Finance

4 Vacation Splurges That Are Wastes of Money


RgStudio / iStock/Getty Images

RgStudio / iStock/Getty Images

According to Forbes, roughly half of Americans planned to spend at least $4,000 to travel last year. But the average cost of travel varies widely based on factors like time of year, number of travelers, trip duration and personal spending habits.

When it comes to vacations, it’s all too easy to break your budget and splurge on things like cruises, private villas, exclusive spas or resorts, and airplane seat upgrades. And while some of these things might make sense, others tend to be wastes of money that could have been spent elsewhere — potentially on something much more meaningful or important.

While your opinion of a worthwhile versus wasteful splurge might differ from the next person’s, it doesn’t hurt to know what the experts think. GOBankingRates asked Erika Kullberg, an attorney, personal finance expert and founder of Erika.com, what she views as vacation splurges that just aren’t worth it.

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Here are four vacation splurges that are wastes of money, according to Kullberg.

Also see five expenses to splurge on when traveling abroad.

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Upgrades on Short Flights

You might want to get an upgrade when flying, but ask yourself whether it’s worth the added expense first. The average cost of a round-trip domestic flight (U.S.) is just over $367, per the Bureau of Transportation Statistics. A seat upgrade could easily be $100 — sometimes more, sometimes less.

For longer flights, the price might be worth it. For shorter ones, this might not be the case.

“It’s no secret that flying is getting more and more uncomfortable by the year,” Kullberg said. “As tempting as it is to book upgrades whenever possible, save your dollars and points for long-haul flights where you will really feel the impact.”

Check Out: Dave Ramsey: 7 Vacation Splurges That Are a Waste of Money

High-End Hotels

You’ll want to stay somewhere that’s nice, clean and safe. But that doesn’t mean you need to pay for the most expensive accommodations you can find.

“Booking a stay at a really nice hotel or resort makes a ton of sense when you plan to spend a lot of time relaxing at the hotel — like on a tropical vacation,” Kullberg said. “If you’re heading somewhere like Rome, Tokyo or Paris and know you’ll spend all day trying to take in as many sights as possible, don’t splurge on a hotel you’ll hardly spend time at.”

The average nightly cost of a hotel room in May this year was $158.45 — the second-highest month ever, per a J.D. Power study. International rates vary immensely based on where and when you go. But as Kullberg pointed out, there’s not much reason to spend extra on a room you’re barely ever in — especially if you could have used that money on better things.

Airport Food and Drinks

You might not be able to avoid buying one or two things on every trip, but try to skip the airport food and drinks.

“Whenever possible, pack your own snacks and bring a reusable water bottle to the airport,” Kullberg said. “The food quality is never great, and it costs an arm and a leg. Alcohol is particularly overpriced. Pack your own food and save that money for a high-quality dining experience at your destination.”

In terms of restaurants, for example, many airports charge around 10% more than what you’d pay elsewhere for the same dish.

‘Must-Do’ Experiences

“Whenever you travel, you need to decide what is important to you. Just because everyone says you have to visit a certain tourist attraction or do a specific activity doesn’t mean you actually have to do it,” Kullberg said. “Spending money on experiences just for the sake of being able to say you did them is never worth the money.”

Of course, you don’t want to miss out on the important experiences or events at your vacation destination. If something suits your preferences (and budget), go for it. If not, skip it. And if you find yourself regretting that decision later, add it — or something similar — to your list of priorities the next go-around.

Saving Money on Travel

You can still travel and have a lot of fun and memorable experiences without breaking the bank (or otherwise stressing yourself out about finances). If you’re planning a trip, here are some tips for making it just a little bit easier.

  • Start budgeting ahead of time. That way, you can set aside small sums of cash every month until you have what you need.

  • Expect to pay more. Even if you don’t end up spending as much as you think, it doesn’t hurt to have a slightly higher travel budget just in case.

  • Remember it’s okay to say no. Just because you’re going somewhere new doesn’t mean you have to do everything that’s at your destination. You can even skip a few things on your list if finances are feeling tight.

  • Stay outside the city. If you’re visiting someplace with excellent public transit (like Shanghai or London), get a room outside the city center to save some money. Just be sure to account for travel time. You don’t want to end up so far outside the city that it’s hard to reach your destination.

  • Fly during the off-season. Each travel location has its “peak” seasons, so choose less popular times to save on flights, accommodations and more. Just know that, in some places, it’s the “peak” season for a reason. If you go during a time when it’s constantly raining, for example, you could miss out on that outdoor excursion you really wanted to do.

  • Book group packages. Travel bundles won’t always save you money, but they can sometimes shave off a percentage of the overall price you would have paid. Just make sure you’re going to use whatever you’re paying for. Otherwise, you’ll end up spending money on things unnecessarily.

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This article originally appeared on GOBankingRates.com: Finance Influencer Erika Kullberg: 4 Vacation Splurges That Are Wastes of Money



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