GoRoundTheWorld.com - RTW Travel

Costs of an RTW Trip

One of the most common questions others had, both during and after my first RTW trip, sometimes posed quite directly and sometimes not, was “how much did your trip cost?” A few surly acquaintances got right to the point by asking, “How did you afford it?”

The simple and perhaps surprising answer is that most anyone can afford an RTW trip. The cost of an RTW trip depends primarily on one’s style and manner of travel. Will economy class do for long-haul flights, or is first class a necessary amenity?

Following those personal decisions, the costs of an RTW journey may be further segregated into two types, one of which includes costs that will be incurred no matter where one’s travels take them (let’s call these “standard” costs), and one of which includes costs that will vary significantly depending on one’s destinations (let’s call these “adjustable” costs). The latter type of costs is very controllable and is the key to creating a trip within a set budget amount. Examples of the two types of costs are as follows:

Standard Costs: RTW airfare and taxes, immunizations, luggage, visas, medical insurance, trip insurance, and the like.

Adjustable Costs: “Internal” airfares, train or bus fares, hotels, guest houses, food, sightseeing, transfers, communication, and other costs dependent on local economies.

You will need to incur “standard” costs no matter where you travel. Therefore, if you are looking to plan a trip within a strict budget, I would recommend taking your lumps on those kinds of costs and focusing your planning efforts on the “adjustable” costs.

Adjustable costs fluctuate widely and therefore can be controlled by selecting destinations not only according to interest level, but by the cost of travel in the regions concerned. In some parts of the world sightseeing, transportation, food, and lodging are insanely cheap when compared to others. If you have a strong desire for travel but a limited budget, you will want to take adjustable costs into consideration when developing your travel plan.

The amount you will spend for “adjustable” costs depends on (a) whether you focus your travel experience in what are generally considered expensive countries from a cost of living standpoint or whether you travel in less expensive areas, (b) whether you are willing to choose brands you are unfamiliar with or choose places and things which have no brand at all, (c) whether you rent, sell, or sublease your permanent living space during your travels, and (d) whether you work or otherwise have income while traveling.

Travel in countries with high or low costs of living. The cost of travel in a country with a high cost of living can be tenfold what the cost would be in a country with a low cost of living for identical levels of service, attention, and comfort. A very basic hotel room in London, with a high cost of living, is almost impossible to find for less than $75US per night. That may be contrasted with the cost of a very basic hotel room in Bangkok, which has a much lower cost of living, and which has an abundance of basic rooms for $5 to $7 per night. The same thinking may be applied to Great Britain and Thailand as a whole - for a set amount of money, a traveler is going to get much more “bang for the buck” in Thailand.

One may wonder what all the extra money buys for equivalent lodging and services in a country which has a cost of living on the high end of the range by world standards. As far as I can tell, not much. Trains are still late in countries with a high cost of living, and food is still tasty in countries with a low cost of living. People are friendly no matter where you go.

As a generalization, travel in many parts of Asia and South America tends to be far cheaper than travel in Europe, North America, Australia / New Zealand, and Africa (Japan being one very notable and expensive exception to the relatively low cost of travel in Asia).

Choosing unfamiliar brands. You will recognize international brand names consistently and sometimes unexpectedly around the world. Four Seasons hotels are everywhere, as are Sheraton and Radisson Inns. If you stay with any of those brands, you are assured a consistent and comfortable experience. On the other hand, you will be paying a premium for the branding. By talking to other travelers and doing some legwork, you will be able to find comparable service levels at places which have as-yet unrecognizable brand names or no brand name whatsoever, and you will save a mint.

Renting, selling, or subleasing one’s permanent living space. By reducing or eliminating the carrying cost of one’s permanent residence while traveling, it follows that there are more funds available for the travel itself or for offsetting the cost of travel in savings. In New York City, where I live, I was able to sublease my apartment for a small premium over what I paid. Not only did that premium cover my cost of keeping my apartment while I was gone, but, in many of the countries I visited, each monthly premium paid for the equivalent of weeks of lodging.

I have met three people who sold their residences before starting their RTW trips. While that would not be a preferred option for many travelers, for those who choose to do so it clearly takes much lead time to accomplish. If you are considering such an option, I would advise starting the process very early and perhaps delaying the ticketing of your RTW trip until the sale is a fait accompli. Clearly, it would be inadvisable to be overseas at the time scheduled for the close of your transaction.

Renting or subleasing a residence can be fairly easy depending on where your residence is located and whether you are willing to incur an incremental loss (compared to your cost for carrying your residence) while you are away. As far as the latter is concerned, you may want to consider such an incremental loss as simply an additional cost of your first trip-of-a-lifetime. If you would like suggestions about how to rent or sublease your residence, check out the related GoRoundTheWorld.com webpage by clicking HERE.

Working while traveling. This option allows someone to earn money while traveling, which in many cases can offset the cost of travel almost completely. Temporary employment is readily available in many countries for those 30 years of age or younger. For those over 30 years of age, there tend to be more restrictions for obtaining the appropriate visas and permissions. No matter what your age or circumstances, you should consult a professional work / travel agency and read some of the extensive information available on the internet about how to find and arrange for such opportunities. I have listed a few information sources below to get you started:

Work Guides from Anywork Anywhere

http://www.anyworkanywhere.com/jobguides.html

The BIG Guide to Living and Working Overseas

http://www.workingoverseas.com/

LiveWork&Play

http://www.liveworkplay.com.au/visa.html

The RTW Airline Ticket

The biggest, single expense incurred by many RTW travelers is the RTW airline ticket. I would suggest coming up with an initial budget, based on what you can afford or on what you are willing to spend, for an entire RTW journey. Then, based on what you find out while exploring your options with the airline alliances (more later), deduct the cost of the RTW ticket you are interested in from that amount. That will get you close enough to the amount you can plan on using for local transportation costs, meals, and accommodation during your trip. Then, armed with that information, you will have good information for making critical decisions about whether your budget will allow you to go to certain destinations. So long as you have some money available after deducting the cost of your RTW ticket, no matter what that available amount is you should be able to work out some sort of travel itinerary that will take you Round-The-World. You will be surprised at how far your money can go depending where you decide to travel.