Setting a cruise budget before you book

A realistic cruise budget is a total for the whole trip, including the costs the fare does not cover, rather than a target for the fare alone. Start by listing every cost you expect to pay, then separate the costs that are fixed at the point of booking from the costs that depend on your choices on board and ashore. Finish by adding a margin you can leave unspent. That order keeps the budget honest from the first booking.

The figures at this stage do not have to be exact. They have to be complete. A budget that leaves out transfers, port expenses or insurance will look affordable on paper and feel tight by the time you sail, and the missing items are usually the ones that were easiest to forget.

Build a total-cost worksheet

Start with a worksheet that has one row for each item. A complete list usually includes the following:

1. The cruise fare for every guest in the cabin
2. Government fees, taxes and port expenses
3. Flights or other travel to the departure port, and the return journey
4. Transfers to and from the pier, including any hotel before or after the cruise
5. Parking or other pier costs if you drive
6. Travel insurance
7. Gratuities and service charges
8. Drinks, specialty dining, spa treatments and other onboard purchases
9. Shore excursions and local transport in each port
10. Spending money for food, entry tickets and small purchases

Use one column for each guest if costs differ between people, and keep every figure in the same currency. Note where each figure came from, such as a booking document or a price you were quoted, and the date you recorded it. Prices and fees can change until the booking is paid in full, so a dated note tells you when to check again.

Separate fixed costs from variable costs

Fixed costs are the amounts set at the point of booking. In most cases these are the fare, the government fees on your booking, the flights, the pier transfers and the insurance premium. Once the booking is confirmed, you know these figures, so they belong at the top of the budget. They set the floor below which the rest of the trip cannot be funded.

Variable costs depend on what you choose to do: drinks, excursions, specialty dining, spa treatments, shopping and meals ashore. You can control these costs, but only if you set a limit for each category before you sail. Without a limit, they tend to grow to fill the time and money available, so a written cap matters more for this group than for any other.

Estimate daily variable costs

Variable costs scale with the length of the trip and the number of people, so express them as daily rates. Estimate how many port days and sea days the itinerary contains, and assign a typical daily spend to each type. A port day with an excursion and a meal ashore costs more than a sea day with only the onboard dining that is already included, so the two should not share one flat figure.

Base the estimates on what you have already spent on comparable trips, on the prices in your booking documents and on the price information that the ship and the port publish. Where you have no reference point for an item, use the higher figure rather than the lower one. An estimate that runs a little high and is then underspent is a far better outcome than one that runs short on the final day.

If you plan to use a payment card abroad, add any foreign transaction fee your card charges to the spending estimate, because it applies to every purchase made in another currency.

Add a contingency and set the limit

A contingency is an amount you set aside for things you cannot predict: a fee that rises before sailing, an unplanned taxi, a replacement item, a medical charge or a change to a flight. Decide its size before you book, because a contingency chosen after the trip is easy to skip. Keep it as a separate line in the worksheet so that it stays visible and is not absorbed into other spending.

Check the total against what you can afford, and be specific about where the money comes from. If the trip would take a large share of your savings, or would need borrowing to pay for it, a licensed financial adviser can help you judge how much to commit. This section gives general information only, not personal financial advice. Note the final payment date and the cancellation deadlines in your booking terms too, because they mark the point at which the budget becomes a firm commitment.

A budget is useful only if you return to it. Revisit the worksheet when the final payment is due, once you have chosen your excursions and once you have a clearer picture of port costs. Update the variable figures, keep the contingency intact, and treat any overspend as a decision you make rather than something that happens to you.