9 common misconceptions about budget travel

Many believe that traveling is simply too expensive. However, there are numerous ways to save while discovering new destinations — and with some smart planning, you can make your budget go much further than you think.

When you think of budget travel, you might picture camping, taking buses, and staying in hostels, but you don’t have to resort to sleeping outdoors (or on overnight buses) to save money. Don’t let myths about budget travel hold you back from exploring. Here’s why.

Luxury travel is achievable

For around 14 years, I've embarked on budget-friendly journeys, each taking on various exciting forms.

At the budget-friendly end, I’ve spent nights in hostels and even pitched tents at state parks and music festivals. More often, I save money by choosing affordable hotels that are part of major loyalty programs. For instance, when I began traveling full-time as a digital nomad, I found that limited-service hotel brands like Holiday Inn Express offered a great balance of cost and a productive environment.

I also occasionally use points for special hotel stays and indulge in a few well-priced hotels through Amex's Fine Hotels + Resorts program each year. A few years back, I enjoyed $160 worth of food and drinks included on a $153 stay at the Loews Chicago Hotel.

I've experienced my fair share of buses and trains — including a memorable overnight bus in Turkey that broke down repeatedly on winding roads, a second-class trans-Mongolian train, and a 45-hour journey in an Amtrak Roomette — as well as numerous flights with budget airlines. However, by booking low-cost mistake fares and using points and miles, I’ve also enjoyed premium cabin experiences for a fraction of the usual price.

This all demonstrates that budget travel can include camping, hostels, hitchhiking, and buses. However, based on your preferences and financial situation, you may not have to opt for the cheapest option or cut corners on every aspect of your trip. Instead, budget travel is primarily about making choices on how to allocate a specific amount of money you’ve set aside for your journey. Even if you don’t have a defined budget for your travels, you can still reduce your costs and achieve good value.

Budget travel is a choice

For some travelers, adhering to a budget is a crucial part of trip planning. Yet for many, regardless of their financial constraints, there’s nothing more fulfilling than obtaining great value.

I often opt for budget travel even when it’s not necessary. While I haven’t stayed in a hostel dorm since 2017 and now prefer to fly rather than endure lengthy bus rides, I still strive to keep my expenses low. For instance, I typically select one of the most affordable hotels that is part of my primary hotel loyalty programs. And when I can book an off-peak Category 1 Hyatt hotel for just 3,500 points per night, I usually take that option, even if the location isn’t perfect.

I always explore public transportation options and aim to use it when it's more efficient and cheaper than taking a taxi or ride-hailing service. I also prefer budget-friendly local cafes and restaurants, both for saving money and enhancing my experience. One of my favorite travel activities is simply strolling through neighborhoods, which is completely free.

You can still explore luxury destinations

The main barrier to visiting certain places on a budget often lies in the cost of flights. Fortunately, with some patience, you can typically discover affordable airfare. Additionally, if you accumulate airline miles or transferable points, you can book an award flight.

Of course, it’s essential to factor in expenses once you arrive. However, even places known for their high prices and luxurious accommodations can still be accessible to budget travelers.

After all, you can frequently save money by dining at local eateries or shopping at grocery stores. If you stay at a local guest house, the owners might organize budget-friendly activities for you. For instance, in Maupiti, French Polynesia, I paid my guest house around $40 to join other guests on the family’s boat for what turned out to be the best excursion I've ever experienced: swimming with manta rays.

In destinations like French Polynesia and the Maldives, known for their luxurious resorts, you can still discover reasonably priced Airbnb options, independent resorts, and even hostels. Additionally, inexpensive ferries can help you reach various locations within these island nations. If you're looking to indulge in a night or two of luxury during your trip, you might find it affordable by using hotel points or obtaining a hotel credit card that offers an annual free night.

You can save on upscale hotel stays

Upscale accommodations are not off-limits, even for budget-conscious travelers. In fact, you can discover affordable luxury hotels in certain locations.

Moreover, you can redeem hotel points for stays at upscale properties. For instance, World of Hyatt features several attractive Category 1 hotels, such as the Park Hyatt Chennai and the Hyatt Regency Kuantan Resort, available for booking at just 3,500 to 6,500 points per night. You can transfer Ultimate Rewards points, which you earn through cards like the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve®, to Hyatt to secure these low-category treasures.

Budget-conscious travelers can also enjoy upscale hotel stays by using annual free night certificates available with certain hotel credit cards. For instance, the Marriott Bonvoy Boundless® Credit Card provides cardholders with a 35,000-point free night award each year after their account anniversary, while the World of Hyatt Credit Card grants a Category 1-4 certificate upon each cardmember anniversary.

In short: If staying at luxurious hotels is important to you, don’t just assume it’s impossible while traveling on a budget.

