Vacations are part of what makes working worth it. I recently took a vacation to Australia and was surprised at how little I spent. While spending money at restaurants and experiences I felt like I was probably spending more than I should. Luckily I had the strength of the US dollar on my side!
That combined with some conscientious travel decisions helped me enjoy my vacation on a fairly modest budget.
Planning Vacations – Take Advantage of The Strong Dollar
This got me thinking about the concept of arbitrage, specifically for vacations. So below is a list of countries where your USD goes further, helping all of us who need a vacation but who are still on a budget. Start planning your vacations now!
Here is a link where you can check current currency exchange rates for your vacations. Make sure to be informed while planning your vacations!
Euro Countries Vacations
The USD is almost on par with the Euro, at its best exchange rate in the past 20 years. The rate is now 1.00 USD to 0.99 Euro. While we’re still at a slight disadvantage with the USD, this is the best time to visit Europe in quite a while. There is of course the war in Ukraine that you need to consider, but reports from my friends living/studying/visiting in Europe is that there is not too much of a change to daily life in Western Europe.
However, recent news makes me feel a little guilty about advocating for vacations to Europe. A war, a potential gas crisis, and crushing inflation make for a pretty depressing backdrop.
At the end of the day, plan the vacations that you feel comfortable with and be reasonable. Don’t go on a European vacation to Turkey and be surprised at being close to a warzone.
Australia Vacations
I rented a short-term studio apartment with a kitchenette for about 760 AUD for 6 days. That’s currently 516 USD, so I paid 86 USD per night for a studio apartment in Potts Point with a small kitchen that let me cook some of my meals.
The current exchange rate between the two currencies is around $1.00 USD to $1.35 AUD. Essentially one USD can purchase roughly 33% more in Australia than in the United States. I use Mint to help track my expenses, and I’ve actually spent less this month after my big vacation than I did at this point last month.
Canada Vacations
Canada is significantly cheaper to get to than any country on the other side of the Atlantic or Pacific. Currently, the exchange rate is 1.00 USD to 1.30 CAD which makes it an excellent choice for a quick vacation. Toronto is the only Canadian city I’ve visited but it’s a huge country with lots of cities and nature to see.
Use Public Transport on Vacations
Lets be honest, most cities abroad have much better public transport than cities in the United States. I took a 2 hour train ride from Sydney to the Blue Mountains and it cost me a total of around $8 AUD. You will save so much money taking buses and the subway instead of Ubers and taxis.
Cook At Your Apartment/Hostel While on Vacations
I booked a small apartment with a kitchenette so I could make some meals to save some money a couple days. If you’re in a hostel they usually have a community kitchen that is free for you to use. I bought groceries for around 3 days worth of dinners and breakfasts for around $40 USD. Definitely a great way to cut back on some expenses while you’re on vacation.
This is a fun way to see what other countries have in stock at their grocery stores. Lots of the chicken in Australia came preseasoned with Indian spices, and there were tons of tropical fruit. Being able to experience other countries way of life during vacations is also very rewarding.
When I travel on vacations I like to try to behave like a local, cooking your own meals is a great way to fit into the culture.
Stay Close To Home While on Vacations
The most expensive part of my trip was the plane ticket to get to Sydney. Obviously I could have saved even more money if I traveled a little closer to home. Even Western Europe would have cheaper flights than flying from Detroit to Sydney for vacation.
Typically the most expensive parts of vacations are actually getting to your destination. Any way you can reduce that expense ensures you can stay way under budget while on vacation. My round trip flight from Detroit to Sydney booked 3 months in advance was $2000.
I did upgrade to Delta Comfort+ because of my height. The 15 hour flight from LA to Sydney would have been unbearable in the main cabin, I think the upgrade is worth it for any long haul international flights.
It’s essential to save our money, but let’s also enjoy it while we can. Find some time for a couple of quick vacations, whether its on the other side of the world or a couple hours down the road.
Drake is a freelance writer who’s interested in history, economics, art, & beer. Drake graduated with a degree in Supply Chain Management and began working at General Motors. He writes about popular personal finance topics and shares his journey. Make sure to check back for more posts on Abnormal Money.