How Much Will That Dream Vacation Cost You?
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A dream vacation is not only a chance to escape the chaos of this world and help us focus on a new adventure, but it can also improve our overall mental health and productivity once we return. There are so many positive aspects to taking time out for yourself or your family to get out of your comfort zone and experience something new — but the reality is it costs money for a getaway.
Whether your dream vacation involves swimming in the ocean in Hawaii, a road trip to the mountains, or a Disney family trip, let’s look at the major expenses associated with it, so you can plan accordingly and stay within your vacation budget.
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Estimating the major expenses of a dream vacation
There are several categories of spending that you can almost always count on for spending. By planning and researching ahead of time, you can estimate how much the vacation may cost.
Airfare
There’s no doubt airfare can make or break your vacation budget, so it’s important to realize the impact it has on your overall budget, and it’s in your best interest to find as competitive a price as possible.
In 2022, the average domestic airline ticket cost in the U.S. was $393.85 per person, according to the Bureau of Transportation statistics. You can use the same website to find out the average cost for specific cities, which is useful for planning purposes.
For those planning an international trip, the average international ticket cost is over $1,100 per person from the U.S. to Europe and $1800 per person for the U.S. to Asia, according to the Hopper travel app data. Costs for both domestic and international flights are expected to continue rising because of inflation, labor shortages, and jet fuel pricing, which means prices could increase at any point.
Best For Fast Claims
- Up to $250,000 emergency medical coverage for international trips
- Real-time travel care
- Quick claims processing & reimbursements for eligible claims
Car rental and gas
Car rental prices have actually declined since last year, which is welcome news for any traveler. The average daily car rental rate in the U.S. is now $38 per day. You can expect the price to come in higher for international car rentals, which makes it critical to compare as many car rental prices as possible so you know you’re finding the best deal.
Before traveling, you can find the national average for a gallon of gas through the AAA gas tracker. It will also show you the average per state, so you can more accurately plan what a tank of gas will cost.
Hotel or Airbnb
Hotel costs are also increasing each year, and now the average cost of a hotel room in the U.S. is $216 per night, according to Hopper. This amount may increase or decrease depending on where you travel domestically or overseas.
What’s important to keep in mind when booking a hotel room or Airbnb is the addition of all the extra fees. The lodging costs quickly escalate from resort fees to cleaning charges, hotel taxes, and local and state taxes.
Food
Food costs have certainly increased thanks to inflation and supply chain issues, making planning for it on vacation a little more difficult. Food costs vary wildly, especially if you factor in snacks, alcohol, or tips. One estimate for a family of four is an average of $132 per day for food alone.
Other travel expenses to factor in
These other travel expenses are seemingly little – until you add up how much they actually impact your overall spending. If you’re unsure how much these items may cost individually, you can simply estimate a per-day cost to cover these extras, such as $100 or $200.
- Transportation, including shuttles, ride-hailing, daily parking
- Souvenirs
- Tips for hotel staff, drivers, and restaurants
- Activities, such as guided tours, excursions, or museums
Tips for managing a vacation budget
The best news is you can still have a dream vacation and stay within a selected budget. And the more you can plan ahead of time, the more money you’re likely to save.
1. Plan as far in advance as possible
Sure, being spontaneous has advantages, but if you can plan as far ahead as possible, you can stretch your budget. For example, you can start checking airfares as early as possible to book when you see a lower price. Or, you can book a hotel far in advance, avoiding the common price hikes on rooms as it gets closer to your dates.
2. Explore transportation and lodging alternatives
There may be categories of spending where you look for less pricey alternatives, especially if these are categories that you might not place as much importance in. Looking at alternatives for big expenses, such as transportation and lodging, means you can save a bundle.
Transportation alternatives may mean taking the bus or train to your destination versus flying. Or, perhaps, utilizing public transportation instead of renting a vehicle. Lodging alternatives could include anything from staying in hostels to staying with friends and family where possible. Think outside the box, and you can have more money (or savings) toward what matters most.
3. Use flexible dates when possible
Being flexible with your travel dates saves in a few areas. You can generally find less expensive airfare when you are flexible and can travel on certain dates. The same works for hotels and Airbnb, and even car rentals.
Additionally, planning trips during the “off” or “shoulder” season, when fewer tourists are in an area, can also mean a less expensive trip overall.
4. Consider all-inclusive options
All-inclusive options don’t have to break the bank — they may save you more in the long run than you think. The best way to save money on an all-inclusive is to make sure it includes the item where you tend to spend a large portion of your budget, such as alcohol or fine dining. It may also save money if it includes all the activities you and your family enjoy.
5. Set a daily spending amount
It’s easy to spend money when you’re living carefree on vacation but setting a goal beforehand can help you stay on track. Small and unforeseen expenses are a given, but setting a limit on how much you spend each day puts some control back into your hands.