You don't have to stick to budget airlines

Budget travelers might think their only option is to fly with low-cost airlines. However, with many full-service airlines now offering basic economy fares, you might discover that the best deal is actually on a full-service carrier. Just be sure to understand what your fare includes and factor in any additional costs (like baggage and seat selection fees).

If you plan to check a bag, it might be wise to sign up for an airline credit card before your trip. Many credit cards offer free checked bags as a perk. For instance, the Delta SkyMiles® Gold American Express Card has a $0 introductory annual fee for the first year, then $150 (see rates and fees). This card provides a valuable benefit: the first checked bag is free for the cardholder and up to eight companions on the same booking.

You can also utilize an aggregator like Google Flights to compare fares before making a reservation. If your travel dates or destination are flexible, you might find a great deal.

Airport lounges can be a money-saver

Airport lounges offer significant value, especially for budget travelers. They provide an excellent spot to grab a snack — or even a light meal if you're trying to save — along with a drink.

Budget travelers can gain even more from airport lounges than the average passenger. For instance, those who spend the night at the airport may appreciate the opportunity to shower in the lounge before their flight.

Fortunately, obtaining airport lounge access via a credit card is fairly straightforward. Check if your home airport or the ones you frequently pass through feature a Chase Sapphire Lounge, Centurion Lounge, or Capital One Lounge. However, for many budget-conscious international travelers, a Priority Pass Select membership or LoungeBuddy credits could be far more beneficial.

You can benefit from premium travel rewards cards

Don’t assume that premium travel rewards cards are off-limits for budget travelers. If Hilton hotels fit your budget, for example, you might find value in adding the Hilton Honors American Express Aspire Card to your collection.

Indeed, the Hilton Aspire's $550 annual fee can be tough to swallow. However, the value becomes clearer when you consider the numerous perks the card offers, such as top-tier Hilton Honors Diamond status and one complimentary reward night each year. Additionally, the Hilton Aspire provides several statement credits that can exceed the card's annual fee in value:

• $400 Hilton resort credit: Enjoy up to $200 in statement credits every six months (January through June and July through December) for eligible purchases at participating Hilton resorts when using your Hilton Aspire card.
• $200 flight credit: Receive up to $50 in statement credits each quarter (January through March, April through June, July through September, and October through December) for eligible airfare purchases made directly with an airline or via amextravel.com with your Hilton Aspire card.
• $189 Clear Plus credit: Earn up to $189 in statement credits each year when you use your Hilton Aspire card to pay for an annual Clear Plus membership.

The information regarding the Hilton Aspire card has been independently gathered by Dinogo. The details presented on this page have not been reviewed or provided by the card issuer.

Naturally, a premium travel rewards card may not suit every traveler. Therefore, it’s essential to evaluate the potential value you’ll receive from a card before enrolling.

Mid-tier travel rewards cards offer great value

You don’t necessarily have to pay a hefty annual fee for the perks you want. In fact, many reasonably priced cards provide lounge access, free checked bags, complimentary night certificates, and even assistance toward elite status. It might be worth exploring whether a cobranded card with your preferred airline or hotel can offer enough benefits to justify its annual fee.

Take the United℠ Explorer Card as an example. This card features a $0 introductory annual fee for the first year, followed by a $95 fee thereafter. Cardholders receive two one-time United Club passes annually, a free first-checked bag for themselves and a travel companion on the same reservation, priority boarding for both the primary cardholder and their companions, and 25% back on purchases for United inflight food, beverages, and Wi-Fi.

Alternatively, consider the IHG One Rewards Premier Credit Card. With a $99 annual fee, this card provides members with an anniversary night worth up to 40,000 points each year after their account anniversary. Primary cardholders also automatically receive IHG One Rewards Platinum Elite status and benefit from the fourth reward night free perk when redeeming IHG points for stays of four nights or more.

If a cobranded hotel or airline card isn’t suitable, you might look into a travel rewards card like the Chase Sapphire Preferred Card. I frequently recommend this card for its valuable travel protections and bonus points on travel and dining expenses, all for a reasonable $95 annual fee.

You can enjoy premium cabin experiences

Many budget travelers never consider flying in business or first class; they'd rather use their hard-earned points or cash for more trips or longer stays. However, points and miles can open the door to premium cabin experiences, and sometimes the additional cost of booking a business-class award instead of an economy one is worthwhile.

When flying internationally, booking a business-class award may also grant you access to some amazing lounges. Plus, if you plan to check several bags, booking a premium cabin ticket might help you reduce your checked baggage fees. In essence, think about the overall experience you could enjoy when deciding whether to treat yourself.

In summary

Budget travel varies for everyone. If you're trying to stick to a tight budget or simply want to save money, it's essential to maintain a broad perspective. This approach allows you to prioritize spending on what truly matters to you.

Think about your priorities and what brings you value when determining where to save and where to indulge. This way, you can cut costs where possible while investing in experiences that bring you the greatest joy.