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9 things people misunderstand about traveling on a budget
Katie Genter is a digital nomad who has traveled full time since June 2017. She writes and edits stories about points and miles, and loyalty programs, often letting her personal experiences color these stories.
July 30, 2024 • 13 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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Quick summary
Budget travel does not require sacrificing comfort or missing out on luxury experiences, as strategic planning can stretch your funds further.
Using hotel loyalty programs, redeeming points for stays, and seeking out affordable local options can make upscale destinations accessible on a budget.
Flexible travel dates, public transportation, and local dining are effective ways to reduce costs without compromising the quality of your trip.
Airport lounge access and premium travel rewards cards can offer valuable perks, even for those focused on saving money.
What to consider
Some offers and benefits discussed may no longer be available, so always check current terms before planning.
Redeeming points for hotel stays or premium flights often requires advance planning and flexibility in travel dates or locations.
Extra fees for baggage, seat selection, or premium experiences can add up, so factor these into your overall budget.
What you'll miss from the article
Detailed strategies for balancing savings and splurges to maximize value on both budget and luxury travel experiences.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here
Many people assume traveling is prohibitively expensive. But there are ways to save money while exploring new places — and regardless of how much money you save up for a trip, it's possible to stretch your budget further than you think with some strategic planning.
Budget travel may invoke images of camping, taking buses and staying in hostels, but you don't have to sleep outside (or on an overnight bus) to save money. Don't let misconceptions about budget travel dissuade you from hitting the road. Here's why.
Luxury travel is possible
I've traveled on a budget for about 14 years, during which my trips have taken many different forms.
On the least expensive end, my lodging has included nights in hostels and even tents at state parks and music festivals. But more typically, I save money by staying at inexpensive hotels that participate in major hotel loyalty programs. For example, when I started traveling full-time as a digital nomad, I discovered that limited-service hotel brands like Holiday Inn Express provided the right mix of affordability and a good working environment.
A typical Holiday Inn Express room in Europe. IHG.COM
I've taken my share of buses and trains — including an overnight bus in Turkey that broke down countless times along mountainous roads, a memorable trans-Mongolian train in second class and a 45-hour journey in an Amtrak Roomette — and flown many budget airlines. But by booking inexpensive mistake fares and redeeming points and miles, I've also enjoyed many premium cabin experiences for a fraction of their standard fare.
All this proves that budget travel can encompass camping, hostels, hitchhiking and buses. But depending on your priorities and budget, you might not need to choose the least expensive option or skimp on every aspect of your travel. Instead, budget travel is often about deciding how to spend a set amount of money you've set aside for your trip. Even if you don't have a set budget for a trip, you can still minimize your expenses and get good value.
For some people, sticking to a budget is an important part of planning a trip. But for many people, regardless of their budget, there's nothing more satisfying than getting great value.
I often choose budget travel even when I don't have to. While I haven't stayed in a hostel dormitory since 2017 and now pay to fly instead of taking extended bus journeys, I still work to limit my expenses. For example, I usually stay at one of the least expensive hotels I can find that participates in one of my primary hotel loyalty programs. And when I can snag an off-peak Category 1 Hyatt hotel for 3,500 points per night, I'll usually do so even if the location isn't ideal.
One of my favorite Category 1 Hyatt hotels is the Hyatt Regency Kuantan Resort in Malaysia. JONATHAN LEIJONHUFVUD/HYATT
I always check public transit options and strive to use public transport when it's efficient and less expensive than a taxi or ride-hailing service. I also typically opt for inexpensive local cafes and restaurants (both for cost savings and the experience). One of my favorite travel activities is simply walking through neighborhoods, which happens to be free.
The most limiting factor to visiting some destinations on a budget is the cost of flights. Luckily, if you're patient, you can usually find cheap airfare. And if you collect airline miles or transferable points, you can book an award flight.
Of course, you'll also need to consider expenses once you arrive. But, even destinations typically known for their high prices and upscale hotels can be feasible for budget travelers.
After all, you can often save money by eating at local restaurants or grocery stores. And if you stay at a local guest house, the owners may arrange budget-friendly activities. For example, in Maupiti, French Polynesia, I paid my guest house around $40 to go with a few other guests in the family's boat for perhaps the best excursion I've ever done: swimming with manta rays.
My bungalow in Maupiti, French Polynesia. KATIE GENTER/THE POINTS GUY
You can find reasonably priced Airbnb listings, independent resorts and even hostels in places like French Polynesia and the Maldives that are known for ultra-luxury resorts. You can even use inexpensive ferries to get to some destinations in these island nations. And, if you want to add a night or two of luxury to your trip, you might be able to do so at a modest cost by redeeming hotel points or getting a hotel credit card with an annual free night.
Upscale hotels aren't out of the question, even when traveling on a budget. After all, you can find cheap luxury hotels in some destinations.
You can also redeem hotel points to stay at upscale hotels. For example, World of Hyatt has many appealing Category 1 hotels, including the Park Hyatt Chennai and the Hyatt Regency Kuantan Resort, that you can book for 3,500 to 6,500 points per night. You can transfer Ultimate Rewards points, the currency earned by cards like the Chase Sapphire Preferred® Card (see rates and fees) and the Chase Sapphire Reserve® (see rates and fees), to Hyatt to book these low-category gems.
