travel model cost

• location of the visitor¡¦s home ¡¦ how far they traveled to the site
• how many times they visited the site in the past year or season
• the length of the trip
• the amount of time spent at the site
• travel expenses
• the person¡¦s income or other information on the value of their time
• other socioeconomic characteristics of the visitor
• other locations visited during the same trip, and amount of time spent at each
• other reasons for the trip (is the trip only to visit the site, or for several purposes)
• fishing success at the site (how many fish caught on each trip)
• perceptions of environmental quality or quality of fishing at the site
• substitute sites that the person might visit instead of this site
• The value of improvements in water quality was only shown to increase the value of current beach use.  However, improved water quality can also be expected to increase overall beach use. 
• Estimates ignore visitors from outside the Baltimore-Washington statistical metropolitan sampling area. 
• The population and incomes in origin zones near the Chesapeake Bay beach areas are increasing,  which is likely to increase visitor-days and thus total willingness to pay.
• changes in access costs for a recreational site
• elimination of an existing recreational site
• addition of a new recreational site
• changes in environmental quality at a recreational site
• number of visits from each origin zone (usually defined by zipcode)
• demographic information about people from each zone
• round-trip mileage from each zone
• travel costs per mile
• the value of time spent traveling, or the opportunity cost of travel time
• exact distance that each individual traveled to the site
• exact travel expenses
• substitute sites that the person might visit instead of this site, and the travel distance to each
• quality of the recreational experience at the site, and at other similar sites (e.g., fishing success)
• perceptions of environmental quality at the site
• characteristics of the site and other, substitute, sites
• The travel cost method closely mimics the more conventional empirical techniques used by economists to estimate economic values based on market prices.
• The method is based on actual behavior¡¦what people actually do¡¦rather than stated willingness to pay¡¦what people say they would do in a hypothetical situation.
• The method is relatively inexpensive to apply.
• On-site surveys provide opportunities for large sample sizes, as visitors tend to be interested in participating.
• The results are relatively easy to interpret and explain.
• The travel cost method assumes that people perceive and respond to changes in travel costs the same way that they would respond to changes in admission price.
• The most simple models assume that individuals take a trip for a single purpose ¡¦ to visit a specific recreational site. Thus, if a trip has more than one purpose, the value of the site may be overestimated. It can be difficult to apportion the travel costs among the various purposes. 
• Defining and measuring the opportunity cost of time, or the value of time spent traveling, can be problematic. Because the time spent traveling could have been used in other ways, it has an "opportunity cost." This should be added to the travel cost, or the value of the site will be underestimated. However, there is no strong consensus on the appropriate measure¡¦the person¡¦s wage rate, or some fraction of the wage rate¡¦and the value chosen can have a large effect on benefit estimates. In addition, if people enjoy the travel itself, then travel time becomes a benefit, not a cost, and the value of the site will be overestimated. 
• The availability of substitute sites will affect values. For example, if two people travel the same distance, they are assumed to have the same value. However, if one person has several substitutes available but travels to this site because it is preferred, this person¡¦s value is actually higher. Some of the more complicated models account for the availability of substitutes.
• Those who value certain sites may choose to live nearby. If this is the case, they will have low travel costs, but high values for the site that are not captured by the method.
• Interviewing visitors on site can introduce sampling biases to the analysis.
• Measuring recreational quality, and relating recreational quality to environmental quality can be difficult.
• Standard travel cost approaches provides information about current conditions, but not about gains or losses from anticipated changes in resource conditions.
• In order to estimate the demand function, there needs to be enough difference between distances traveled to affect travel costs and for differences in travel costs to affect the number of trips made. Thus, it is not well suited for sites near major population centers where many visitations may be from "origin zones" that are quite close to one another.
• The travel cost method is limited in its scope of application because it requires user participation. It cannot be used to assign values to on-site environmental features and functions that users of the site do not find valuable. It cannot be used to value off-site values supported by the site. Most importantly, it cannot be used to measure nonuse values. Thus, sites that have unique qualities that are valued by non-users will be undervalued.
• As in all statistical methods, certain statistical problems can affect the results. These include choice of the functional form used to estimate the demand curve, choice of the estimating method, and choice of variables included in the model.
• GolfSW.com - Golf Southwest tips and reviews.
• VivEcuador.com - Ecuador travel information.
• TheChicagoTraveler.com - Explore Chicago.
• FarmingtonValleyVisit.com - Discover Connecticut's Farmington Valley.

Table removed due to copyright \ restrictions.

Table removed due to copyright restrictions.

Environmental Justice Organisations, Liabilities and Trade

Mapping environmental justice.

• Nuclear Energy
• Oil and Gas and Climate Justice
• Biomass and Land Conflicts
• Mining and Ship Breaking
• Environmental Health and Risk Assessment
• Liabilities and Valuation
• Law and Institutions
• Consumption, Ecologically Unequal Exchange and Ecological Debt

Travel-cost method

The travel-cost method (TCM) is used for calculating economic values of environmental goods. Unlike the contingent valuation method, TCM can only estimate use value of an environmental good or service. It is mainly applied for determining economic values of sites that are used for recreation, such as national parks. For example, TCM can estimate part of economic benefits of coral reefs, beaches or wetlands stemming from their use for recreational activities (diving and snorkelling/swimming and sunbathing/bird watching). It can also serve for evaluating how an increased entrance fee a nature park would affect the number of visitors and total park revenues from the fee. However, it cannot estimate benefits of providing habitat for endemic species.

TCM is based on the assumption that travel costs represent the price of access to a recreational site. Peoples’ willingness to pay for visiting a site is thus estimated based on the number of trips that they make at different travel costs. This is called a revealed preference technique, because it ‘reveals’ willingness to pay based on consumption behaviour of visitors.

The information is collected by conducting a survey among the visitors of a site being valued. The survey should include questions on the number of visits made to the site over some period (usually during the last 12 months), distance travelled from visitor’s home to the site, mode of travel (car, plane, bus, train, etc.), time spent travelling to the site, respondents’ income, and other socio-economic characteristics (gender, age, degree of education, etc). The researcher uses the information on distance and mode of travel to calculate travel costs. Alternatively, visitors can be asked directly in a survey to state their travel costs, although this information tends to be somewhat less reliable. Time spent travelling is considered as part of the travel costs, because this time has an opportunity cost. It could have been used for doing other activities (e.g. working, spending time with friends or enjoying a hobby). The value of time is determined based on the income of each respondent. Time spent at the site is for the same reason also considered as part of travel costs. For example, if respondents visit three different sites in 10 days and spend only 1 day at the site being valued, then only fraction of their travel costs should be assigned to this site (e.g. 1/10). Depending on the fraction used, the final benefit estimates can differ considerably.

Two approaches of TCM are distinguished – individual and zonal. Individual TCM calculates travel costs separately for each individual and requires a more detailed survey of visitors. In zonal TCM, the area surrounding the site is divided into zones, which can be either concentric circles or administrative districts. In this case, the number of visits from each zone is counted. This information is sometimes available (e.g. from the site management), which makes data collection from the visitors simpler and less expensive.

