Going on vacation is no small matter-especially last few years-where you need to set aside thousands of dollars or more, depending on your party size, destination and time of the year. But as much as a vacation costs so much, there is a hidden and indirect saving we get that we rarely think about. Now before go into these vacation savings, this post is not to argue that we should plan a vacation based on the fact that we may get some of the money back. It is simply to make you feel a little less bad about the big hit to your pocket when taking a vacation.
How Vacations Save you some Money
While booking vacation and travel adds expenses, being away from home also means some everyday costs either disappear or are significantly reduced. Depending on your lifestyle, these savings can partially offset the trip. Let us go through some items that get reduced or completely eliminated when away from home.
Utilities
- Electricity (less lighting, TV, computers, gaming consoles)
- Lower air conditioning or heating usage if you adjust the thermostat
- Less hot water usage for showers, laundry, and dishes
- Reduced water consumption overall
- Less natural gas usage (if applicable)
Food
- Groceries you would have bought for the week
- Snacks and drinks at home
- Coffee pods or beans
- Takeout or restaurant meals you would have eaten locally
Transportation
- Gas for commuting
- Wear and tear on your vehicle (something I have always been mindful of for years now)
- Parking fees at work or around town
- Tolls
Household Consumables
- Toilet paper
- Paper towels
- Dish soap
- Laundry detergent
- Garbage bags
- Cleaning supplies
Entertainment
- Weekend outings you might have paid for
- Movie nights
- Local attractions
- Shopping trips that often lead to impulse purchases
Child-Related Expenses
If your children would normally attend daycare, camps, or paid activities, those costs may be avoided during vacation.
Miscellaneous
- Less frequent lawn mowing (if applicable)
- Fewer online impulse purchases because you’re occupied
- Reduced coffee or lunch purchases during your normal routine
Now despite these savings, there are still items that you need to pay for, even when being away:
What You Still Pay
Many fixed costs continue regardless of where you are:
- Mortgage or rent
- Insurance
- Internet
- Cell phone
- Subscription services
- Property taxes
- Loan payments
A Realistic Example
Let us take a realistic example: For a family of four spending one week away, it’s not unreasonable to save approximately:
- Utilities: $30–$70
- Groceries not purchased: $150–$300 (though some of this shifts to eating out on vacation)
- Gas and local driving: $40–$100
- Household supplies: $10–$20
- Local entertainment you would have done anyway: $50–$150
Total avoided costs could easily be $280–$640 for the week, depending on your normal spending habits. It won’t make the vacation “free,” but it does reduce the net cost compared with simply comparing the trip price to staying home.
For a typical family in Toronto for example, where you’d normally be driving locally, using air conditioning in the summer, and buying groceries for four people, your avoided home costs are likely in the $350–$600 range for a typical 7-night vacation. Not bad, assuming you paid an average of $4-5K on your vacation, essentially giving you 10% back on your booking. Even better is that these savings will be realized after your come back from vacation, just as you are getting ready to pay back for your vacation – assuming all or most was on credit. This comes in the form of a lower utility bills, leftover money that you would have otherwise spent at home, gas left in your car etc.
At the end of the day, a vacation is still a significant expense, and these savings should not be used as an excuse to overspend. However, they do remind us that the true cost of a vacation is not always the amount charged to our credit card. While we are away creating memories and experiences, some of our regular expenses quietly take a break as well. So the next time you feel guilty about the cost of a vacation, remember to look at the full picture – you are not only spending money, you are also avoiding some costs you would have incurred at home. Let us call it a ‘vacation rebate’