6. Look for deals and discounts
Deals and discounts are available in various ways, including credit card reward points or working with a travel agent who can help you snag the best-unadvertised deals. Other places to look for deals are through hotel loyalty programs, directly with an airline or hotel, or by downloading budget travel apps. Additionally, if you plan on traveling to any National Parks, you can look on the individual websites to explore less expensive days to visit.
Best For Fast Claims
- Up to $250,000 emergency medical coverage for international trips
- Real-time travel care
- Quick claims processing & reimbursements for eligible claims
Example costs of dream vacations
Now that you know what to look for, let’s put together some examples of a dream vacation for you and your family. For our examples, we’ll assume the costs for a family of four and include round-trip airfare from Los Angeles, using the average round-trip airfare rates published by the Bureau of Transportation Statistics.
Of course, these are purely hypothetical, and the costs vary depending on the time of year you choose, if you have more or fewer people traveling, and numerous other factors.
Disney vacation
What would a trip for five nights and four days at the park cost if you want to visit the Mouse? A trip to Disney World not only includes your hotel, but you have to factor in the tickets, park extras, food, and drinks, plus your spending.
Airfare | $1,544 |
Luxury accommodations ($400 per night) | $2,000 |
Car rental, gas, parking | $600 |
Disney World tickets (4 days with park hopper) | $2,240 |
Genie+ ($260 per day) | $1,040 |
Food and drink ($100 per day/person) | $2,000 |
Spending | $1,000 |
Total: | $10,394 |
Hawaii
Imagine a 10-day luxury vacation in beautiful Maui, Hawaii. You don’t have to imagine it if you’re willing to splurge on a dream vacation in the Aloha State.
Airfare | $1,544 |
Luxury accommodations ($400 per night) | $4,000 |
Car rental, gas, parking | $1,450 |
Activities ($200 per day) | $2,000 |
Food and drink ($100 per day/person) | $4,000 |
Spending | $2,000 |
Total: | $14,994 |
Over-the-Water bungalows in Bora Bora
Hey, if you’re going to dream about a vacation, you might as well make it absolutely fabulous. Here’s what you can expect to pay for a luxury six-night stay at the Four Seasons Bora Bora for a family of four, based on data from Expedia.
Luxury accommodations and airfare | $13,842 |
Car rental, gas, parking | N/A |
Food and drink ($50 per day/person) | $1,200 |
Spending | $600 |
Total: | $15,642 |
European extravagance
Nothing beats Europe any time of year, and what better way to spend it than seven days and six nights in the heart of Paris? With luxury accommodations in the most fabulous city-center location, your family will never want to leave.
Airfare and luxury accommodations ($2,201 per person) and car rental package | $8,804 |
Gas and parking | $500 |
Food and drink ($100 per day/person) | $2,800 |
Spending | $2,000 |
Total: | $14,104 |
A splurge-worthy cruise
Perhaps you’d rather explore the world via the ocean, and what better way to do this than with an extended luxury cruise? This particular cruise package departs from Los Angeles, and you begin an 18-night cruise adventure with luxury accommodations exploring multiple stops in the Caribbean. This package includes everything you need, starting at $6,640 per person or about $26,560 for a family of four.
Luxurious stay in St. Barts
If you dream of white sandy beaches and European world charm, you’ll love splurging on a six-night vacation to the beautiful St. Barthelemy in the Caribbean. This package includes a beautiful suite for four, breakfast each day, a private beach, and a pool for $4,370 per person, plus airfare.
Luxury hotel package | $17,480 |
Food and drink ($100 per day/person) | $2,800 |
Spending | $2,000 |
Total: | $22,280 |
FAQs
How can I save money for a dream vacation?
The first step is to start with a savings goal – how much can you realistically set aside and work towards? Then, break down the total amount it costs and how many months it will take (or that you can devote to saving). For example, if you want to spend $5,000 and have eight months to save, you would need to save $625 each month. The next step is to calculate how you would save the $625 per month by adding more income, paying off debt, cutting expenses, or other measures to achieve it.
How much money should I save to afford a vacation?
The smartest financial approach for vacation is to save ahead of time, so you’re not racking up credit card debt if you don’t have to. There’s no right or wrong answer to how much you should save. It all comes down to what you’re comfortable with for your own budget and how you can afford it without going further into debt. Do keep in mind, though, inflation has impacted almost every aspect of travel, from airfare to lodging to food and rental cars, which means you may need to save a little more than you have in the past.
Are vacations worth the money?
Only you can decide if a vacation is worth the money and effort. However, keep in mind there are numerous benefits you may experience, including spending time with your friends and family or getting time alone, recharging your own batteries, increased productivity when you return to work, and learning new experiences or about cultures.
Best For Fast Claims
- Up to $250,000 emergency medical coverage for international trips
- Real-time travel care
- Quick claims processing & reimbursements for eligible claims
The bottom line
Vacations are so much more than visiting another place; it’s spending time with your friends and family (or much-needed alone time!), making memories, checking items off your bucket list, and pushing yourself into new experiences. Vacations often come with a hefty price tag, but with a little advanced planning, you can find ways to save so a vacation doesn’t detail your financial goals too.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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