Summer is here, and with it the season of holidays and travel. Like any pastime, a trip to the seaside or the mountains costs money, and paying the travel agency is only the beginning. Let’s take a look at holidays from a financial point of view.
Many people choose a holiday based on the price of the package. But if you want a clear idea of how much the trip will really cost you, you need to look beneath the surface of the whole problem, if you want to call a holiday that. Start with the package price itself. Find out what is included in the price and what is not. Some packages include only transport and accommodation, while others also include meals, excursions or an airport transfer.
Once you start working out how much the holiday will cost you as a whole, you need to consider in particular:
- Whether the price includes transfers to and from the airport
- What type of meals is included (breakfast, half board, all inclusive)
- Whether the price includes airport taxes, insurance and possibly fuel surcharges
- Whether the price includes luggage on the flight
In the end, a “good value” offer may turn out to cost you more overall than another package that looks more expensive at first glance.
What else you pay for on holiday
However, that is not the end of the costs linked to a holiday. On top of the package itself, you need to plan for other expenses. If you are not on all inclusive, food and drink will cost you something. Excursions, attractions and any souvenirs are not free either. You may also pay for local transport, and tips will cost you something too… It really adds up.
You also need to add what you buy before the holiday even starts. After all, you start preparing at home by buying new swimwear, beach towels or shoes. Then comes sun cream or insect repellent, and perhaps a travel first aid kit if the contents of your current one have expired. Even though these seem like small things, altogether these purchases can cost anywhere from several hundred to 1,000 CZK (about 46 USD). If you are travelling with children, the costs rise even faster.
Travel insurance, a small cost, great peace of mind
If something goes wrong on holiday, you can expect an even bigger hole in your wallet, many times over. Yet protection against this is simple and, compared with the risks, almost laughably cheap. It is called travel insurance. Many people forget about travel insurance or underestimate it. Yet it is a service that can save you. It covers the cost of medical treatment abroad, assistance services, injuries, lost luggage and liability for damage.
Without insurance, even a minor health problem can cost you tens of thousands of CZK. For example, dental treatment or tonsillitis abroad can easily climb to 5,000 to 10,000 CZK (about 230 to 460 USD), on top of the pain. In the case of a serious injury or repatriation, the amount can run into hundreds of thousands of CZK.
If you travel once or twice a year, short-term insurance is usually enough. It is taken out for specific days and prices start at 20 to 40 CZK (about 0.92 to 1.8 USD) per day, depending on the scope of cover and the destination.
But if you travel more often, for example on weekend breaks, business trips or frequent European city breaks, annual travel insurance can be well worth it. It covers you automatically for the whole year, wherever you go.
Benefits of annual insurance:
- Nothing to arrange again, the insurance runs automatically
- It pays off with just three to four trips a year
- There are also options covering your family, sports or high-risk activities
Summary, get your calculator out before you fly
Planning a holiday is not just about finding a cheap package. You should try to know all the costs and risks. Draw up a simple budget, add all the other expected expenses to the package price and, above all, do not forget good travel insurance. That way nothing will surprise you, except perhaps the beautiful view from your hotel balcony.
How to prepare a travel budget step by step
A travel budget is a written plan of everything your trip will cost, from the first purchase at home to the journey back. It works best when you draw it up before you book, because it helps you choose a trip that fits your money rather than the other way round.
- Set a total limit. Decide how much you can spend without touching your emergency savings or borrowing.
- Split it into categories. Typical ones are transport, accommodation, food, activities, insurance, local transport and shopping.
- Estimate daily costs. Multiply items such as meals and local transport by the number of days you will be away.
- Add a buffer. Keep a reserve, for example a tenth of the total, for price changes and small surprises.
- Track spending during the trip. Compare what you spend each day with your plan so you can adjust early.
Here is an illustrative example. If your total budget is $2,000 and the package costs $1,400, you have $600 left. Put $100 aside as a buffer and you have $500 for a seven-day stay, which is a little over $70 a day for food, trips and transport.
Budget travel tips that make your money go further
Travelling on a budget does not have to mean giving up comfort. It means spending on what matters to you and cutting what does not.
- Travel outside peak season. Flights and accommodation are often cheaper outside school holidays.
- Stay flexible. Shifting your dates by a few days or flying from a different airport can lower the price.
- Eat where locals eat. Restaurants away from the main tourist streets are usually cheaper, and a room with a kitchen lets you prepare some meals yourself.
- Use public transport. Buses, trams and trains generally cost far less than taxis.
- Watch card fees. When a card terminal or cash machine offers to charge you in your home currency, choosing the local currency usually avoids a poor exchange rate.
Travel budget app or a simple spreadsheet
A travel budget app lets you log expenses on your phone as you go, often in several currencies, and shows how much you have left. Some also split shared costs between friends or family. A spreadsheet or a notebook does the same job if you prefer. What matters is recording your spending regularly, ideally every evening.
Common budgeting mistakes
- Planning only for an average day and forgetting one-off costs such as visas, airport parking or entrance fees.
- Ignoring bank fees for cash withdrawals and card payments abroad.
- Spending the buffer in the first few days.
- Leaving out the costs of getting home from the airport at the end of the trip.
Frequently asked questions about travel budgets
How do I prepare a travel budget?
Start with a total amount you can afford, then split it into categories such as transport, accommodation, food, activities and insurance. Estimate daily costs, multiply them by the number of days and add a reserve for surprises. During the trip, check your spending against the plan.
How can I travel on a budget?
Travel outside peak season, keep your dates flexible and use public transport instead of taxis. Eat where locals eat and prepare some meals yourself if you can. Pay attention to card fees and exchange rates, as small charges add up over a whole trip.
Do I need a travel budget app?
You do not need one, but it can make tracking easier, especially if you pay in a foreign currency or share costs with others. A spreadsheet or notebook works just as well. The key is to record your expenses regularly.
What is budget travel?
Budget travel means planning a trip so that it fits a set amount of money. It does not have to mean the cheapest option in everything. You decide where to save and where to spend so the trip gives you what matters most.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