The relationship between travel costs and number of trips (the higher the travel costs, the fewer trips visitors will take) shows us the demand function for the average visitor to the site, from which one can derive the average visitor’s willingness to pay. This average value is then multiplied by the total relevant population in order to estimate the total economic value of a recreational resource.

TCM is based on the behaviour of people who actually use an environmental good and therefore cannot measure non-use values. This method is thus inappropriate for sites with unique characteristics which have a large non-use economic value component (because many people would be willing to pay for its preservation just to know that it exists, although they do not plan to visit the site in the future).

The travel-cost method might also be combined with contingent valuation to estimate an economic value of a change (either enhancement or deterioration) in environmental quality of the NP by asking the same tourists how many trips they would make in the case of a certain quality change. This information could help in estimating the effects that a particular policy causing an environmental quality change would have on the number of visitors and on the economic use value of the NP.

For further reading:

Ward, F.A., Beal, D. (2000) Valuing nature with travel cost models. A manual. Edward Elgar, Cheltenham.

Ecosystem valuation [ www.ecosystemvaluation.org/travel_costs.htm ]

This glossary entry is based on a contribution by Ivana Logar 

EJOLT glossary editors:   Hali Healy, Sylvia Lorek and Beatriz Rodríguez-Labajos

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I quite like reading a post that will make people think. Also, thanks for allowing me to comment!

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Disney has a price problem. It has ambitious plans to fix that

D isney recently announced a huge slate of projects for parks and cruises in front of 12,000 of its most loyal fans, who will almost certainly return to Disney’s theme parks to experience those new offerings, no matter what it costs.

But whether a frequent visitor or a first-timer, Disney’s price hikes combined with a global inflation crisis left many families unable to afford trips to witness the technological feats and fantasy immersion the “Happiest Place on Earth” promises.

“It is not news that a Disney trip is expensive, but the magnitude and speed of price increases over roughly the past five years was jarring to many respondents, and we do not believe similar increases over roughly the next five years are feasible,” a Raymond James survey of 20 Disney “superfans,” travel agents and Orlando-area business owners found.

Disney warned in its August 7 earnings report that domestic parks attendance was underperforming expectations as visitors become more price-conscious. US parks profit fell during the last quarter, between April and July. Disney CFO Hugh Johnston said on the company’s earnings call that there may be a couple of quarters of similar results.

To keep its customers coming through the gates, the company will keep providing a range of pricing and options, said Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, in an interview with CNN.

“What we will continue to do is make sure we provide as much access and flexibility as we possibly can, so as many of our fans can experience these things as possible,” D’Amaro said.

In response to criticism about high costs, Disney has consistently touted lower-priced ticket options and “value season” deals at its resort hotels to allow families to visit, even if they’re on a tight budget.

Disney isn’t the only company struggling with customers who are spending less. Demand for the travel industry is softening, marking the end of the “revenge travel” fad in the months after pandemic restrictions were lifted. With stimulus money padding their bank accounts, people had been spending more freely then, making up after a year of missed vacations.

D’Amaro said he’s confident Disney can navigate these bumps in the road.

“We have proven ourselves to be incredibly adept at managing through situations where there’s some change in consumer behavior,” he said. “We have even more sophistication in our ability to deal with any of these fluctuations, whether it’s through precise promotional deployment, or management of cost or engagement with our guests.”

What the new announcements mean for ticket prices

The new announcements promising guests a chance to ride through the “Encanto” “casita,” to fight a battle in Wakanda or experience an ominous land themed to villains, are all part of a $60 billion investment in parks and cruises that Disney has pledged over the next decade – an investment that will need to be paid for over time with consumer dollars.

But that massive investment doesn’t mean Disney will immediately hike ticket prices, said Tom Bricker, co-founder of DisneyTouristBlog.com . It’s economics 101.

“Costs will rise as demand rises, which can happen as a result of new additions. Right now, demand is flat or falling,” Bricker said, in reference to the latest earnings report that suggested the moderation in attendance might last into 2025. “With 2025 also being the opening of Universal’s Epic Universe, there will likely also be negative impacts on Walt Disney World attendance. It won’t be catastrophic—Epic Universe will draw new visitors to Orlando, who will also visit Disney—but it will be damaging in the near term.”

As a result, Bricker said park visitors may see new parades and shows, and discounts in the coming year, as Disney tries to keep people coming, especially as the new lands and rides will still be under construction for some time.

Still, the price of Disney tickets today compared to past years prices out some families.

Shortly after Disneyland in California opened in 1955, guests could buy admission plus 10 rides for a total of $2.50. Adjusted for inflation, that $2.50 would be $28.74 today. When Disney World in Florida opened in 1977, admission plus a book of tickets for seven rides was $8 in total. In 2024 dollars, that would be $61.66.

Currently, the cheapest one-day tickets to Disneyland or Walt Disney World during the “value” season are $104 and $116.09, respectively.

But the admission prices when the parks first opened were for entry into a single park, with far fewer attractions than what a Disney guest experiences today. Today, Disneyland Resort has two parks with more than 65 total attractions; Disney World has four theme parks and two water parks with more than 150 attractions.

“Value” tickets have increased less than 1% annually in the last 10 years, noted Don Munsil, who runs MouseSavers, a travel website that maintains historic records of Disney prices. But the number of dates on the calendar when these prices apply has diminished.

On the high end, Munsil said the most expensive single-day ticket to only one park during peak season at Disneyland in California ($194) has increased an average of about 7% each year over the last decade. A similar peak season ticket at Disney World in Florida ($201.29) has increased an average of 6.4% each year during that time.

The increases on these peak tickets outpace inflation over the same period.

According to MouseSavers, tickets for a family of four to hop between the Walt Disney World parks for four days during peak season costs about $3,098 in 2024, without factoring in additional services like access to faster “Lightning Lanes,” which used to be free.

That’s about double what they cost 10 years ago, and 3.6 times the price 20 years ago.

Paid access to Lightning Lanes, which first debuted at Disney World in 2021, can cost another $17-$41 per person, per day, depending on the park and the season.

Certain popular rides aren’t included, however. Using the Lightening Lane specifically for “Star Wars: Rise of the Resistance,” for example, would cost about $25 extra per person.

But Munsil points out that this is the cheapest of any theme park “express” service on the market. He said Universal charges $105-$310 per person, per day, for their express pass, depending on number of parks and options. Cedar Point charges $95-$120 per person, per day. Busch Gardens charges $60-$150 per person, per day.

The grievance from the fan community is that this used to be free at Disney parks. Transportation from the Orlando airport to Disney World property also used to be included for Disney hotel guests, but that service has been discontinued.

Food and souvenirs at the parks also cost a lot more.

A Mickey ice cream bar cost $2.59 15 years ago, according to Disney Food Blog . If only adjusted for inflation, it should cost $3.78 in 2024, but instead, the price is $6.29.

Light-up specialty balloons were $15 in 2015 . If adjusted for inflation, that type of balloon would cost $19.60. In 2024, that balloon costs…$20. So not everything at the parks outpaces inflation.

Is it worth it?

