Yahoo Finance 15 Top Forgotten Elements To Include in Your Holiday Travel Budget
Taking a trip can be a great way to celebrate the holidays, whether it’s to visit relatives or go on vacation, but it’s important to be financially prepared before you go. That way, you can enjoy your travels without worrying about any hidden or unexpected costs.
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Whether you’re planning a last-minute trip or you’re thinking ahead for next year, here are the top 15 forgotten elements to remember to include when creating your holiday travel budget.
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Calculating Your Trip From Start to Finish
If you’re planning a holiday trip, you’ve probably already considered costs like airfare and hotels. But there are so many components to taking a trip that it’s all too easy to overlook certain ones that come up later.
Justin Albertynas, a former travel agent and the current CEO at Ratepunk, provided some tips on making sure you don’t overlook these expenses. “Start with major expenses,” he said. “These are your non-negotiables, like airfare, accommodation, and car rentals (if needed). Use travel websites to compare prices and get a rough estimate.”
Once you’ve calculated those, estimate your daily expenses — like meals, local transportation and attraction entry fees. “A good tip is to research the cost of living in your destination to get realistic figures,” said Albertynas.
Next, factor in the miscellaneous costs. “This is where you add those often forgotten expenses — luggage fees, snacks, souvenirs, and emergency funds,” he said. It’s OK to use estimates here. When in doubt, err on the side of caution and assume you’re going to spend more than you actually will.
Albertynas suggested staying organized by using budgeting apps or spreadsheets, too. “These tools can be incredibly helpful in keeping track of all these costs and updating them in real-time,” he said.
Now that you have a decent starting point, let’s get into those most commonly forgotten elements in your holiday travel budgets.
Travel Insurance
Not everyone gets travel insurance, but it can give you peace of mind, especially when visiting places overseas with the family.
“Depending on where one is going for the holidays, they may need travel insurance which can cost them money for every single day that they are away on holidays,” said Sebastian Jania, owner of Ontario Property Buyers. “For many people, they do not consider this until it’s too late and they find themselves in an unfortunate situation.”
Travel insurance can cut down on your financial risks while traveling. Depending on the policy, you could be protected in the event of missed flights, canceled events, accidents, health issues, lost luggage, theft or other emergencies.
Local Transportation
“People frequently neglect to factor in the cost of getting around once they reach their destination,” said Albertynas. “Whether it’s taxi fares, public transport costs, or car rental expenses, these can add up quickly, and depending on the city, it can make quite a dent in the budget sometimes!”
If you plan to rent a vehicle, you’ll also need to include that into your travel budget. Along with this, you might need to purchase a separate car insurance policy for the duration of your rental. You’ll also need to consider gas for the rental.
Checked Luggage
If you’re taking a flight or train somewhere, you might also have to deal with checked baggage fees. “Since most people prepare for the cost of the flight itself, many find that they forget about any additional costs of holding luggage,” said Sam Dallow, accounting, finance and tax expert at Counting King.
Parking Fees
“There may also be extra charges for airport parking or transportation within the premises. Over time, these fees will add up,” said Dallow. “Equally, if you’re being dropped off, consider the cost of fuel or of the transport itself.”
Toiletries and Other Essentials
While you’re probably bringing your own toiletries, you might find yourself needing to buy more once you arrive. This could happen if you run out or if your luggage gets lost in transit. It could also occur if you pack something in your carry-on and can’t take it on the plane.
“For many people, they’ve gotten to the airport ready to travel only to discover that so many of their toiletries are larger than the minimum allowable amount and they get thrown out by airport security,” said Jania. “One should factor in the chance that some of their belongings will be discarded at the airport and will have to be purchased anew at the travel destination.”
Gifts and Souvenirs
If you plan to purchase souvenirs or gifts for loved ones while traveling, make sure you’ve included that in your travel budget. “Budgeting for gifts is a lot easier when spending Christmas at home, but when traveling for the holidays, one may often forget that they have to include the cost of their gifts in the budget,” said Jania.
Not only that, but if you purchase too many things, the extra items could require you to pay for additional luggage or oversized baggage costs. If you need to ship items overseas so that they meet you when you get back home, this will also add to your total travel expenses.
