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Writer's pictureIan

Best Practices for Planning your Travel Budget

Updated: Mar 5


Tips on planning ahead and anticipating expenses that may or may not have been considered.


Pie chart showing travel budget

Anyone who has done any amount of travel can attest to the fact that they've encountered an unexpected expense, or at least have underestimated one leading to a more expensive vacation than planned. It makes good sense to plan in advance and try to break down the day by day expenses in order to give a more accurate budget allotment. In this blog we will try and do just that so that you, the reader, might better anticipate your expenses for an upcoming trip. I've also made a basic spreadsheet you can download to use as your base. There are some equations built into it to make things a bit easier. Jump to Download link.



 

Transportation Budget Costs


First things first. You have to get there right? How are you traveling: air, rail, road trip? Each method will have different expenses. Let's break them down:


Airport with planes at gates

Flights and Related Expenses


Obviously tickets are going to be your primary expense but even there there will be potentially extra costs. Nearly every airline now charges you to be able to pick a seat. Why is this important? First off, if you are a family and want to sit together you are going to have to pay extra to do so. Some airlines are not separating families (currently Alaska airlines, American Airlines, and Frontier Air) and guarantee a child under 14 typically will be seated next to their parent or guardian for who additional cost. I don't know whether that would stand if there were two parents though, I don't think they feel obliged to seat the entire family together although they may make efforts to do so.


Should the FAIR Fees act (Forbidding Airlines from Imposing Ridiculous Fees - really, that is its name!) that is in congress passes, albeit currently unlikely at about a 1% chance of being enacted, then this will completely eliminate seating fees as the ludicrous and arbitrary money grab that they are. Maybe contact your local politician to put some pressure on them to improves those odds?


Meanwhile, if flying in Canada, the Canadian Transportation Agency at least has this regulated to avoid separating children from parents based on age of the child. Per their website:

Airlines must, at the earliest opportunity and at no extra cost, take steps to seat children under the age of 14 near their parent, guardian or tutor. The distance will depend on the age of the child:

  • Under the age of 5, they must be in a seat next to their parent, guardian or tutor.

  • Between 5 and 11, they must be in the same row, separated by no more than one seat from their parent, guardian or tutor.

  • Between 12 and 13, they must be no more than a row away from the parent, guardian or tutor.

  • 14+ you will need to purchase seats to guarantee being together per the individual airlines policies


With airline costs though, at least you'll know in advance how much the ticket is including fees and taxes and of course extras like checked/carry-on luggage fees, meals and such that you may have to pay on the travel day. Most airlines allow you to pay in advance for these but make sure you adhere to their luggage weight limits or you'll be paying more at the airport.


Interior view of plane seating

Solo travelers or couples without kids shouldn't bother with the seat fee. There is still a likely chance you'll be seated together if booked at the same time and if you aren't, does it really matter for the duration of the flight? Not selecting a seat may feel like a gamble but you've paid for a seat regardless and you may even score an upgrade if you check in early. The reason being that the fellow passengers may not have wanted to fork out the higher fees for the comfort seating etc. so they may still be available when you are assigned a seat. The only real gamble is that you might end up sitting in a middle seat at the back of the plan near the bathroom.


It has been noted that paying for a specific seat may reduce the chances of being bumped from an overbooked flight. Ultimately the airlines will bump the lowest class first so if you are worried about that risk then avoid the cheapest seat and maybe book as standard economy. Also, check in as soon as your window opens since the last minute check ins (other than premium tickets) are closer to the chopping block. Bear in mind the airlines typically offer voluntary bumps before singling out anyone and it is not unusual for someone to take them up on their offer depending on the level of compensation.


Some final flight notes. Why spend money on the airplane food? Buy something in the airport or bring your own. If traveling with kids take a look at our related post regarding a great product for taking their favorite foods with you. Last but certainly not least don't forget to optimize your credit cards and rewards programs so that you can get reduced fares, or even free flights and upgrades. Free is always better! I've written about our favorite three cards here.