“I always joke that three things in life are certain - death, taxes, and Disney parks raising ticket prices,” said Mindy Marzec, who runs thisfairytalelife.com. “Prices are going to go up no matter what, so when you hear all about these exciting projects in development, it feels like the price is more worth it.”

Prices of regular tickets have not increased at nearly the same pace as annual passes, Munsil points out. He said the hardcore fans are the ones who are often quoted feeling jaded, because they go frequently and see the prices of their passes go up.

But he said the primary audience, especially for Disney World, are first-time visitors who are amazed and delighted by the incomparable entertainment and detail that they see. The cheapest available ticket to Disney World has remained the same price as it was in 2019, and is $15 more than it was in 2013.

“I think the Disney parks are a huge bargain,” Munsil said, noting that the cheapest available ticket at about $110 a day (or less, with seasonal discounts), gives someone more than 10 hours of entertainment, depending on one’s stamina.

“The Disney parks have some of the most amazing, technologically sophisticated rides and experiences in the world. It’s a totally unique, magical place,” Munsil said. “What’s that worth? The only comparable place is Universal Studios, and it costs about the same, and for (IMO) parks that are just a little less amazing (though still worthwhile).”

For frequent visitors who balk at paying more for the products and services they’re accustomed to, the question is whether the experience is still worth the money. Following the D23 announcements of upcoming developments, many devotees are saying “yes, ”even if it may mean saving up for fewer trips.

Content creator Victoria Wade, said, “In recent years, there has been a feeling that the fans have been nothing more than dollar signs and that our feedback wasn’t taken seriously since the return to normality with the pandemic.”

Wade said the perceived instability of Disney leadership, and adding paid services and experiences that were once free, “led to a lack of trust between the company and the community.”

But Wade said that the major announcements made at the Disney fan convention, D23, gave her the feeling that the company is listening to feedback, like adding a new nighttime parade at Magic Kingdom, which loyal visitors had requested for a long time.

Munsil said the Disney parks are “expensive, yes, but there’s nothing else on Earth like them.”

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Travel Cost Model: Data Sources and Variable Measures

Cite this chapter.

• V. Kerry Smith 4 &
• William H. Desvousges 5  

Part of the book series: International Series in Economic Modeling ((INSEM,volume 3))

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This chapter describes the data used to estimate the generalized travel cost model. In effect, it forms a bridge between the previous chapter, which uses the household production framework to develop the generalized travel cost model and the following chapter, which describes the model’s empirical results. This chapter highlights how our interpretation of conceptual issues has guided our use of the data to estimate the model. Equally important, it describes quirks in the available data that significantly affect the nature of our empirical analyses.

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Brown, Gardner Jr. and Robert Mendelsohn, 1984,"The Hedonic Travel Cost Method,” Review of Economics and Statistics , Vol. 66, No. 3, August 1984, pp. 427–33.

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Desvousges, William H., V. Kerry Smith, and Matthew McGivney, 1983, A Comparison of Alternative Approaches for Estimating Recreation and Related Benefits of Water Quality Improvements , Environmental Benefits Analysis Series, Washington, D.C.: U.S. Environmental Protection Agency, March 1983.

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U.S. Bureau of the Census, Department of Commerce, 1977, Statistical Abstract of the United States , 1977, 98th Edition, Washington, D.C., 1977.

U.S. Department of the Interior, 1979, Heritage Conservation and Recreation Service, The Third Nationwide Outdoor Recreation Plan , Washington, D.C., U.S. Government Printing Office, December 1979.

U.S. Department of the Interior, 1983, National Water Quality Data Exchange, U.S. Geological Survey, 1983.

Vaughan, W. J., and C. S. Russell, 1982, Freshwater Recreational Fishing: The National Benefits of Water Pollution Control , Washington, D.C.: Resources for the Future, Inc., November 1982.

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This Disney restaurant marked a Michelin first: What to expect at Victoria & Albert's

Picture a Michelin-starred restaurant . Places like The French Laundry in California’s Napa Valley or Jean-Georges in New York may come to mind, but don’t forget Walt Disney World.  

This spring, Victoria & Albert’s at Disney’s Grand Floridian Resort & Spa became the first restaurant owned and operated by a U.S. theme park to be awarded a coveted Michelin star, according to The Walt Disney Co. 

"A lot of times people think about Mickey Mouse ice cream bars, which I had as a little boy with my grandparents coming here, and turkey legs, which are fun and amazing, but there's this great gastronomic opportunity that we're, as chefs here at Walt Disney World, striving to achieve,” said Chef Matthew Sowers , chef de cuisine at Victoria & Albert’s. 

Here’s what guests can expect from the renowned restaurant:

Does Victoria and Albert's have a Michelin star? 

Yes. So does Capa at the Four Seasons Resort Orlando, which is also at Disney World but neither owned nor operated by Disney. 

“Michelin's inspectors are passionate about highlighting worthwhile dining experiences, regardless of location or setting,” Michelin Guide's chief inspector for North America said in a statement, maintaining anonymity for reviews. “ ’Starred’ restaurants are always visited several times by different inspectors to ensure consistent quality and the satisfaction of our five criteria ,” which are all related to cooking. 

Stars are awarded solely on food, but Victoria & Albert’s longtime maître d’hôtel Israel Pérez was also honored with the 2024 Michelin Guide Florida Service Award.  

“The inspection team found the service to be excellent, with friendly and attentive servers who were very polished and well-informed on the menu,” Michelin said. “They feel the service experience is well-orchestrated without feeling stiff or rehearsed.” 

Perez, who started at the Grand Floridian as a busboy 36 years ago, called the honor a dream come true. 

“It's just something that you've been working on your entire life without even knowing that you're working for it,” he said, sharing credit with the entire staff.

What makes Victoria & Albert’s special?  

There is only one seating each night, so every guest is special, and every meal is an event. 

“We memorize names ahead of people coming in,” Perez said, noting that roughly 80% of the restaurant's guests are first-timers and 20% are repeat diners. “We do have a way to just ask questions ahead of your visit to make sure that your experience is not a transaction, that we know who you are, that we greet you, that we make you feel comfortable.” 

He said the restaurant has the highest ratio of servers to guests on the property, with one server to every four guests in the Dining Room. 

“There's a list of about 200 different little rules that we go by that you’ll probably never notice unless you ask us about it,” he added. “We always talk about not being intrusive, but the servers really can share so many stories about food, about wine. They know every single ingredient.”  

Sowers gets excited when different ingredients come in season, like ramps in the spring and white truffles in winter.  

“We're always trying to allow for the ingredients to drive the menu,” the chef said. He changes the menu roughly every three months. “They’re a moment in time that you capture and you showcase that to the guests that maybe haven't had an opportunity to enjoy that before.” 

How to try new foods 

Knowing that some flavors may be unfamiliar, Sowers said the restaurant tries to be approachable, particularly at the start of a meal.  

“Once we're able to kind of gain their trust, they're going to be more receptive to some of the more exotic ingredients that we may be inspired using later,” he said. Michelin described Sowers’ cuisine as contemporary with “influences spanning from Asia to the Nordics.” 

Sharing stories also helps guests connect. 

