Creating a holiday budget

14 October 2026 · Updated on 11 November 2026, by Miquell Hellings
8 min read

A good holiday budget does not have to be complicated. Basically, it consists of three parts: fixed costs you pay in advance, variable expenses during the trip and a small buffer for unexpected costs. Once you put these three next to each other, you can see much faster what your holiday can really cost.

That is why there is no standard amount that works for everyone. Your destination, trip length, travel companions and desired level of comfort make a big difference. Below, you will approach it practically: first create a budget, then book more smartly and finally keep your expenses under control while travelling.

List all costs in advance

Create one simple overview in which you note for each item what you expect to spend, what has already been paid and what you still need to save.

Cost item	Estimated amount	Already paid	Still to save	Note
Transport	Flights, train or car	Yes/no	Remaining amount	Remember reservations
Accommodation	Hotel, apartment, campsite	Yes/no	Remaining amount	Including surcharges
Luggage and insurance	Cabin baggage, checked baggage, travel insurance	Yes/no	Remaining amount	Often forgotten cost
At your destination	Food, local transport, excursions	Usually not	Full amount	Work with a daily budget
Extra costs	Cash withdrawals, currency exchange, parking, tips	No	Full amount	Add a small buffer

Set a target amount for each type of holiday

A city break of a few days requires a different budget than a two-week family holiday or a long-distance round trip. It is not only the length of the trip that matters, but also how many people you are travelling with and how much convenience you want. If you travel light, eat simply and plan few paid activities, your total will usually stay lower than with extra luggage, taxis, restaurants and excursions.

So do not start with one rough guess. First check current prices for transport and accommodation, as these often make up the largest part of your holiday costs. Only then add a realistic daily budget for food, local transport and activities.

Calculate how much to save each month

First determine your target amount: add up all fixed costs, your estimated expenses at your destination and your buffer.
Subtract anything you have already paid or set aside. This is the amount that is still outstanding.
Divide this remaining amount by the number of months until departure. This tells you exactly how much to save each month.
Automatically transfer this amount to a separate savings pot. If the monthly amount is too high, adjust your destination, length of stay or daily budget in time.

Save money before departure with smart booking choices

Choose your destination and season carefully first. Outside school holidays and peak months, prices are often lower and you are also less likely to face high surcharges for accommodation, transport and popular activities.
Use flexible departure dates if possible. Leaving a few days earlier or later can already make a big difference. Calendar views and comparison websites quickly show which days or weekends offer the best prices.
Do not just compare packages, but also separate components. Sometimes a flight plus separate accommodation is cheaper, while in other cases a package gives you more clarity and fewer additional costs.
After comparing, always check the provider's or carrier's own website as well. Service fees, baggage rates, cancellation options and change conditions may be slightly different there than through an intermediary.
Do not blindly trust the idea of one “best booking day”. There is no magical moment that always gives you the lowest fare. It is smarter to track prices for a few days or weeks and book once the total conditions feel right.

Choose accommodation that keeps your total budget low

The price per night does not tell the whole story. Always look at the total cost of your accommodation: is it centrally located or will you pay extra for transport, is breakfast included, do you have a kitchen, are there additional parking costs and how easy is it to reach the sights? A slightly more expensive overnight stay can ultimately be cheaper if it saves you money on meals, taxis or time.

For families or groups, an apartment or holiday home is often appealing because you can share costs and cook some of your meals yourself. All-inclusive can be useful if you spend a lot of time at the resort, but do not automatically assume that everything is covered. Excursions, snacks on the way and eating out still count. If you want to travel extremely cheaply, you can look into home exchanges or housesitting, but for most travellers, regular accommodation remains the clearest and most practical option.

Avoid extra costs for luggage and local transport

Check what is really included before booking. A low ticket price may look attractive, but extra costs for seat selection, cabin baggage or unexpected rules about free under-seat sizes can quickly increase the total. Consult this 40x30x20 hand luggage: rules, tips and best bags.
Know the difference between a personal bag, cabin baggage and checked baggage. If you travel with a compact personal item, underseater suitcases (40x30x20) will often fit under the seat for free. Ryanair is one example: free small personal bag 40 x 30 x 20 cm, 10 kg cabin baggage 55 x 40 x 20 cm, checked 20 kg baggage maximum 80 x 120 x 120 cm and checked 23 kg baggage maximum 80 x 120 x 120 cm.
Check the size and weight at home in advance and consider using a packing list for cabin baggage only. With packing cubes, you can pack more compactly and keep everything organised. This prevents stress at the gate and unexpected surcharges at the airport.
At your destination, look for daily or weekly passes for public transport. These are often cheaper than individual journeys, taxis or a hire car that sits unused for several days.
To keep a clear overview, it helps to choose the right suitcase size in advance. Find out which size suits your checked baggage with which suitcase size for 20kg/23kg/25kg. Do you still need to buy something and is price the deciding factor? Then take a look at the selection of cheap suitcases, as well as a compact wallet or bum bag. At ByMetz, we are happy to consider size, compartment layout and carrying comfort, so practical use comes first.

Track your expenses every day while travelling

Before departure, first subtract all fixed costs from your total holiday budget. What remains is the amount for your days at your destination. Divide this by the number of holiday days and you have a useful daily budget for food, local transport, activities and spontaneous expenses. It does not have to be exactly the same every day, as long as you keep an eye on the average.

Therefore, keep track of what you spend each day, even if it is only in your notes or banking app. If you have had an expensive day, adjust your spending the next day instead of finding out only after returning home that you have gone over your limit. If you are travelling together, agree in advance what will be shared and what is personal. With children, a fixed amount per day or for the entire holiday can help. And if cash gives you more control, also take extra withdrawal or exchange fees into account outside the eurozone.

Eat, explore and do more for less

Eating where locals eat is often not only more enjoyable, but also better for your budget. Avoid places aimed purely at tourists and look one street further for lunch, coffee or a simple evening meal.
If your accommodation has a kitchen or kitchenette, you can combine things smartly: have one meal out and prepare the rest yourself. Supermarket breakfast, some fruit, snacks and a few basic groceries can save a surprising amount on longer trips.
Do not automatically book excursions through the first provider you see. Compare locally or online what is included, how long the activity lasts and whether transport, admission or equipment is already included in the price.
Make a conscious search for free or low-cost activities. Walking, city parks, markets, viewpoints, days at the beach, free museum periods or a self-planned route often give you just as much of a holiday feeling as more expensive outings.
Watch out for small extra costs. An ice cream here, a drink there, an extra souvenir, water on a terrace or an impulsive snack at a station may seem like small amounts, but together they can quietly push your daily budget up considerably.
So make a few simple habits standard: take a refillable bottle with you, put something to eat in your bag for the journey and decide in advance roughly how much you want to spend on souvenirs or snacks.
If you are travelling for longer or with children, it helps to keep a small “fun fund” for each day. This leaves room for spontaneity without every small purchase coming at the expense of your total holiday budget.