Ten Money-Saving Travel Tips

While I'm on vacation, I've arranged for some great bloggers to post a few pieces a day. First up is one of my favorites. This is a guest post from J.D. Roth, who writes about smart personal finance at Get Rich Slowly.

I’ve always wanted to travel, but have never been able to afford to do so. In July, my in-laws were kind enough to pay for a family trip to London, Dublin, and New York. Because I had little experience traveling, I didn’t know what to expect. I made some mistakes, but I learned some important lessons about how to travel frugally while having fun. Sometime soon I hope to visit France and Germany using the following techniques:

• Research your destination. Before you leave, make a list of sightseeing priorities. Use the internet to find free and inexpensive attractions. All three cities we visited featured free museums and tours. You can spend a fortune on guided tours if that’s your thing, but the frugal traveler can find plenty to do.

• Budget. When you travel overseas, you generally know well in advance how long you’ll be gone and where you’ll be staying. I don’t usually keep a budget, but I did so for this trip. Before I left, I saved $2100 for the three weeks we’d be gone. I spent some of that in cash, and charged some to a credit card. When I returned, I used the remaining cash to pay the credit card balance. By planning in advance, I knew how much I could spend.

• Carry a guidebook. A good travel guide is worth its weight in gold. You’ll pay about $20 for one, but the book will save you money in the long run. Travel guides feature information on tourist attractions, local customs, and cheap places to eat and sleep. They can give you the inside scoop on the best days to visit museums or tell you how to find seldom-visited free events.

• Pack light. Experienced travelers always offer this advice, but rookies seldom heed it. Even if you’re staying in the same hotel for three weeks, packing light can prevent headaches. My father-in-law brought six bags for our three weeks of travel. He overpacked. Within days he had to pay to ship things home. He paid to have a taxi drive him to the train station. Even I took too much: a small suitcase and a knapsack, both of which were crammed with stuff. In the future, I’ll take the knapsack, but it will travel empty in the suitcase.

• Pack smart. Take items that can serve double duty. Don’t carry stuff you can buy at your destination. (You can buy shampoo in London, you know.) Leave room in your bag to bring home items you purchase while on vacation. Don’t neglect your sanity — there are a few items I like to have with me at all times: earplugs, an eyemask, my iPod (with noise-canceling earphones), a book, and comfortable shoes. These allow me to be comfortable anywhere.

• Manage your money. Know which money source is best for each situation. I didn’t understand this, and was dinged with unnecessary fees. For example, you should know that Visa charges a 1% overseas usage fee regardless of whether you’re using debit or credit. Some cards waive this fee. This means, for example, that if you use your Capital One credit card overseas, you’re getting the best exchange rate and avoiding a common fee. However, Capital One charges 3% to withdraw money from an ATM. For cash, I should have used my debit card.

• Carry a moneybelt. You’ll hear conflicting advice on this one, but I think a moneybelt is cheap insurance. One member of our party had some cash in her purse when we reached London. The cash was not in her purse when we reached our hotel. (The thief had unzipped her purse, unclasped her wallet, and stolen the cash.) I had a few moments of panic in Ireland when I thought I’d lost my knapsack (which contained my credit card and some cash). Fortunately, I found the bag again, but it was nice to know that I had backups in my moneybelt.

• Sleep cheap. My wife’s parents paid for us to stay in centrally-located hotels. This was great, but if I were traveling on the cheap, I’d explore other options. When one of my friends traveled to England a few years ago, he used The National Trust to obtain moderately-priced lodging. He loved it. Another friend kept costs down by staying in a hostel. The best way to find a cheap place to stay is to plan in advance. Research. Ask questions.

• Eat cheap. Of course you’ll want to try good restaurants. But for many meals, you can save money by picking up food at the grocery store. We stocked up on our first day, and were able to eat light and easy meals throughout our trip. We didn’t have a fridge, so we made sure to purchase things that were okay without one: fruit, crackers, etc. This was especially helpful on the days we were in a hurry.

• Relax. Don’t be a slave to an agenda. Some places will be more interesting than you expected; others will be less so. For example, in England we only allocated half an our for Avebury, a prehistoric stone circle, yet I wanted to stay much longer. On the other hand, we allocated two hours for Stonehenge, but were done in twenty minutes. In retrospect, we ought to have allowed our schedule to be more fluid.

A final note: If you’re planning to travel overseas, then in the earliest planning stages, consider the exchange rate. For example, if you were currently choosing between traveling from the U.S. to London or Argentina, you’d get the most bang for your buck from the latter. I realize that there’s a huge difference between the two, but if you’re in a position to leverage the exchange rate, do so. When my wife and I took our honeymoon to Victoria, B.C., the Canadian dollar was especially weak — we lived like kings!

