA native based in Brooklyn, NY.
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![Robert Thorpe](https://www.newsweek.com/vault/wp-content/smush-webp/2023/11/1000007146-150x150.jpeg.webp)
Robert Thorpe
Senior Editor
Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.
Updated April 26, 2024 at 9:38 am
![Two happy people having fun on the beach, sitting on blue sunbed with hands raised up, spending leisure time together. Summer holidays concept. Tourism. Travelers.](https://cdn.statically.io/img/www.newsweek.com/vault/wp-content/uploads/2024/04/GettyImages-1458771594.jpg)
Traveling can be fun for a much-needed vacation and to explore other places. But the cost of traveling can be prohibitive, and it’s not getting cheaper. Average travel costs jumped 27% from 2019 to 2022 going from $2,100 to $2,671, according to data from the Bureau of Labor Statistics (BLS). While it may cost more to get out of town, you can still find cheap travel options with some research and creativity. In this guide, learn how to travel on a budget and reduce costs in all categories.
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Vault’s Viewpoint
- Travel costs are on the rise but there are ways to lower your travel budget.
- You can book cheap flights by looking for deals and using points or miles.
- Being flexible can open up even more cheap places to travel.
Be Flexible on Location and Time
One of the keys to budget travel is to be flexible on where you go and when. Going to tourist hot spots during peak season will cost you a premium. But entertaining other locales during the off-peak season can score you serious savings. Airline tickets are all about supply and demand, so when demand is lower, so are the prices.
I base much of my travel on deals. Instead of choosing a location and planning a trip, I find a deal and plan my trip based on that. To get cheap flights, I typically avoid traveling during the summer and around any major holidays, with one exception. I’ve found affordable international flights during Thanksgiving as most travel during that time is domestic.
Examples of Cheap Flights
For example, I was able to get a roundtrip ticket from Los Angeles to Lima, Peru for less than $300 and fly back on Thanksgiving day in 2022.
This past Thanksgiving in 2023, I found cheap flights to Tokyo from Los Angeles. Remember, cheap is relative. Typically, roundtrip tickets to Tokyo can easily be four figures and I got a ticket for $706.45. According to travel website Kayak, the cheapest month to fly to Tokyo from Los Angeles is February with flights costing an average of $689. In June or July, the most expensive flights are over a thousand dollars.
Find an Affordable Flight
Using specific websites can help the affordable flights come to you. I’m signed up for Travelzoo’s newsletter which publishes deals and I also use Google Flights alerts for many different locations that I’m interested in visiting.
To start, input your departure and arrival locations and input some dates. From there, you can turn on alerts below next to “Track prices” for those exact dates or “Any dates.” I toggle on “Any dates” and whenever prices drop, I’ll get an email alert. That’s how I found the cheap flight to Lima, Peru.
I have alerts set up for 10+ locations that I have my eye on so I can find cheap places to travel at the right time. This strategy works great because I don’t have to put in much leg work to get started and the deals go straight to my inbox.
Additionally, I book flight departures and arrivals on weekdays when fewer people are traveling and airfare tends to be cheaper.
Carry-On Only
For the past 15 years, I’ve been a carry-on-only traveler. While I am a minimalist, the decision wasn’t about that. Instead, I had a frustrating experience on my return to the States after a magical trip to Buenos Aires, Argentina. I had returned but my checked bag did not. For months, I continued to follow up with the airline. Eventually, the airline offered me a paltry amount to reimburse me for my lost luggage.
I let them know that the amount would not replace my wardrobe and other items and that I wanted to escalate the issue. Somehow, after six months of luggage limbo, they found and returned my bag.
Since then, I’ve traveled light with one carry-on so I could avoid another potential luggage mishap. The eBag backpack has been my trusty companion for years. I roll my clothes in packing cubes and have become a master at playing Tetris with my items. I make sure that my luggage meets the size requirements for the airline and avoid airline baggage fees altogether.
Use Rewards To Pay for Flights
Aside from using Google Flights to book cheap flights I also use travel rewards when possible. Using various travel rewards credit cards, I’ve been able to get cheap flights to Rome, Italy with my mom to celebrate paying off my student loans and to Madrid, Spain to see a friend living there. Thanks to miles and points, I was paying only a nominal amount in taxes and fees.
The cards I’ve used include:
- Chase Sapphire Preferred® Card
- AAdvantage® Aviator® Red World Elite Mastercard®
- Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
Using travel rewards credit cards strategically has helped me lower my costs and reduce my travel budget. I pay off all my credit cards in full every week, which I find helps with my spending and cash flow. Additionally, I change up the credit cards I use based on the purchase to maximize my rewards.
Find Affordable Accommodations
Getting to your travel destination is one thing. But you need a place to stay once you get there and that can increase your costs significantly. In some cases, I’ve been able to lower my accommodation travel budget by staying with a friend for a night or two or house-sitting while a friend is gone.