Outdoor view of Santa Express night train in Helsinki

Rail Travel


This method is less convoluted with a few potential fees that revolve around seat reservations in Europe predominantly. As far as luggage is concerned both European and US trains have a pretty generous policy allowing 2-3 bags per person with fees being applied only if there is excess baggage.


With respect to seating, in the US, Amtrak assigns you a spot based on the class that you have purchased and you then can log in and change your seat to another for no charge as long as it is the same class of ticket/cabin/couchette. Per their website, only the Pacific Surfliner, Capitol Corridor and Hiawatha routes have unreserved coach seating and as such you are not guaranteed a seat. The primary benefit to buying an unreserved ticket is that you can take an earlier or later train, or even ride at a later date, without having to make a change to your reservation.


In most European cases it is similar where the ticket price is based on class. Unless you are booking a cabin, the seats are not necessarily assigned and it is first come first served. The major exception to this is the high speed trains and overnight trains like those operated by Eurail. Because a traveler will be using a Eurail pass these are not considered a 'ticket' so the railway imposes a requirement to reserve a seat for a cost ranging between 10 - 20 Euro on these typically full trains. Their website has a comprehensive breakdown of which routes and countries for which you'll need to reserve a seat.


Other routes may offer the option to reserve as well which if you need to be on a specific train at a specific time might be worth considering as otherwise you might not be able to board if the seats are all full. The fees can range wildly depending upon the route and the country. Given the considerable number of rail services globally I would recommend reading up on your intended travel route and get the specifics for any legs of the journey that entail travel by train.


As for upgrading to first class, many European trains have the upgrade available for very reasonable prices. For example, I recently took a train from Rovaniemi to Helsinki and the cost to upgrade was only 20 Euro more. Often it is worth spending a little more since in addition to the more spacious seats, you may get perks such as free (or much faster) Wifi and in some cases meals or an air conditioned car. The cost to upgrade to business or first class on Amtrak trains, however, is much more significant.



Road Trips and/or Car Rentals


While rail travel in Europe is probably the best way to get around and usually the cheapest, unfortunately in the United States and Canada there are not a lot of passenger routes so road trips are a much bigger part of the culture. Most North Americans wouldn't bat an eye at a 5-6 hour drive to get to their destination.



Car Key fob with blurred car in background

Car Rentals


If traveling to your destination by any other than our own vehicle then you might be looking at renting a car there to get around. Most major cities are probably easier to rely on their public transit to do so but not everyone you go will have a that so a rental may be in order. Remember that the majority of rentals are not pre-paid so this will be a real time expense for the trip.


Rewards programs again are another good way to get either cheaper rates or more bang for your buck. Many credit cards will have a rental car partner where you automatically get a premium status which will either result in better rates, more available options, or free upgrades. Check which cards you have and see if you can maximize this benefit.


Again, credit card companies will also often have their own insurance built-in for car rental so you can skip adding the rental car insurance policies that they push on you. Read your card benefits to see exactly what this entails as it may just be liability and not comprehensive but in all likelihood it will be all you'll need. Be sure to take a video on your phone of a walk around of your vehicle when you first get it and record ANY damage (interior or exterior) that you see in order to avoid costly repair fees after the return.


I'm sure everyone has heard a horror story of someone who had to pay hundreds of dollars to repair damage that they did not incur. I rented a vehicle recently due to a personal car repair and noticed immediately upon getting the car that it smelled badly of cigarette smoke. I went back into the office to drag an employee out to the car to confirm this in writing so that they would not try to charge me with the cleaning fee associated with smoking in a car - which they attempted to do until I explained that I had the affidavit from the employee. In retrospect, I should have just refused the car as it stunk!


Dashboard view of odometer in car

Take into account any other rentals associated with the car that you may need (e.g. baby seats, booster seats, mobile hotspots, etc.) and fill the car yourself at the end of the trip instead of taking the pre-paid fuel option. If it is convenient to you, then it is probably costing you. Take a picture of the fuel gauge if it is not full when you collect the car and put only enough in to hit that mark when returning it. To aid in guessing how much, take a pic or record the odometer somewhere when you pick up the car. Once done, calculate the miles traveled and the miles per gallon of the car which is posted on the rental website, adjust the MPG value down for city driving as needed. This will help you get a pretty good guess as to the amount you need to replace.


