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The rising cost of travel and how to control it

July 21, 2024

7 min reading time

TL;DR - Budget travel is within reach. As travel costs rise, managing expenses for flights, accommodation, sightseeing, and food becomes crucial. Planning travel expenses with a budget helps set realistic financial expectations and anticipate costs. Use our popular Travel expense tracker and Travel budget planner to make your next trip financially smooth.

The cost of travelling

Baggage tags > price tags… am I right?

Unfortunately, baggage tags = price tags. The cost of traveling, especially post-COVID, has risen significantly. From flights and accommodations to meals and activities, travel expenses add up quickly. Understanding budget travel and finding ways to save is crucial.

Flights to Europe and Asia are now 20% and 60% more expensive than in 2019. Mind-blowing.

As digital nomads, we have low monthly costs and an irregular income. We feel the pressure of rising travel costs. We’ve learned a lot about how to rein in our travel expenses, but we still have room to improve. Here are some affordable travel tips we’ve learned so far.

Top ways to reduce the cost of travelling

Find cheap flights

For many of us, flights are the biggest expense on a trip (For Europeans, you and your $25 flights across the continent wouldn’t understand!). 3 things to focus on to reduce flight costs:

  • When you book: Book your flights well in advance or look for last-minute deals.
    • Pro tip, the further in advance you book, the more free your flight feels when you board.
  • When you travel: Travel during off-peak times to avoid high prices.
    • Now I’m not saying to travel during hurricane season, but if retiring with any money is important to you, then…
  • What you bring: Avoid extra baggage fees.
    • Keep your emotional and heavy, costly, four-wheeled baggage at home.

Use flight comparison apps to help: websites like Skyscanner or Google Flights to find the best deals. Set up email notifications to hear when the price drops. And, never count out budget airlines.

Affordable travel accommodations

A high nightly rate can get out of hand quickly. If you can reduce it (or eliminate it altogether), you’ll be giving yourself five stars.

  • Family, friends, and strangers: These are often free. They include staying with family, house-sitting, pet-sitting, and house-swapping. People (and pets) often appreciate the chance to show visitors around their city. Just be polite, courteous, clean, and help out wherever possible… basic human stuff.
  • Fewer stars or no stars: Consider staying in hostels or budget hotels. When you're visiting somewhere unfamiliar, people expect travel to be uncomfortable. Lean into it and drop the act that your trip depends on the silk bedsheets on your hotel room's king mattress.
    • Plus, which one of these will make for a more memorable story? I don't know about you, but none of my memorable stories involve a concierge.
  • Use platforms like Airbnb or Vrbo for affordable home rentals. You often get good WiFi, a washing machine, and somewhere to cook low-cost meals.

Unfortunately for Ella and my family and friends, we're learning to be better guests. We may never leave. 

Budget-friendly activities

Cities often have free museums, parks, art galleries, and walking tours. They're great for those on a budget. Don’t waste money on tourist trap tours (if you’re reading this while on a hop-on hop-off bus tour, ride it out. You already paid).

  • Free tours: Take advantage of free walking tours (but make sure you tip!). Consider following at a safe distance behind another tour just to see what they observe.
  • Live like a local: Visit local markets and parks. You can absorb more of the local culture this way and likely see a more authentic side of the city you’re visiting.
    • Also, you're more likely to practice the local language and customs in these settings than if you're with other tourists.

When Ella and I went to the Salt Flats in Bolivia, we saved hundreds of dollars each day. We borrowed rubber boots from our hotel and walked 2.5km to the Salt Flats. It also made for a much more memorable experience.

Other travel hacks

  • Transportation - the checklist to use when trying to get around a city:

    • Walk: Exercise, see the city, and save money. Win-win-win.
    • Consider biking, scootering, or heely'ing.
    • Take public transit: Low cost and avoids traffic.
    • Cave and order an Uber... sorry, not sorry.
  • Eating - the checklist to use when filling your stomach:
    • Cook: If you can, buy groceries and cook where you can.
    • Street food and local markets: Often cheaper and offer a taste of the culture.
    • Avoid costly drinks: PSA: You don't need a cocktail with every meal.

May I have a glass of water, please? - Sincerely, your wallet and body.

Why you should budget

Budgeting for your trip can significantly reduce financial stress. Knowing your financial limits lets you plan activities. You won't worry about overspending. Also, a good budget helps you avoid debt and stress after your trip. A financial plan brings peace of mind. You can then enjoy your travels without worrying about money.

Lucky for you, we have two budgeting templates designed for exactly this:


Track all travel expenses in seconds on the go. Notion template to easily log you and fellow traveller expenses. Add expenses in over 30+ currencies and convert to your own currency. One-time purchase.

A year into our digital nomad lifestyle, we’ve compiled all our learnings into these budgeting templates.

How you should budget for travel

  1. Creating the budget... that was unexpected.
    1. First, estimate the costs of major expenses: flights, local transport, hotels, meals, and activities.
    2. Set financial goals for how much you want to save before your trip.
  2. Use a template or an app: 
    1. With no bias whatsoever, we recommend our Travel expense tracker and Travel budget planner!
    2. Use budgeting apps like Mint or YNAB (You Need a Budget) to track your expenses.
  3. Stick to your budget: Keep track of your spending daily during your trip.
    1. Adjust your plans if you are spending more or less than anticipated.
    2. Don't let money become a big issue on your trip. But, stay alert to control any worries you might have.

We could not have become digital nomads without a travel budget. It allowed us to travel more often. We know how much we used to spend each day in our pre-nomad lives, and how much we now spend per day as digital nomads. It's essential to understand the numbers to make travel a sustainable privilege for the rest of our lives.

Conclusion

Traveling doesn’t have to break the bank. Know the costs, save on travel, and make a budget. Then, you can enjoy travel without the stress of debt.

Plan and budget early. This will maximize your trip and keep you within your budget. Our travel expense tracker (on Notion) and budget planner can help you. They will achieve your financial goals and make travel planning easier. Happy travels!

The topic of travelling is close to home for us. In 2023, Ella and I became digital nomads. We wanted to travel and work freelance. We are fascinated by the digital nomad movement and look forward to sharing what we learn.

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