6 Ways to Plan a Luxury Vacation on a Budget

You don't need to be a celebrity to enjoy luxury travel. These savings tips can help.

If you frequently read travel or lifestyle media, you may have noticed the Maldives are all the rage. Makes sense—the Maldives seem tantalizing: pristine waters, five-star accommodations and a masseuse at your beck and call.

You may have also noticed something else about traveling to the Maldives: It’s not cheap.

“The average cost of a week in the Maldives—complete with water bungalows—is easily $10,000 to $20,000,” says Courtnie Nichols, a travel agent with five years of experience booking travel and events and as founder of TravelBash, an agency that focuses on destination weddings and luxury travel.

Don’t worry if a swanky destination is out of your price range, you can still have a luxury vacation for less.

While regulation changes in the country now allow for some budget accommodations like Airbnb, Nichols says they are extremely limited. Additionally, since the Maldives are not known for budget travel, there may be major trade-offs if you try to do a luxury vacation there for less.

Specifically, the Maldives—an Islamic nation—adhere to religious laws outside of the luxury resort islands. That means visitors who choose alternatives to luxury travel will need to adhere to these laws, which include no alcohol, no pork and no public displays of affection. Women are also barred from wearing bathing suits outside of the resort islands. In other words, if you’re looking for the magazine-like experience of a luxury vacation in the Maldives, you’ll likely have to pay for the resorts.

If the Maldives are out of your price range, don’t worry. The good news is you can still plan a luxury vacation on a budget. Think of it as a Maldives-like experience without the sticker shock.

Here are some tips on how to have a luxury vacation for less:

1. Choose lesser known locations with similar atmospheres

“Most of the time, people are just looking to have the experience of staying in water bungalows, being pampered and gazing into the sunset with their partner beside them,” Nichols says.

You can plan a luxury vacation on a budget and have the experience of a lifetime without having to take a plane halfway across the world.

She believes you can plan a luxury vacation on a budget and have this experience of a lifetime without having to take a plane halfway across the world. Nichols says Central and South America have options with a Maldives feel and are a good choice for those wondering how to have a luxury vacation for less.

“Panama is home to some pretty nice resorts that have fewer crowds, untouched beaches and over-the-water bungalows,” she says. Riviera Maya, in Mexico, may also have some less expensive options for all-inclusive resorts and yes, even water bungalows.

The key, according to Nichols, is to do a little bit more research and avoid areas that have a lot of hype surrounding them. If you really want to know the industry secrets for how to have a luxury vacation for less, Nichols suggests enrolling in programs like Travel Leaders of Tomorrow, which has educational resources that can help you find the best travel locations based on your budget. Industry magazines and websites specifically for travel agents may also help you plan a luxury vacation on a budget.

2. Visit during the off-season

Visiting locations during the off-season—meaning when the weather may not be perfect—is also a great way to plan a luxury vacation on a budget. For example, you may run the risk of dealing with a hurricane if you book a cruise for October, in which case they have alternative routes and backup plans, but you may also find some good cruise promotions at cheaper prices.

The good news is it doesn’t need to be as dramatic as planning a trip in hurricane season. Sometimes a tip for luxury travel on a budget is as simple as visiting a cold-weather location in winter instead of during its busy summer months. Or vice versa.

Just note that peak seasons and off-seasons vary around the world. But this information is readily available, Nichols says.

“There are several ways to get more information about a location’s peak travel seasons,” she says. “Some suggestions would be to follow the travel section of U.S. news sites, searching for the destination of your choice on Google, following travel bloggers, visiting travel board websites or visiting the U.S. Department of State website.”

3. Book during promotional periods

If your heart is set on that cruise, and in the prime season no less, don’t lose all hope of planning a luxury vacation on a budget. If you book a cruise during a cruise line’s peak promotional season, which is typically early in the year, you may be able to snag a deal. This is the time of year when cruise lines slash prices because there aren’t as many people taking vacations.

According to Cruise Critic, a leading cruise reviews site, the prime season for discounts is called Wave Season, and it takes place January through March.

Cruise lines book close to 40 percent of their cabins during this time, according to the Miami Herald. Think Black Friday or Cyber Monday for cruise vacations. During this time, cruisers can get free upgrades, value-ads like complimentary drink packages and fare discounts.

If you prefer to plan a luxury vacation on a budget and stay on land, find when promotions tend to run for your destination or desired hotel.

The prime season for cruise discounts is called Wave Season, and it takes place January through March.

