Choosing a Place to Travel based on Cost

Outline

  1. Overvalued and undervalued currencies
  2. Ten common countries in the cheapest countries’ listings
  3. Least expensive destination in the Eastern Hemisphere
  4. Least expensive destination in the Western Hemisphere
  5. Safety Factor
  6. What do you think of the Leffel quote

Overvalued and undervalued currencies

Using the formula in the Big Mac Index interactive site, how much is the Big Mac overvalued in the most expensive country, and how much is it undervalued in the least expensive? Which countries would be the cheapest for travel, and which would be the most expensive based on this index?

According to the Big Mac interactive site for 01/01/2019 Switzerland is the most expensive country/largest overvalue and Russia being the least expensive and undervalued country. 

Implied exchange for Switzerland $6.50/5.58 = 1.16 suggests that the Swiss Franc is 18.7% overvalued

Implied exchange for Russia $110.07/$5.58 = 19.74 suggests that the Russian rouble is 70.4% undervalued.

Ten common countries in the cheapest countries listings

Read the Leffel chapter and the other links provided to derive a list of the 10 cheapest countries for travel.

The ten most mentioned and cheapest countries to travel are:

1.      Egypt

2.      South Africa

3.      Columbia

4.      Cuba

5.      Turkey

6.      India

7.      Thailand

8.      Vietnam

9.      Greece

10.  Indonesia

Least expensive destination in the Eastern Hemisphere

From this list, the Big Mac Index and the most inexpensive airfares, find the least expensive destination in the eastern hemisphere for a three-week trip. What criteria did you use to select the country? Insert airfare graphic that shows how you would get to the country. Insert a graphic of an inexpensive lodging. What would be the total cost of the 3-week trip? (The idea here is that cheap lodging over three weeks will counter a more expensive airfare. So, look for the cheapest lodging and find a moderate airfare to that location.) Estimate daily food costs.

Based on the Big Mac index, Vietnam was not the least expensive.  However, in the reading material, Vietnam was named as one of the cheapest places to travel.  I used several sites to research the least expensive costs.  I have found that Justfly.com has offered the least expensive flights by comparison.  In the reading materials, I linked from one link to another and found the site PriceofTravel. This was so helpful, it certainly helped reduce having to search 10 different sites in search of information. Like all the best information in one.

 
Flight from OMA to LAX to Ho Chin Min City, Vietnam $696.33
Room costs for 21 days $441.00, for single room $357($84 difference)
Daily average for meals $7.68 = $161.28
$1,298.61




Least expensive destination in the Western Hemisphere

From this list, the Big Mac Index and the most inexpensive airfares, find the least expensive destination in the eastern hemisphere for a three-week trip. What criteria did you use to select the country? Insert airfare graphic that shows how you would get to the country. Insert a graphic of an inexpensive lodging. What would be the total cost of the 3-week trip? (The idea here is that cheap lodging over three weeks will counter a more expensive airfare. So, look for the cheapest lodging and find a moderate airfare to that location.) Estimate daily food costs.

Colombia was not the least expensive country according to the Bic Mac index. I used all the reading material and many of the cheapest travel sites to research the prices for Colombia.  In comparison to Costa Rica, it did come out less in price overall.  While I could find lodging in Costa Rica for less, the airfare was less expensive and food.  

Total cost of round trip from Omaha to Medellin, Colombia = $454.39
1 night of hotel in Miami, FL = $74.00
21-night stay in Medellin, Colombia = $303.00 USD. This is a double/fully private room and several amenities, including a kitchen.
The average day of spending at a median rate including meals is $20.00 on high end/ $10
low end.
The US dollar is equivalent to Colombian Peso $3,113.75

Research indicates that the $34 a day, includes the cost of living. I will take into consideration that I can eat for an average of $10.00 a day.  Now, I could save significantly, if I stayed in room within a hostel, but the assignment directed I needed a private room.  My total expenses came in at $1,277.39 

Much of the research on traveling to Colombia, $1,200.00 is considerably a luxurious living budget. You can take a 1-hour bus trip to the surrounding cities for $1.20 each way.  The hotel that I chose indicated that they could set up a walking tour or even private drivers/tours for less than $12.00 a day.  If given the option, I would move cities throughout the trip and stay in different locations.  There are several cities to visit in Colombia, and along their beach/coastal areas.

Below is my one night stay in Miami on my return trip.

Safety Factor

Consider the safety factor in the destination you have chosen. Take a look the Global Peace Index rankings (A ranking of countries based on the Peace Index begins on p. 8.) Which country would be the safest? Where is the United States ranked? Where do your chosen countries rank?

According to the 2018 Global Peace Index, Iceland currently ranks in first place.  The United States ranked in 121st place.  Colombia ranked in 145 and Vietnam ranked in 60 place.

What do you think of the Leffel quote:

"You'll learn far more than you ever did at a university.
Remember the old days when people got a liberal arts education? They went to Oxford or Princeton to learn about history, politics, social studies, geography, religion, foreign languages, and economics. Well you'll learn far more about all those things by traveling than you ever can in college. Ask anyone in their 30's how much they remember about these subjects from their university classes. "Not much" will usually sum it up."

There is value in both traveling the world and a University education. However, I feel that my education holds more value to me.  To be well verse in both, certainly would serve me well.  Throughout this course, it certainly made me wish that I were up to speed on the travel websites, and the cheapest places to fly, and even more so in understanding that I can travel far on much less.  At times I wished that I were better at registering for my elective courses.  The knowledge that I have gained from this course certainly will hold more value for me in the future.

The value I see in both my education and traveling the world is that both expose you to culture.  However, I feel that my education has given me the ability to be aware of the differences in culture.  If I were in a restaurant in Bulgaria and two people raised their voices as a form of their innate expression, I might get a little nervous, but I learned through cultural studies that is how they communicate with each other. Today, most people cannot obtain administrator level positions without a degree.  To join the military, you need math and English skills in order to pass the entrance testing.  You need education.  It holds the highest value in almost every part of this world.  While many have not obtained an education past elementary or middle school, they will tell you ---- go to school.  It will get you much farther in life than only traveling this world.

Submitted by Katina Winters 02/21/2019