Introducing a mocktail called La Vie en Rose, chef Gabriella Syvaniemi, who crafts the restaurant’s zero-proof offerings, said, “La Vie on Rose means to see the world through rose-colored glasses and to live life with positivity. My grandma used to farm rhubarb and she loved roses, so this kind of stemmed from that." Cold-pressed rhubarb juice and rose water are among the pink drink's ingredients.

The restaurant guides guests on culinary adventures while respecting dietary wants and needs. 

“Whether it’s in a vegan menu or whether it's someone who only wants to do seafood or someone that doesn't want to do seafood, we're able to capture a dining experience that's multiple courses where we can tailor it to what their sensibilities are,” Sowers said. 

How much does dinner cost at Victoria and Albert's? 

Victoria & Albert’s is only open for dinner. Prices vary depending on the dining venue and experience. There are three venues within the restaurant, each serving a prix-fixe menu with multiple tasting courses. 

The prix-fixe menu starts at $295 per guest in the main Dining Room, $375 in the more intimate Queen Victoria Room, and $425 at the exclusive Chef’s Table, where guests spend the evening interacting with chefs beside the bustling kitchen.  

“Sometimes they're really engaging and wanting to know every little thing. We're to shepherd them through the experience,” Sowers said. Only one party of up to six guests may partake in the Chef’s Table each night. 

Wine pairings and zero-proof pairings cost extra. Guests can also pair courses with different waters from around the world, from the restaurant's water menu. 

Does Victoria and Albert's have a dress code? 

Yes. Its website states: “Victoria & Albert’s is an exquisite and intimate upscale dining experience and the culinary crown jewel of Walt Disney World Resort. Guests are expected to dress accordingly in semi-formal/formal attire that respects the restaurant’s elegant and opulent aesthetic.” 

What is the minimum age for Victoria and Albert's? 

The restaurant welcomes guests 10 years old and older. 

What park is Victoria and Albert’s in? 

Victoria & Albert’s is not located in a theme park but inside the Victorian-inspired Grand Floridian Resort & Spa. The restaurant is named after Britain’s Queen Victoria and her husband, Prince Albert.

The restaurant and resort are a short monorail or ferry ride from Magic Kingdom. Valet parking is also available and complimentary with dining reservations at Victoria & Albert’s. 

Disney bubble: Disney fans love staying on-site to keep the magic going, but are Disney hotels worth their cost?

How far in advance can you book Victoria and Albert's? 

Reservations open 60 days in advance. Guests staying at Disney’s resort hotels can book reservations for their entire vacation window, up to 10 days, starting at 60 days before their arrival.  

Guests should note the Chef’s Table may only be booked by phone by calling Victoria & Albert’s directly at (407) 939-3862. The Dining Room and Queen Victoria Room may be booked through the My Disney Experiences app . 

Additionally, guests with food allergies are asked to alert the restaurant at least 24 hours in advance so chefs can modify menus accordingly. 

“If you have an allergy that looks as simple as something like onions, there might be onions in almost every sauce,” Perez said.  

How long is a meal at Victoria and Albert's? 

Guests should expect to spend around three hours on the tasting menu at Victoria and Albert’s, though they are welcome to stay longer. 

“A few days ago, the Chef’s Table for example, they were with us for seven hours,” Perez said. That occasion was a bit unusual, with one of the restaurant’s regular guests celebrating a milestone anniversary. “We are always going to follow your timing.”

What’s next for Victoria & Albert’s? 

The restaurant isn’t resting on its laurels. 

“It is personal. It is our work. We really strive to have craftsmanship in what we do and we put ourselves into the work,” Sowers said. “Day after day, try to get 1% better and make sure that that results in a way where guests can come back year over year and watch us continue to evolve and continue to get better and grow.” 

Victoria & Albert’s has been consistently named a AAA Five Diamond Award restaurant and a Forbes Travel Guide Five Star establishment. 

“Every single guest for us is the same,” Perez said. “Every single guest for us is Michelin or Forbes or AAA.” 

The reporter on this story received access to Victoria & Albert’s from Walt Disney World. USA TODAY maintains editorial control of content.  

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Average Cost of Travel Insurance for 2024

Alex Carver is a writer and researcher based in Charlotte, N.C. A contributor to major news websites such as Automoblog and USA Today, she’s written content in sectors such as insurance, warranties, shipping, real estate and more.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Here’s a breakdown of how we reviewed and rated the best travel insurance companies

How Much Does Travel Insurance Cost?

Travel insurance costs range from 3% to 14 % of a trip’s total value, according to quotes gathered by our research team across different travel insurance providers for various traveler profiles. This means a travel insurance policy for a trip costing $1,000 could range from $30 to $140 and a trip costing $5,000 could range from $150 to $700.

While this may seem like a wide price range, it’s important to understand that travel insurance is not a “one price fits all” purchase. Factors such as total trip costs, coverage levels, travel destinations, traveler ages and trip payments can affect the price of a travel insurance policy.

According to our research, the average cost of travel insurance is $204 , but you could pay anywhere between $14 and $765 for travel insurance . Solo travelers can expect to pay around $60-$100 for coverage.

Travel insurance provides a range of protection before and during your trip. If you must cancel your vacation for reasons stated in your policy, travel insurance can reimburse you for nonrefundable expenses. It can also help cover medical care and evacuation costs in an emergency.

One way to predict your travel insurance cost is to look at your trip cost — most insurance policies cost between 3% and 5% of your total trip cost. Use the calculator below to get an estimate of your travel insurance policy cost:

Travel Insurance Cost by Total Trip Cost

The main factor that affects travel insurance costs is the total price of your trip. The more your trip costs, the more a travel insurance company will need to reimburse you if you file a valid claim . For example, if you’re taking a $10,000 trip to Japan versus a $3,000 trip, you’ll likely pay more for a policy offering the same amount of coverage.

To better understand the cost of travel insurance by trip price, we gathered quotes from multiple providers for a 30-year-old traveler taking a two-week trip to the United Kingdom . The chart below outlines the average policy cost across those quotes for different trip values. 

Cost of Travel Insurance by Provider

Our team collected quotes for all plans offered by 24 travel insurance companies for eight traveler profiles. Some companies are cheaper than others, such as Battleface, due to low coverage limits or limited coverage options. Other companies, like Allianz or Faye, are more expensive because of higher medical limits, more coverages and more add-on options.

The premiums below reflect the average of all quotes collected for that provider.

Average Travel Insurance Cost by Age

Age is another factor that affects travel insurance costs. Generally, younger travelers may be less likely to file a claim than older travelers since they are often healthier and may not have pre-existing conditions. Due to the higher chance of travel insurance providers receiving a claim from older travelers , plan costs generally increase with age .

We gathered quotes from 20 different providers for a $4,000, two-week trip to the United Kingdom to learn more about how travel insurance costs increase by age. From this data, we found virtually no increase in policy costs for travelers aged 20 to 30 years. However, travelers aged 30 and up saw policy costs increase with age. Based on our research, an 80-year-old will pay 303% more than a 20-year-old for the same policy.

See the table below for a closer look at percent increases for policy costs based on age. 

