Depends on what you do. Airfare from the US to a destination outside of North America probably costs around $1000 round trip (varies by time of year, destination, etc). For a family of 4, you're already half way through your budget just to get somewhere and back. On the other hand if you pack up the car and drive to the next state over to visit Grandma, you've probably only spent a couple hundred on gas/tolls/etc.

They did mention that's for a family of 4. I'm not sure if they scale it back if you are single, but if you have a family that's probably in the ballpark.

I just went on vacation as a family of three. We rented a flat which was I think 50€/person. Even assuming 100€/night and 1000€/person for traveling (actually I paid 200€ for us all for an 8h train ride) it is still not 7.5k. However, 7.5k really gives you some flexibility (travel further away, more expensive hotels and so on).

I guess it would be easy to spend 7.5k, but I really would think twice before spending that much on holidays. On the other hand, if you only have one week per year, perhaps it comes naturally that you are willing to spend more.

True. This is OT but still an interesting conversation anyway.

My girlfriend and I spent a total of $3500 to go to Italy for 14 days. With $7500, we would have gotten better hotels (we did the hostel route) but it wouldn't have materially changed the trip. However of that $3500, almost $1500 was the airfare from New York to Milan. This is also a good example of the American vacation system screwing us, I would have stayed for 4-6 weeks if my job would have let me. 14 days was the maximum we could pull off, and my girlfriend's boss put her in as 'sick' for at least one day in there. I worked the day before we flew out and the day after we got home (as a jet lagged zombie) because I was out of vacation days.