How to Become a Frugal Traveler

Frugal travel is a relative term: A ski vacation in Switzerland is probably going to cost more than tramping through Bolivia, for example. So, before your trip, research your destination and post on forums to get specific advice on how much you can expect to spend in a certain destination before you book the trip.

One money-saving strategy involves finding a less-expensive alternative to a quintessential travel destination. Many vacation destinations offer special packages or deals in the off-season or shoulder seasons. Try booking a ski trip as the temperatures start to warm, or take a Caribbean vacation during the hurricane-stricken autumn.

Regions recovering from political strife, natural disasters and economic turmoil can also be sites for cheap travel. Kugel suggests considering areas whose notorious reputations are outdated. Colombia, for example, is decades removed from its epidemic of drug violence, and there are still regions of Mexico far removed from the drug violence of the northern border. (Safety is more important than keeping a fat wallet, of course, so don't travel alone in high-risk areas.)

For perennial low-cost travel destinations, look to Central America, Southeast Asia and India. And while exchange rate isn't everything, traveling in countries with a local currency stronger than the dollar is almost certainly going to be more expensive. But beyond the core expenses of transportation, lodging and food, nearly every expense is discretionary. "There's at least two days of free stuff to do in every city in the world," Kugel says. Ask about discounts wherever you go. But unless you're traveling on a shoestring for its own sake, make sure to budget for the activities you truly want to experience. "If you love theater and you go to New York City, you should go to a Broadway show," Kugel says.

Click ahead to find out which mode of travel is the cheapest way to reach your destination.

Determining whether it's cheaper to take a plane, train or bus depends on numerous variables. How far are you traveling? Are you traveling alone or with the whole family? What's your car's gas mileage? Are you booking your flight in advance during the off-season, or are you booking a last-minute trip on a busy travel day?

The cheapest mode of travel depends on where you're going and who is traveling with you. For the solo traveler journeying long distances, airplanes are typically the most affordable option, while driving is the least economical. Let's say you're traveling the roughly 2,800 miles (4,506.2 kilometers) between New York and Los Angeles in your own car, which gets about 20 miles (32.2 kilometers) to the gallon. Assuming you're paying an average of $3.50 for each gallon of gas throughout the entire trip, the one-way cost of driving this distance comes out to $490. According to Expedia.com, a one-way, economy-class flight from New York's John F. Kennedy International Airport to Los Angeles International Airport booked for March 5, 2012, costs $151.76. Meanwhile, the cost of traveling by train from New York's Penn Station to Los Angeles' Union Station, costs $208, according to Amtrak.com.

But driving becomes more economical once you add on multiple passengers. Let's say you're making the same one-way trip in the same car, but this time you're driving with your spouse and two children. The one-way cost of driving remains the same $490 sum. But according to Expedia.com, the cost of the same flight for four people turns out to be about $614.24 altogether. Taking an Amtrak train with the same family of four costs $624.

However, each mode of transportation has drawbacks that muddy the picture. The extra funds required for tolls, hotels, food and other expenses incurred while driving over long distances can eliminate any savings easily. Air and train passengers may have to pay baggage fees and account for the cost of transportation to and from the airport. And upon arrival, non-driving travelers might also have to purchase a rental car, the cost of which can vary widely by region: According to the New York Times, a customer might pay nearly half as much for a rental car in Los Angeles as they might in New York City [source: Stellin].

Should you buy that extra collision coverage on your rental car? Read on and find out.

Here are seven tips that could help you spend less on your next trip:

While money is obviously a huge factor when you're exploring an unknown corner of the world, it's important to enjoy yourself and gain new experience. If you plan ahead and make some good choices, money will hardly be on your mind. For lots more information on travel and budgeting, see the links on the next page.