Park Hyatt Chennai in India. KATIE GENTER/THE POINTS GUY
Budget travelers can also unlock upscale hotel experiences using the annual free night certificates that are a perk of select hotel credit cards. For example, the Marriott Bonvoy Boundless® Credit Card (see rates and fees) gives cardholders a 35,000-point free night award each year after their account anniversary, and the World of Hyatt Credit Card (see rates and fees) offers a Category 1-4 certificate after each cardmember anniversary.
All this to say: If staying at upscale hotels is your priority, don't automatically assume you can't do so when traveling on a budget.
Budget travelers may assume they can only afford to fly budget airlines. But, especially since many full-service airlines now offer basic economy fares, you may find the best price is actually on a full-service airline. Just understand what's included in your fare and account for extra costs (such as baggage and seat selection fees).
FRAZO STUDIO LATINO/GETTY IMAGES
If you plan to check a bag, signing up for an airline credit card may make sense before your trip. After all, some credit cards offer free checked bags as a benefit. For example, the Delta SkyMiles® Gold American Express Card has a $0 introductory annual fee for the first year, then $150 (see rates and fees). However, the card offers a benefit that can provide significant value to some travelers: A first checked bag free for the cardholder and up to eight other companions on the same reservation.
You can also use an aggregator like Google Flights to compare fares before booking. Especially if you have flexible dates or are even flexible regarding your destination, you may be able to snag a good deal.
Airport lounges can provide a lot of value, especially for budget travelers. After all, airport lounges are a great place to get a snack — or even a light meal if money is tight — and a drink.
JORDAN WALLER/THE POINTS GUY
Travelers on a budget can potentially benefit from airport lounges even more than the average traveler. For example, budget travelers who sleep overnight at the airport might enjoy showering in the lounge before boarding their flight.
You can get value from premium travel rewards cards
Don't assume premium travel rewards cards aren't for budget travelers. If Hilton hotels are in your budget, for example, you may get value from adding the Hilton Honors American Express Aspire Card to your wallet.
Yes, the Hilton Aspire's $550 annual fee can be challenging to accept (see rates and fees). But you may see the value once you consider the card's many perks (such as Hilton Honors Diamond status and one complimentary reward night each year). The Hilton Aspire also has the following statement credits that can provide more than the card's annual fee in value each year:
$400 Hilton resort credit: Receive up to a total of $200 in statement credits semi-annually (January through June and July through December) for up to $400 back annually for eligible purchases made directly with participating Hilton resorts using your Hilton Aspire card
$200 flight credit: Receive up to a total of $50 in statement credits each calendar quarter (January through March, April through June, July through September, and October through December) for up to $200 annually for eligible purchases of airfare made directly with an airline or through amextravel.com with your Hilton Aspire card
$209 Clear+ credit: Earn up to $209 in statement credits per calendar year when you use your Hilton Aspire card to pay for an annual Clear+ membership (enrollment required; subject to auto-renewal)
I used my anniversary night certificate to book a beach villa at the Hilton Maldives Amingiri Resort & Spa in the Maldives last year. KATIE GENTER/THE POINTS GUY
Of course, a premium travel rewards card won't make sense for every traveler. So, it's critical to consider how much value you'll get from a card before signing up.
You may not need to pay a high annual fee for your desired perks. Indeed, many modestly priced cards also offer lounge access, free checked bags, free night certificates and help toward elite status. So, you may want to see if a cobranded card with your favorite airline or hotel would provide enough perks to justify the annual fee.
For example, consider the United℠ Explorer Card (see rates and fees). This card has a $0 introductory annual fee for the first year, then $150 thereafter. Cardholders get two United Club one-time passes per account year, a free first-checked bag for the primary cardmember and a travel companion on the same reservation, priority boarding for the primary cardmember and companions traveling on the same reservation and 25% back on United inflight food, beverage and Wi-Fi purchases.
AZMANJAKA/GETTY IMAGES
Or, consider the IHG One Rewards Premier Credit Card (see rates and fees). This card has a $99 annual fee but gives cardmembers an anniversary night worth up to 40,000 points after each account anniversary. Primary cardmembers also enjoy automatic IHG One Rewards Platinum Elite status and access to the fourth reward night free perk when redeeming IHG points for stays of at least four nights.
Even if a cobranded hotel or airline card doesn't make sense, you could consider a travel rewards card like the Chase Sapphire Preferred Card. I often recommend this card since it offers valuable travel protections and bonus earnings on travel and dining purchases in exchange for a modest $95 annual fee.
Many budget travelers never dream of flying in business class or first class; they'd rather spend their hard-earned points or cash on more or longer trips. But, points and miles can unlock premium cabin experiences and, in some cases, the upcharge to book a business-class award instead of an economy-class award is worth paying.
ERIC ROSEN/THE POINTS GUY
If you're flying internationally, booking a business-class award may also provide access to some spectacular lounges. And if you plan to check multiple items, you may be able to decrease your checked bag fees by booking a premium cabin ticket. In short, consider the whole experience you could get when deciding whether to splurge.
Traveling on a budget will look different for each person. But if you're traveling on a tight budget or looking to save money, keeping the big picture in mind is important. By doing so, you can focus your funds on what matters most.
Consider your priorities and what will provide value to you when deciding where to skimp and where to splurge. By doing so, you'll save money where you can and spend money on things that will bring you the most enjoyment.
For rates and fees of the Delta Gold Amex, click here.
For rates and fees of the Hilton Honors Aspire, click here.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
