The best ways to budget for a vacation

Ashleay: Hello and welcome to the “In Your Interest!” podcast. My name is Ashleay and this week I'm joined by our innovation consultant, Audrey Thibodeau-Poulin. We'll be discussing the best ways to plan our vacation budget. And Audrey, we have a special thing. I am doing this like a big girl, all alone.

Audrey: Wow.

Ashleay: I think we should be doing well. Sébastien is going to be off from the podcast for this summer, so please, yeah…

Audrey: I'm confident.

Ashleay: I am too. I think it should go well. So, let's give a few stats on the current economic situation and the impact on travel destinations. So, if we begin with the government of Quebec that did a survey not too long ago, it said that 72% of Canadians are planning a trip for summer of 2024. Despite the recent declines in inflation, though, major Canadian household costs such as groceries and housing do remain high. So, of the people who are not planning to travel, there are actually 50% of Canadians who won't be travelling, and they cite budget constraints as the main obstacles. So, for example, a few common mistakes—a poor budget management, unanticipated and unforeseen events, last minute bookings, underestimating prices or omitting insurance—are some things that we will be looking at today with you Audrey. Maybe I can begin with a question. How do you plan your vacation budget? Like do you plan ahead?

Audrey: I'll be honest with you, Ashleay. I'm not the best at managing a budget and planning, but when it's about vacation, I'm really motivated.

Ashleay: I love it. Perfect.

Audrey: So, first of all, I include my vacation budget in my yearly overall budget. Really important. So, I have a bank account aside that is meant to save for vacation money.

Ashleay: Right.

Audrey: I also compare a lot. I do a lot of research during the year about the different activities or destinations that I would like to visit. So, I like to be really informed when I’m looking in detail to book something, I like to be informed before. And as a parent. You're a parent too Ashleay?

Ashleay: Yes, I am.

Audrey: So, as a parent of three kids, I like to include my kids into the planification of these vacations.

Ashleay: Absolutely. I love doing that. And I actually just got back from a trip to Paris with my daughter and my mom. So, it was a girls’ trip and that was what we did. You know, we kind of checked what everyone wanted to do, what they were interested in. So, yes. Actually, I did use AI to plan this. Now, we'll be discussing this a little bit further on, I believe. But yeah, a little teaser here, but… And how do you save over the year for your vacations?

Audrey: As I said, I have a savings account aside. On each pay, I put a small amount of money into that account. I also. all the government subvention for the kids, I put this money in this account. I also am a big fan of loyalty programs.

Ashleay: Oh yes!

Audrey: Of different shops, but also credit cards.

Ashleay: Yes. That is so interesting. Yep. I actually just did that. We were planning some renovations and everything I could I put on that credit card, obviously not to forget to pay it all off completely.

Audrey: Yeah, for sure, because if you pay interest…

Ashleay: Then you're…

Audrey: It’s not worth it.

Ashleay: No, no. And maybe we can also reduce non-essential expenses, right?

Audrey: For sure. You have to look at your budget very closely and say should I go to the restaurant a bit less and put this money into my vacation plan? This could be a good way. I also like to subscribe to a promotional newsletter where you can see different way to save in buying some trips, flights or activities.

Ashleay: Exactly, exactly. And even so, though, there's always the risk of making mistakes. Did you make any particular mistakes?

Audrey: Oh yeah. I have a personal anecdote for you.

Ashleay: Oh, good. Good.

Audrey: Recently I went to an all-inclusive hotel and everything happened. Everything that could go wrong, went wrong. So, first of all, my luggage were lost and never arrived to destination with us. So, we haven't packed something, a small luggage to bring with us in the plane. So, we had nothing else but our own clothes. So, we have to buy a lot of clothes for the week, for everyone. And it was really, really expensive because we couldn't go outside the resort. So, we had to buy expensive clothes, long dresses, sandals, everything. So, this is something we haven't planned. And also, I was sick during the trip. I had an allergic reaction, a big reaction, and I had to go to the doctor. But the resort doctor that was there, this is very expensive too. So, you have to pay on site and after you have to claim to your insurance. But I had no idea what was my insurance package, if I was covered. So, I learn now that I have to be informed about my insurance plan. Am I enough covered? What should I do if I have something like that? Should I call already my insurance in place? And so. And for my luggage also, how do I claim everything I buy? I have to keep my receipt. So, this was a trip that was supposed very relaxing and was not that much.

Ashleay: You learned a lot though. That's good, but yeah. And you know, I actually knew a few people that did not take insurance before they travelled and someone had gotten hurt and they were thinking, you know, they were younger and they were like, oh, we don't need insurance. We're fine. And then it turns out that they had to come back. Not an emergency flight, but they did have to change their flight. So, they lost a lot of money just because they didn't take that insurance. So, sometimes it's worth spending that little extra, especially when we're a bit younger. Doesn't cost very much, but it saves a lot of headaches so...

Audrey: Yes, you have to be sure to have an emergency amount. So, if some things happen you have money to pay.

Ashleay: Yeah, you have money to pay for it right away. Absolutely. And so, in conclusion, you know, we can see that inflation and rising prices are having an impact on Canadians’ vacations.

Audrey: Yeah, but there is a lot of ways to save and to travel anyway. You can look at less expensive, less popular destinations. And you can also compare everything based on your situation and on your context. So, you can include new habits in your your way of living to be able to have your perfect vacation.

Ashleay: Absolutely. And so, that's what concludes today's episode. Thank you so much Audrey for coming to talk with us about the best resources for planning your vacation budget.

Audrey: It was a pleasure, Ashleay.

Ashleay: And in fact, next week you'll be back to tell us how artificial intelligence can simplify vacation planning. So, I think that's shaping up to be very interesting.

Audrey: Yes, I can't wait.