For some of us, a yearly vacation to look forward to is all that gets us through the day-to-day.  But what to do when we’re smack dab in the middle of a recession?  For those of us who can’t live without travel, there are ways to still squeeze out a manageable vacation.

1. Assess Your Savings

The majority of us have to cut back in one way or another during tough economic times.  With money not flowing like it used to, you must first take a good look at what you can really afford to spend on a trip.  The cash you have to spend will determine the type of trip you can afford to take.   You can still have a great vacation for as little as $500 a person.

2. Modify Your Travel Style

 If you usually travel in style and stay at 5 star luxury hotels for two weeks at a time, try cutting back and opting for a more moderate 3 star hotel or go for just one week instead.  Great deals can be found when you go from a 4 star hotel to a 3 star hotel and there is usually little difference in the comfort level of the hotel.  Afterall, you’re just in the room to sleep.

If you are a budget traveler, try staying at hostels or budget hotels.  Many budget hotels have comparable prices to hostels.  If you’re adamant on having your own bathroom and private bedroom, the great majority of hostels have the perfect room for you for less than a 2 star hotel, and often much more comfortable.

Whatever your style, don’t stay anywhere that makes you uncomfortable or unsafe.  Just because it’s cheap, doesn’t mean it’s the right place for you. 

3. Scan for deals

There are several websites geared towards providing you with the cheapest deals out there.  Try looking for deals on travelzoo.ca or travelalerts.ca (they have US and foreign equivalents).  You never know when a good deal that’s right for you will come up.  That’s how I saved over $700 on a 2 week trip to Egypt.

Deals aren’t just limited to discount websites- often times hotels and airlines will have their own limited promotions such as free stay in an airport hotel when flying on a particular airline, 40% of if you stay 4 nights, or getting your 3^rd night free and so on.

4. Be Flexible

When planning in advance, it pays (or in this case, saves) if you play around with a variety of dates.  Flying mid-week may be cheaper than flying out on a Saturday if you can swing it.  Traveling in an off-season can also save you big bucks.  I’ve saved more than $100 by choosing a different departure date for my trip to Iceland.

5. Go Somewhere with a Favourable Excahnge Rate

You want to get the most for your money so go somewhere where your money can get you more.  The Chinese Yuan and Icelandic Kroner have fantastic exchange rates from the dollar and euro.  With Iceland being hit hard by the economic crisis, the kroner is less than half of it’s former worth.  While it’s bad news for Iceland, it’s good for travelers.  Take advantage of vacations that would have previously cost more than double of today’s prices.  By traveling to hard-hit countries, you can support local businesses and the tourism trade by shopping and using their services. 

6. Watch What You Eat

There is nothing I love more than eating on vacation and trying all kinds of local delicacies, but purchasing three meals a day quickly adds up.  Your first step is to look for a hotel that includes a free breakfast.  Whether it’s a full breakfast, buffet, or simply a continental breakfast, take advantage of the free food and eat until you are full.  If you eat enough in the morning, you can often get through lunch with just a few snacks.

If your hotel doesn’t offer breakfast, consider booking apartment-style lodging with it’s own kitchen to prepare some of your own meals.  Take a trip to the local grocery store or market to stock up on snacks- they’re prefect to curb midday hunger and tide you over on longer trips.

Look for the daily specials at restaurants to save.  If all else fails, do as the locals do and try some street food.  You just might find something fantastic on the street, like pancakes in Beijing,  souvlaki in Greece, or melon-flavoured buns in Japan.   

7. Stick Close to Home

Instead of traveling overseas or to some exotic destination, try a vacation close to home.  A road trip can be a fun way to explore that city you’ve always wanted to visit, or can be a good way to make it a multi-stop trip.  Take a look at event schedules for near-by cities and combine your trip with a festival or celebration that’s happening, take in some theatre, experience the arts, or indulge in a spa getaway.  Domestic airfare is often cheaper than flying to another country and getaway vacations are great if you have to work within time constraints.