– Cruise Critic, a cruise reviews site

4. Join a loyalty program

You can’t discuss tips for luxury travel on a budget without talking about “travel hacking” your vacation. Travel hacking usually refers to using points—like those you receive from loyalty programs or by using branded credit cards—for free airfare, travel upgrades, access to airport lounges and hotel stays. While you can also use these points for other things, such as dining on a budget or gift cards, travel hackers often reserve them for big ticket travel expenses like airfare and lodging.

There are a number of websites dedicated to the art and science of traveling using points and, if you know what you’re doing, you can save thousands of dollars when you plan a luxury vacation on a budget. Many of the articles on these sites also focus on how to have a luxury vacation for less. Some websites that can teach you about travel hacking with points include The Points Guy, Extra Pack of Peanuts and Club Thrifty.

Additionally, if there is a brand of hotels you really love, Nichols suggests joining its loyalty program to get access to discounts. As a loyalty member, you’ll earn points for stays that you can later redeem for free nights. You can often get upgrades as soon as you join and exclusive access to flash sales via email.

There is one caveat when using points. When figuring out how to have a luxury vacation for less by using points, you may need to be flexible with your travel dates. Flash sales on hotels are temporary and sometimes airlines only have specific dates available for rewards travel.

“Panama is home to some pretty nice resorts that have fewer crowds, untouched beaches and over-the-water bungalows.”

– Courtnie Nichols, founder of TravelBash, a travel agency

5. Join a house-sitting network

While some people plan a luxury vacation on a budget by redeeming points, you can also choose to get free accommodations by becoming a house sitter.

That’s what Amy Rutherford and her husband decided to do back in 2014 when they retired from the traditional workforce. Their plan was to travel the world, but they didn’t necessarily want to spend a lot of money doing it. That’s when they started devouring content about how to travel for less.

Through their research, they discovered that they could join a network of house sitters who work all over the world. The idea was appealing, especially because this would also allow them to experience places as a local rather than as a tourist.

“Our very first sit was a dream and we were hooked,” says Rutherford, who is the founder with her husband of GoWithLess, a blog about frugal living and budget traveling. “The home was stunning and owned by an interior designer with two of the cutest and loving labs.”

Joining a house-sitting network can also help you plan a luxury vacation on a budget by getting free accommodations and experiencing places as a local rather than as a tourist.

Since then, they’ve stayed in several multimillion dollar homes in luxury spots all over the country.

If house-sitting is a form of travel that’s up your alley, Rutherford suggests joining sites like TrustedHousesitters. It costs roughly $120 a year, and you can either go anywhere in the world or choose to stick to a specific region.

“After the membership fee is paid, there is no money exchanged. We don’t pay the owners, they don’t pay us,” she says.

She says the best jobs are very competitive, but offers a tip for luxury travel on a budget for aspiring house sitters: “To build up our resume and our references, we took on several local sits.”

6. Get help from a pro

If you’ve tried implementing all of the tips for luxury travel on a budget but still aren’t getting very far, then your next option is to get help from a travel agent.

“An agent has connections to suppliers in specific destinations that can put you at an advantage,” Nichols says. “Their job is to create the luxury you want at the right price.”

According to Travel Market Report, consumers report that travel agents save them an average of $452 per trip plus four hours of travel planning.

You can always get help from a professional travel agent to plan a luxury vacation on a budget.

Nichols also shares one of the lesser known tips for luxury travel on a budget: By getting on a travel agent’s email newsletter, you can learn of exclusive sales that can be accessed through the agent’s connections.

Travel doesn’t need to be expensive

If you’re flipping through travel magazines, you may be inclined to believe that luxury travel is reserved for the rich and famous. The truth is you can get a luxury experience for far less by implementing some of these tips while you plan your next vacation.

Banking 101

Saving

Sunny skies are the right time to save for a rainy day.

Start an emergency fund with no minimum balance.

Start Saving
Online
Savings

Discover Bank, Member FDIC

Discover Savings Survey: Millennials Out-Saving Older Generations

Career & Education

Spend or Save Graduation Money? How New Grads Can Decide

Cash graduation gifts can get you started off on the right foot financially.

Read Article

Family Finance

How to Plan a Destination Wedding on a Budget

The right location and a finely-tuned budget are key to making a destination wedding work.

Read Article

Grow into your future.

Our fixed rate CDs help you save for what's next.

Start Saving
Certificate
of Deposit

Discover Bank, Member FDIC

Partners in Life and Money: When to Open a Joint Checking Account

Retirement

Don't Want to Give Up Your Avocado Toast? How Millennials Should Save for Retirement

Saving for a comfortable retirement doesn't have to mean a radical lifestyle makeover.

Read Article