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Canada - ENBest Budget Travel Tips for Canadians
The last time you booked a trip, was your excitement quickly followed by a bout of anxiety: How much is this vacation actually going to cost? You’re not alone. From a weak loonie to increases in flight costs, travelling on a budget can feel like it’s out of reach for Canadians.
But smart travel doesn’t have to mean sacrificing fun. With the right planning, you should be able see more of the world without dreading your credit card statement when you return.
If you’re thinking about where to travel on a budget — a European city break, a Southeast Asian adventure, or a vacation here in Canada — here’s how to find cheap flights and affordable accommodations, save on sightseeing, and how insurance helps protect your trip from the unexpected.
Key takeaways
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Set a realistic travel budget that includes transportation, accommodation, food, activities, travel insurance, visas, and supplies.
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Flexibility with your timing and destination is one of the best ways to reduce costs, since peak season and popular tourist spots typically come at a premium.
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Travel search engines and booking sites can help you compare costs.
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Don’t just stick to hotels — vacation rentals, hostels, home exchanges, or housesitting could be more affordable options.
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Taking public transit, eating at local restaurants, and buying bundled sightseeing passes can help to keep costs down.
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Buy travel insurance as soon as you book your trip, so that you’re covered if something goes wrong before you depart and during your vacation.
How to plan an affordable vacation
Whether you’re a solo traveller or thinking about how to plan your family vacation, a little preparation goes a long way. Knowing what kind of experience you want from your trip and how much you’re willing to spend will help make your trip-planning decisions easier.
Set a realistic travel budget
Knowing how to prepare a travel budget is one of the most important steps in vacation planning. Just like you probably have a budget for your daily expenses at home, you should set a budget for vacations.
Start by compiling a list of all your travel costs: transportation, accommodation, food, tours and activities, travel insurance, visa fees, and any supplies you may need. Be honest about how much you’ll likely spend — while it may be easy to say you’ll only eat at low-cost cafés, that promise will be hard to keep if a gourmet restaurant catches your eye.
Also, don’t forget to factor in the exchange rate when checking prices. A hotel in London, England, may look like a bargain at £200 per night, until you realize that works out to over $350 in Canadian dollars.
Once you know how much you think you’ll need for your trip, put together a savings plan. Create a dedicated travel fund and calculate how much you’ll need to deposit each week or month to reach your target. There are several budgeting apps out there that can help you incorporate your travel fund into your regular budget.
While it can be tempting to forgo the budget and just put everything on a credit card, remember your total trip costs could end up much higher if you’re also paying interest.
Choose your destination wisely
If you’re flexible about where and when you travel, you can dramatically reduce your costs. Airlines and hotels bump up prices when there’s high demand, so a trip to Cancún at March Break or to Paris in the summertime can cost a lot more than they would during low season. By avoiding peak periods, you may be able to reduce your travel budget by a considerable amount.
Of course, you can’t always control when your vacations fall — maybe you want to go away during school holidays or take time off over the Christmas period. In that case, consider hidden gems over popular tourist spots, and destinations where the Canadian dollar goes further. Perhaps that’s an off-grid resort in quiet Tulum or a city break in affordable Marrakech.
An important note: Check the Government of Canada website for any travel advisories, especially if you’re going to a destination that’s less touristy. If you accidentally end up in a high-risk area, your travel insurance may not cover you, depending on the government advisory level.
Tips on finding budget flights
Flights are usually by far the most expensive part of any vacation budget. But you can keep your flight costs in check with smart shopping.
Book in advance
You’ll see lots of tips out there about the sweet spot for booking, but the reality is that flight prices are determined more by demand than a set timeline. The closer your departure date, the more likely prices will increase as more tickets are sold. Of course, the opposite can also be true, and prices could drop if airlines need to fill seats — but this is a gamble. Your best bet is to check prices well in advance, so you know what fares to expect. And if you see a price you’re happy with, consider jumping on it rather than waiting.
Use flight comparison tools
Tools like Google Flights is great for comparing different airlines, routes, and departure dates. Plus, you can track prices over time and be alerted when there’s a drop. Another good option is Hopper, which is Canadian-owned. It’ll tell you whether now’s a good time to book or if you’re better off waiting.
