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Round the world (RTW) tickets can be a convenient way to travel the world. RTW tickets are pre-bought so you don't need to worry about booking flights while traveling. These tickets cost a lot of money, especially if your trip is complex. Everyone is shocked when they see RTW prices. It is important to heavily research and do some math before you purchase one of these tickets.

RTW tickets are really air alliance passes. You buy a RTW ticket and can use it on an airline alliance. The biggest alliances are the Star Alliance, Oneworld, and World Journey. For example, if you bought a ticket with United, you would be using all the airlines on the Star Alliance and only those airlines.

Round the world tickets can be used over a period of one year. You pick your mileage and stops and depending on the route you choose you get a set price. There is a minimum of three stops with the maximum varying on each alliance. The more you get off the “typical” route, the more expensive the ticket it. One popular rout is from LAX-FIJI-SYD-BANGKOK-LON-NYC-LAX.

Round the world tickets can cost between US$2,700 – $5,000, depending on how many stops and miles you pick. You can always change the stops, mileage, and dates for a fee. However, simple tickets with only a few stops can cost as little as US$1,500.

RTW tickets are good if you have a set route, schedule, and are only visiting popular spots. These tickets are designed to send people over a set route so if you choose one of the popular routes, it becomes easy to save money. Pricing increase rapidly the more destinations you add.

However, nothing ever goes the way you plan it when you travel. Most people who use these tickets are people who travel for a long time. The more time you spend on the road, the more your plans change. Being restricted to a ticket will hinder your ability to change plans. However, for intrepid travelers, there are many alternatives to getting an around the world ticket:

Book yourself. By booking your own flights, you get more flexibility. You can use discount airlines for cheap flights and wait for flight deals. It’s will take more work and patience but the money you save can better be spent on food, alcohol, presents, and tours.

Fly Low Cost Carriers. There aren't many in the US but there are plenty around the world. You'll fly the same route as you would a big airline but for half the price. You are only getting space on a plane but flying these airlines will save you a lot of money.

Use your rewards. If you don’t already have a travel credit card, you should get one now. Most credit cards will give you 20,000 miles right away and you will get points for everything you buy, receive special offers, and get miles when you. Even if all you get is one ticket out of the deal (those 20,000 points help get you there), that one ticket can save you hundreds upon hundreds of dollars.

Round the world tickets are great for travelers with a set itinerary and route. You should buy an RTW ticket if you know where and when you are going. You will end up saving some money. However, if you are flying a complex route, are very flexible, and unsure of your dates, it is better to pay as you go.