Sit right back and please buckle your seat belt while we tell you a tale of how to save money on travel.
Picture it: Claudia Clueless is headed home for the holidays. She’s thinking about crashing on her cousin Esther’s couch to save money.
Oh Claudia. Do you REALLY want to do that? Esther has five kids and three cats. You won’t get any rest at all.
We know you have been sticking to your budget, automating your finances, and investing in yourself: so many of the simple steps to master your money. You deserve some fun.
Yes, even you, Claudia.
Let’s talk about how to save money on travel so you can go see your family and maybe even feel like you got a little vacay yourself.
1. How To Save Money on Travel: Use Hotel Points
Using hotel points can be a smart way to save money and maintain independence during travel, especially if you prefer not to stay with extended family, cats, etc. Here’s how they can help:
1. Free or Discounted Stays
- Redeem Points for Rooms: Hotel loyalty programs often allow you to book rooms using points instead of cash. This can result in significant savings, especially for longer stays or in expensive cities.
- Points + Cash Options: If you don’t have enough points for a full stay, many programs offer a combination of points and cash to reduce costs.
2. Avoiding Holiday Price Surges
- Hotels often increase prices during holidays and peak travel times, but points redemptions can bypass these surges. Points rates are often fixed or less impacted by seasonal demand.
3. Additional Perks and Discounts
- Free Upgrades: If you have elite status in a loyalty program, you might enjoy complimentary room upgrades, late checkouts, or free breakfast.
- No Resort Fees: Some programs waive resort fees for award stays, saving you additional money.
4. Flexibility
- You can choose accommodations that better suit your preferences, like proximity to attractions or specific amenities, rather than being limited to staying with family.
5. Lower Out-of-Pocket Costs for Essentials
- Some hotels provide free breakfast, parking, or access to kitchens, which can cut down on food and transportation expenses.
6. Combining Offers
- Combine hotel points with travel credit card perks (like free nights or statement credits) for extra savings.
If you’re new to hotel loyalty programs, consider joining major ones like Marriott Bonvoy, Hilton Honors, or IHG One Rewards. Research which chain is prevalent in your travel destinations to maximize the benefits.
2. Offer to Help Cook
So maybe your cousins aren’t as annoying as an Claudia’s. You will save some coins by staying there. Fine. Nice move. There will probably be a ton of activity. You may have dining and entertainment outings.
Save everyone some money by offering to cook. Your cousin Luann probably just wants to sit on the couch and have you feed her tacos at this point. You can also clean up.
Cooking a meal saves everyone the trouble of getting ready, spending time and money on transportation, and the potential drama of splitting a big bill.
Chances are the meal will also be healthier and taste better, since you will include the most important ingredient: love.
3. Focus On Thoughtful Gifts Rather Than Spending Big Bucks on Flashy Presents
Do you sometimes go on a trip, see a book or other gift you just know your mom would love, buy it and give it to her right away?
It’s a thoughtful gesture. It’s wonderful when the gifts just come to us, rather than having to frantically search at the last minute for that perfect present.
Buy these items, but hold on to them and save them for holiday time, a birthday or special occassion. These buys may even make an appropriate hostess gift.
This spreads your shopping out throughout the year and gives you a feeling of ease at always being ready for anything.
4. Use Credit Card Benefits
Credit card benefits can significantly reduce your travel expenses if used strategically. Here’s how to leverage them:
1. Earn and Redeem Rewards Points/Miles
- Travel Credit Cards: Use cards that earn points or miles for every dollar spent. Many cards offer higher rewards for travel, dining, or grocery purchases.
- Transferable Points: Some cards, like Chase Sapphire Preferred or Amex Gold, let you transfer points to hotel and airline partners for more value.
- Book Travel Through Portals: Redeem points through card issuers’ travel portals for flights, hotels, and car rentals.
2. Take Advantage of Welcome Bonuses
- Sign-Up Bonuses: Many cards offer substantial points/miles bonuses after meeting a minimum spend within the first few months. These bonuses can cover flights, hotels, or even entire trips.
3. Use Travel Credits
- Annual Travel Credits: Some premium cards (like the Chase Sapphire Reserve or Amex Platinum) offer annual travel credits to offset travel-related expenses such as flights, hotels, or baggage fees.
