June 4, 2025
A dream vacation shouldn’t turn into a financial nightmare. There are several ways to keep travel costs low. We break down how to plan, save, and spend wisely—so you can enjoy your trip without financial regrets.
A dream vacation should leave you with unforgettable memories—not overwhelming credit card debt. But with rising travel costs, it’s easy to feel like an amazing trip is out of reach. The good news? You don’t have to sacrifice adventure, relaxation, or unique experiences to stay within your budget. Smart planning and a few strategic choices can help you travel affordably without compromising on the experience.
Whether you’re dreaming of a tropical getaway, a European adventure, or an epic road trip across Canada, staying financially responsible doesn’t mean cutting all the fun. We’re here to show you how to balance fun with financial responsibility so you can take the trip you’ve been dreaming about—without the guilt of overspending.
Smart travelers know that research is the key to saving money on a vacation. Instead of booking the first option you see, take the time to compare prices for flights, accommodations, and activities. A little extra effort can lead to significant savings without sacrificing quality or comfort.
Start with flights, as airfare often makes up a large portion of travel expenses. Use price comparison websites to check fares from multiple airlines and set up price alerts to track changes.
Many airlines offer discounts for booking in advance, while others have last-minute deals. If your schedule allows, try flying on weekdays or during off-peak seasons to secure lower prices.
Accommodations can also vary widely in cost, even within the same destination. The difference between a 4-star hotel and a 2-star one can be vast for example.
How much you want to spend on accommodations may depend on what you’re using it for. If you’re likely to be only using your hotel to sleep, you may not need as upscale a hotel as someone looking for one with a spa on site.
Reading reviews and checking multiple booking platforms can help you find the best value for your budget.
For activities, research discounts before you arrive. Many attractions offer online booking discounts, city tourism cards, or bundle deals for multiple experiences.
By taking the time to compare costs, you can stretch your travel budget further and focus on making unforgettable memories—without overspending.
Before booking flights or packing your bags, take the time to create a realistic vacation budget. A well-planned budget ensures you can enjoy your trip without constantly worrying about overspending. It also helps you make informed choices about where to splurge and where to save.
Start by outlining the major expenses: transportation, accommodation, activities, and daily spending. Research costs in advance, factoring in airfare, train tickets, or gas and toll fees if you're driving. Look for deals on hotels or vacation rentals and compare options to find the best value. When planning activities, prioritize must-do experiences while leaving room for flexibility.
Hidden costs can quickly add up, so plan for them in advance. Many travelers forget to budget for things like for tipping or baggage fees. Even small expenses, like souvenirs, can eat into your budget if you don’t track them.
The best way to ensure you’re not overspending is to set a daily spending limit can help you stay on track. Divide your total budget by the number of days you'll be away, allocating enough for meals, transportation, and entertainment.
Doing so will help you ensure you get to do the things you want, without breaking the bank.
Not all vacation expenses carry the same weight. To get the most out of your trip without overspending, focus on the experiences that matter most to you. Whether it’s exploring historic sites, indulging in local cuisine, or hiking up mountains, identifying your priorities early will help you spend wisely.
Start by listing the must-have experiences for your trip. If you dream a scuba diving excursion, or front-row seats to a cultural performance, allocate funds for those first. Then, look for areas where you can cut back.
Using public transportation instead of taxis or eating at local markets instead of high-end restaurants can free up cash for the experiences that truly excite you, for instance.
Once all the planning is done it’s time to ensure you don’t overspend while you’re on vacation. There’s a variety of ways to ensure you get to do the things you want without emptying your wallet.
Set a daily spending cap to control costs and prevent unplanned splurges. Before your trip, estimate your daily expenses based on your total budget and adjust as needed. If you overspend one day, balance it out by cutting back the next.
Carrying a combination of cash and cards helps you avoid unnecessary fees and ensures you always have a payment method available. When using your credit card in another country, you will most likely be charged foreign transaction fees and currency conversion fees, so using cash will save you money. If you plan to travel within Canada, you are avoiding these types of fees.
