It is summer time: That means vacation time. We Germans spend 1,544€ on average for our main vacation (Handelsblatt 2025). Quite a lot of money — especially in times when prices for flights, accommodation and restaurant visits have risen significantly. But don't worry: With the right plan and a few smart hacks, your vacation will not only be unforgettable, but also financially relaxed.

Plan your travel budget: What does a vacation really cost?

Before you start, you should get a clear overview of how much your trip can — and should — cost. The best way to avoid breaking budgets is to make detailed lists of cost items in advance. That includes:

Advance editions:

These costs apply even before departure:

• Flight or train tickets
• lodging
• Car rental or transfers
• travel insurance
• Visa fees (if necessary)
• Any vaccinations or equipment

Local spending:

Here are the variable costs:

• rations
• Excursions, tours, admissions
• Public transportation or taxis
• Shopping and souvenirs
• gratuities
• Emergency buffer

Savings destination vacation: How to save on your dream trip

Do you know how much your trip costs? Then review how much you've already saved for this and set a savings goal for the outstanding amount. Ask yourself: How much do I want to save by when? Divide the amount by the number of months remaining — and you'll know your monthly savings requirements.

Example: You want to have 1,800€ for your trip to Portugal in 6 months.

1,800€ ÷ 6 months = save 300€ per month.

You can also use our savings goal calculator to help you here.

To save on your vacation savings destination, create your own sub-space in your savings account or use a vacation category in your digital budgeting tool. Automatic saving with a standing order helps you stay disciplined.

Is your monthly surplus not enough? How to find savings potential

If the trip is a bit more expensive than expected or affordable, you can save money elsewhere.

Identify potential savings elsewhere in your spending:

• Cancel subscriptions that you don't use
• Reduce restaurant visits
• Choose cheaper cell phone or electricity rates
• Buy second-hand instead of new

Tip: Track your spending for a month — you'll be surprised where there's air everywhere.

Use budgeting methods.

For example, the 50/30/20 rule, which allocates 50% of your income for your fixed costs, 30% for wishes and 20% for savings or retirement planning.

Or the zero-budgeting method: Every euro of your income gets a task — including that for vacation.

Saving tips when booking: Plan cleverly, save cleverly

Of course, you can also save money when booking a trip yourself. Because it's often cheaper. And it's like this:

• Test flexible travel dates — 1 day earlier or later can make a big difference, booking during off-season is even more important
• Check early bird or last-minute deals
• Set price alerts with flight search engines (e.g. Skyscanner, Google Flights)
• Use comparison portals — but book directly with the provider (often cheaper)
• Request accommodation directly — instead of via expensive brokerage platforms
• Use cashback portals

Saving tips while on vacation: Save without sacrificing

You can also save a lot locally — without it feeling like it. Tips are here:

• Local supermarkets & street food instead of tourist restaurants
• Free activities such as hiking, city tours, museums with free admission
• Public transport instead of taxi — or rent bikes
• Multi-bed rooms in a hostel, Airbnbs with kitchen or apartment sharing
• Drinking water instead of soft drinks — you can often drink tap water
• Pay with a card in local currency

Tip: Set yourself a daily budget — and be happy if you stick to it. Also check the foreign currency fees on your card before you start your vacation and use one with more favourable conditions.

Track spending while on vacation — doing it live instead of going bankrupt afterwards

You don't have to document every coffee — but a rough overview protects you from unpleasant surprises. There are now also apps for this that help you assign categories and stay on budget.

Tip: Take a look at your daily spending for 5 minutes in the evening — relax with a cool drink.

What to do when you've overstretched your budget?

Oops — ice cream, trip, boutique... suddenly the budget is excessive and you've spent more than you wanted. The only thing that helps now is to remain calm and react.

Emergency measures during vacation include:

• Reduce expenses for the remaining vacation days
• Switch to cheaper activities
• Have a spontaneous “no spend day”
• Make up the deficit with your nest egg

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After vacation: Take stock honestly. Where and why did you spend more? And then replenish the nest egg, if done, or quickly pay off the overdraft facility with an overdrawn account.

In the end, however, it also helps you to better estimate the vacation budget for your upcoming trips.

Conclusion: Vacation like a pro — with plan and fun

A relaxing vacation doesn't start at the airport, but with the budget. Planning early not only saves money but also nerves.

With a clear savings goal, a few clever booking tricks and conscious local decisions, you can make a big impact even with a small budget. And if something goes wrong? Not a drama — but learning for the next adventure.

Ready for the sun? Then start your vacation budget today — your future self will thank you for it.

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