You can also possibly find a cheaper rental if you know how, and are willing, to drive a standard. On my aforementioned trip to Rovaniemi I found the same car was 20 Euro/day cheaper if I picked a standard as opposed to the automatic. It pays to know how to drive a stick!


If you are renting a car at your destination keep reading as some of the following expenses may also apply in addition to the rental cost.



 



In Your Own Vehicle


Your costs for car travel are going to depend quite a bit on where you are going and which routes used to get there or get around. Where do you park the car? Any big city center will likely have some pretty pricey parking. You might get lucky if you are at an AirBnB or similar property that will provide parking or a temporary residential permit like we did on our recent trip to Washington DC. Some downtown hotels will ding you upwards of $40 a night to park at their property so that should be factored in to your budget as should any off property parking expenses that you may encounter if using your car to get around while you are there. Try to minimize this expense by utilizing public transit systems whenever possible or just walking if you can. More on transit expenses later.


The other relevant cost to car travel is obviously gas. Do a simple calculation on how far you are going, check the gas price average for the area(s) and plug in your car mileage (just Google your make-model-year and you can find that out if unknown) and then get an estimate on your gas expense. Take into account whether you are going to be driving any significant amount during your stay as well. If you're in an EV then do the same for any charging costs you will incur.


Generic gas station image

Consider also the route you are taking. Does it have tolls? There are various free tools out there either in app form or websites that you can use to help calculate these tolls based on the route you enter. I ran a quick test on TollGuru and it gave me a pretty accurate estimate for a route that I have traveled often. Disclaimer: I have not used any of them in practice so I can't make a solid recommendation on one.


Finally, make sure that you have some form of roadside assistance like AAA, or one through your car insurance agency, credit card, etc. This is imperative to avoid a potentially VERY costly tow if you happen to have a breakdown along the way. Plus some of these memberships can give you discounts at hotels and various other places. Overall, wear and tear on the family vehicle should be considered as part of the cost if only in the fact it will speed up the timing on a future repair.




several ferries seen on the Bosphorus in Turkiye

Public Transit


Depending on where you go this can be a very reasonable and effective means to get around. Obviously your city centers are going to be the best for this option with multiple metro lines or trams or even ferry services that can take you wherever you need to go. If you are going to be spending a fair amount of time using public transit to get around in your destination then look to picking up a longer term pass (if available) as opposed to purchasing single tickets. In DC for example, a single Metrorail trip fare can run up to $6 depending on time of travel and length so if you are likely to use the service daily the $30 unlimited 3 day pass might be the way to go for a longer stay.


In Istanbul you can even buy the Istanbulkart which allows for use on ferries, trams, buses, and trains. In fact, most of these transportation modes don't even accept cash. Simply buy the card at the airport, or at a ferry terminal like in Eminönü and load it up with funds. You can top these funds up at one of the many terminals you'll see at transit stations as well as at some newspaper shops. There is a fee to purchase the card, 70 TL or about $2.50 USD but you can use the one card for up to 5 people (assuming you've loaded enough funds). Note, this card cannot be used for ferry tours like the Bosphorus tours.


Many locations also have apps on iPhone or Samsung etc. that you can just use your phone to pay. In Helsinki, they have a wonderful app, HSL, where you can plan your route via tram, train, ferry and then pay for it in the phone. You'll have an electronic ticket to show any transportation officer or to scan upon boarding. New York too has a touch-less system you can use at least in the metro stations. I am not sure about buses as I've never actually taken a bus in Manhattan. At one point the AirTrain transit turnstiles at JFK did NOT accept a phone swipe so if you were transiting through there you needed to buy a metro pass either in the airport, or at a metro station before you reach these turnstiles at Jamaica or Howard beach stations. It was a massive bottleneck of people trying to get out of the AirTrain station (you need a card to exit) and for those trying to get in, all vying for a ticket machine to get a card. This was the case at least as of New Years 2023 but according to their current website this has been corrected although now there is a headache regarding AirTrain construction and not stopping at Terminal one. Check this website for details on the closures.

