I’ve done quite a few budget trips in Asia over the last 20 years, but have only recently formed an opinion on the best way to save money on accommodation when I travel. It’s a money-saving tip that won’t work for every vacation, but it’s a method every traveler should know. Here’s a hint: Hotel costs on your last vacation were probably the second largest expense you incurred, after airfare. What if there was a way to completely eliminate the portion of your travel budget allocated for hotel expenses, and very likely some dining out expenses as well?

Home exchange involves finding a person in another part of the country (or in another part of the world) who is looking to spend a little time in the city where you have a house, condo or apartment. It is a way for both parties to save money on hotel costs during their respective vacations. Even food expenses can be greatly reduced because obviously having available kitchen space can reduce the cost of eating out at restaurants, assuming you don’t mind cooking for yourself a few times on vacation.

A quick internet search will reveal dozens of sites that facilitate this form of bartering. I was amazed at the variety and quality of properties people are looking to exchange for, just on the home exchange site I joined. Whether it’s a small apartment in Bali or Paris, a house near the beach on Australia’s Gold Coast, or a country house in Phoenix, almost any destination and every category of accommodation is available when you exchange a home.

Once you’re connected with a potential exchange partner, the details of the exchange really are entirely up to the two of you. Sometimes cars will be included. Sometimes the stipulation is that the pets must be cared for during the exchange. As easy as communication is today, it is quite easy to talk to the other party and exchange lots of photos or even a video tour. All of this serves to reduce the reluctance one would normally feel about allowing a complete stranger and their family access to their home. Home exchange sites tend to have some kind of rating system or less reviews regarding frequent home exchangers, and people who have done more than a few exchanges are not hard to find if you want to limit yourself to exchangers that They have positive feedback. Remember, your trading partners are in the same boat when trading with you. Taking the time to develop some trust is the price you’d pay for saving a lot of money.

There is usually a nominal fee required to sign up for a home exchange site, but when you consider how much money you can save over a visit lasting a couple of weeks or a few months, it’s still a very, very good deal. When my wife and I traded our place in Bali, Indonesia for a well-located condo in San Francisco, we saved thousands of dollars off what a hotel would have cost, except we never could have afforded it!