Tips for travelling on a budget

Vacation is your time to relax and escape the stresses of everyday life, but you might be putting off your next trip because you’re worried it’ll be too expensive.

If you're looking to maximize your travel experience without maxing out your credit card, it's time to make a sensible budget to avoid overspending. So, what are the best travel hacks for saving money? Here are practical strategies, tips and resources to keep your trip exciting and cost-effective. 

The first thing you should do when considering any travel is set a realistic travel budget. How much are you willing and comfortably able to spend on the entire vacation? Look at your current finances and see how much you can reasonably put toward a vacation without sacrificing payments on your mortgage, rent, utilities and other regular bills.

Start planning early: If you have a specific destination in mind, but don't yet have enough to get there and enjoy it, planning in advance is a smart move. It also gives you time to add to that travel savings — see how much more you can put away by cutting back on regular unnecessary spending. Add up those monthly trimmable expenses and set aside that amount toward travel costs.

Add up expenses: Think about all the major expenses of your trip, including how you'll get to and from your destination (factoring in the cost of your flight, as well as any baggage fees and travel insurance), how you'll get around while you're there (rental car or public transportation passes during your stay), and accommodations (whether at a hotel, hostel or home share). 

Add in wiggle room: Remember to add in how much you want to spend daily on food and drinks, entertainment, excursions, souvenirs and other everyday expenses. There will always be unexpected costs, so set aside some extra money to cover everything you didn't plan for.

Figuring out a solid travel budget depends on how much you have put away, where you're going, how you get there and what you do once you arrive. Start by doing your research. On top of looking at budget airline and hotel apps, there are sites that help you calculate cost estimates based on country, as well as easy-to-use budgeting apps to help you keep track of your spending.

No matter what your travel budget is, the most important thing is to stick to it and avoid the temptation to spend more! 

Start with Scotia Smart Money by Advice+ in the Scotia app.¹ Beyond tracking your cash flow, it offers custom insights and advice about your finances. You can use the budget feature to track your spending, set up targets for different types of spending (like entertainment) and see how you’re doing every month against the budget targets you set up.

You can start putting money toward your travel goals with one of the two smart savings tools by Advice+ available on the Scotiabank mobile app (you can only use one tool at a time). These tools can help you reach your goals by automatically moving small amounts of money into your savings account (you will need to have both an eligible Scotiabank chequing account and the Money Master Savings Account). Learn more about the tools here.

There are two key things to keep in mind when picking your travel destination: where and when.

The easiest way to save money on travel is to stay local. You don't have to fly halfway around the world for a good getaway, and choosing a destination closer to home will save you money on transportation. Travelling by car, bus or train will generally be cheaper than airfare, even if it might not seem as glamorous.

If your heart is set on travelling the world, there are still ways to save. Keep in mind: you’ll be able to stretch your money further in areas where the cost of living is more affordable or where the exchange rate works out in your favor.

As a general rule, your money will go further in less touristy places. There are certainly ways to travel on the cheap somewhere like Paris or Tokyo, but you can also choose to live the high life in a less-expected destination.

The second factor to consider is when you’re going to travel. You’ll save more if you travel in the off-season. And as an extra bonus, there are usually fewer crowds, too! In the Northern Hemisphere, the off-season is between November and February, excluding the holidays. In the Southern Hemisphere, it’s June to August.

So, maybe that beach vacation is possible in early fall instead of peak summer. 

Here are three easy steps to fly for cheap — or at least, cheaper:

1. Plan ahead: If you're flexible with your travel specifics, consult a flight tracker to compare prices between different airlines flying out of all nearby airports on various dates. Sign up for price alerts to get notified when the price of your desired flight drops.
2. Book early: As soon as you know where and when you want to travel, book your flight because the prices will likely only go up.
3. Smart savings: Airlines often release their newest flights on Monday night or Tuesday morning, so booking on a Tuesday might get you a cheaper fare. Also, if you pick a less popular day of the week to travel, you might be able to find more affordable flights.

Whether you're purchasing flights or shopping on vacation, if you've already budgeted for your expenses, why not take advantage of the points and perks offered by a rewards credit card?

The easiest option here is to get a credit card that gives you rewards toward your trip. If you already have to buy groceries, you might as well put that toward travel expenses, right? Scotia offers a range of travel and lifestyle cards with excellent sign-up points and bonuses that will help get you on your way before you know it!