Currency Conversion Fees
Traveling overseas? Make sure you’re accounting for any currency exchange fees.
“Currency conversion rates are also often overlooked by families preparing to go on holiday,” said Dallow. “Ideally, you’ll have changed your currency beforehand in a local bank or currency provider — the rates here are almost always cheaper than those offered in the airports. If you’ve got enough time to prepare, keep an eye on the exchange rates, and take advantage of the conversion when the rates are low.”
Pet-sitting or House-sitting
“If you have pets, account for the costs of pet care, whether through boarding fees or hiring a pet sitter,” said Ashley Vincent, financial expert and owner of Home Investors.
You might also want to stock up on pet supplies before you go, which can add to your total travel costs. And if you’ve hired a house-sitter or someone to watch your plants, you might need to pay for that as well.
Snacks and Food
You’ll need money set aside for general food and dining out once you’re at your destination, but it’s also important to consider snacks and refreshments while in transit.
“Many people have no issue budgeting for main meals, but traveling can burn tons of calories! You’ll want snacks while you’re exploring new places, and a hot coffee during winter travel can make all the difference,” said Taylor Beal, the owner of Traverse With Taylor. “I recommend people set aside a few hundred dollars for anything they see that they really want.”
This could also include stuff like water, gum and local snacks that you can’t get in your home country.
Vaccinations
If you’re traveling abroad, you might need to get up to date on your vaccinations. Depending on your health insurance plan, you may end up paying for these costs out of pocket.
Accommodations or Lodging Fees
Along with the rate-per-night cost of accommodation, make sure you’ve budgeted for related fees too. This could include a fee for on-site or valet parking. It could also include a room cleaning fee or an initial refundable deposit.
Depending on where you go, you might also get hit with additional lodging taxes.
Activities and Attractions
“People often focus on the main expenses like accommodation and transportation but overlook the costs associated with activities and entertainment,” said Harrison Jordan, J.D., founder and managing lawyer at Substance Law. “Whether it’s visiting attractions, going on tours, or attending events, these activities can have a significant impact on your budget.”
Take some time to research your destination and plan an itinerary and budget around all of the things you want to do while on your trip.
Tips
Not all countries require tipping, but if you’re visiting a destination that does, you’ll need to account for that. Some of the most common times when you’ll need to tip include walking tours, dining out, and taxi rides.
Cell Phone or Internet Fees
If you’re traveling internationally, you might need to pay for cell phone or internet service fees. These can really add up, especially if you regularly use these devices while abroad.
For longer trips, you might also want to consider purchasing a temporary SIM card so that you can make local calls without an issue.
Special Apparel or Gear
Consider the climate of the place you’re visiting. Depending on what it’s like, you might have to purchase separate apparel or gear to be able to fully enjoy your trip. If you forget to pack something important, like gloves, a hat or sunglasses, you might need to buy it once you arrive.
Budget for Your Trip and Prioritize Your Spending
Ultimately, one of the most important things is to take the time you need to plan out your trip before booking anything. That way, you’ll have the chance to calculate the total costs without having committed to something that ends up being too expensive.
Tanya Peterson, vice president of brand at Achieve, suggested referring to your regular household budget to see if you can realistically afford a holiday vacation. If the answer is yes, you should then dedicate a portion of your budget to the trip itself. Once you’ve done that, you can create a separate travel budget with as many costs as you can think of — and then some.
Last but not least, prioritize your spending. “Allocate your budget to what’s most important to you. If four-star accommodations are key, prioritize those and figure out how to cut back in other ways,” said Peterson. “Maybe you can stay in a hotel outside of the city center, rent a home and/or go out to eat less often. Or if buying certain (expensive) theater tickets is important, cut back elsewhere.”
Finally, if you’re worried you’ll miss something when planning your holiday travel budget, create a separate category for miscellaneous or emergency expenses. That way, you’ll be covered if something happens.
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This article originally appeared on GOBankingRates.com: 15 Top Forgotten Elements To Include in Your Holiday Travel Budget
