Group trips can be a nightmare when it comes to budgeting.
Videos by TravelAwaits
On the one hand, you can often save by booking more than one reservation at once. Your large group size can actually help you stay on budget.
On the other hand, splitting expenses can be a nightmare. Even figuring out which expenses to pay collectively versus individually can be complex. That’s doubly true if someone in your group is penny-pinching, while others aren’t.
That being said, there’s no reason an emotionally intelligent group of adults can’t collectively save and pay for group trips. In fact, thousands do it every year. As we’ll see below, one group of friends has been successfully planning and saving for group trips for five years running.
Wonder how they do it as a group of seven? Let’s dig into the details.
How to budget for group trips: a case study
Here’s how to budget for group trips based on how one group of six friends annually plans, saves, and goes on vacation together. You don’t have to copy their setup, but it should give you a few insights into the necessities for group trip planning.
From what I can tell, the most important element at play is trust and financial responsibility. In other words, I wouldn’t attempt to save and plan a group trip if you aren’t very close and very comfortable with your group of friends. Money topics can be tense, and travel can bring out our most stressed-out sides.
Now, onto the nitty-gritty.
Step 1: Get a bank account—or use an existing one
The first thing you need is a standalone, travel-only bank account. This is where every member of the group will deposit their weekly contribution. If someone in your friend group already has an empty, unused bank account, that’s a great place to start.
If not, you can open one for free or for a small fee at most banks. Additionally, you can open an account with a ‘virtual bank’ like SoFi that lets you set up joint checking accounts for free. Personally, I’d leave the most responsible member in charge of the bank account versus opening a joint checking account for simplicity’s sake.
Step 2: Figure out a weekly contribution
With the example linked above, the group of six makes a weekly contribution of $20, which was previously $10. Obviously, your group can decide what amount is financially feasible. Just make sure to compare your expected annual savings to your prospective destinations. If you have luxury tastes, you’ll need to hover around $20 per week for groups of five or six.
Step 3: Decide where to go—and how to decide going forward
Finances are the trickiest part of planning group trips—but figuring out where to go is the next challenge. In this example, the group of six decides on three potential destinations for their upcoming trip. That helps set the stage for planning other elements of the trip—like season, flights, and hotels.
Step 4: Set up flight alerts to save
Overspending on a group trip is easy. However, setting up flight alerts can help you nail down affordable plane tickets as soon as they’re available. This might also help you finalize which destination you want to visit. If Turks & Caicos flights refuse to drop to an acceptable range, then you might nix it from the list.
Here’s where trust is important: Whoever manages the account will make these purchases, in addition to those listed below. They need to be ‘on it’ in order to nab those tickets before the discount period ends. Alternatively, if there isn’t a single person managing the account, another member of the group could handle bookings.
Step 5: Book hotels, car rentals, and other necessities ASAP
Setting up flight alerts can help you narrow down which destinations are out of the question. Since flights are the highest cost for group trips, it’s important to make the purchase as soon as they drop.
In the example linked above, the group of six also books hotels, car rentals, tours, and other experiences as quickly as possible. Once the flights are booked, the rest of the trip is hammered out. They rely on a group chat to make suggestions, narrow down their options, and finalize their itineraries.
Step 6: Set up a plan for when someone has to cancel
So, what happens if something comes up and a member of the group has to cancel at the last minute? In this example, the group of six refunds them as much as possible. However, all members of the group understand that last-minute cancellations are impossible to fully refund. In other words, if you’re contributing, you do so with the understanding that there aren’t any options for full reimbursements.
Step 7: Top up at the airport
Lastly, the group of six always tops up their account at the airport. Each member contributes what they can at the last second. This creates even more funds for the group to take advantage of any last-minute experiences—from fine dining to experiential tours.
