Sunday, March 29, 2015

The economics of an overseas holiday

The other day a friend called.    He was travelling to Mangalore from Mumbai over the May 1 long weekend.     He cribbed that a ONE WAY Mumbai Mangalore air ticket was 10k,  and Club Mahindra Resort in Coorg was charging 15,000 per night.    I was astounded......   over the last decade,  my experience has been that  India has become increasingly pricey,  and overseas travel has become increasingly affordable.
TYPICAL  INTERNATIONAL  ECONOMY  AIRFARES,   RETURN INCLUDING ALL TAXES AND FEES, ONE MONTH PRIOR BOOKING,    COMPARE WITH WHAT MANY DOMESTIC LONG HAUL AIRFARES COST IN HIGH SEASON.
Dubai  :-    12k to 18k.
Rest of Middle East,   upto Egypt : -   15k to 25k.
Europe :-    30k - 45k depending on carrier.  
USA :-  40K – 55k depending on carrier,   to New York.    Some airlines can get this as low as 32-35k.
South East Asia including Hong  Kong :-    15k to 25k,    you can get as low as  6-10k depending on departure city and advance booking period.    For 5k extra, you can get an  additional South East country,   upto Philippines or Bali.     10k extra  will get you to China,   Korea and Japan.     
East and South Africa  :-  25k – 35k
Australia :-   25-35k,     you can get as low as 15-20k  depending on departure city and advance booking period.        Another 15k and you can add New Zealand or Fiji  to your Australia itinerary.
A cruise :-  Which is an all inclusive holiday in that acco,  food,  transportation  and entertainment is paid for,  USD 50/ night in the Caribbean and Mediterranean,    and as low as USD 100/night  in other geographies.     3th and 4th passengers in same cabin pay much less,  often only port taxes and food.  
How  To Budget for an overseas holiday.
a)      Figure out your airfare from above list and visa cost (ranges from free to  6-10k for USA,  UK,  Europe,  Australia,  NZ).  This is a fixed cost irrespective of how long you are travelling.
b)      DAILY BUDGET  :  For two or more adults travelling,   a reasonable clean hotel in city centre location,  decent  food,   internal travel,   sightseeing  (but excluding shopping  and big ticket adventure items like hot air ballooning in Masai Mara) can generally be managed for
USA,    Canada,  Australia,  New Zealand,   Japan  :-   USD 100/adult,   + USD 50/child
Europe :    Euro 100/adult,   + 50 euro / child,    UK would be 20%  more pricey due to expensive sights and strong currency.                                                                                                   
Almost all of Asia + Africa :  USD 75/adult + USD 25/child.    WILDLIFE SAFARIS WILL COST EXTRA.
Shoestring  backpackers  and couchsurfers can do it for half the amount indicated above.

    

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