Travel Insurance Cost by Number of Travelers

The number of travelers under a travel insurance policy can also affect the total cost.

While travel insurance prices increase slightly depending on the number of people, one policy for the entire group is likely cheaper than purchasing a solo policy for every traveler.

We gathered quotes for a $5,000, two-week trip to the United Kingdom for different groups of travelers and found that adding just one traveler to a plan can increase costs by 8.3% , on average. While this is the average increase across quotes from 20 different providers, your costs may differ, as we found plan cost ranges widely varied.

Our research team attributes this extensive cost range to the provider, chosen plan, and whether or not coverage includes children for free. Many providers, such as Travelex , offer plans for travelers 17 years and younger for no additional cost. 

See the table below for a closer look at travel insurance costs by number of travelers.

Cancel for Any Reason (CFAR) Travel Insurance Cost

Cancel for any reason (CFAR) coverage is usually sold as a travel insurance add-on. A typical travel insurance plan includes standard trip cancellation coverage, which takes effect as long as the reason for cancellation is listed within your policy terms. With CFAR coverage, however, you can cancel your trip for a reason not typically covered by your provider. For example, while your policy may cover an unexpected cancelation due to severe weather, CFAR coverage would allow you to cancel because you no longer want to take the trip.

CFAR coverage typically reimburses 50% to 75% of your prepaid trip costs. However, note that many companies reserve CFAR coverage for comprehensive plans. Because CFAR coverage increases the risk taken on by the insurance provider, it can significantly raise the price you pay for coverage. Costs vary by insurance provider, so gathering quotes across different providers that offer this add-on can help you find coverage that fits your needs.

To better show you what CFAR coverage could cost when added to a policy, we gathered quotes for a 30-year-old traveler taking a two-week, $5,000 trip to the United Kingdom. 

What Impacts the Cost of Travel Insurance?

Each travel insurance provider prices its policies using a specific formula and underwriting process. While travel insurance is not a “once price fits all” type of coverage, the primary factors influencing policy pricing were fairly consistent across the companies we’ve reviewed. Take a closer look at some of these factors in the sections below.

Most insurance providers offer 100% reimbursement for trip cancellation and 150% for trip interruptions. A general rule of thumb when purchasing a policy is the more expensive your trip is, the more expensive your premium will likely be. This is because your travel insurance provider would potentially need to pay more if you file a claim for a covered cancellation or interruption.

If you choose a travel insurance policy with multiple protections and higher coverage limits, you can typically expect to pay more for coverage. Extra coverages outside of standard offerings — such as car rental collision coverage or CFAR coverage — can increase your policy premium.

Destinations 

Some destinations, notably those in more remote areas, may have less robust medical infrastructures. This increases the likelihood of needing a medical evacuation in the event of an emergency. Because of this, you can likely expect to pay more for travel insurance to a remote destination.

Traveler Age

Older men and women may have medical conditions that impact travel plans, increasing the price of insurance. As previously stated, our research team found that an 80-year-old will pay 303% more than a 20-year-old for the exact same policy. If you’re an older traveler, you can anticipate more for a travel insurance policy.

Trip Payments

The date you paid for your travel can also affect your premium and the type of add-ons available. Buying a policy immediately after booking your trip could save you money and provide a greater protection window for trip cancellation benefits, which usually begin on your plan’s effective date. Alternatively, you can generally expect to pay more for coverage if you paid for your trip weeks or months before shopping for insurance. If you want CFAR coverage, providers may implement timelines for when you must purchase a policy. 

How To Save on Travel Insurance

If you’d like to insure your trip but want to keep policy costs low, we recommend shopping around and comparing travel insurance companies and available plans . Many providers allow you to customize your coverage to fit your needs, and one company may offer a similar plan that’s cheaper overall compared to other options.

Customization is another factor to consider when trying to save on travel insurance costs. While you shop, keep in mind what your travel itinerary entails. For example, you might opt out of emergency medical and evacuation coverage if you’re traveling domestically — especially if you have an active health insurance policy through a domestic healthcare provider.

In addition, you can save money by not overinsuring your trip. Consider your health, destination and trip cost when deciding which coverages you need. For instance, if you’re traveling to a remote area without a robust medical system, you may consider purchasing higher medical evacuation coverage than if traveling to an urban area with access to hospitals.  

While there are ways to lower travel insurance costs, cheaper coverage is not always better. 

“Choosing travel insurance to protect your trip, health and belongings is not usually the time to go bargain basement shopping,” said Angela Borden, a product marketing specialist at Seven Corners. “While any travel insurance is usually better than none, deciding to go with the cheapest plan you can find often comes back to haunt you in an emergency.”

Domestic vs. International Travel Insurance Costs

Typically, international travel can result in spending more on prepaid — and often non-refundable — trip costs. An international vacation can involve more than one flight, and if you choose non-refundable hotels or excursions, you could lose a large amount of money without a travel insurance plan. 

However, the more your prepaid expenses, the more your policy will cost you — meaning insurance for an international trip could cost you more than for domestic travel. In addition, many domestic healthcare plans will likely not cover medical care abroad . A plan with emergency medical and evacuation coverage is worth considering while traveling internationally, but it will cost you more than a travel insurance plan without this protection.

According to a Pollfish survey our team conducted in February 2024, 46% of the 1,000 U.S.-based respondents were traveling domestically within the U.S. the last time they bought a travel insurance policy. Many companies sell travel insurance for domestic vacations , which can offer less expensive coverage that’s better suited for this type of trip.

For example, the Seven Corners Trip Protection USA plan provides trip cancellation and trip interruption coverage, forgoing emergency medical or air travel benefits. This may be ideal if you’re traveling by car and already have a domestic health insurance plan.

What To Consider Before Buying Travel Insurance

To ensure you select the best travel insurance policy for your individual needs, you can consider the following factors.

Coverage Needs

It is important to consider the type of protection you need while traveling. If your trip spans a few days, you may only need basic trip cancellation coverage, whereas a month-long trip may warrant additional medical coverage.

Additionally, consider your health, as many domestic health insurance policies do not cover health care outside U.S. borders. Also, think about any add-on coverage you may need. If you foresee needing to cancel your trip for a reason not covered under policy terms, for example, you may want to invest in CFAR coverage.

Credit Card Travel Insurance

It’s worth calling your credit card company before purchasing a travel insurance plan to see if you already have benefits. Many credit cards, such as the Chase Sapphire Preferred card, offer travel perks such as rental car coverage, trip cancellation protection, trip delay coverage and more.

If you’re comfortable with the amount of coverage provided by your credit card, you can reconsider buying a separate travel insurance policy — saving you money you can put toward other travel expenses.

Claims Processes

We recommend you read up on how a provider handles its claims. Can you, as the policyholder, file a claim multiple ways? How quickly does the provider issue reimbursements? Note that some providers allow you to upload required claim documents online, whereas others require you to submit documents through the mail.

We recommend speaking to insurance representatives directly to learn more. You can also browse customer reviews from third-party aggregators, such as the Better Business Bureau (BBB) and Trustpilot, to better understand how a provider handles claims.

