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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
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 4, 2021 • 13 min read
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Quick summary
Luxury travel can be achieved on a budget by prioritizing spending and leveraging loyalty programs.
Visiting less expensive destinations during the off-season or staying outside popular neighborhoods can unlock significant savings.
Mixing luxury and budget experiences within a single trip allows for memorable stays without overspending.
Redeeming points and miles, as well as monitoring deals and sales, are effective strategies for booking high-end travel at lower costs.
What to consider
Some deals and offers mentioned may no longer be available.
Elite status or certain perks may require specific loyalty program participation or select credit card ownership.
Peer-to-peer rental platforms may have different insurance coverage compared to traditional providers.
What you'll miss from the article
Detailed examples of how to combine loyalty programs, credit card perks and destination choices to maximize luxury on a budget.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
I'm often amazed when I learn how much friends and family spend on travel.
That's because travel -- yes, even luxury travel -- doesn't have to be excessively expensive. And it's possible to book a luxury vacation even when you're traveling on a tight budget.
Of course, it's essential to understand that traveling on a budget will look different for every person. Plus, every traveler has a different vision of what a luxury vacation entails. So, although I'll give some examples of luxury travel in this guide, these examples may not align with what you consider luxury based on your budget. But, these tips should be relevant regardless of your budget and desired level of luxury. So, let's get started.
Make and stick to a budget
(Photo by Thomas Barwick/Getty Images)
When making a budget, consider significant expenses such as airfare and lodging as well as minor costs like dining, activities and souvenirs. In addition, you'll want to allocate an emergency fund you can turn to if you face unforeseen yet unavoidable costs during your trip.
Of course, two travelers with identical trip costs may budget their funds differently. After all, a crucial part of taking a luxury trip on a budget is assessing your priorities and budgeting your funds accordingly.
In addition to considering what to prioritize, you also must decide what's unimportant. For example, I rarely splurge on fine dining or chic bars. Instead, I usually eat at cafes and buy regionally produced beer or wine from a nearby grocery store.
Visit an inexpensive destination during the off-season
One of the easiest ways to unlock a luxury vacation at budget prices is to visit an affordable destination during its off-season. For example, you can stay at the Conrad Cairo in Egypt for as little as 19,000 points or $88 per night (including taxes and fees).
(Screenshot courtesy of hilton.com)
And you can stay at The Ritz-Carlton Abu Dhabi Grand Canal in the United Arab Emirates for as little as $152 per night. Granted, you'll need to endure the summer heat and book a pre-paid rate for the lowest price. But, you won't need to pay much more for a flexible rate or a night during the shoulder season.
(Screenshot courtesy of marriott.com)
You can also unlock luxury stays in inexpensive destinations when using hotel points. For example, I've had my eye on a stay at the World of Hyatt Category 1 Park Hyatt Chennai. This hotel in India is the only Category 1 Park Hyatt, and you can book a standard room for just 5,000 points per night. So, even though some of the reviews say this hotel is outdated, it's still an excellent opportunity to stay at a Park Hyatt on a budget.
Finally, being in a location where your money goes further may let you splurge on experiences even when traveling on a budget. For example, I loved getting a quality 60-minute massage in Da Nang, Vietnam, for just 220,000 Vietnamese dong (about $10).
Travelers on a budget can often save money by staying at a luxury hotel in a less popular neighborhood.
If you're visiting Istanbul, for example, you can frequently snag a good deal at luxury hotels located outside the most popular business and tourist areas.
And if you're willing to stay on the Asia side of Istanbul or even in the Old City, you can often save money without sacrificing luxury. However, you may also find good deals in centrally located areas, so it's worth looking at the map view when searching for a hotel. For example, the W Istanbul may provide a compelling level of luxury at a modest price on some dates.
(Screenshot courtesy of marriott.com)
And travelers who prefer Hilton may want to stay at the DoubleTree by Hilton Hotel Istanbul Sirkeci in the Old City or the Hilton Istanbul Kozyatagi. But, if you're looking for an even lower price, you might consider the DoubleTree by Hilton Istanbul Esentepe, which is near a metro station and has a Turkish bath on site.
American Express Centurion Lounge in Denver. (Photo by Zach Griff/The Points Guy)
There are also many other credit cards you can leverage to take a luxury vacation on a budget. Look for cards with perks such as:
Airport lounge access:
Select American Express cards, including The Platinum Card® from American Express and The Business Platinum Card® from American Express, provide access to Amex's Centurion Lounges and various other airport lounges through Amex's Global Lounge Collection.
Cardholders of the IHG® Rewards Premier Credit Card and IHG® Rewards Traveler Credit Card can get a fourth-night reward when redeeming IHG Rewards points for a stay of three nights or longer.
The information for the Citi Prestige Card and Hilton Aspire Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Plus, when you book through these programs, you'll typically get extra perks like breakfast for two and statement credits for use during your stay. For example, I once got $160 of food and beverages included on a $153 Amex Fine Hotels and Resorts stay at the luxury Loews Chicago Hotel where I received a $100 food and beverage credit plus breakfast for two.
One night may sound like too short of a stay. But, I've had some very memorable one- or two-night stays at luxury properties when traveling on a budget. For example, I loved my short stays at the Fiji Marriott Resort Momi Bay, InterContinental Bora Bora Thalasso, The Ritz-Carlton Osaka and The St. Regis Osaka. And I'm considering a one-night stay at Marriott’s Al Maha, a Luxury Collection Desert Resort & Spa, the next time I'm in Dubai.
Cathay Pacific first class. (Photo by Emily McNutt/The Points Guy)
Deals and sales have let me take many luxury vacations on a budget. Back on Dec. 31, 2018, my husband and I booked Cathay Pacific first-class round-trip tickets from Da Nang, Vietnam, for about $850 each. That's a lot of money, but compared to the typical cash fare for this ticket, this was a fantastic deal.
But, airlines don't always honor mistake fares. Luckily, it's often possible to find great airfares that aren't mistakes. Airlines frequently offer sales you can find just by subscribing to TPG's deals feed (@tpg_alerts) or by signing up for one of the many flight deal mailing lists. Or, if you want to take a vacation on set dates, use the Google Flights explore feature to find an inexpensive destination.
For example, reward nights at the InterContinental Bora Bora Resort Thalasso Spa typically cost 100,000 points. And you can typically buy IHG points for 0.5 cents per point several times a year. So, if I bought points at 0.5 cents per point and found availability, I'd effectively pay $500 for a night -- which is much less than the $1,004 paid rate I found on one date with award availability.
InterContinental Phu Quoc Long Beach Resort in Vietnam. (Photo by Katie Genter/The Points Guy)
Even if you aren't booking during an award sale or a buy points and miles promotion, you can still unlock luxury hotels and flights by redeeming points and miles.
If you need more points or miles, several of the top travel rewards cards currently offer massive 100,000-point sign-up bonuses, such as the Chase Sapphire Preferred® Card (after you spend $4,000 on purchases in the first three months of account opening). TPG credit cards writer Stella Shon, for example, recently redeemed 100,000 Chase points to book a Costa Rica trip of a lifetime.
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.
