I'm a single 26 year old and make decent money working in accounting.
I'm not "rich" by all means, but I make enough to afford to travel overseas 2-3 x year for leisure.
I usually choose cheap flights and cheap accommodations so that I have more money to splurge when I'm there.
I'd rather pay 40bucks to crash in cheap lodging, and then spend $200 on dinner.
Since I'm an out and about social person I save the spending for being out on the town rather than on a room I'm never going to see.
When I finally find someone that wants go go somewhere tropical with me (Bali/Tahiti) then I'll splurge on that overwater bungalow.