Where you stay during a trip can completely change the way you experience it. A luxury resort might give you ocean views, spa treatments, and total comfort, but it also comes with a high price tag. Budget stays, on the other hand, can open the door to longer adventures, local experiences, and unexpected stories you’ll remember for years. Choosing between the two isn’t just about money — it’s about what matters most to you when you travel.
But here’s the reality: lodging can eat up nearly half of your total travel budget. That’s why many travelers now look beyond the obvious options — mixing styles, planning smarter, or finding creative ways to close the gap between dream and reality. If you’re aiming for something a little out of reach, it’s completely normal to look for quick funds to fuel your dream trip without postponing it for months. In this article, we’ll help you weigh your options and tell you how to travel on a budget.
Accommodation: Budget Travel or Luxury Vacation?
The key to making the most of your travel budget is not in choosing one of the extremes but in knowing when and how to spend. Both budget and luxury accommodations have their place, and the smartest travelers often combine elements of both. By understanding seasonal pricing trends, strategically using reward points, and exploring alternatives to traditional hotels, you can get much better deals than advertised prices suggest.
Simple decisions, such as booking midweek, packing light, or choosing affordable flights, can make a significant financial difference. Below are the most effective insider tips to help you find the right balance between comfort and cost, wherever your trip may take you.
Book Off-Season or Midweek
Peak holiday periods, such as summer in Europe, New Year’s in Tokyo, and winter break in ski towns, can double hotel prices. Traveling just before or after high season often means significantly more availability and rates that are 30–50% lower for the same properties. Shoulder-season weather is often nearly as pleasant, and popular destinations are much less crowded.
Luxury hotels and cruises often offer deep discounts during the low season. If you’re considering a Caribbean resort or a European spa hotel, compare summer rates with those of the shoulder seasons. For instance, a five-star beachfront resort in Mexico might cost $400 per night in January but only $180 per night in May. Ski resorts popular with snowbirds often reduce their “luxury” pricing by spring as well.
Choose Alternative Accommodations
Hostels, guesthouses, homestays, and vacation rentals often cost significantly less per night than hotels. A dorm bed in Southeast Asia or Eastern Europe typically runs $10–$30, and even private rooms in hostels are usually more affordable than hotel rooms. Platforms like Hostelworld, Airbnb, and local guesthouse websites let you compare a wide range of options. In Mexico City or San José (Costa Rica), a simple private room in a B&B might cost $30–$50 per night, compared to $150 or more at a downtown hotel. Even some budget hotel chains offer promotional rates directly on their websites.
Use Points and Rewards
Use your travel credit card and its points to reduce hotel costs. Special offers and standard hotel programs like Marriott Bonvoy, Hilton Honors, or IHG Rewards can save you hundreds on a weeklong stay. Some cards, such as the Chase Sapphire, offer free nights or travel credits, and even a modest points redemption can cover a meal or a taxi ride. It’s always worth joining the free loyalty programs of any hotel chain you plan to stay with.
These points are especially valuable for luxury travel. If you time your redemption well, you could book a suite or a long-haul flight for far less than the regular cash rate. A single free-night award at a top-tier hotel in Europe or Asia can be worth more than the nightly price. Even entry-level status often includes perks like complimentary breakfast, free Wi-Fi, or room upgrades. Make sure to review your card benefits before booking.
Pack Light and Local
Pack only what fits in a carry-on, and you’ll avoid the standard $30–$50 checked-bag fee each way. On budget airlines in Europe or Asia, excess baggage can cost more than the ticket itself. So it’s better to buy carry-on luggage or a light backpack in advance. And it will cost much less than overpaying for extra baggage. With just one small bag, you’ll also move more easily through train stations, skip baggage claim, and walk to a nearby metro stop instead of relying on taxis.
Food savings add up, too. A sit-down dinner in Rome or Barcelona typically costs $20–$30 per person, but a picnic of fresh bread, local cheese, and fruit from a neighborhood market can cost less than $10. Markets like La Boqueria in Barcelona or Mercato Centrale in Florence offer a wide selection of ready-to-eat options, including olives, cured meats, and gelato. If you skip every third restaurant meal, those savings can go toward an upgraded Airbnb with a balcony — or even extend your trip by another night.
Hack Multi-Destination Stays
Sometimes, splitting your trip between two destinations can save you money. For example, spending one week in the expensive city of Paris and another in the more budget-friendly city of Prague can cost less than two full weeks in Paris alone. You can also reduce airfare by booking a more affordable route, like flying open-jaw (into one city and out of another) or using low-cost airlines to travel between cities.