No matter where you travel, you don’t want to carry too much cash at once. If you were to lose a sizable amount of money or have it stolen, your trip will go from being a dream vacation to a nightmare.
A good strategy is to use cash for everyday expenses like meals and small purchases while reserving your credit card for larger transactions. This way, you minimize fees while keeping a secure backup payment option. Your credit card might also offer a guarantee on the more expensive goods you will purchase.
Souvenirs, extra excursions, and last-minute indulgences can quickly add up. Before making an unplanned purchase, pause and ask yourself if it fits within your budget and if it will truly enhance your trip.
Instead of buying expensive trinkets, consider capturing memories with photos or opting for meaningful, low-cost mementos.
If an experience or item isn’t planned but feels worthwhile, look for ways to cut back elsewhere to make room for it.
A little planning goes a long way in making your dream vacation both memorable and affordable.
Even the best-planned vacations can lead to unexpected overspending. Recognizing common spending traps can help you stay on budget without sacrificing enjoyment.
Many travelers focus on paid attractions without realizing how many free activities are available. Parks, museums with free entry days, walking tours, and local festivals offer memorable experiences without the high price tag.
Before your trip, research free or low-cost attractions and plan them into your itinerary to balance out more expensive activities.
If you have a credit card that offers travel rewards, not using your points is leaving money on the table. Many credit cards allow you to redeem points for flights, hotels, or rental cars, significantly reducing your out-of-pocket costs.
Check your rewards balance before booking and look for ways to maximize your points to make travel more affordable.
Not having travel insurance can lead to major financial problems if something goes wrong. A medical emergency, trip cancellation, or lost luggage can result in unexpected expenses that far exceed the cost of coverage.
Many credit card travel insurance plans only cover the first three days of a trip, so this could leave you unprotected for much of your vacation. Check your coverage before leaving and consider buying a comprehensive travel insurance plan to avoid costly surprises.
Using your phone abroad without a plan can lead to shocking roaming charges. Many travelers unknowingly rack up high fees for data, calls, and texts, even with minimal usage. Before your trip, check with your provider about international plans or consider an alternative solution like an eSIM.
An eSIM is a digital SIM that allows you to connect to a local network without swapping physical SIM cards. An eSIM will allow you to use your phone as normal, including using data, when you’re away at a fraction of the cost of traditional roaming fees. You can activate an eSIM before you leave or once you arrive, ensuring you have affordable data access throughout your trip.
When traveling abroad, you may be offered the option to pay in your home currency instead of the local one. This is called dynamic currency conversion (DCC), and while it may seem convenient, it often comes with high exchange rates and extra fees.
Merchants and ATMs that offer DCC typically mark up the exchange rate, meaning you’ll pay more than if you had simply chosen to pay in the local currency.
The government of Canada recommends you always choose “to be charged in the currency of the country you are in.”
It notes “you will pay high conversion rates and transaction fees” if an ATM or shop has to covert the money to Canadian currency.
While it’s tempting to indulge in local cuisine at restaurants, eating out three times a day quickly adds up. Instead, consider grocery shopping for simple breakfasts and snacks or choosing accommodations with a kitchenette to prepare occasional meals.
Street food and local markets also often provide an authentic and budget-friendly dining experience.
A dream vacation should be exciting, not stressful, and certainly not something that leads to financial regret. By setting a budget, prioritizing your expenses, and avoiding common overspending traps, you can enjoy your trip without worrying about debt when you return home.
But if travel costs—or other financial challenges—have left you struggling with debt, you don’t have to face it alone. At BDO Debt Solutions, we help Canadians find practical solutions to manage debt and regain financial stability. Our Licensed Insolvency Trustees provide practical advice and can help you set a budget to remove debt.
June 4, 2025
A dream vacation shouldn’t turn into a financial nightmare. There are several ways to keep travel costs low. We break down how to plan, save, and spend wisely—so you can enjoy your trip without financial regrets.
