6 Tips for a Cheap Vacation on a Budget

Your next vacation doesn’t have to be a financial burden, not when you know how to minimize costs while maximizing your fun. 

Key Takeaways

• To manage your vacation budget effectively, break down expenses into distinct categories such as transportation, accommodation, food, activities, and miscellaneous costs. 
• There are numerous ways to save money on travel, including using rewards points, opting for less touristy locations, and traveling mid-week.
• Additionally, exploring last-minute deals or city passes can further stretch your travel budget, allowing you to enjoy more activities and experiences for less.

Tips for Traveling on a Budget

If you’re looking to cut back on your travel spending, here are 6 tips you can use:

1. Fly Mid-Week or During the Shoulder Season

One of the easiest ways to save money on travel is by planning ahead and staying flexible with your itinerary. Booking flights and accommodations well in advance often results in significant discounts, as prices tend to rise closer to peak travel periods. Use fare comparison websites to track price fluctuations and set up alerts for deals.

Additionally, being flexible with your travel dates can help you find cheaper flights—flying mid-week or during off-peak hours is usually more affordable. Consider traveling during the shoulder season (late spring or early fall) when tourist crowds are smaller, and prices for flights, hotels, and activities are lower. A little flexibility can go a long way in cutting costs!

2. Save Money Using Local Transportation

Transportation costs can quickly add up, but there are plenty of ways to keep them under control. When booking flights, consider budget airlines, but be mindful of hidden fees for baggage or seat selection. If you're traveling within a country or between nearby cities, opting for buses or trains instead of flights can save a lot of money.

Many countries have efficient and affordable rail systems that provide a scenic and comfortable way to travel. Once you reach your destination, use public transportation rather than expensive taxis or rental cars. Many cities offer discounted travel passes for buses, subways, or trams. For even greater savings, consider walking or renting a bike—this not only reduces expenses but also allows you to explore at your own pace while enjoying the local scenery.

3. Eat Street Food and Avoid Tourist Traps

Eating out for every meal can drain your travel budget quickly, but there are plenty of ways to enjoy great food without overspending. If you're staying in accommodations with a kitchen, consider cooking some of your meals. Buying groceries from local markets not only saves money but also allows you to try fresh, regional ingredients.

When you do eat out, follow the locals—street food vendors and small family-owned restaurants often serve delicious, authentic meals at lower prices than tourist-heavy restaurants. Many cities have food courts, farmers' markets, or casual eateries that offer budget-friendly options. Additionally, take advantage of free hotel breakfasts or happy hour deals, where you can enjoy discounted drinks and appetizers. Planning your meals wisely will let you experience great food without breaking the bank.

4. Use City Passes

Last but not least, you can protect your travel budget by using city passes. These are specially designed passes aimed at travelers who want to experience everything a city has to offer at much lower prices. Sometimes, city passes give you access to public transportation and attractions like museums. 

A city pass can save you up to 50% on entry fees for popular attractions. For example, if the total cost of individual tickets is $200, a $100 city pass could save you $100.

5. Use Rewards Points and Miles

When was the last time you checked the amount of rewards points and miles that you have? It’s probably been quite a while if you're like most people.

Your upcoming travel plans are the perfect excuse to cash those points in! Points and miles can be exchanged for a wide variety of things. For example, you could use them to pay for your travel tickets and hotel stays. Similarly, you can also use them to upgrade your existing reservations for free! For example, using 50,000 airline miles can save you around $500 on round-trip tickets for a domestic flight. If you use hotel points, you could save an additional $150 per night on accommodation. For a weeklong trip, that’s potentially up to $1,550 saved!

6. Scour Last-Minute Deal Sites

Despite volunteering being an option, there’s no shame in wanting to have fun and spend quality time with your friends and family. You can do that in a more budget-friendly way by scouring last-minute deal sites.

Here’s how they work: Businesses that provide transportation (e.g. airlines and bus companies) and accommodations (e.g., hotels) want to make the most money possible. So, instead of having unsold seats or rooms, they offer last-minute deals to buyers at a lower cost.

You can find and grab these last-minute deals on popular travel sites like Expedia and Booking.com, but you have to be quick. Finding a last-minute deal can lead to savings of 30-50% off the regular price. For instance, booking a hotel room at $100 per night instead of $200 could save you $700 over a week.

Many travelers use this as a strategy to save money on their vacations, so there’s lots of competition for those deals!

Planning for the Cost of Travel

The first step to creating a good budget for your next vacation is understanding the costs involved. By learning how to organize those costs into unique categories, you’ll have a much easier time making the most of your funds.

Here are some of the most typical costs involved with travel:

• Transportation and accommodation. For starters, you’ll have to pay for transportation costs (e.g. plane tickets) to get to your destination and accommodations (e.g. hotels)  so you have a place to stay.
• Food and drinks. You’ll need money for the food and beverages you enjoy on your travels. There’s a lot of flexibility here, as you can choose to eat at more affordable places to free up more cash.
• Activities and entertainment. Your costs will also include what you do at the destination, like taking tours or enjoying local entertainment.
• Shopping and souvenirs. Another category you can be flexible with is shopping and souvenirs. Some people shop more than others when going on a trip so that you can budget accordingly.
• Miscellaneous costs. Lastly, remember that there will be miscellaneous costs along the way, like tips, taxes, and travel insurance, if you prefer having that.

When you organize your travel costs into categories like the ones described above, you’ll have a more detailed budget. Better yet, there is less chance you’ll forget to set aside money for any part of your travel plans.

Maximize Your Budget

Learning how to travel cheaply will take a bit of time and effort. Still, it’s worth every penny as it can help you save loads on your travel budget. Better yet, you can do the same for every future vacation you plan!

Related Frequently Asked Questions (FAQs)

Here are questions readers often ask about cheap travel ideas.

1. How Can I Plan a Cheap Vacation for $500?

Planning a vacation on a tight budget is possible with careful planning and smart choices. First, choose a destination where your money will stretch further—consider road trips, national parks, or affordable international locations like Mexico, Southeast Asia, or parts of Eastern Europe. Look for budget-friendly accommodations such as hostels, camping, or vacation rentals with kitchen access to save on food. Opt for free or low-cost attractions like hiking, museums with free entry days, and beaches. Book flights and transportation early, or travel by bus or train instead of flying. Lastly, set a daily budget and track expenses to make sure you stay within your $500 limit.

2. What Are the Cheapest Ways to Book Flights?

Scoring cheap flights requires strategy. Use fare comparison websites like Google Flights, Skyscanner, or Kayak to track prices and set alerts for deals. Be flexible with your departure and return dates—mid-week flights (Tuesdays and Wednesdays) are often cheaper. Consider budget airlines, but watch out for hidden fees like baggage charges. Flying with just a carry-on can help you avoid extra costs. Also, look into alternative airports near your destination, as flights to smaller airports can sometimes be more affordable.

3. Where Are the Best Budget-Friendly Summer Destinations for Under $1,000?

Some of the best affordable destinations for summer travel include:

• Domestic (U.S.). Try national parks, smaller beach towns, and cities with good public transport like New Orleans or Austin.
• International. Countries in Southeast Asia (Thailand, Vietnam, Indonesia), Central America (Guatemala, Nicaragua, Mexico), and Eastern Europe (Poland, Hungary, Bulgaria) offer great value for budget travelers under $1,000.
• Alternative Choices. Instead of expensive tourist hotspots, visit nearby alternatives—for example, go to Albania instead of Greece or Portugal instead of Spain.

Note: The content provided in this article is for informational purposes only. Contact your financial advisor regarding your specific financial situation.