Planning an international trip can be exciting but managing the costs might seem daunting. We all want to live the lifestyles of the rich and famous. But let’s be honest, dropping $15k on a flight is likely not in the cards for most of us. Not if we want to have money left over for the our regular lives back at home. So how do you create an effective budget for your international trip that doesn’t break the bank?
By the end of this guide, you’ll have a clear idea of how to create and stick to a budget that covers all aspects of your international trip—without sacrificing the experience. It is absolutely possible to treat yourself to a bit of luxury and not break the bank when you do it. If you want to see the world but are worried about the costs, you are not alone. Here’s the thing, international travel can be more affordable than you think. Let me break it down for you.
How to Budget for Your First International Trip
First things first. Unless you have rich auntie or somehow have scored a trip in a giveaway, it’s not free so you need to have somewhat of a budget in mind. There’s nothing worse than dreaming about a getaway and because you didn’t plan right your trip is more of a nightmare. Let’s look at the key things you should focus on to dictate the budget you should allocate for your trip.
Total Budget Allocation
First let’s break your budget into main categories like flights, accommodations, transportation, meals and activities. Your largest expense should be accommodations. In my experience, accommodations should take roughly 40% of your budget and flights another 30%. The rest of your budget should cover transportation, meals and activities.
Let’s say you have $2000 to spend on a 4 day trip to Jamaica for you and your boo. The first $800 should cover the hotel. The next $600 for flights which leaves the rest ($600) for meals, transportation and activities. If you are a savvy traveler, you may opt for an all inclusive stay or book a vacation package through an airline to take advantage of savings.
In addition to the main categories, I would suggest you allocated some portion of your budget for emergencies or other unexpected costs. This might mean carrying an emergency credit card that you only use if there is an emergency or some unexpected expense like buying rain gear because the weather didn’t cooperate with your plans.
Where To Go
Some countries are more expensive to visit than others. You should start your planning by determining how much money you are comfortable spending. Then determine where you want to go. Check out my blog on Planning Your First International Trip for some ideas. I’ve included the two extremes for cost in the chart below. This will help you reconcile your dreams with your budget. While the cost are relative to your travel style and preferences (lux vs budget), this will give you an idea of where you dollars will go further.
| Most Expensive (average 5 day trip <$3000 pp) | Least Expensive (average 5 day trip >$1000) |
| Antartica | Thailand |
| Botswana | South Africa |
| Dubai | Phillipines |
| French Polynesia | Indonesia |
| Japan | Mexico |
| Maldives | Vietnam |
| Monaco | Colombia |
| St Barths | Belize |
| Switzerland | India |
| Hong Kong | Nepal |
Of course, it is possible to select a cheaper destination and still drop some serious cash for your trip. Going to Thailand, staying in the Ritz Carlton and dining at Michelin rated restaurants every night could make for an expensive trip.
Create your budget from a cost per day perspective. If you are a foodie and want to dine at some of the best restaurants in town while enjoying some adult beverages you are going to need more than $50 per day for food. Or if you know that having a 5 star hotel in your life is important, then you are going to budget a bit more than average for your accommodations.
When To Go
Even the most expensive destinations have an off season. That’s the sweet time of the year where the weather is less than perfect and tourist numbers decrease. For me, it’s the best time to travel as you are not dodging other tourist your entire trip and can really enjoy the destinations and what makes it special.
Think Europe in March. This is right when the temperatures start to turn from winter to spring. Schools are still in session so you don’t have the influx of families traveling. Just know that some countries experience higher levels of rainfall during this period. So it really is a gamble. But what I’ve found is magic. Hotels are less crowded so upgrades are more readily available and off season pricing goes into effect. Getting reservations at top restaurants becomes a little easier. The long lines to enter cool landmarks disappear.
Ultimately, it all depends on your risk tolerance for disruption. My advice, just build a flexible itinerary that allows you to enjoy yourself no matter what happens with the weather. Include options like seeing a show if you happen to be in London during rainy season or choose a massage day if you are at a beach resort and the weather shifts. If you create your plans with disruption in mind, you can have an amazing and less expensive trip no matter what happens.
What type of trip speaks to you
Once you have the view of the options are available based on where and when you want to go, you should then decide what type of trip you want to have. For some, ultimate luxury on a beach is the way to go and others want to spend more time on tours in a busy city. If you are reading this, you are probably not in the ultra lux category and are looking for a bit of guidance on how to stretch your budget to fit in an international trip.
Cruises can be a great way to see a little bit of a lot of places while effectively managing within your budget. But even cruising can test your budget. Unless you have a great deal once you throw in a couple of the add ons (drink packages, speciality dining and required gratuity) and few excursions, you could easily blow your budget. It’s also not the best way to have a richer experience in a destination.