Scotiabank Gold American Express®* Card and Scotiabank Passport^® Visa Infinite^* Card both offer great sign-up bonuses — including bonus Scene+ points — and, when it comes to travel, neither card charges foreign transaction fees! ²

Like with airfare, most major hotels offer travel rewards programs that you can take advantage of for a cheaper stay. But if you're truly looking to save money on where you stay, it's time to think outside the box — or, in this case, outside the hotel. 

When traveling to a new place, you're likely going to be out and about exploring the city all day, so you don't need to prioritize the glitz, glamor and amenities of an expensive hotel. You just need somewhere to sleep.

Need recommendations on where to stay and want to earn points at the same time? With Scene+ Travel, Powered by Expedia, you can earn three Scene+ points per Canadian dollar spent on hotel and car rental bookings made through Scene+ Travel using your Scotiabank Passport Visa Infinite Card. Those points can then be used for future flights, hotels and car rentals.⁴

There are many budget hotel options or local independent inns that will provide you with a safe, clean place to stay. And if you have a tighter budget or just prefer to spend more on excursions than where to stay, hostels are a great option. For a far lower price tag, most cities offer a variety of hostel accommodations that are safe, clean and convenient (and who knows, maybe you'll meet a new travel buddy?). 

Home shares are also increasingly popular around the world. If you're traveling with a group, splitting the cost of a house might end up being cheaper than everyone booking a hotel room. If you're traveling solo, you can book a single room in a shared apartment or house, which often offers the amenities and access of the whole house but at a fraction of the cost.

If you're feeling outdoorsy, book a local campsite. Or, if you're homesick for your cat, join a site where you can pet-sit in exchange for a free stay in their home. Once you realize a hotel isn’t your only option, the world is yours to explore!

So, you've made it to your destination. Now, how are you going to spend your time? And how much will it cost you? The name of the game is deals and discounts, and more places have them than you might expect.

There are cheap or free ways to visit tourist attractions in nearly all cities. Public parks and gardens are usually free, while national parks might come with a small entrance fee, which makes heeding the call of the great outdoors a particularly thrifty option. Certain museums and galleries — as well as churches, castles and other historic landmarks — are free on the first Sunday of every month or have select days where they waive admission. Some cities offer a “city pass,” which tourists can purchase and use for discounts on activities and even public transportation.

Remember: It's never a bad idea to ask about discounts for students, teachers, children, seniors, veterans and others.

Another low-cost option is to find a local walking tour, which may be cheaper than booking through a tour company. You can also purchase a local guidebook and go self-guided. It will save you money and give you the freedom to move at your own pace.

Experiencing regional fare and flavours can be one of the best parts about travel, and it saves to eat like a local. Eating out for breakfast, lunch and dinner will add up fast, so if you have access to a kitchen, consider buying groceries from a local market and cooking at least some of your meals. When you do want to go out, ask about local favorites, top street food carts or off-the-beaten-path picks — you'll probably end up with a smaller bill and a more authentic meal.

Now you know about ways to save money, but here's a way to avoid paying for hidden costs you don't need to be paying for: Get a credit card without foreign transaction fees like the Scotiabank Passport^® Visa Infinite^* Card or the Scotiabank Gold American Express®* Card. Many credit cards charge a 2.5% fee when you're abroad, which adds up fast and leaves you with a large bill at the end of your trip.

You'll also probably want to have at least some cash on you during your travels, and the cheapest way to exchange money is before you leave. Go to your local bank beforehand if you want the best exchange rates with no additional fees. The currency exchanges at airports tend to be tourist traps, knowing they can offer higher rates for travelers who didn't plan ahead. 

If you need to take out more money while you're away from home and your bank doesn't have a branch where you are, you'll need to use an ABM (also referred to as automatic teller machines or ATMs), which may charge you a hefty fee. Fortunately, Scotiabank is a member of the Global ATM Alliance, so when you're traveling outside of Canada, you can use the ABMs of the international banks in the alliance.

Traveling on a tighter budget may seem less exciting, but when you plan ahead, save accordingly and explore the many affordable options available to you, you’ll be grateful you took the steps to get out there! So, what are you waiting for? Follow these tips, and you’ll soon be on your way!