How to have a great holiday on a tiny budget: the ultimate guide

Last updated: 8 October 2026
10 minute read

You don’t need to spend loads of money to go on that well-deserved holiday. With some planning and flexibility, you can have a memorable getaway without breaking the bank.

Whether you’re dreaming of a weekend away in Europe or a longer trip on the other side of the world, travelling on a tight budget doesn’t mean you have to sacrifice fun experiences. In fact, sometimes it’s the simplest trips that create the best memories.

This guide will help you stretch every penny for a fulfilling holiday, no matter the budget.

Choose the right destination

Some places are naturally more budget-friendly than others. Countries in Southeast Asia, Eastern Europe, Central America, or parts of Africa can offer incredible experiences at a fraction of the cost compared to popular destinations in Western Europe or North America.

Tips:

• Research destinations where your currency stretches further. For Brits, this includes places like Turkey, South Africa, and Mexico.
• Consider lesser-known towns or rural areas instead of major tourist hubs. There are many beautiful places looking to attract more tourists that you might not think of visiting, such as Greenland, Morocco, and Serbia.
• Stay closer to home – even a staycation with day trips can feel like a holiday. The UK has it all, with bustling cities like Newcastle and Liverpool and scenic destinations like Norfolk and the Highlands. You could even pop over to somewhere like the Isle of Wight for a change of scenery.

Be flexible with dates

Travel costs vary depending on the season, day of the week, and time of day. A great way to stretch your budget is by holidaying during off-peak seasons.

Pros:

• By avoiding school holidays, weekends, and peak seasons, you can save on flights, hotels, and activities as demand is lower – allowing your travel budget to stretch further.
• You're more likely to find good deals on accommodation or tours, as providers have greater availability.
• You can experience popular attractions with fewer tourists for a more relaxed and less stressful trip.
• Flying mid-week or early morning is often cheaper than going at busier times on more popular travel days.

Cons:

• Flying very in the early morning might mean you can't check in to your accomodation straight away when you arrive. 
• Off-peak periods, especially during monsoon or rainy seasons, can bring disruptive weather. Of course this doesn’t have to ruin your holiday, but have backup plans for indoor activities in case your outdoor plans are affected by weather.
• Some seasonal attractions or businesses may be closed during the off-peak season.

Bear in mind that off-peak times vary significantly by location and even within a country. Research the specific low season for your destination.

Plan ahead

Booking early is crucial for busy periods like Christmas and Easter, summer (particularly July and August), and long weekends and school breaks.

According to Skyscanner, you should aim to book short-haul flights one to three months in advance, and long-haul flights two to six months ahead. Getting in early is also important for popular routes such as London to New York – not only for lower prices, but also for better seating options.

Booking closer to the date could save you money due to price drops, but this is not a reliable strategy, as prices can often rise again last minute. Tickets are usually most expensive in the week leading up to a flight. Also bear in mind that tickets can sell out – it’s harder to guarantee a seat closer to the day.

For accommodation, booking earlier will give you a better pick of places to stay, but booking later could get you a better deal, due to cancellations. Waiting until you’re a couple months or even weeks out from your trip could be a good move if you’re visiting a quieter part of the world. But if you’re setting off to a popular tourist destination, it’s best to secure accommodation as early as possible.

Use budget transport

Aside from accommodation, getting to your destination is often one of the costliest parts of going on holiday.

Getting there

A plane isn’t the only way to travel. If you can reach your destination by car, train, or boat, you could save a lot of money. These alternative forms of transport can also make for a more relaxed experience – and a more generous luggage allowance!

When you’re there

Don’t rely on taxis to get about – use buses and trams, or even walk. Taxi fares can quickly add up, and it can be hard to hail a cab in an unfamiliar place.

Many European and Asian countries are even famous for their railway systems. While this is unlikely to be free, it could still work out much cheaper, and give you a chance to see places you might miss in a car.

Tips:

• Research is key – Bus systems vary from country-to-country and city-to-city, so look for an official website or app with schedules and route maps.
• Check whether the buses and trams in your destination take cash or card – Some systems may require you to sign up for a travel card.
• Board at the right door – In some countries, such as Japan and Germany, boarding and exiting are done through different doors.
• Find out whether you need to validate your ticket – In places like Italy and France, you must validate your ticket in a machine before boarding, and failing to do so could result in a fine.

Some places offer different levels of free public transport, even to visitors!

• Luxembourg – the first country to offer completely free public transport (buses, trams, and trains) to everyone, including tourists.
• Geneva, Switzerland – visitors staying in approved accommodation receive a free Transport Card, which grants them unlimited access to buses, trains, trams, and even shuttle boats.
• Trentino, Italy – if you stay just one night in Trentino, you’ll receive a Trentino Guest Card. This not only includes free local public transport, but also access to museums, castles, and other attractions.
• Other cities that offer varying levels of free transport include Dunkirk in France, Avesta in Sweden, Mariehamn in Finland, and Perth in Australia. Make sure to check if your holiday destination offers something similar so you don’t miss out!

Ditch the hotel

If you’re happy to forgo a hotel, there are plenty of other options for a place to rest your head at a fraction of the cost.

Airbnb

If you’re travelling in a group and want the luxury of a hotel without the extra cost, an Airbnb could be the way to go. Whilst some Airbnb properties are actually more expensive per night than the average hotel room, it can work out cheaper per person.

Also, Airbnbs often include kitchen facilities and lounge areas not typically offered in standard hotel rooms. Having the ability to cook simple meals, or sit and enjoy a drink from the comfort of your accomodation can be another great cost saver when travelling. 

Hostels

Hostels are the cheapest form of accommodation in most destinations. Even private rooms in a hostel are usually a fraction of the cost of a hotel or Airbnb. They can also help you save money on your trip in other ways.

