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Estimate the Cost of a Long Trip

These tools and sites will help you develop a travel budget before you plunk down any money.

If you're planning a long trip in today's economy, chances are you've got less room for error than you used to. Returning home with big surprises on your credit card isn't an option anymore. This post will help you develop a rough idea of what your trip is going to cost -- and if you can afford it -- before you fork over any cash.

Bluff_signpost.jpgIn addition, I've created an easy-to-use calculation spreadsheet to simplify the process even further. Two of the biggest factors that will affect the cost of your trip are your choices in destinations and accommodations. For airfare, we'll use estimates based on currently available fares. (We'll discuss airfares more in a future post.)

Destinations
Travel in the developing world is substantially cheaper than the Western world. A week in Hanoi, Vietnam, in a hostel dorm room, with food and drink can run you as little as $140 a week. That's about $10 a night for the room and about $10 a day for a couple of meals and drinks from street vendors.

An inexpensive room in Melbourne, Australia, plus food can run three times as much. Europe, Canada, South Africa, the U.K., New Zealand -- they're all pricey. But if heading West is your goal, all is not lost. Be sure to check the currency exchange rates. The dollar has strengthened significantly against many currencies, notably the New Zealand dollar and the South African rand. These Western countries may be worth a second look, if this trend continues.
 
low-end budget.jpg
[A budget for a low-cost trip to the developing world. Note that accommodations are in dorm rooms, which aren't for everyone.]

(Image from Rosstravels.com)

Accommodations
Hostels aren't just for kids anymore. On a recent trip, I stayed at hostels in five different countries. This cut my accommodation costs buy at least half. Most hostels were decent. A few were stellar. A couple were barely bearable. Check out my review of hostels and guest houses.

I'm not big on staying in dorm rooms, so I always forked out for a single. In a Hanoi hostel that bumped my bill for room and board to about $200 a week, which is still much cheaper than Australia. Naturally, if you want to spend $500 a night, you can do that anywhere in the world -- even in a small beachside town in Vietnam.

Flights, Travel Insurance, and Contingency
The cheapest way to fly is to find a special on one of the sites that specializes in long-term travel, like Airtreks or Airbrokers. Often these outfits use lesser-known airlines, so get all this information upfront before you hand over a credit card.

If you've got more to spend or a travel agent you like, check out around-the-world fares on Oneworld or Star Alliance. Get estimates from a few of these companies and then play them against each other. For the purpose of this article, we'll assume airfare for a low-cost trip focusing on developing countries at about $3,000. We'll add another 15 percent for traveler's insurance, which will include medical insurance, trip interruption, and evacuation in case of emergency for four months of travel.

mid-range budget.jpg
[A budget for a mid-range trip to developing and developed countries. Note that some accommodations are in dorm rooms and some are single rooms.]
(Image from Rosstravels.com)

At this point, you should have a subtotal for room, board, flight and insurance. Then add another 20 percent for contingency (in-country travel, entertainment, and miscellaneous items). If this is your first time on an extended trip, you may need to purchase gear, such as a backpack, and other items that could add another $600. Then enter your numbers into this budget-estimation spreadsheet.

May the numbers be with you.

Experience At-a-Glance

Web Tools and sites in this article:

XE.com: Easy-to-use currency-converter lets you see latest rates of 85 different currencies.

Budget-calculation spreadsheet: Spreadsheet created by Rosstravels.com. It contains line items for room and board by region -- developing and developed countries -- plus airfare, travel insurance, gear, and contingency.

Review of Hostels and Guest Houses: The lastest prices and reviews for accommodations in Athens, Bangkok, South Africa, Vietnam, Cambodia, Melbourne, and Auckland. These are all places at which I've stayed.

Airtreks, Airbrokers, Oneworld, Star Alliance: Sites offering multi-stop international and around-the-world plane tickets. Get a few prices and then play them against each other.

Other links and resources:

Hostelworld.com: This site lets you price and prebook hostels, guest houses, and low-cost hotels around the world. You can even request to picked up at the airport.

The Backpack: Better Than a Suitcase: For a long-term trip, particularly if you're visiting less-developed countries, consider using backpack.

 

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The Author

Randy Ross

Randy Ross

Travel Adviser

Randy Ross, an award-winning magazine editor, is the publisher of RossTravels.com, which provides international news, advice and cautionary tales for people on the go. He's based in Boston.