Be flexible with dates and airports
As a rule of thumb, flying midweek is almost always cheaper than flying on a weekend. And smaller airports can often be cheaper to fly in and out of, since they have less demand and lower fees. If there are other options near your home or destination and you don’t mind which days you fly, you may be able to save a fair bit.
Book a connecting flight
Direct flights are convenient, but they’re often more expensive. If the savings are significant, you may not mind adding extra travel time — especially if it’s a city you’d like to explore. With enough time, you could stretch your legs with a bit of sightseeing (just be sure to check any visa requirements). Some airlines even offer incentives for stopovers. For example, Turkish Airlines offers a free hotel stay in Istanbul and Copa Airlines offers discounts for hotels, restaurants, and activities during stopovers in Panama City.
Use loyalty rewards programs
If you don’t have a travel rewards credit card, consider getting one. You’ll earn points on purchases you were going to make anyway, which can then be redeemed for discounted flights. For example, with RBC’s Avion, points can be redeemed for flights with over 500 different airlines. But you don’t necessarily need a credit card to earn points. Airline loyalty programs are free to join, and you’ll earn points every time you fly, which can be redeemed for flight discounts, upgrades, or other perks.
Tips on finding budget accommodation
After flights, accommodation is probably your next biggest travel expense. Before you book the first hotel in your Google search, consider a few factors that could impact your costs.
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Location, location, location: Centrally located hotels will almost always be the most expensive option, so consider accommodations that are slightly outside the main tourist zone.
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Vacation rentals vs. hotels: For budget family travel, a vacation rental can be far more affordable than multiple hotel rooms. You can find entire homes on vacation sites, many of which are in local neighbourhoods for a more authentic experience.
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Hostels aren’t just for backpackers: Not all hostels are dorm rooms with bunkbeds and rowdy kids. Look for hostels with private bedrooms and bathrooms, which can be a fraction of the price of a hotel room. Hostel International Canada also offers budget accommodation across the country.
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Home exchanges and housesitting: If you’re open to trading spaces or putting in a bit of work, you could try a site like HomeExchange, which lets you swap homes with another traveller, or TrustedHousesitters, which connects you with homeowners who need someone to look after their place (and often their pets) while they’re away.
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Booking platforms: There are a number of popular online booking sites that offer hotel deals and can be filtered by neighbourhood, amenities, rating, and price point.
How to save money on accommodation
Once you’ve found the right place to stay, there may be more ways to save on your booking.
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Loyalty programs: Is there a hotel chain you prefer? Sign up for their loyalty program to earn points you can redeem for discounted nights. If you stay there often enough, you could hit status tiers with perks like room upgrades and late checkout.
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Direct booking vs. third-party sites: If you use a booking platform, always compare against the rate for booking directly. Sometimes the platforms have reduced rates, but not always.
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Package deals: It may be cheaper to bundle your flight and hotel, which you can do through some travel booking sites. This isn’t always the case, but it’s worth comparing against booking separately.
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Free breakfast and amenities: A hotel rate that includes breakfast might look pricier upfront but could save you money — especially in an expensive city where even café breakfasts add up fast. Also look for properties with free parking, Wi-Fi, or airport transfers.
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Credit card travel benefits: Your credit card may offer hotel credits or upgrades. For example, the RBC Avion Visa Infinite Privilege gets you access to the Visa Infinite Hotel Collection, with benefits like free nights, room upgrades, and free breakfasts.
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Last-minute deals: If you don’t mind waiting, you may be able to score a last-minute bargain. LateRooms.com and HotelTonight.com are two sites that specifically focus on last-minute deals. Keep in mind, if you’re booking last minute in a popular tourist spot, you may risk rooms being entirely sold out.
Budget-friendly ground transportation
Once you’ve arrived at your destination, you’ll need to get around. Here are some ways to do it without blowing your carefully planned travel budget.
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Take public transit over taxis: Use public transit rather than taxis whenever you can. You’ll save a ton of money, plus you’ll get a better feel for the destination and local life.
