We have a $5000 annual vacation budget. That is all we ever spend. Some years we have a ton of awesome trips, some years one BIG trip. The travel account has the ability to "save" money, but not to borrow money. So if we want to do something expensive, we can.
We like to travel and often do so on the cheap. Typically, we can get at least one flight free (using miles), we have no real airline loyalty, and luckily live near a couple of large airports. We try and find hotels under $100 per night or $125 with breakfast; we are very successful with that price range. We never stay in low-level hotels, we just look for awesome deals.
A couple examples:
Marriott Renaissance with breakfast in DC in April 2010, we stayed 4 nights for $89 a night. We took cheap Southwest flights, under $200 per person and then took the Metro for transportation. Nearly all our entertainment was free (museums) and we visited the Whole foods for some room food, and ate at inexpensive restaurants or museum cafeterias. I think we spent $6 on a souvenir at the Supreme Court gift shop.
The best deal however was our 2005 winter trip to Sweden--we left on 26 December. We flew into Stockholm and home from Copenhagen--we booked an SAS special including taxes for $300 roundtrip per person. Then we found a $38 a night hotel rate at the Scandic chain. We spent 14 nights, in various Scandic's throughout Sweden/Norway/Denmark, never spending more than $50 including tax.
We had a rental car for the middle 7 days from
Avis, for $250. (Basically, we did 3 nights in Stockholm--picked up the rental car, then drove around Sweden/Norway--then back to Stockholm where we dropped off the rental car and flew to Copenhagen for the last 4 nights. It sounds confusing, but it was the best route for use based on some visiting obligations.)
Our only other costs were food. Since nearly every European hotel includes a BIG breakfast, we were covered for breakfast. Honestly, we ate so much for breakfast, no on wanted lunch--just a snack. Dinners were eaten at fancy restaurants if we wanted or one night at Burger King (because it sounded good). All in we spent less than $3000, including our shopping.
For our family, travel is not about how much money we spend; but is about the experience. If find a super cheap airfare deal, or travelzoo hotel deal, we will investigate the other costs and often times plan a trip. We have been to many places, that are considered "luxury" destinations; but they were definitely done on a "beer budget".
One of my favorite hotels is typically a $400-500 a night Fairmont hotel. Yet, I have been able to stay there 4 times for less than $100 a night. The hotel amenities are just as nice, if not nicer, at $100 than they are at $400.
Disney is a little harder to get fabulous deals, since they are pretty consistent in their pricing. Also the growing number of home-schoolers and kids with year round school schedules has changed how Disney prices their low seasons. Yet we still find deals.