Beach holidays work if your plan is purely to find a lounger and spend the day drifting in and out of sleep between cocktails. While this strategy may not give you much of a view into the destination, it certainly might be the break you need for a reset.
A tour based trip is ideal for someone who wants to dive deep into a location. These are categorized by early starts, long days and typically a local guide sharing insight. Unless you are opting for a self guided tour which may require a bit more upfront research to successfully pull off, the latter may not be the best option for your first international trip.
Now do a cross section of the type of trip and the location you can afford to get started with your planning. You should now have enough information to create a realistic budget for your international trip.
Use Travel Rewards and Points
Travel reward cards are an excellent way to save on flights and hotels. These are typically credit cards that allow you to accrue points/miles for everyday purchases. For some purchases you earn up to 5x the points for every dollar you spend. And if there is a bonus or promotion, you can rack up the points quite easily. For example, you can take advantage of sign-up bonuses or promotions to maximize your points accumulation. 30,000 points for signing up translates to at least one free economy class ticket on most airlines.
The best cards out there allow you to use your points to purchase flights/hotel stays. While many have opportunities to transfer points to your preferred partner. I’ve seen great deals where a partner will provide a bonus number of points when you transfer during a certain period. Read my blog How to Choose the Best Travel Reward Card for some insight.
Either way if you plan effectively, you can easily get airline tickets and free hotel nights which is a great way to save money on trips. Remember points for money you were going to spend anyway is a smart way to get free trips.
There are a lot of experts out there with insights on how to effectively use points to reduce your overall trip cost. Check out seats.areo or ThePointsGuy as a start.
Research and Compare Flight Prices
I’m not proud to say that researching before booking flights has consumed many hours of my days. I spend far too much time on this activity only to ultimately pay what I saw at the onset of my research. That’s not to say that you shouldn’t do your research and comparison. Just do it in a smart way.
Leverage comparison sites like googleflights or hopper to get a full view from a wide variety of carriers. If you are fully flexible with your travel dates, I would encourage you to start here before even deciding where you want to travel. Both sites have explore options that allow you to see the best places and dates to travel based on cost. Moving your travel dates by one day may give you tremendous savings. Then set up price alerts to track the best time to buy tickets.
Look at budget airlines. In today’s market, many of the budget airlines are comparable to the services you receive on the more well known airlines. In fact, some of the budget airlines are owned by other well known brands. And yes, there are international budget carriers.
Finally, look at package deals. Booking through Delta Vacations may provide significant savings over booking flights and hotels separately. Just know that your package options may be a bit more limited as the agents have certainly worked out deals with the vendors that provide the best value. Also if you have perks with a particular hotel, you may not be able to take advantage of it when you book through a package. I learned this the hard way.
Create a Savings Plan
Now that you have a general idea of what you should budget for your international trip, your next step is to open a travel savings account and commit to a weekly deposit that gets you to your goal in time for your trip. This might seem hard at first but think of it as an investment in your peace of mind. If you start saving now for a trip to Portugal in fall, you’ll have what you need with less than $400 per month investment.
Ensure the savings account isn’t easily accessible. You don’t want dip into it out of convenience only to come up short when it’s time to go. This means making sure it’s not accessible by a debit card or connected to your regular bank account. Most high yield savings accounts work this way. While high yield savings accounts won’t make you rich in 8 months, it may be enough to cover a nice night out during your trip.
My Perspective
International trips don’t have to break the bank. With good planning you can be on your way for a fraction of the cost of a trip to New York. The key is to be flexible with your travel dates, plan ahead and use reward programs effectively.
Most importantly don’t get started without a plan. Knowing what you want from your trip is the first step to ensure you have the necessary funds to have an enjoyable holiday without going in debt trying to do it. You want to focus on the experience rather than stressing about money. Start saving early and stick with the plan that helps you budget for your international trip effectively.
Are you ready to start saving for your first international trip? Check out our Destinations page to find your dream destination ! Subscribe for more tips and step-by-step guides to making your travel dreams come true.
FAQs About Budgeting for Your First International Trip
How much should I save for my first international trip?
The amount you should save depends on your destination, the length of your trip, and your travel style. A general rule of thumb is to research the total cost and then save at least 10-20% more to cover unexpected expenses.
How can I save money while still enjoying my trip?
You can save money by choosing budget-friendly accommodations, eating at local markets instead of restaurants, and using public transportation. Also, consider free or low-cost activities, like walking tours, to stretch your budget.
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