Affordable Alternatives for a Trip Abroad

If you are among the 60% of Americans planning to take a vacation in 2024, you may be eyeing some of the world’s most popular travel destinations. Whether you’re seeking unique cultural experiences, a jaunt through history, beautiful scenery or a relaxing idyll, there are well-known hot spots that are likely to offer your dream trip. 

However, popularity comes with a cost, as high demand for frequently visited locales can drive up prices. To save money without sacrificing your travel daydreams, there are a few approaches to consider:  

• Understand the appeal.  If you’ve been dreaming about the South Pacific for its clear blue seas, you might be able to find a great beach destination closer to home to save on flights. Similarly, if you’ve always wanted to visit historic castles in Europe, that experience is available in different cities and towns at a range of price points. 
• Keep it close. If your planned vacation spot is truly unique, search for options to stay and dine nearby, with day trips to your destination of choice. 
• Understand the economics. Looking at prices for hotels, meals and rental cars in a foreign currency may throw off your calculations. Be sure to check the exchange rate in the desired destination and consider whether there are places where you would get a more favorable rate. 
• Learn about other travelers’ experiences. Previous visitors may have tips on how to find the best deals. 

Every destination is an ideal vacation for someone, and understanding what’s most important will help find the right one for you. To get you started, here are possible alternatives to a few of the most popular global travel destinations.   

The Maldives, located in the Indian Ocean, offer a tropical delight consisting of 1,200 coral islands. This beauty, however, comes at a price: The Maldives has been called one of the most expensive travel destinations in the worldⁱ, with many of its premium hotels priced at more than of $1,000ⁱⁱ per night.  

For a more affordable tropical vacation, consider the hidden gem of Lake Bacalar. Located near the Belizean border in Quintana Roo, Mexico, this destination is known for the beautiful water of its “Lagoon of Seven Colors” and relaxing vibe. Take a tour of the ancient Chacchoben Mayan City, enjoy an afternoon of sailing on the lake or visit Bird Island. 

Glamourous Dubai is on many travelers’ bucket lists for its ever-changing skyline, famous nightlife, world-class shopping and unique activities such as camel riding in the Al Awir desert.  

If you want all the fun of Dubai for a lower price, consider a trip to Ras Al Khaimah (RAK), another emirate in the United Arab Emirates. The 6^th most populous city in the UAE and just an hour away from Dubai, this desert oasis includes many of the same attractions as Dubai – such as dune bashing, camel riding and sandboarding – for lower prices. There are also several free beaches around the city. Consider staying in Ras Al Khaimah and visiting Dubai from there to make the most of your next trip to the United Arab Emirates.  

Known for being Japan’s cultural center, Tokyo is one of the safest cities in the world and offers visitors a unique experience. From the beautiful Senso-ji temple to a cuisine that fuses traditional and modern dishes, Tokyo is hard to replicate. But while these elements are relatively inexpensive, accommodations come at a premium, with the average price of a deluxe room at about $500 per night.  

For an alternate Japanese cultural experience, try visiting Fukuoka, Japan.  The birthplace of Ichiran Ramen, Fukuoka is also known for amazing food and restaurants.  A beautiful skyline and active night life will appeal to city travelers, while its location on Kyushu Island makes it a great destination for beach lovers.  

With white sand beaches, beautiful landscapes and distinctive Hawaiian culture, Honolulu has been a crowd-pleaser for decades. Unfortunately, however, the number of tourists visiting Hawaii can present a threat to the islands’ ecological wellbeing, and luxury accommodations at a cost of $500 to $1,000 per night may not be for everyone.  

For a less-traveled alternative, consider visiting Pedasi, Panama.  Near the southeast coast of the Los Santos province in Panama, the surfers’ town of Pedasi offers the chance to catch a wave at a number of Pacific Ocean beaches. Enjoy fresh seafood at local restaurants, explore the surrounding community's folklore and learn how to dance a punto. Visit between July and October to witness the humpback whale migration and sea turtle nesting.  

One of the most popular tourist destinations in the world, London is known for its iconic museums and historic sites such as Buckingham Palace and Big Ben. But while art aficionados, history buffs and theater lovers alike can find something to enjoy, the crowds can be intimidating and entry to these attractions comes at a premium.  

For similar excursions into British art and history, the Scottish capital city of Edinburgh may be a good fit. Catch a show at the Edinburgh Playhouse, the second-largest theatre in the United Kingdom, where tickets start at $16. Get a snapshot of history at any of the city’s many castles and galleries for $21.

However, if you can’t imagine a trip to the UK without a visit to the Tower of London, consider staying in Cambridge or Oxford to be close to the city but save money on accommodations. 

There are a number of tips and tricks to manage your spending and protect yourself from fraud while traveling. For example, to reduce potential foreign transaction fees, think about opening a Morgan Stanley Smith Barney CashPlus Brokerage Account, which offers clients access to unlimited ATM rebates worldwide and will not incur foreign transaction fees when using the Morgan Stanley Debit Card.¹  Your Morgan Stanley Financial Advisor can help you explore your options and choose the right cash-management strategy for your travel adventures.

The pricing information in this article is derived from online research on aggregator trip-planning sites conducted in July 2024.  Prices may vary depending on individual research.