When planning multi-city trips, use fare comparison tools like Kayak or Skyscanner, and be sure to check for nearby airports. A short train or bus ride to an alternate airport can sometimes save you $100 or more on your flight.
Be Location-Savvy
Hotels near major tourist attractions usually cost more. Instead, look for a clean, safe neighborhood on the edge of the city and take public transit into the center. For example, just outside central Rome, hotel rooms can be around 30% cheaper, and the train still gets you to the Colosseum in under ten minutes.
You don’t always need a five-star hotel. For example, a four-star or boutique hotel in Florence can sometimes be more luxurious than a luxury hotel, but at a lower price. Traveling with friends or family? Renting a large suite or vacation home and splitting the cost can be much cheaper than booking separate $300 hotel rooms. The same logic applies to tours — consider joining a small group instead of hiring a private guide.
Work Exchange or House-Sit
Consider platforms like Workaway or TrustedHousesitters. In exchange for a few hours of work each day, you receive free lodging. It’s not for everyone, but it can be an excellent way to stay abroad for months at a very low cost. Members-only deal sites, such as Secret Escapes and Voyage Privé, offer limited-time discounts on upscale hotels and tours, sometimes 30–50% off the standard rates. While many of these offers still require booking in advance, you can often combine them with your points for even greater value.
Pick Affordable Luxury Cities
Bangkok is a prime example. Other cities, such as Singapore and Tokyo, may have expensive aspects, but they often offer surprisingly competitive hotel rates. In Europe, consider upscale destinations such as Lisbon or Budapest, where five-star hotels can go for as little as $100–$200 per night during the off-season. In Latin America, cities like Mexico City, Lima, and Buenos Aires combine world-class accommodations and gourmet dining with prices that are very budget-friendly for U.S. travelers.
How Much Does It Cost to Travel the World in Luxury
Truly, luxury travel can quickly add up to tens or even hundreds of thousands of dollars. Here’s what “going all-out” can cost in 2024–25:
- Ultra-premium lodging. In top destinations, luxury hotels and villas often charge upwards of $500 to $1,000 per night, sometimes much more. For example, a premier safari lodge in Kenya typically costs around $2,250 per person per night during high season. In Paris, London, or New York, five-star suites usually start at around $1,000–$2,000 per night, especially at landmark hotels. Beachfront resorts on private islands can exceed $5,000 a night. Generally, any true five-star or boutique luxury property will be very expensive.
- First-class and private air travel. Flying at the highest level is costly. A round-trip first-class ticket from New York to Tokyo typically runs $8,000–$12,000, though rare flash sales may drop prices to around $4,000. Most travelers pay about $6,000. Chartering a private jet costs tens of thousands per trip, and even a short two-hour upgrade on a business jet or a private helicopter tour adds several thousand more. Business class sits just below; sale fares often range from $3,000 to $4,000.
- Ultra-luxe tours and experiences. If luxury travel is about experiences, think beyond hotels. Customized tours, private guides, and exclusive activities come at a premium. For example, private guided tours of the Vatican or VIP access to Versailles can cost hundreds of dollars per person. Multi-day adventures like an African photo safari or an Antarctic cruise start at $10,000–$30,000 per person for two weeks. Private chef dinners, backstage access, or helicopter rides can add hundreds or thousands more.
- Luxury cruises and yachts. Premium cruises — such as round-the-world voyages on luxury liners or expedition yachts to Antarctica or the Galápagos — are another category. These typically cost $500–$1,500 per person per day (or more for suite cabins), including meals and excursions. For a family, a two-week world cruise or a private yacht charter can total six figures.
- Extreme destinations. Visiting the world’s most exclusive places drives costs up quickly. A round-trip flight to Antarctica via Punta Arenas is pricey on its own. Remote lodges — such as those in Iceland beyond Reykjavík or deep in the Amazon — often require charter flights or small-ship access, with lodging alone topping $1,000 per night. Similarly, luxury space tourism is establishing a new frontier in travel, with prices starting around $200,000 per ticket for just a few minutes of weightlessness.
The cost of travel depends on how private or exclusive your trip is. Even a moderately luxurious journey can easily cost $6,000–$10,000 per person. A similar itinerary on a budget might run $1,500–$2,000. Watching your wallet and understanding real costs can help you plan luxury travel even on a budget.
