Reference

Travel budget glossary

The vocabulary we use across every page on this site. 26 terms, plain-English definitions, cross-linked to the calculator, comparison tool, and city pages where they apply.

Shoulder season
The 4–8 weeks immediately before and after a destination's peak tourism season. Weather is usually close to peak; prices and crowds are materially lower. Our default for cost comparisons.
Peak season
The busiest, most expensive window for a destination. Driven by weather, school holidays, festivals or all three. Accommodation typically 25%+ above shoulder rates.
Low season
The cheapest window of the year for a destination. Often coincides with off-weather or rainy months. Daily costs ~15% below shoulder.
Dynamic currency conversion (DCC)
When a foreign merchant or ATM offers to bill you in your home currency. Always decline — the exchange rate is typically 3–7% worse than your card's network rate.
Per diem
A daily allowance budgeted for travel expenses, expressed as a single $/day number. The unit we use across the entire TravelBudget index.
TravelBudget Index (TBI)
A 0–100 score per city, derived from mid-range shoulder-season daily cost vs the global cheapest and priciest cities we track. 0 is the cheapest, 100 the priciest.
Affordability tier
A 5-band label (Very cheap / Cheap / Moderate / Pricey / Very pricey) derived from a city's TBI score. Gives a consistent vocabulary across listings and comparisons.
Mid-range (style)
A traveller style: 3-star or boutique hotel, mix of casual restaurants and one nicer meal per day, public transit plus occasional taxi, paid attractions. Our default tier.
Budget (style)
Hostel dorm or guesthouse, local food and self-catering, public transit only, free or low-cost activities. Roughly 1× the city baseline cost.
Luxury (style)
4- or 5-star hotel, fine-dining meals, private transfers when needed, curated activities. Roughly 6× the city baseline cost.
Daily total
Sum of five categories per person per day: accommodation, food, local transport, activities, miscellaneous. Flights, visas and insurance are excluded.
Fixed costs
One-off costs added at the trip level rather than per day: flights, long-haul ground transport, visas, vaccinations, insurance, gear.
Long-stay rent equivalent
An estimate of what 30 nights of accommodation cost if booked monthly rather than nightly. We use ~60% of the nightly mid-range accommodation rate × 30.
Cost of living (for travellers)
Long-stay rent + 30 × (food + local transport + misc) at the mid-range baseline. Excludes tourist activities. Used for digital-nomad and long-stay comparisons.
Schengen 90/180
EU border rule allowing non-EU travellers up to 90 days inside the Schengen Area within any rolling 180-day window. Material constraint for long-stay European trips.
Hostel dorm
A shared room with 4–12 beds in a hostel. Typically 30–50% cheaper than a private room and the cheapest accommodation option in most cities.
Ryokan
A traditional Japanese inn, usually with tatami rooms, futon bedding and multi-course dinner. Mid-tier ryokans run $200–400/night; premium ones can exceed $600.
Couchsurfing
Free hosted accommodation arranged through community platforms. Eliminates the largest line item in a daily budget but adds time and social cost.
Third-class rail
The lowest paid tier on most national rail networks. Often 50–70% cheaper than first class with the same arrival time. Standard for budget travel in Europe and Asia.
ATM network fee
A flat fee a foreign ATM operator charges on top of your bank's withdrawal fee. Withdraw larger amounts, less often, from bank-owned ATMs to minimise it.
Card FX rate
The exchange rate your credit or debit card uses for foreign transactions. Typically close to the mid-market rate; always better than airport currency exchange.
Tourist tax
A per-night fee charged on accommodation in many European cities, typically €1–7/night/person. Almost always paid at check-in, not pre-booked.
City pass
A bundle of museum, attraction and transit access for a fixed price. Worth it when planning 4+ attractions in 3 days; otherwise individual tickets beat the pass.
Buffer
An explicit overage added to the trip-level budget to cover unknowns. We recommend 15% on top of the daily total × trip length.
The shoulder rule
If your dates are flexible by two weeks, shifting into shoulder season usually saves more than any in-trip optimisation. The cheapest fix is almost always the calendar.
Per-memory cost
Trip cost divided by the number of distinct, lasting experiences. Slower trips usually beat faster ones on this metric even when their daily cost is higher.

Need numbers instead of definitions? See all destinations, run the comparison tool, or read our methodology.