Is Affordable Travel Over?

Concluding five days in Lisbon, I am now in Coimbra. The second stop on my Portugal trip. It will come as no surprise that I consider travel to be one of life’s perks, and I take every opportunity I have to go somewhere new. To step into a new city with a camera in hand and explore the streets, wonders, and what a place has to offer. I try to get away twice per year, as that is what my vacation time offers, and I also find it financially reasonable. With a loose calendar of when I will travel, which is usually June and September, I plan for those trips.

Throughout the year, I am always jotting down ideas, bookmarking sites, and favouriting Instagram posts as reminders to dig into them later. But the most important part of the “planning” is its financial aspect. My goal is to return from a given trip without being in the hole. I don’t want any debt coming back. As a result, I try to be responsible with spending when I travel. I always try to find the best deals on accommodations and flights, and when I travel solo, meals are usually quite affordable. That’s one of the most convenient aspects of solo travel: you only have yourself to consider.

Even though I’ve been travelling regularly for over 15 years now, I have witnessed dramatic changes in the travel landscape, and in recent years, it’s safe to say that we have seen the most dramatic shift in travel overall. A shift that affects how we travel and what we consider when we do.

Travelling solo and travelling with others are significantly different and can make controlling costs more than just a personal decision. With that in mind, this post is structured around solo travel, focusing on the challenges of budget travel and ways to save money on your next solo trip.

Fuel Costs Have Direct and Indirect Impact

Budget travel feels harder now because the cheap-looking fare is rarely the full story anymore. Fortunately, flight costs remain affordable; however, jet fuel prices have spiked to their highest level in years due to the war in Iran, posing significant challenges for the airline industry.

When fuel costs increase, flight costs soon follow. Some believe that this is temporary; that once the war ends, prices will drop again. After all, the fuel delivery limitations will be over, and the regular supply can continue. However, even when the war ends, prices will not immediately drop. It could take a very long time for supplies to flow to pre-war levels.

But then we have to consider the timing of everything. If this war continues for years, and people mostly adapt to high prices, there will be no incentive to lower them. The prices will become the norm, and we’ll be in a new world of affordable travel. What’s affordable now may be gone forever, and the floor for flight prices could keep rising and never drop.

In summary, it’s going to continue to be more expensive to travel.

Accommodation Costs Can Be Alarming

Accommodation prices are rising faster in popular destinations, and that makes budget travel feel tighter almost immediately. Hotels and Airbnb in the places people most want to visit keep getting more expensive.

A hotel is the best choice when you want greater consistency and a place that closely matches your expectations. Check-in is easy and available 24/7; staff are available for your requests and needs; cleanliness is more predictable; and housekeeping is provided.

Airbnb can be more variable and sometimes comes with extra fees that narrow the price gap, and the experience is far from predictable. Check-in times and process, amenities, and location. Most of the time, you are on your own from arrival to checkout.

The costs of both options have increased. Hotel costs vary widely based on your requirements and timing, but even an average hotel stay runs you hundreds of dollars per night. Increased costs with more fees for things that used to be included. All this adds up as it compounds each night.

Prices of Everything Else

Inflation is making the everyday parts of travel more expensive, and that’s where your budget can get exhausted quickly. Meals cost more, ticket and tour prices can be insane, and it just seems like everywhere you turn, costs are skyrocketing, and this is especially true in the airport, where you have limited choice.

If you are travelling to a popular destination, the costs will be even higher. Activities and experiences that used to be a must on a trip are now often almost luxuries, ones you may want to consider cutting out.

So, Is Affordable Travel Over?

In a way, yes, it is over. Now, affordability varies for each person, but it’s changed, and this evolution has made it a bit more challenging to stay within a set budget. In my relatively short time as a traveller, I’ve witnessed how much more everything is costing now.

But even with rising costs, we can still make travel work with enough financial preparation. The strategy is to adapt to how we travel. I choose between hotels and Airbnbs based on timing, cost, and location, and I book accommodations well in advance when availability is better. I pack light and save a little each month toward my travel fund, so the overall cost of the trip doesn’t hit my funds all at once. This is just how I make it work.

Travel is one of life’s greatest perks, and it’s still within reach, but I think the increased cost will continue indefinitely.

So What Can We Do?

If you're looking to make your next trip as affordable as possible, there are steps you can take.

• Travel at less popular times - I’ll admit, I’m not great at this myself. Like me, many of you may need to travel around another schedule. Work, school, etc, can limit you to travelling during peak season. If you have a more flexible travel schedule, it will benefit you greatly. Casting a wide net during your travel planning can uncover more affordable flights and accommodations. However, cheaper flights do have reasons, such as reduced tourist options and varied weather.

• Keep your destination options open - It’s beneficial to have several different destinations and viable options, as you can stumble upon a cheaper flight to one of them quite often. If you are focused on one place only, you could be waiting a while for a price range that you want.

• Compare total trip cost, not just fares - If you see a flight for one price, consider what you consider “musts” for you. If you always have a checked bag or prefer to reserve a seat. These factors alone will increase your total flight cost, and those costs can be 25% of more of the total cost if the flight was cheap to begin with.

• Hotel or Airbnb? Sometimes a hotel is just easier, especially when you are arriving early in the morning or late at night. When searching for accommodations, consider your timing along with the other factors: cost, location, amenities, etc. Maybe an Airbnb makes sense? Regardless, accommodation costs are usually lower if you book well in advance. And availability is more abundant.

• Reconsider what you pack - If you don’t have to check a bag, it will save you money and hassle. Really consider what you need when you travel. I always tend to pack too much at first, then do a cull on repack.

• Save a little bit each month - Anticipating a trip is fantastic; it can be one of the best parts of travel, the preparation. And knowing you will be travelling, or knowing that there is a certain time of year, can be beneficial, as you can save towards that goal. Even a little bit of savings every month can add up. If you can handle it, take a little bit each month to put away for your travel fund, so when the time comes, it’s not as much of a hit on your bank account when it comes time to book.

• Get a credit card with no foreign transaction fees - I always take a bit of cash with me for small things and souvenirs, but 90% of the time I am using a single credit card, one that doesn’t have foreign transaction fees. It’s also a much safer way to buy things, as you should never carry a bunch of cash with you.