The value of the Sky Club (or other airline lounges)

When I first started flying regularly I thought people were crazy to pay $400 per year to have access to airport lounges. I used to go to restaurants, coffee shops, and bars at the airport before flying. Then I had the chance to go to the lounges for free or nearly free and saw the light. I now use them all the time!

I am trying to figure out how to value the visit. The quieter space and nicer bathrooms are a good perk but I need to justify the annual cost. I find I get this from the free wifi, free bar drinks, and snacks. My visit today to the Sky Club in Detroit I will use as an example:

• 2 Jack & Coke cocktails: average $8 each with tip at airport prices
• Snacks: $5 at airport prices
• Canned soda: $2 at airport prices
• Wifi: $10 for a day pass (where airports do not offer it for free)

Today's visit was an average one for me and I got $23 of value from it without wifi or $33 if you count it. In my case I don't count the wifi since I have a company 3G card and my iPhone. At an average of $23 per visit I need 20 visits to "break even" on my $450 AMEX annual fee. I can do this easily with my work and personal travels. 

This doesn't even factor in the other benefits of the AMEX Platinum card. They are:

• $200 per calendar year in Delta fees reimbursed
• $100 ($20 per year) for Global Entry
• Membership rewards points that I can transfer to several airlines
• AMEX Travel Insurance (hard to value that but VERY handy if hurt/sick abroad)
• Priority Pass lounge access abroad

When I run the numbers for 2012 so far, which is only halfway over, I have gotten WAY more than $450 value out of the card. Including bringing my girlfriend to the lounge I have done 21 visits. Add that to the above benefits and I am nearing $1000 in recuperation. That number will rise even more over the next 6 months!

Flooding in Thailand!: Last minute travel changes

The flooding in Thailand has caused some ground travel disruptions. Trains from Bangkok to Chiang Mai, ones I intended to take, are suspended. After I found this out I needed a plan B. In this case it means flying to Chiang Mai and back. More money. Ugh!

As luck would have it I found reasonable flights for the times/dates that I wanted. I booked them using my no foreign transaction fee card. It costs roughly $45 each way which is a very good deal compared to US Domestic flights. They are low cost airlines with fees for everything but $45 all in is still great. The flights are short at around 1 hour.

I was looking forward to taking night trains there and back as it would save money and hotel costs. In the end I will still get there and have a blast. I hope the flooding subsides by the time I get there and doesn't become more of an issue. Rainy season in Thailand should be winding down no so hopefully it will help out the situation

One Month Away: Asia Trip Preparations!

I am now roughly one month from boarding my Lufthansa flight to Frankfurt, onto Paris, and finally Thai Airways to Bangkok. All in First Class!

Needless to say I am very excited!

I still have a lot to do in the month leading up to departure. I am planning my grocery purchases around using up stuff that will spoil while I am gone and not buying anything I don't need. I am also researching in more detail my planned destinations that I have not been too before. I am finalizing my budget for the trip and making sure I have the money in my travel account.

At the same time I still have 2 work trips to go in October and of course going to work full time. I head up to Buffalo, NY next week and then to Hartford, CT at some point in late October. It is a lot of work to be able to leave work for a month but most certainly well worth it. I am lucky to have the month off in the first place so I have to take full advantage of the time!

Vacation 2012: Guatemala?

Here I am 2 months away from Thailand, Malaysia, and Singapore and I am already thinking about 2012!?!

I have to plan in advance so I can get the most out of my trips. I have done some reading and heard stories about Guatemala lately and am leaning heavily in that direction for next year's extended trip. I have seen some great photos from there also.

Since I am already burning 6 days off to go to Easter Island I am considering a destination closer to home for my next extended trip. I will only have 11 work days off assuming I don't need them for something else. If I combine that with the 3-day Thanksgiving week I can make a decent trip of it!

With only roughly 2 weeks to work with I don't think the Asia jet lag will be worth it. Central America has little-to-no time difference. It is also inexpensive and has lots of interesting places. It is one part of the world I have seen little of to boot. As I write this I am further convincing myself this is a good idea!

Nothing is set in stone at this point as I will continue my research on a couple of other places then pick one from the top 3. I am planning on buying these flights as I can get complimentary upgrades on Delta and they should be a lot cheaper than going over the Pacific. It is all up in the air right now. Either way it will be fun to research and plan!

How to Save for a Month-Long Vacation

I decided this post would be most appropriate while I am on my month-long vacation!

When planning a long trip such as this one you always have to start with costs. You have to factor in airfare, hotel/guesthouse, local transport, food, entertainment, splurges, and so on. Once you have the big number calculated you have to plan your savings strategy to make it happen.

I always start by looking at my monthly budget. In the 1-month vacation example I can immediately see that the "Food" and "Gasoline" budget items are at my disposal. I won't be home using gas in my car nor will I be going to the grocery store or eating out at home. Those I allot to the vacation budget immediately.

Next I start shopping around to reduce costs. Is there a cheaper airfare (maybe with a layover)? Can I use any miles or points I may have to reduce or eliminate the airfare cost? Do I need a 5 star hotel or will a 2 star bed and breakfest or guesthouse do just as well? What sort of things to do are available for free? This list can go on forever. Look at every cost on your vacation list and explore options.

Once I have some more exact costs and itinerary determined I work up a monthly savings amount to fill the gap. Remember to include the actual month you will be gone as you will still get your paid time off money even though you are not here! Start an automatic savings plan to reach this goal. This is a great use for a savings account from Smarty Pig!

Now all you have to do is plan all the fun stuff that you will do while you are gone. You have the savings on autopilot and are on your way. I highly recommend getting a guidebook, such as the Lonely Planet, for your destination so you can get good idea of costs, activities, local information about your destination. Planning the vacation is half the fun so get to it!

My Budget for Asia in November

As mentioned before I will be spending roughly 1 month in Cambodia. I have worked out a budget for my time over there and calculated how much I will need to cover all of the costs. A lot goes into a travel budget and here is what I have come up with:

Flight Taxes: $165
Seoul Day Trip: $50
Visa: $20
Angkor Temples Entrance: $20
Daily Food/Hotel: $10 x 28 days = $280
Transport: $100
Slush Fund: $100

Total: $735.00

Notes: I am only paying taxes on flights since I used miles for the ticket. I have a long layover in Seoul (16 hours) so the day trip is extra fun. I will be sharing the majority of food and hotel costs with my girl friend for 3 of the 4 weeks I am there.

I picked a $100 "slush" fund to cover unexpected expenses while in country. It helps cover transport for last minute change in plans and also price increases for various things. I also use it for splurges that were not planned. Having extra money while traveling is always good. I suppose you could call it the "emergency fund" for my vacation but really it is just fun money.

The above categories are relevant to all travel I plan to do. It is a good basic table to research and fill in no matter where you plan to go. Cambodia happens to be a very inexpensive country hence the long time (1 month!) that I will spend there. This table works for a 1 week trip or 1 year trip (separate for each country) or for perpetual travel.

When calculating how much to save I subtract my car fuel and food budgets from home. I won't be here to spend on food in the US or driving my car so therefore will not incur those expenses. They help offset what I need to save up and have on hand. I also paid the airfare taxes now since they must be paid at the time of booking.