Do I Need Travel Insurance?

Not every traveler will need a travel insurance policy.

Borden, quoted earlier, provides more insight:

“There are times when travel insurance might not be worth it — the most common being if you don’t have many, if any, prepaid trip expenses.” She also points out that this could be the case if you’re staying with family and foregoing hotel expenses. “You don’t need to insure trip expenses if they’re already covered by someone else,” she added.

Is Travel Insurance Worth the Cost?

According to the U.S. Department of Transportation , one in five flights experienced a delay in 2023. Travel insurance can help provide coverage if you experience a delay — one of the many scenarios where a policy can be worth the cost. If you need to cancel your trip, experience a trip interruption, lose your baggage or experience a medical emergency abroad, travel insurance can help you recoup some prepaid, nonrefundable expenses. 

If you’re looking for peace of mind as you plan your trip, we recommend gathering quotes from multiple travel insurance providers to find coverage that suits your needs and your budget.

Frequently Asked Questions About the Cost of Travel Insurance

Does travel insurance cover covid-19.

Yes, many travel insurance policies consider COVID-19 a covered reason for trip cancellation or delay. Note that providers cover trip interruptions and cancellations caused by the COVID-19 pandemic on the condition that you were healthy when you purchased the policy.

Should I purchase “cancel for any reason” coverage?

Cancel for any reason (CFAR) coverage allows you to cancel your trip even for reasons not listed in your insurance provider’s policy. If you are worried about illness or general travel or wish to have the flexibility of canceling, CFAR coverage may be worthwhile. Note that this add-on reimburses up to 75% of your trip costs, not the entire amount.

How much does travel insurance usually cost?

You can expect to pay $35 to $200 per trip, depending on the total trip cost and your age, among other factors. Based on quotes we pulled from five popular providers, the average cost of travel insurance for a $1,000 trip to Cancun, Mexico, for a 35-year-old male is $45.

Does travel insurance cover 100%?

Yes, trip cancellation coverage may cover 100% of your costs if you cancel your trip for a covered reason, such as illness, a family emergency or military deployment. If you purchased CFAR coverage, you can cancel for any reason but will only recoup around 50% to 75% of trip expenses.

What company offers the most affordable travel insurance?

In our review, we found that Travelex’s Basic policies were some of the most affordable on the market. Other affordable travel insurance providers include Nationwide and Faye, which specialize in streamlined online applications and issuance. We recommend getting a quote from each of our recommended providers before buying coverage to ensure you’re getting the best rates.

Methodology: How We Collected Cost Data

Our team reviewed travel insurance companies in-depth to provide the most accurate and up-to-date pricing information available. While your policy price will vary based on your trip details, traveler ages, number of travelers, destination and more, we took the following steps when collecting data to get a full scope of industry pricing.

• 30-year-old couple taking a $5,000 vacation to Mexico
• 65-year-old couple taking a $7,000 vacation to London
• 30-year-old couple taking a $7,000 trip to London
• Family of 4 taking an $8,000 vacation to Mexico
• 19-year-old taking a $2,000 trip to Paris, France
• 27-year-old taking a $1,800 trip to Athens, Greece
• 23-year-old taking a $4,000 trip to Europe (Italy, Spain, Ireland, Greece, longest time spent in Italy)
• 51-year-old taking a $2,000 vacation to Madrid, Spain
• Cost data by provider:  To figure out how the average cost for each provider, we collected sample quotes for all the insurance policies they offer. Then, we took the average of these estimates for each type of trip across all their policies to find out the provider’s average cost.
• Cost data by age:  We evaluated cost data for seven ages in increments of ten years starting at 20 years old. We collected 20 sample quotes for each age and averaged them to get the typical cost for that age group. Sample quotes were collected for a variety of policies, from medical-only to comprehensive travel insurance plans.
• One 30-year-old traveler
• A 30-year-old couple
• Two 30-year-old adults and one 5-year-old child
• Two 30-year-old adults, one 5-year-old child and one 7-year-old child
• Cost by trip price: To get accurate pricing by trip price, we collected 20 quotes each for 11 differently priced trips. We started at a $1,000 trip and increased the trip price by $1,000 increments until $10,000, then collected quotes for a $15,000 trip. We averaged the 20 quotes for each trip.

We manually collected all cost information from each company’s respective website.  Learn more about our review standards .

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides. com .

MarketWatch Guides may receive compensation from companies that appear on this page.
The compensation may impact how, where and in what order products appear, but it does not influence the recommendations the editorial team provides. Not all companies, products, or offers were reviewed.

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Is a Disney Theme Park Vacation Still Worth the Price?

As Disney has raised the cost of tickets and hotel rooms at its theme parks, and added pricey, difficult-to-navigate tools, even its most loyal fans are asking themselves if they should rethink their vacations.

By Tariro Mzezewa

Earlier this year, Jake Williams, a filmmaker and content creator in Toronto, made his long-awaited return to one of his favorite places on earth: Walt Disney World in Orlando, Fla. After traveling to Disney World and Disneyland multiple times a year since childhood and becoming an annual pass holder as an adult, Mr. Williams hadn’t been to a Disney park since 2019.

“As someone who went all the time, it’s crazy to me that I hadn’t gone to a Disney park in that long,” he said in a phone interview. “It’s a special place. ”

Before his trip, Mr. Williams heard about some changes at Disney World, but he didn’t anticipate how different things would be, starting at the airport. Since his last visit, the company had gotten rid of the Magical Express, a free bus that for more than 15 years shuttled people from Orlando International Airport to their Disney resorts. Guests must now take a shuttle that costs between $23 and $30 per adult each way, depending on the time of year, use a ride share service or rent a car.

To Disney-goers, the end of the Magical Express speaks to a larger issue: The cost of being at the happiest place on earth is going up while the perks are going away. As the company has raised the price of tickets and hotel rooms, and added costly, difficult-to-navigate tools to book rides as replacements for previously free products, even its most loyal fans are asking themselves if it’s still worth it.

Mr. Williams said that a day in the Orlando parks and a one-night stay at Disney’s Port Orleans Riverside Resort cost a “jaw-dropping” $886.34 for two adults. He decided to calculate how much the same trip cost in 2017 — a year when he visited the park several times. The cost: $567.90. Even accounting for inflation, he was stunned.

“It’s hard to justify going to Orlando rather than, like, Iceland,” he said. “When you have a budget like this, you can go a lot of places and see and do a lot of things. You could even do a Disney cruise for less than that.”

Epcot’s Italy, or Italy?

He’s not alone. Len Testa, president of Touring Plans , a site that helps travelers organize Disney trips, and a co-author of “The Unofficial Guides to Walt Disney World and Disneyland,” said that he increasingly hears from Disney lovers who are now planning other types of vacations.

“At some point a Disney vacation starts competing with ‘Let’s go see Europe’ and I think that’s what a lot of people are doing,” Mr. Testa said. “I’ve had a number of people in the last few years say, ‘We priced it out and we could take our children to eat pizza in the Italy pavilion in Epcot or for the same money we could actually go to Italy for two weeks. We’re going to go to Italy for two weeks.’”

