Wallet-Friendly Travel Tips for Retirees

August is a hot month for travel. And from posts written by Morningstar Discuss users already in retirement, we know that travel is a particularly beloved pastime among retirees. With that in mind, this week we wanted to know how our readers budget for travel, as well as any advice they have for making travel budget-friendly.

Spending money on traveling can sometimes feel impractical; after all, you won't get something tangible for the hard-earned money you spend. But as our readers know well, the experiences gained through travel and the time spent with family and friends can be one of the best investments you can make. And, as pollendoctor points out, sometimes it pays to remember that "the whole point of saving and investing [is] to be able to spend money on what is important."

We got some great budgeting and travel tips from our readers, many of whom are big advocates of using loyalty rewards programs, airline miles, and credit cards that offer mileage rewards. Other frequently mentioned ways to save included taking advantage of senior discounts and prepaying for hotels or booking well in advance. (Many readers also mentioned that they get some great money-saving advice from Rick Steves' podcasts and Europe Through the Back Door books.)

Here's a summary of what the respondents had to say. To read the full discussion and weigh in yourself, please click here.

'I Have Long Had a Line Item in My Budget for Travel' Though many respondents agreed that they have a travel budget, the amount they set aside varied widely.

"We set aside $1000/month for vacations and keep that money solely for vacations," said mailload. "That allows us one major overseas vacation every other year while still going away from time to time in our motor home, which we do outside of the summer vacation months."

"We are currently budgeting and spending about $20,000 for travel each year," said GreggInDavie. "We have been retired for two years, and travel is important to us, so we forgo some other luxuries so that we can travel more while we are still ambulatory enough to enjoy it. I imagine that we will cut back as we get older and life is a little more challenging."

"I spend approximately $6,000 a year on vacation for two. To keep the budget under control I pick all-inclusive packages, food/drinks are included," said Joe3100. "Typically I travel in winter to get away from Wisconsin weather ... anywhere warm."

'I Plan My Trips in Detail in Advance' Many respondents said they like to plan the details of their vacations in advance rather than give in to expensive whims or leave things to chance.

Some great advice in this vein was given by saver7, who said: "The result of pre-planning is like a paid tour of only what you want to see, at your own pace, for much less money than a tour." If you're planning a trip, especially overseas, saver7's post is a don't-miss in this thread, with tips on choosing an optimally located hotel and getting the best deal on airfare. "If you plan ahead, buy as many tickets in advance as you can, go to a hotel that provides breakfast, and book the hotel and airfare yourself. You are in control of the travel budget for your trip and can make adjustments where necessary. ... I generally start about a year or nine months in advance, learning about the country and deciding what to see."

Yogibearbull recommends buying travel insurance for trips outside of the U.S. "Don't buy it from a travel agent or from an airline/cruise line. Check out unconnected insurance companies such as Allianz, etc. For 5% to 10% of the cost of the ticket, one can have comprehensive travel insurance that includes medical emergencies [your U.S. health insurance may not apply], medical evacuation, trip cancelation, lost baggage, and so on [overall limits apply based on plan selected]."

Cgajowski also likes to frame out the major expenses such as transportation and lodging but adds that making a general budget and "keeping the boundaries a little porous" seems to work well. Cgajowski also advises that if there's an experience that seems like it might be really special--go for it, but don't waste money on stuff that won't matter to you. "For me this included a pontoon plane flight in Alaska; and skipping the 'molecular' meal in Barcelona, about the same price. ... You might choose differently."

'Travel During the Shoulder Season' For many readers, especially those already in retirement who are not tied to work or school schedules, traveling during the off-season can not only help with expenses, it's a great way to avoid the crowds.

This tip comes from dragonpat: "Don't vacation in June-September unless you have to. It's cheaper to vacation in October-May. My favorite vacation months are February and March and I love to visit Italy during those months because it's just like spring to me. Lodging and airfare to Italy are cheaper in February and March than in August."

JAuden also advises traveling during the off-season. "Hotels can be much cheaper, plus it's not as busy, so you don't have to make reservations for restaurants and activities ahead of time."

Retiredgary offers this bit of advice for those already in retirement: "Take advantage of the fact that you are no longer under time pressure. You don't have to be back at work on Monday. For example, we hate the unpleasant experience flying has become, and so do most of our non-international traveling by car, which saves hassle, frustration, and money, and allows us to discover and enjoy things along the way."

'Buy Wine at the Grocery Store' The above advice, which comes from FLstategrunt, is one way to manage the cost of food and drinks while traveling. As many respondents pointed out, even if you manage to find a fantastic deal on airfare and lodging, dining costs can really add up. Merjet agreed with FLstategrunt's advice, adding: "Yes, and some bread, cheese, fruit, or whatever, too. It's fun, cheaper, and a change of pace from having every meal in a restaurant. Pack a corkscrew!"

KathieL's advice for keeping meal costs under control while traveling: "Eat your main meal of the day at midday. You can eat in fabulous restaurants for half the price you'd pay at dinner."

"Restaurant.com and Groupon.com can cut your food expenses and introduce you to restaurants you may never have found," dndhatcher said.

"We get food at a local market and eat some simple meals of fruit and sandwiches," said JNITER.

"If you have to dress up to eat on vacation, it's probably too expensive; find a cheaper place," adds dragonpat.

"My only wallet-friendly travel tip is to not let our (grown) kids pick the restaurants. They have expensive tastes in food. So do I," said Juris2.

Seaside1 agreed with Juris2's comment, but added that "the way I address such an issue is to save up my rewards on my credit card and then opt for restaurant gift cards. That way, we can all go to the more expensive restaurant (which I would not normally frequent), enjoy the food, and also enjoy the company."

Etc. Readers also shared a variety of tips for keeping miscellaneous costs in check. For example, a few posts mentioned that sometimes it's worthwhile to get a museum membership rather than a day pass if you think you might visit more than once, or if the museum offers a reciprocity deal with other museums or attractions in the area. Other advice offered ranged from creative solutions to lodging to how to get the best exchange rates on cash withdrawals.

"Look into homeaway.com, airbnb.com, or vrbo.com for rooms, apartments, homes," said eperez. "Just read the fine print for booking fees, cleaning fees, damage insurance fees."

Norbertc shared a very interesting perspective on home exchanging: "It's fairly simple ... everything is based on trust, no money changes hands. You offer your home (and optionally a car) in exchange for the same," explained Norbertc, who added that recent home exchanges led to spending a week near Hampstead Heath in London and all of July in Marin County, California. "In terms of budgeting, the only incremental cost is the airfare. Otherwise, I spend approximately what I spend at home."

"We use our Schwab ATM card to get cash," said JNITER. "They just charge us the current exchange rate. We also use our CapitalOne credit card to make larger purchases and are not charged foreign transaction fees. We got an exchange rate of over $1.31CAD/$1USD just last week in Toronto."

BRGreen offers this: "If you are 62 or older, you can buy a federal interagency lifetime 'Senior Pass' for the princely one-time sum of $10 ($20 if purchased by mail). The pass gets you into national parks, historical sites, national forests, and so on, that otherwise charge an entrance fee and provides for discounts on camping and other services at many federal recreational facilities."

Finally, this tip comes from saver7: “Don’t keep searching the same itinerary for airfares without clearing your cache or using a do-not-identify option on your browser. The airline sites keep track and the price will be higher the next time you look.”