 

Various hotel fronts along canal in Stockholm

Accommodations and Dining Budgets


This will be the other big expense and again having some points you can redeem from credit cards or various rewards programs can go a long way to minimize this. Oftentimes the hotel will offer lower rates to members so sign up for any and all of them! They are free to join. Even if you haven't enough points for a free night you'll often be able to put points towards the stay to lower the nightly rate.


If you are trying to minimize the impact of accommodations in your travel budget, you might consider staying at a property that is not in a metro center. You could look into the suburbs for example and see if there is a train or subway that will get you where you want to go or if you have a car you can drive in with parking costs considered. This alone could cut your accommodation expense in half. Also, these hotels usually don't charge for parking as space is not at such a premium.


Quite a few hotels have a free breakfast, especially for their rewards card carriers so take advantage of these when you can to eliminate the breakfast costs every day. Take a couple extra muffins/bagels/granola bars/bananas to provide some snacks through the day. If you happen to book a hotel that has a nice rewards program that offers a free wine and cheese social in the evenings you are golden! Generally though, avoid eating in hotel restaurants or drinking in their lounges as their prices are heavily inflated per the convenience comment made earlier. $32 for a martini?? Bloody well better come with a commemorative James Bond, shaken not stirred, martini glass.


Ideally, if you are trying to limit costs of dining while there, then find accommodations with a kitchen/kitchenette. Plan out menus for the duration of your stay and go to a local grocers to get what you need. This is especially helpful if you have a traveler that has a specific dietary need, or a child that is a very picky eater.


Sea bass dish on plate

Apart from accommodations with a kitchen, consider what kind of dining you might be apt to select. Are you a gourmand looking to explore the culinary delights of a city like at a Michelin restaurant in Istanbul? Then this will be much more expensive than a family who is content with a Cracker Barrel, Dominos, or a Burger King to meet their needs. You know what you and your family preferences are, so make some best guesses as to what you will need to spend. Don't forget to take into account any tips and/or delivery fees. UberEats, Grubhub and Doordash are all quite useful services if you are looking to dine at 'home' without a sit-down service.





Finally, don't forget to add such expenses as ice cream, coffee, snacks, bottled water, and any other daily items you may be purchasing. I'd say a fair guess would be allotting $25 per person per day for such allowances.



 



Winter shot in Christmas village Rovaniemi


Attractions


These shouldn't be a major part of your budget unless your destination is centered around it like a Disney Theme Park, Taylor Swift concert, or a major sporting event. Then it can be quite expensive but if you are planning a trip like that then you are already well aware of how much it is gonna set you back, right? Apart from this type of attraction, these shouldn't be terribly expensive. Just take a look at what you might wish to explore and get the costs ahead of time and when possible get the tickets online as it may save you money.


Planning to go up the Empire State Building in New York and then a day at Coney Island followed by dinner at Balthazar's? Map it out and calculate the costs. Make sure to look for combo deals like they have in Niagara Falls where you can visit multiple attractions for a single, less expensive price. For museums, science centers, and other cultural exhibits you may even be able to get in free or at a greatly discounted rate if you have a membership at your local museum that has the reciprocity benefits as detailed in our recent post.




 

Blizzard forming along residential street

Travel Insurance


Travel can be risky. Some types more than others. Are you flying out of a busy airport in the middle of winter? Do you have connections that you have booked separately that, if missed, you will be on the hook for? Are you skiing in the Alps for the first time and are worried about breaking a bone? Traveling without insurance is something most people do every day and choosing to do so really comes with a risk assessment of the trip you are taking.


Last Christmas we traveled to Finland and due to a potential cancellation risk stemming from outside influences, we opted to buy insurance for the trip. We also picked up health insurance on the off chance that one of our party took ill with covid or the flu and required hospitalization. While we did not need the health insurance (fortunately) we were glad to have had the cancellation/interruption policy in place.



