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 Budget Travel Center
Recession-Proof Travel Tips
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 Poll: How Has the Economy Affected Your Travel Plans?
Even as American taxpayers bailed them out, executives of AIG enjoyed a $440,000 spa getaway to the decadently luxurious St. Regis resort in Dana Point, California. If those guys think travel seems like a good idea now, who are we to argue, right?
 Actually, that could well be the case. While the still-unfolding global economic meltdown may seem like a major threat to your next vacation, the news may not be all bad. If you are careful, plan for contingencies, pick your travel dates well, take a sensible vacation and look for the bright spots on the travel horizon, you can do very well at the moment -- even if not "billion dollar bailout baby" well. Here are my tips on where to look, and where to look out, when planning your next trip.
Reality Check Yourself
Your first consideration, obviously, should be your own financial situation. Many of us need and deserve a vacation, but nothing says you need a full-on splurge for a stay in a luxury resort (even if you are a bailout recipient) or a week on a private beach. Even the high costs of a trip to The Mouse (Disney World, that is) might stretch your budget near to a breaking point if the current financial situation gets any worse -- or if it starts affecting our day-to-day life more than it does in the immediate moment.
If you are inclined to irrational exuberance about what you want and can afford in a vacation, taking a hard look at what a vacation actually costs you can sometimes be a good exercise. Thus, I recommend you...
Do a Travel Budget
If there was ever a time to do a proper travel budget, this is it. Most travelers I know tend to do a quick accounting of the big expenses -- airfare, hotel, car rental, park or attraction admission -- add them up, and call it a budget. However, in a classic case of lots of small costs adding up to big expenses in the end, the less obvious costs incurred while traveling can turn out to be the actual budget breakers. Toward creating a more accurate budget, remember to research and include the following when planning:
- Parking at airports or attractions
- Attraction entry fees
- Activity costs such as bike rentals, scuba lessons, boat rides, etc.
- Hotel tips and parking where necessary
- Rental car gasoline
- Pricey airport and theme park meals
- Internet access
- Cell phone roaming charges
- Travel insurance
- Equipment rentals such as child seats, strollers and the like
Need help? Check out our cool new Travel Budget Calculator.
The U.S. Dollar
 While most Americans worry that each dollar won't have as much clout at the local grocery store, it turns out that our currency will do much better internationally than it has in some time. Currently at $1.36 against the euro, the dollar is the strongest it's been since summer 2007.
An improving exchange rate directly decreases the toll of those day-to-day expenses that can pile up during overseas travel. These are some of the costs I outline above in the budget section -- things you purchase on the spot in local currency, and which thus actually get cheaper when the dollar picks up a little strength.
Tip: As exchange rates fluctuate, sometimes updates on rate quotes in U.S. dollars on items like hotels and other fixed price purchases can lag. That is, just because the dollar is doing better this week does not mean that the hotel you hope to book has adjusted their USD price quotes or updated their Web site -- chances are that those rates are exactly the same as they were a month ago. When booking hotels, if the hotel offers a USD rate, compare it to the current exchange rate to see how it stacks up, and ask for a better rate if you appear to be taking a hit.
Gas Prices Down
As of this writing (October 8), national gas prices are pegged at around $3.40 per gallon, down 25 cents from a month ago, over 70 cents from the July 2008 high and even almost five cents from October 7, just a day earlier! That said, prices remain up considerably compared to just one year ago this week, when a gallon averaged $2.76. So you are still worse off than you were at this time last year, but gasoline prices are not quite the bank breaker that they were just a few weeks back.
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