Some Tips of Traveling Abroad and Staying Within Your Budget
 

Some Tips of Traveling Abroad and
Staying Within Your Budget

By: Steve Michael
The Henssler Financial Group Position Paper

 

European traveling, vacation, weak dollar, budget traveling , financial advice on travel

According to a study by the U.S. Department of Commerce's Office of Travel and Tourism Industries, more than 63 million U.S. residents traveled abroad in 2006. It is interesting to look at the top 10 countries visited by Americans in that year. Mexico and Canada were at the top of the list, followed by the United Kingdom, France and Italy. Tied for sixth place were Germany and Jamaica. The Bahamas, Japan and China rounded out the top 10 destinations. It is clear that Europe, with four of the top 10 most visited countries, is still a very favored travel region, with the Far East moving up in the rankings.

The U.S. dollar reached an all-time low against the euro in the last few weeks, with the U.S. dollar only buying about .63 euros. Also for the first time since 1995, the U.S. dollar traded below 100 Japanese yen. Although our dollar will inevitably rebound at some point, its impact on making travel abroad expensive cannot be ignored.

In view of the weakness of our currency, should you ditch those plans to "mind the gap" on the London Underground rapid transit system and just be "SMARTA on MARTA"? Do the weakling "George Washingtons" in your wallet make you want to forego the delicious gelato of Italy in favor of a trip downtown to the world famous Varsity for a fried peach pie? Should you cancel that trip half way around the world to visit one of the Seven Wonders of the World or just travel a couple of hours to Rock City, Tenn. to see Seven States from one vantage point?

We think if you plan properly, apply some creativity with the power of the Internet, and stretch those "greenbacks," you can still afford that trip abroad this year. First of all, the slowdown in the economy and weak dollar means that bookings are soft for airlines and hotels, so there is more discounting to fill airline seats and hotel rooms. If you are flexible enough to travel during off-peak seasons for the area you want to visit, the prices will generally be lower. For example, a great time to travel to Europe is after Labor Day, when the weather cools a bit and the crowds thin out.

Some of the airline deals also include hotel rooms. To find the best airfares on your own, start searching web sites to see who is offering the best fares. My three favorite multi-airline booking web sites are www.kayak.com, www.orbitz.com and www.zuji.com. Being flexible on travel dates should yield the lowest fares available. Once you find the airlines with the best deals for when you want to travel, you should then check the web site of the particular airlines that you identified. Sometimes you will find an even better deal or a companion travel package that is even more attractive. Just use www.google.com to locate the web site of the individual airlines.

When traveling within Europe or Asia, consider using trains. Trains in Europe and Asia are generally more pleasant and utilized more than the ones in the United States. Trains can offer an economical means of travel, and an opportunity to see some of the countryside you would miss by flying. Some train systems offer passes for multiple legs at a discounted rate. Try www.eurail.com for Europe and www.japanrail.com for Japan.

A key to keeping your foreign travel within a reasonable budget is by looking at your hotel room for its most basic utility, which is a place to safely sleep at night. If you have to stay at a hotel comparable to the Hiltons and Marriotts of the United States, you will pay big dollars to achieve that standard overseas. On the other hand, if you are willing to sleep in a smaller and less luxurious room, you can spend less and stay within your budget. After all, the prime purpose of vacationing overseas is to partake in the sights, sounds, food and ambiance of the foreign countries and cultures.

One excellent web site for selecting a decent hotel room at a good rate is www.tripadvisor.com. Trip Advisor offers reviews by other travelers and gives you a wealth of valuable information. This web site requires you to take some time to browse through various reviews by fellow travelers of hotels, with oftentimes conflicting opinions of the same property. This site compiles all opinions and offers a ranking of hotels in different cities. This process has yielded a treasure trove of value and related ideas for me. By reading the comments, I have found good restaurants with reasonable price in the areas I visited. Discussions about worthwhile, but less known, local attractions and events also appear in the postings on this web site. Trip Advisor even offers a booking feature to put in your desired dates to stay, and it will automatically populate multiple booking web sites to quickly check out the best rates. This site links to multiple hotel web sites, such as www.travelocity.com, www.orbitz.com and www.expedia.com. It also links to less well-known European and Asian travel booking web sites such as www.tablethotels.com and www.booking.com.

Another web site I have had success with was www.agoda.com. Last year, I found a room at the Rome, Italy Airport Hilton for $140 a night, which was more than $100 below the price the Hilton web site was offering. Another web site I have had success with is www.hotels.com. Just as with airfares, it is smart to check the web sites of the individual hotel or hotel chain that you find the best deal with on the multi-operator travel web site. Oftentimes, you can get the same or slightly lower rate from the hotel or hotel chain directly, and have more flexibility on payment and/or cancellation terms.

I think travel is one of life's great adventures. So don't let the decline in the buck get you down this year. Just apply a bit of American ingenuity to find the best deals that will enable you to keep your travel plans and your budget intact. Bon voyage!


All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products and this overview is not to be construed as an offer to purchase any insurance products.

 
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