For Mr. Testa, collecting data about Disney is a passion. In the late ’90s, as a graduate student in computer science he decided he wanted to build a computer program that could help people navigate Disney World as efficiently as possible. That research continued through his Ph.D and the program he created turned into Touring Plans. His team of developers and data scientists model what’s going on at Walt Disney World on a minute-by-minute basis every day. The data they’ve collected in recent years shows that the cost of a Disney World trip, on average, has gone up almost 25 percent since 2019. Seventy percent of that increase is for services that used to be free.

The prices of parking and entry tickets have consistently risen in recent years. In 2022 ticket prices went up two times. In 2023 annual passes saw a $30 to $50 increase, depending on the tier, while multiday tickets also went up. A one-day ticket to either of Disney’s U.S. parks now costs $109 for anyone over the age of 10.

One analysis concluded that between 2014 and 2025, the base price for tickets has gone up 32 percent and increased by 90 percent for the highest-priced tickets. In 2025 the base price for an adult one-day ticket will be $119 and the higher tickets will be $199. Hotel prices have also risen. The cheapest hotels at Disney World now cost an average of $187 per night, according to Disney Magic Guides , a resource for planning trips to the parks.

In an earnings call this week , Disney’s leaders acknowledged that they’ve seen a slowdown at the parks and that, because of the economy, lower-income visitors are financially stressed, while higher-income guests are traveling internationally. And Disney is not alone: Tickets for Universal Studios in Florida and in California often cost as much as Disney tickets. In July, Comcast said Universal’s revenue fell by 11 percent in the prior quarter, with visitors turning to cruises and international travel.

In an email, a spokeswoman for Disney said the company is always trying to offer guests an array of tickets and experiences. To the company, and its most loyal fans, she said, the value of the experiences is worth the price.

“We are purposeful about creating more ticket and hotel price points than ever before to provide guests a variety of opportunities to visit our parks,” she said, adding that “a visit to a Disney theme park is a 10- to 16-hour experience with attractions, entertainment and more.”

Apps overload

For many guests, price isn’t the only hurdle. Visitors now have to navigate several new apps and tools if they want the best chance at getting on the most popular rides. In the past, they could get a free FastPass, which allowed them to go to the front of a line for a ride. In 2021, Disney replaced the FastPass with a digital feature called Genie+ that park goers had to pay for and that was supposed to make booking rides more efficient. Instead, it caused so much confusion that content creators started making videos that showed viewers how to “hack” the tool.

To get the best out of Genie+ guests had to buy the app early in the morning ( avid park-goers recommended doing so at 6 a.m.) and then, at 7 a.m., they would book rides for the day. They could only book more rides after they’d completed their first activity or two hours after making their first reservation. And they couldn’t choose what time they wanted to get on a ride — Genie+ would do it for them. Mr. Testa said all of this led to “Disney complexity fatigue.”

“ God forbid on your vacation, you want to go back to your hotel and take a nap,” Mr. Testa said. Others said having to always be on their phones took away from the experience of being on vacation.

Disney heard the complaints. In July, Genie+ became Lightning Lane Multi Pass, which makes it possible for people to reserve rides ahead of time, instead of on the day they are in the park. The new system, which starts at $30 a day, is an attempt at mixing Genie+ and FastPass, but only those willing to pay extra can use all the features. The Disney spokeswoman said that so far, guests are “very pleased” with Lightning Lane Multi Pass. Reviews on social media show that it may be too soon to tell. On Reddit, reviewers lamented the different prices for Lightning Lane passes, with one person saying she “despised the process” of booking in the new system so much she felt like throwing her phone.

Jeremy Sonkin, a Chicago-based content creator who makes videos about theme parks, was at Disney World on the first day the new system was available. He said the new app is less confusing than Genie+, but it doesn’t feel like an upgrade.

“The idea and thought behind trying to bring back the ‘Fast Pass plus’ system is correct, but it’s not a level playing field and I can see this causing just as much, if not more, frustration from guests,” he said.

Greg Antonelle, the managing director of MickeyTravels , a travel agency that focuses on booking Disney trips, said his company is having a great year, with travelers looking to experience new rides like Tiana’s Bayou Adventure , which replaced the old Splash Mountain ride. He said that complaining about Disney is par for the course.

“We’ve been in business for 13 years and we’ve heard complaints about cost for 13 years,” Mr. Antonelle said. “It’s nothing new.”

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

An earlier version of this article misstated the starting month of the Lightning Lane Multi Pass at Disney World. It started in July, not June.

How we handle corrections

Tariro Mzezewa, a former national correspondent at The Times, is a reporter who writes about culture and style. More about Tariro Mzezewa

Open Up Your World

Considering a trip, or just some armchair traveling here are some ideas..

52 Places:  Why do we travel? For food, culture, adventure, natural beauty? Our 2024 list has all those elements, and more .

Lake Como, Italy:  Stars like George Clooney frequent this scenic corner of northern Italy, but you might be surprised by how affordable it can be. Here’s an insider’s guide .

South of France:  Horses, bulls and birds of all types live among the pink marshes of the Camargue, a rugged landscape shaped  by the relentless push and pull of sea and river.

Disney Theme Parks:  As Disney has raised the cost of tickets and hotel rooms at its theme parks, and added pricey, difficult-to-navigate tools, even its most loyal fans are asking themselves  if they should rethink their vacations.

Helsinki, Finland:   Explore the stunning architecture  of the new central library, browse treasure-filled shops in the Design District, sweat in a wood-burning sauna, sip cocktails on a schooner and trek across islands in the surrounding archipelago.

Salzburg, Austria:  The compact Austrian city of medieval alleys, majestic Alpine views and just 150,000 residents bursts to life in the summer .

EV Charging

Electric bikes: the truth about how much it costs to charge an e-bike.

As electric bicycles continue to grow in popularity , one question often arises among potential buyers and intrigued newcomers: How much does it actually cost to charge an electric bicycle? The idea of an eco-friendly, efficient mode of transportation sounds enticing, but is that going to mean a jump in your electric bill?

The short answer is this: Electric bikes are surprisingly inexpensive to charge. Let’s break down the truth about the cost of charging e-bikes and see why they might be one of the most cost-effective transportation options available today.

The reason most people think charging an e-bike will be expensive comes down to two factors: 1) Most people don’t realize how energy-efficient e-bikes are, and 2) Most people don’t realize how cheap electricity is in the US.

On the first point, most e-bikes have a motor of 750 watts or less, which means they’re working with at most one horsepower. In Europe, where e-bike power levels are limited to a mere 250 watts, that’s a third of a horsepower.

The reason you still see e-bikes zipping by so quickly is that you simply don’t need very much power to move a 50 lb vehicle and a single person. Consider that a reasonably healthy human rider usually produces around 200-250 watts of power with their legs. And so when you don’t need much power, you don’t need much electricity.

On the second point, electricity isn’t really that expensive. When you feel the pain of a monthly electrical bill, it’s usually due to energy-hungry appliances like air conditioners. There’s a decent chance that a month of charging an e-bike will use less energy than a single day of running your home air conditioning. Let’s see why, below.