Graphic of winter storm forecast

With winter storm Elliot bearing down on New York our flight out to Helsinki was canceled last minute leaving us scrambling for a hotel along with everyone else in the JFK/LGA airports in addition to many train passengers who also found themselves stranded. Fortunately with Hilton Diamond status I was able to secure us a room at the Conrad midtown and we flew out the next day with no further issues other than a 3 hour delay in the airport (thank you Priority Pass Lounge for giving us a quiet place to ride that out!) and then an anxious 2+ hour wait on the tarmac as we waiting for clearance to depart.


After our trip was complete we'd forgotten about the insurance honestly, and were pleasantly surprised to receive notification a month later that we were being reimbursed for the delay. Adding that upon the compensation we received from the airline we actually made more than we spent on the unexpected hotel, taxi rides, and meals.


So take that as you will and make your own risk assessment for any travel plans. Personally I like GeoBlue for health insurance abroad, as they offer decent coverage at a very reasonable price. That being said, I rarely purchase it for any summer travel. I figure I'm much more likely to fall ill or break an ankle slipping on some ice in the winter than I am to get bitten by a shark while wading in the Aegean Sea. I do know that numerous companies will offer bundles that you can add on various coverages so you'll be able to find one if you shop around that will have health and interruption coverage all in one comprehensive plan. I've done a separate blog entirely that digs a bit deeper into travel insurance.


Bear in mind some countries might require you to have health insurance such as those who reside in countries on this list who require a Schengen Visa to enter Europe.



Summary


One last factor to take into account is the cost of keeping your phone active while traveling. Depending on your carrier it may be worth looking at other options than using them. Check out our post on the Affordable Way to use Your Phone Internationally for some tips and tricks that might save you a good deal of money if leaving the country.



So there you have it. An attempt at planning for any and all costs that you might incur while traveling. Granted, I cannot think of everything that your own personal trip might entail but at least it will get you thinking about it. You can also use this handy spreadsheet I've created as a basis to develop your own budget and customize it as you see fit. I've set in some formulas and entries so that you can tailor it to the type of vacation you are taking. I hope this blog helps you in improving your travel plans and gives you a few tips to minimize some of the costs.



Microsoft Excel Travel Budget Worksheet:



Mac Numbers Travel Budget Worksheet:






Happy Travels!



 


Il Digestivo

Maybe you can minimize some expenses for your flight if you can avoid having to check bags. These two items make a great combination of a carry-on and a personal sized item. I've used both to go for a weeklong trip to a cold climate destination and even with winter gear I had room for it all without checking a bag. This was a double benefit since one of my connecting flights got delayed by 8 hours and I was able to jump on stand-by for an earlier flight since I had not checked a bag. Not sure if your flight allows these bags on board? Read about the major airlines carry-on/personal item policies in our post here.


VGCUB Carry-on Backpack


This fantastic bag has been taking TikTok by storm with it functionality. It features numerous compartments to store shoes, laptops, phones, toiletry kits, and much more. There is a wet dry compartment too that makes this bag good for gym clothes as well. The dimensions put this backpack as a personal item on the majority of flights but it makes a great standalone carry-on if you don't want to bring a roller style. Available in over numerous colors, these bags range in price from $30 - $40 depending on size and color selected.














Samsonite Freeform Hardside Expandable with Double Spinner Wheels


For those who prefer the hard shell type carry-on, this affordable Samsonite bag is the way to go. 21" Spinner Luggage maximizes your packing power and meets most carry-on size restrictions for those traveling domestically and looking to stay light. Combined with the above bag as your personal item you'll be able to pack for a weeklong trip without any need for a checked bag.


  • Packing Dimensions: 19.5" x 14.5" x 10.0", Overall Dimensions: 21.25" x 15.25" x 10.0", 6.5 lbs.












Check out some of the other items we recommend in our products page.



Note: As an Amazon Associate I earn from qualifying purchases.

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littlefrostdragon
Nov 11, 2023
Rated 5 out of 5 stars.

I like the Excel sheet. Thanks!

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