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Use rideshare apps: If you prefer a car, only accept rides from reputable taxi or rideshare companies that let you see the fare upfront. Beyond Uber, there’s Bolt in Africa, Asia, and Europe; DiDi in Latin America and Asia Pacific; and Grab in Southeast Asia — just to name a few. Some cities may have their own taxi-hailing or rideshare apps as well.
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Be smart with car rentals: If you’re planning to drive yourself, book a car in advance. You may get a discount for prebooking, plus you won’t have to worry about shortages in a busy location. Compare rates across a few different providers and keep in mind that insurance often isn’t included in the price shown, so you’ll need to add that on. If you’re renting a car, it’s also important to understand your insurance options.
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Cycle or walk: If you’d rather see the sites on two wheels (or legs), you can rent a bicycle or scooter and squeeze in a bit of physical activity. Many cities offer short-term rentals that you can pick up and drop off at locations around town. And of course, walking is always free!
Budget tips for eating out while travelling
Trying new foods is one of the best parts of travel. And the great thing is, the more authentic and local the food, the cheaper it probably is.
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Eat like a local: Restaurants in busy tourist zones tend to be overpriced. For a more affordable—and delicious—meals, try local eateries and street food stalls. If you’re worried about safety standards, check how busy the place is — high turnover means ingredients aren’t sitting around. Not sure where to start? Google Maps is good for browsing restaurants in the area, with price ranges, photos, and reviews. Social media and sites like Eater or Time Out can also be a great way to learn more about local restaurants and cafes.
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Look for lunch specials: Restaurants often have discounted prices at lunchtime. If there’s a pricey place you want to try, see if they offer a lunch special and plan a cheaper meal for dinner.
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Self-cater: If your accommodation has a kitchen, check out local markets and grocery stores to make meals yourself. Not only will this save money, but it’s also fun to browse products that are different from at home.
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Pack a picnic: Grab premade items from the market for a picnic in a pretty park or other scenic spot. For a cheap to-go option, check out Too Good To Go, a social impact app for eliminating food waste. You can get discounted high-quality sell-by food from restaurants, bakeries, and cafés. It’s available in Canada, the U.S., Australia, and several European countries.
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Be prepared: Always carry a water bottle and snacks when you’re out sightseeing or on a tour — especially if you’re travelling with kids. This way, you won’t be scrambling to find an affordable snack when someone’s tummy starts grumbling.
Cultural experiences and activities on a budget
Seeing and doing is the whole point of travel, and it doesn’t have to be expensive. Incredible experiences can cost nothing – if you know where to look.
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Free walking tours: These are one of the best ways to orient yourself in an unfamiliar city. You’ll not only get a local’s insight, but you can also meet other travellers.
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Free attractions, museums, and festivals: Many museums offer free admission on certain days or evenings. Public festivals and community cultural events are often free and can give you a more authentic feel for the destination than a ticketed tourist attraction will.
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Nature and outdoor activities: Hiking, swimming, cycling, and exploring government-run parks often cost next to nothing. Parks Canada’s Canada Strong Pass gets you free admission and a 25 per cent discount on camping over the summer.
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City passes: If you’re planning to hit several paid attractions in one place, a bundled ticket like those offered by CityPASS can help you save. Many cities also have their own bundled tickets that cover multiple museums and cultural sites.
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Student and senior discounts: Many museums, transit systems, tours, and attractions offer reduced rates for students and seniors. Just make sure you have your ID with you.
Protect yourself with travel insurance
Finally, purchase travel insurance before you go. It’s a small price to pay for the money you’ll save should something goes wrong.
A medical emergency can be costly in a foreign country since provincial health plans are limited outside your home province. Or a sudden illness could mean having to cancel your nonrefundable flight, or your luggage could get lost on route.
There are two primary types of travel insurance: trip cancellation coverage and medical emergency coverage. Ideally, you should have both — you can often bundle travel insurance packages together. These plans include coverage for emergency medical, trip cancellation/ or interruption, baggage loss, or travel accidents. You’ll also have 24/7 support in the event of an emergency.
Need travel insurance for your next trip? Get a quote online in just a few minutes, so you can add it into your travel budget.
RBC Travel Insurance
If you need help during your trip for a medical or other travel emergency, help is available 24/7.
*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
