General Travel

What’s My Budget?

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When I’m first working with a new client, one of the first questions I ask them is “what’s your budget for this trip?” Strangely, the number of “deer in the headlight” blank stares I get to this question boggles my mind. The number of people who simply say “I don’t know” is staggering to me. Yet, as a travel planner, this one question is the foundation to building the trip. It is essential to planning your vacation. So, what exactly should your budget be?

To help us answers this, it’s important to know what goes into planning your budget. Let’s start here:

• Transportation
• Hotel or Resort
• Travel Insurance
• Entertainment/Fun
• Food
• Souvenirs

OK, so now that we have a basic list, the next thing you and your travel planner need to do is get on the same page for what they will plan vs. what you will plan. Most travel planners won’t plan airfare unless it’s part of an all-inclusive package or cruise. Why? Because there are so many variables – loyalty to a particular airline, rewards points, seat preference, departure and arrival time, direct flight vs. layover, and so much more. Because of this, I’ve found that it’s easier for clients to book their own flights vs. having me try to do it for them. That said, it should still be counted into their overall budget. Other than that, most travel planners will organize most of everything else. As you think through your budget, here’s some helpful information:

• Transportation: this will obviously depend on where you’re going, but you should consider airfare and ground transportation as part of the budget as they can wildly determine in one direction or another as much as 40% of your overall cost. Generally speaking, a roundtrip flight on a big 3 airline (Delta, United, or American) will run you between $300 to $600 per person. This obviously varies greatly on when you travel, where you’re departing from, where you’re going, the type of seat you want, and more. But this is a good estimate to start with. And be aware that this is typically flight only – checked baggage can be more. Ground transportation will vary but renting a car can start at $70 per day and go up from there. And shuttles from the airport to your destination will run anywhere from $18 to $60 per person one way for basic transfer, or more for private transfer. I typically budget around $300 round trip for a family of four for basic ground transportation that isn’t a car rental.
• Hotel or Resort: arguably the biggest expense of the trip, where you stay matters. What type of trip do you want? What role will your hotel room or rental home play in that? Is it simply a place to lay your head on while you go, go, go? Or, are you looking for more of a laid back type of experience where the resort IS the vacation? Know that the size of the room, the types of accommodations (like, pool, onsite entertainment, services, number of beds, number of rooms, etc.) will all play a role in the cost of your room. Generally speaking, you can expect value-based hotel rooms to run starting at $100 to $150 per night, while more luxurious-based rooms or suites can be as high as $1500 or more a night, depending on where you are staying. And then there’s all the accomodations that are somewhere in the middle.
• Travel Insurance: some clients skip on this, but most do not. Travel insurance, in my opinion, is a MUST. Depending on the length of time before your trip, age of the travelers, and many other factors, I’ve seen travel insurance as low as 2.5% of the cost of the trip up to 9.5% of the cost of the trip. In addition, the type of insurance you get matters – most travel insurance will give you a credit towards a future trip for the full value you insured for. If you choose to get “cancel for any reason” insurance, many times, this insurance will cover up to 50% of your entire cost with a full cash refund value of that 50%. Travel insurance covers you in the event you are unable to travel, but can also cover you during your trip for illness and other covered expenses. In my opinion, it is well worth the investment.
• Entertainment: where are you going and how much time do you want to spend there? Many people criticize Disney for being “too expensive,” and there’s no denying it is definitely a costly endeavor. BUT, and this is a big BUT, and I cannot lie, from a cost/hour standpoint, it’s on par, or even less expensive than a concert or a football game that you might attend. Obviously venue is important, but let’s take the big three: Walt Disney World, Universal Studios Orlando, and Disneyland. Generally speaking, a Walt Disney World 4-day park hopper ticket, which gives you access to all four parks with the ability to move from park to park after 2pm each day, will run approximatley $550 per person, with a little less for kids 3 to 9. That runs about $11.45 per hour per person for what is essentially unlimited entertainment. A Disneyland 3-day park hopper ticket, which gives you access to both parks and the ability to hop after 11am will run you about $350 per person. That runs about $9.72 per hour per person. A Universal Studios Orlando 2-day park to park, 2 park ticket, which gives you access to Universal Studios and Islands of Adventure will run you about $300 to $350 per adult. That’s about $14.58 per hour per person. Contrast that with the latest average Taylor Swift concert price of $323 per person, which runs about 3 1/2 hours, your price per hour is $92/hour. So really, is a Disney or Universal trip all that expensive?
• Food – food is an X-factor, no doubt. Depending on how much food your family, or any one family member, consumes, will really determine how much you spend on food. Moreover, the type of restaurant matters. For Disney trips, I recommend about $75 per day per adult and $35 per day per child for a food budget. Universal will run roughly the same amount. Despite what many people think, food inside theme parks like Disney or Universal is not that much more expensive that food outside of the theme park. You may pay a premium of 15 to 30% more, depending on where you eat. That said, there are ways to cut down on your food budget, like packing a lunch and bringing it with you, bringing snack bars or other snacks into the parks to avoid grabbing a snack from the concession stand, and avoiding buying bottled water whenever possible. And, as far as the dining plan goes, when used right, it can actually save you money. I will have a future article on it.
• Souvenirs – this is where you can get into trouble. Souvenirs are priced quite high inside theme parks or any vacation-destination. Pay $30 for a tee that you can find online for $14? Sure. How about $35 for a stuffed character that you can get at Target for $19? Why not? Now, keep in mind, this isn’t always apples to apples and quality, style, and exclusivity do matter. That said, going into your vacation with a plan on what will be bought is essential, otherwise this can add up to 20% of your trip cost before you know it. Especially when visiting a theme park, I suggest giving a budget to your kids right off the bat – you get $150 to spend on this trip and once it’s gone it’s gone. You can even buy gift cards to keep them on budget. Oh, and one big piece of advice – if you see something that is a “must have,” don’t wait to buy it. Especially in Disney parks, there’s a good chance it won’t be there when you return.

So, all that said, for a family of four, going to Walt Disney World for a 7 day, 6 night vacation, and 4-day park hopper tickets, 1 rest day, arrival and departure day, travel insurance, at a moderate resort on property, flying in with ground transport to and from the airport, food costs and souvenir costs, the total cost would run about $8200. Saved over a 2-year period, they’d be looking at $341 per month, or about $11 per day. Oh and a cost per hour perspective with all that combined runs about $48.81 per hour total or about $12.20 per person per hour. Again, compared to a Taylor Swift concert or football game – which one is really more expensive?

I’m curious to know your thoughts. Post your comments below.