When I travel somewhere new, I typically book hostels or Airbnbs which can be more affordable than some hotels (but not always). I tend to steer clear of trendy areas and choose places slightly off the beaten path. I go a bit further out and ensure I can either walk or have public transportation options. Nine times out of 10, this has worked in my favor. I get a bit more local flavor at a fraction of the cost.
The other 10% of the time I’ve found myself in a situation that I call a ‘frugal fail’. For example, booking a basement Airbnb in Prague in a not-so-great neighborhood. As a solo female traveler, I stayed there one night and ended up moving and paying more for a hotel. Safety is paramount and that is priceless.
Use Rewards To Book Hotel Stays
When I book hotel stays, I typically use my Chase Ultimate Rewards points from my Chase Sapphire Preferred® Card. When I unexpectedly changed plans and decided to book a hotel in Prague, I used my rewards points to offset the costs.
After looking at accommodations in Tokyo, I found a great hotel I had my eye on at a discount in the Chase Travel℠ portal. I was able to book a stay with fewer points. The Chase Sapphire Preferred® Card is my go-to card for hotel stays as one of its many benefits is a $50 annual hotel credit on hotel stays purchased through Chase Travel.
One Big Meal Out per Day
Dining out while on vacation is a treat. But doing so two to three times a day will skyrocket your travel budget. I typically commit to having one big meal out per day. If I’m staying at an Airbnb, I’ll get groceries and cook—one of the benefits of having access to a kitchen.
If I choose to stay at a hotel, I prioritize options with a continental breakfast. I’ll also go to the grocery store and pick up affordable items like:
- Granola bars
- Fruit like an apple or banana
- Yogurt
- Cheese
- Almonds
- Smoothies
- Protein shakes
These help out during the day. Once I’m at my location, I’ll also identify a low-cost food option. For example, while in Tokyo I ate a couple of onigiri (rice balls), yogurt, and cheese from 7-Eleven nearly every day for breakfast or lunch, which cost around $8. Dinner is where I splurged on unique or indulgent experiences. This strategy is one of the top ways I’ve learned how to travel on a budget.
Use Public Transportation
When I travel, I typically get around using public transportation and walking. One of my favorite things to do is explore a city by foot or the local transit. You get a different experience that way and can enjoy budget travel and serious savings.
I rarely use taxis and ride-sharing. If I do, it’s typically to and from the airport if no viable public transit options exist. But some cities make it easy to take public transportation from the airport to the center of the city. For example, there are great public transit options to and from the airport in Chicago, Illinois; Portland, Oregon; and Tokyo, Japan.
Instead of paying for a ride that can easily exceed $50 you can pay a few bucks on public transportation.
Additional Ways To Travel on a Budget
If you want to learn how to travel on a budget or find cheap vacation ideas, here are additional ways to lower costs:
- Sign up for rewards programs. Always sign up for hotel or airline rewards programs. Leave no rewards on the table.
- Use cash back. If you have a cash back credit card, use those extra funds to lower your travel budget.
- Book flights and hotels early. To find cheap places to travel, book flights and hotels in advance. Ideally at least several months ahead of time.
- Compare options. Budget travel requires some research. When planning an upcoming trip, compare all your transportation options, such as various airlines, buses, trains, and road trip costs.
- Research free or cheap activities. Check out local parks, free museum days, discounts on Groupon or Goldstar, and local festivals.
Frequently Asked Questions
What Are Cheap Vacation Ideas?
Some cheap vacation ideas include camping, having a staycation, or going somewhere you can get free accommodations by house sitting or pet sitting. You can also look for cheap flights on Google Flights, see if there are budget buses, and plan your vacation around the deals you find.
What Are Cheap Places To Travel To?
If you’re looking for cheap places to travel to, that will depend on your departure city, currency, and time of year. For travelers in the United States, traveling domestically will be the most affordable. If you’re looking for cheap vacation ideas for international travel, you can look into countries in Latin America or Southeast Asia.
What Credit Card Is Best for Travel?
The best credit card for travel is one with no foreign transaction fees. Look for cards that can earn you more points for travel-related purchases and that may have travel credits included. Compare annual fees and make sure it’s worth the cost.
More From the Vault: Guide To Travel Credit Cards
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
![Melanie Lockert](https://www.newsweek.com/vault/wp-content/smush-webp/2024/02/MelanieLockertHeadshot-150x150.jpg.webp)
Melanie Lockert
Credit & Credit Cards Expert
Melanie Lockert is a freelance writer with nearly a decade of experience in the personal finance space. She is the founder of the blog and author of the book “Dear Debt” and paid off $81,000 in student loans. She has an M.A. from New York University and is an LA native based in Brooklyn, NY.