Comments

[Dale]

Save yourself a headache. Use the knapsack as your carry-on luggage. You need a carry-on for a couple of reasons. One is the standard advice to carry what you will need for your first night at your destination in case your luggage is lost or delayed. Most hotels supply soap and a single-use bottle of shampoo, so I don't bother with those. Likewise, I can buy a toothbrush and toothpaste at my destination. I pack a full change of clothes in my carry-on. Once, that saved my while I was still in the air because the passenger next to me spilled a drink in my lap.

The second use for a carry-on is when you are going through security checkpoints. You are going to have to empty keys, coins, PDAs, cellphones, etc. out of your pockets anyway. I have a pocket in my knapsack that I use for those at airport security. All of the metal that can set off the detectors is already in my carry-on before I get to the checkpoint. I don't have to spend time digging it all out of my pockets and putting it back later.

[Sheila at Family Travel]

It's easy to be really overwhelmed by all of the travel info that is available today, both in print and online. For one-stop shopping, I've always been pleased with the TimeOut series of guidebooks and the Frommer's suggested itineraries (usually available online.)

With all of the mess that is air travel today, you need to do everything in your power to use a carry-on and not check luggage. It really saves a ton of headaches. One black and one khaki set of trousers, 3-4 tops, two pair of comfy shoes (try Rockport or Aerosoles) and you really are good to go.

[J.D. @ Get Rich Slowly]

Good point, Dale. In my zeal to get the knapsack stowed in the checked luggage, I forgot that I need something to carry around the gadgets I've listed in the "pack smart" point. I seriously would not consider traveling without my iPod now, but I need a place to stow it, don't I? Instead of stowing the knapsack, I'd say use it as your carry-on, but don't jam it full of stuff. Does that make sense?

[plonkee]

The best thing to do is to only take as much stuff as if you were going to pack the knapsack in the suitcase, and then take it out and use it as carry on. I think its funny that your father-in-law brought six bags as Americans are legendary for taking too much luggage (no idea whether its really true or not, but he seems to fulfil the stereotype).

[kitty]

A few more things.

Research public transportation and getting to/from the airport. Taxis cost a lot of money, and in many places there is a very easy way to get from the airport to a hotel - London, for example, or Paris. In Eastern Europe, public transportation is really cheap. Even where it is expensive, it is still cheaper than taxis. You may need to learn to compare names of subway stations in countries like Russia, but you'll save money (and Moscow and St Petersburg "Metro" is worth a look).

Be careful with backpacks and handbags with shoulder straps. If you carry it with you, don't just let it hang behind your back. In some places this is an invitation to cut your bag and grab the contents. So, keep your handbag under your arm and keep an eye on it at all times. You probably don't want it cut even if it is empty.

expedia, orbitz, hotel.com and other similar websites have pretty good deals on hotels in all categories. Look at their "special deals". Now that I am a bit older and a bit more comfortable financially, I like nicer hotels (got "used" to them on business trips). I still don't want to waste money on a guy opening the door, but I like quiet, centrally located places with modern conveniences. A few years ago I got a very nice place in Covent Garden (theater district in London) for a third of its price.

Since many of my somewhat cheap habits persisted since my younger days, I still feel that once a day at most is enough for restaurants. In Europe, breakfast is usually included while for the third meal, I often get nuts - almonds, walnuts in grocery stores (or even take them with me in case I hate the airplane meal; I love nuts) and buy fruit from street vendors. Nuts are very filling. They have lots of calories but if you eat them as a meal and not as an addition to the meal, they are great. Good for you too.

About restaurants - look for busy places frequented by locals and avoid tourist traps. Cost isn't always the same as quality. Don't shun places that don't take credit cards - these are often cheaper and just as good. If a place looks busy it could be both good and inexpensive. Ask receptionist in a hotel for advice if you don't know where to eat. In some places eating the main meal mid-day saves money as well.

Read about local tipping habits as well as expressions you can see on a menu e.g. "cover charge", "service is included" (or not), etc. before your trip. In most Western European restaurants service is included and waiters get real salary; also Europeans tip to reward good service only. At the same time, don't think of service as bad if they don't bring you bill right away or if they don't stop by your table as often as in the US to ask if everything is OK. In some countries they consider it rude to bring you the bill before you asked for it - it is like telling you to leave. They also may not like to bother you during meal. Customs differ. Just ask for the bill or signal the waiter when you are ready to leave. Also, in some countries you don't need to wait to get seated: just find an empty table and sit.

[Jason from Money Theory]

Wonderful tips, thanks!

A great way to find super nice inexpensive hotel rooms is to rent a night at a timeshare property.

You can look at websites like rci.com or intervalworld.com to find properties at your travel destination. Then you can just call them up and ask if they have any special rental rates on your travel dates.

We've found 3 bedroom suites with a kitchen this way for about $125 a night.

Thanks,

Jason