Breaking down the cost of charging an electric bicycle

The cost to charge an electric bicycle primarily depends on the capacity of the battery and the local cost of electricity. Most e-bike batteries have capacities ranging from 250 watt-hours (Wh) to 750 watt-hours (Wh). To put this into perspective, let’s consider a typical 500Wh battery, which is common in many mid-range e-bikes. For those in the know, this would be quite similar to a conventional 48V 10Ah battery found in many e-bikes.

Calculating electricity consumption :

A 500Wh battery means it uses 0.5 kilowatt-hours (kWh) of electricity to fully charge (since 1 kilowatt-hour = 1,000 watt-hours). This doesn’t include inefficiencies in the charger, but we’ll address that in a moment.

Understanding local electricity rates :

Electricity rates vary widely depending on location, but in the United States, the average cost is about $0.16 per kWh. If you’re in Nebraska or California , you’re probably paying a lot less or a lot more, respectively. But that’s a rough average depending on who you ask and how you calculate it.

Calculating the charging cost :

To charge a 500Wh battery (0.5 kWh), you would multiply the battery capacity by the cost per kWh:

0.5 kWh × $0.16 per kWh = $0.08

So, it costs around 8 cents to fully charge a 500Wh e-bike battery, on average.

Assuming a range of roughly 30 miles would result in a cost per mile of 0.2 cents per mile, or one penny per every five miles of riding. If you live a couple of miles from work, your daily commute would cost a single penny.

Your weekly or monthly “fuel costs” for an e-bike will of course depend on how much you ride and how much range your e-bike gets per charge. For example, if you only ride 10-20 miles each weekend and your e-bike gets around 30 miles per charge, you’ll likely spend around sixteen cents per month on electricity.

On the other hand, if you ride 10 miles to work and back on the same bike, five times a week, then your monthly electricity cost would be closer to sixty cents.

Basically, most people are going to struggle to spend more than a dollar on electricity per month to charge their bike, unless they’re riding long distances every day. In other words, electricity costs associated with charging an e-bike are so close to zero that most people could probably consider them “free”, for all intents and purposes.

A note on (in)efficiency :

If you want to be more exact, you should consider things like inefficiencies. For example, the wall charger used to fill a 500 Wh battery from empty to full is likely not doing better than 90% efficiency, meaning 1 out of every 10 watts pumped through is lost as heat in the conversion.

So we could be more accurate by assuming a roughly 10% inefficiency rate. But as we saw above, 10% more than nearly zero is still nearly zero.

Comparing costs of e-bike charging versus alternative transportation

To truly understand the cost-effectiveness of e-bikes, let’s compare the cost of charging an e-bike to the cost of fueling a gasoline-powered car or even using public transportation.

Remember, a rather efficient e-bike is likely to cost around 0.2 cents per mile, while a rather inefficient e-bike might cost closer to 0.5 cents per mile.

Fueling an internal combustion car :

The average cost of gasoline in the U.S. right now is around $3.50 per gallon. Even a highly efficient car that gets 30 miles per gallon would cost about 12 cents per mile, not including maintenance and other expenses. That’s around 40x the cost of charging an e-bike.

Charging an electric car:

With the average cost of electricity at around $0.16 kWh in the US, filling an average-sized 60 kWh would cost around $9.60. If we assume a range of roughly 250 miles per charge from that electric car, that works out to a per mile electricity cost of around 4 cents. That’s around 13x the cost of charging an e-bike.

Public transportation :

A single bus or subway ride can range from $2 to $3 in many cities, significantly more than the cost of an e-bike charge. These numbers will vary from city to city, and the per mile number varies even more wildly as some people take a bus for a mile or two while others ride a train for dozens of miles. But suffice it to say, it can be an order of magnitude or two higher than the per mile cost of an e-bike.

Additional savings

Beyond the cost of electricity, e-bike owners can also save on other expenses:

• Maintenance : E-bikes have fewer moving parts than cars and typically require less maintenance. There’s no need for oil changes, and brake pads and tires generally last longer due to the lower speeds and lighter weight. I got my wife an e-bike last year and she has been riding to work every day since. In the past year, our only maintenance expense has buying a new $50 front wheel, and that’s only because she got unlucky and managed to damage hers. She’s still on her same tires and brake pads, 650 miles later.
• Parking : Many cities charge high fees for parking cars, whereas parking an e-bike is often free and more convenient. A few months of parking fees in a big city can pay for the entire cost of buying a new e-bike.
• Insurance : Most e-bike riders in the US do not insure their e-bikes. Among e-bike owners who do choose to insure their bikes, the cost is generally significantly lower than car insurance.

Environmental impact

In addition to being cost-effective, e-bikes are also an environmentally friendly transportation option. Charging an e-bike has a much lower carbon footprint compared to fueling a car with gasoline. As more electricity is generated from renewable sources, the environmental benefits of e-bikes will only increase.

Top comment by Ellis Atwood

🙋‍♂️Daily e-bike commuter here. I’m sorry but the part about them being lower maintenance than a vehicle just isn’t true. Maybe lower total cost to maintain, but definitely not lower effort. My car would be fine 20,000 miles without any maintenance. My bike, MAYBE 1,000 miles tops. It always needs something - derailleur adjustments, brake bleeds, brake pads, flat tire, random squeaks, etc. And then compound that with the fact that most bike shops won’t touch e-bikes, and ownership gets complicated.

Even with that, I’d still wholeheartedly recommend switching to e-bikes, but let’s make sure people have a clear understanding of what’s involved.

I built a charging shed for my e-bikes and other e-vehicles, and it uses a set of solar panels combined with portable power stations to charge all of my rides from solar power. It’s not the cheapest way to do it, but it’s off-grid and convenient. I even keep my electric tractor in there, which is nice since the shed is far away from any electrical outlet (hence the need for off-grid electricity).

Charging an electric bicycle is remarkably inexpensive, often costing just a few cents for a full charge. When compared to the costs associated with cars and public transportation, e-bikes emerge as a highly economical and sustainable mode of transport. Whether you’re commuting to work, running errands, or simply enjoying a ride, the low cost of charging an e-bike makes it an attractive option for anyone looking to save money and reduce their environmental impact.

So, next time you’re considering a new mode of transportation, remember the truth about how much it costs to charge an electric bicycle—you might just find it to be the perfect solution for your needs.

A final note on units: I’m sorry that this is mostly written using imperial units. I don’t live in North America, nor do I use imperial units daily, but that’s where  Electrek  is headquartered, and so here we are.

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Micah Toll is a personal electric vehicle enthusiast, battery nerd, and author of the Amazon #1 bestselling books DIY Lithium Batteries , DIY Solar Power,   The Ultimate DIY Ebike Guide  and The Electric Bike Manifesto .

The e-bikes that make up Micah’s current daily drivers are the $999 Lectric XP 2.0 , the $1,095 Ride1Up Roadster V2 , the $1,199 Rad Power Bikes RadMission , and the $3,299 Priority Current . But it’s a pretty evolving list these days.

You can send Micah tips at [email protected], or find him on Twitter , Instagram , or TikTok .

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