For example, many hostels have kitchens that allow you to cook your own meals rather than eating out all the time. In city locations, hostels are often positioned within walking distance of major attractions, which can help you save on transport. Common features also include free Wi-Fi and laundry facilities, so you won’t have to worry about running up your phone bill or paying to use a laundrette.

House sitting

If you’re willing to have a less flexible schedule in exchange for free accommodation, house sitting could be for you. This usually involves things like taking care of pets, watering plants, bringing in post, and generally keeping the home secure.

This could be especially suitable for longer trips or those who work from home, as it will allow you to live like a local away from main tourist spots. You can use services like Workaway or TrustedHousesitters to find housesitting opportunities around the world.

House swapping

House swapping (or home exchange) is where you exchange homes with someone else for a set period – simultaneously or not. Simultaneous house swapping means you stay in their home while they stay in yours. Non-simultaneous involves you staying in their home at one point while they stay in yours at another – this is more common when one party has a second home.

Another house swapping option is using a platform with a points-based system, such as HomeExchange, to earn points by hosting others. You can then spend these on future stays – win-win! 

If you like the idea of house sitting or house swapping, make sure you use a trusted platform and take time to research the property, host, and reviews. This will help ensure you have a safe and positive experience so you can make the most of your holiday.

Travel light

Saving money on airline luggage fees can make a huge difference in your travel budget before you’ve even arrived.

Pay for more luggage upfront

While budget airlines are cheaper, it’s easy to incur extra fees when it comes to luggage. Spending a little more on a different airline that gives you a bigger luggage allowance can mean you know what to expect. This way, you can budget more efficiently without worrying about surprise costs at the airport.

Travelling with a carry-on only

By travelling with just a carry-on, you could not only save money by avoiding baggage fees, but also be able to skip baggage claim and the worry of a lost suitcase.

Tips:

• Be certain of your airline’s carry-on size limits and choose a bag that’s definitely small enough.
• Pack clothes that can be worn again or handwashed.
• Use packing cubes to create more space in your bag.
• Wear bulkier clothes, like a jacket and boots, on the plane. You can even carry things in your pockets – just be sure to remove them before going through security.
• Ensure the size of any liquids in your bag meet carry-on limits, and remember these limits might be different at the airport you fly back from.

Checking a bag

If you’d prefer to check a bag, there are ways to make sure you don’t end up paying overweight fees.

Tips:

• Weigh your bag at home for peace of mind.
• Use lightweight luggage – heavy suitcases can take up a chunk of your weight allowance before you’ve even started packing.
• Pack travel-sized toiletries, buy toiletries at your destination, or even plan to use free hotel toiletries.
• Bring an e-reader or download books onto your phone or tablet to avoid the weight of bulky books.
• Distribute the weight – if you’re travelling with others and one suitcase is underweight, use this space for any extras.

Find free or cheap activities

• Join free walking tours – Most major cities offer walking tours that allow you to choose how much you tip your guide. This is a great way to learn about the history and architecture of your destination without breaking the bank.
• Explore nature – If you’re staying in a more rural area or fancy a day trip out of the city, you can take in the beauty of nature for free. Go for a casual walk in the countryside or find a hiking trail if you’re up to it. The beach is also a great option, especially if you don’t usually have the chance to swim in the sea at home.
• Visit free museums or galleries – Many cities have national museums that are free to the public, while other museums offer free entry once a week or month. For example, you can visit The Louvre for free on the first Saturday evening of each month or on Bastille Day.
• Explore historic sites like churches and temples – Many religious buildings are free to enter, and are brimming with history and incredible architecture. It’s almost hard to believe that you can experience places like Notre-Dame and St Peter’s Basilica without spending a cent.
• Utilise hotel amenities – The gym at most hotels is free for guests, and this can also be the case with swimming pools and spa facilities. Check which services are included in the price of your room and make the most of them during your stay.

Eat like a local

Spending less on food on holiday doesn’t have to mean sacrificing quality – you can still eat well on a budget.

Tips:

• Book accommodation with a kitchen – Most destinations will offer Airbnbs, hostels, or apartments with kitchenettes. This doesn’t have to mean eating in every single day – even just cooking your own breakfast and packing a snack to take with you could free up some money to spend at a restaurant.
• Limit restaurant meals – Try local restaurants for lunch rather than dinner, as it tends to be cheaper.
• Don’t eat like a tourist – Avoid restaurants near tourist attractions as they often inflate prices. Instead, opt for local street food or small cafes, delis, or diners.
• Shop at local markets – If you’re not staying in accommodation with a kitchen, stocking up on things like bread, cheese, ready-to-eat meals, snacks, and bottled water will help you avoid impulse buying.
• Take advantage of free hotel breakfasts – If your accommodation includes breakfast, fill up in the morning so you can delay or even skip lunch. If permitted, you could even take a pastry or piece of fruit to snack on later.

Don't skip travel insurance

While travel insurance might seem like just another expense, it could save you a significant amount of money if you were to need it. 

Cancelled flights, lost luggage and unexpected medical treatment could all blow your travel budget very quickly, so it's best to factor travel insurance in when planning your trip costs. 

If you're making multiple trips in a year, annual cover could be the most cost effective option. 

Next steps

So plan ahead, pack light, and make the most of the free experiences your destination offers – and you can enjoy a perfect break on even the tiniest budget.

If you’re planning a getaway, we can help. Take a look at SunLife Travel Insurance to make sure you’re covered, and check out our other articles for more information and inspiration:

• Do I need travel insurance?
• The best over 50s holiday destinations and ideas
• The most romantic holiday destinations in the world