- Airline Fee Credits: Cards like the Amex Platinum reimburse fees for checked bags, seat selection, or in-flight purchases.
4. Maximize Airport Perks
- Lounge Access: Cards like Amex Platinum or Priority Pass-affiliated cards provide free access to airport lounges, saving on meals, drinks, and Wi-Fi.
- TSA PreCheck/Global Entry Credit: Many travel cards cover the application fee, expediting your airport experience.
5. Book with Built-In Insurance Protections
- Trip Cancellation/Interruption Insurance: Covers non-refundable expenses if your trip is canceled or interrupted for covered reasons.
- Travel Accident Insurance: Provides coverage for accidents during travel.
- Lost Luggage/Delayed Baggage Reimbursement: Covers expenses for lost or delayed baggage.
- Rental Car Insurance: Skip paying for rental agency coverage by using your card’s built-in policy.
6. Save on Foreign Transactions
- No Foreign Transaction Fees: Use a card without these fees to avoid extra charges on purchases made abroad.
7. Hotel Benefits
- Elite Status Perks: Some cards automatically grant hotel elite status, giving you free upgrades, late checkouts, and complimentary breakfasts.
- Free Nights: Many hotel-branded cards offer free nights annually or after reaching a spending threshold.
8. Leverage Partner Discounts and Offers
- Travel Partnerships: Many cards partner with airlines, hotels, or travel companies to offer discounts, bonus points, or exclusive packages.
9. Shop Smart with Travel Portals
- Some cards provide access to shopping portals that offer bonus points/miles for bookings made through their platform.
Want to take cousin Esther and her kids out for a fun night? American Express has a TopGolf offer: $20 back if you spend $100 or more.
5. Give a Gift That Keeps on Giving
Do you wish you had started saving earlier?
If you are traveling for holiday time and expect to bring a gift, get creative and think about presents that go the distance.
If you have a young nephew or other relative, consider opening an investment or charitable giving account for them. The money you deposit will grow and will last longer than any trendy toy.
Claudia!!! Put down the Barbie dream house!!!
Another gift that keeps on giving is an account connected to an investment app. Stash and Acorns are two of our favorites.
6. Pack Light
Many Redditors agree, packing light is the way to go to save money on travel. “This will allow you to take advantage of budget airlines,” recommends Redditor Mentha1999.
7. Off-Peak Travel
Do you live on the east coast but celebrate Thanksgiving with family on the west coast? Yaaaa knowww, those logistics could actually work in your favor. You could travel on an off-peak day to save big on airfare.
If you leave JFK at 8:20 AM on JetBlue, you will land at LAX at 11:42 AM. You could technically fly on Thanksgiving morning and make it in plenty of time to wash up and put on the scarf Aunt Carol knitted you before sharing the bird with the family.
Is the main event of the weekend on a Saturday? Maybe you can jet out after the baby shower or brunch. Flying on a Saturday night is much less desirable than a Sunday and could save you big bucks on plane tickets.
8. Book Flights in Advance
Booking flights in advance can save money due to how airlines price their tickets. Here’s why this strategy often works:
1. Supply and Demand
- Cheapest Fares First: Airlines release a limited number of tickets at lower prices to attract early buyers. As these lower-tier fares sell out, prices increase.
- Increased Demand Closer to Departure: As the flight date approaches, demand usually increases, leading airlines to raise prices, especially for popular routes.
2. Predictable Passenger Behavior
- Leisure vs. Business Travelers: Leisure travelers tend to book early to plan vacations, while business travelers often book closer to the departure date. Airlines charge higher prices for last-minute bookings, knowing business travelers are less price-sensitive.
3. Price Adjustments Over Time
- Dynamic Pricing: Airlines use algorithms to adjust prices based on factors like demand, booking trends, and competitor pricing. Booking early can help you secure a lower fare before potential increases.
4. Avoiding Peak Pricing
- Seasonal Pricing: Booking early allows you to secure better prices for travel during holidays, peak seasons, or major events when prices typically rise as the date approaches.
5. Reduced Competition
- Availability of Seats: Early on, more seats are available at each price level. As the flight fills up, the fewer remaining seats are sold at higher prices.
6. Fare Sales and Promotions
- Early Bird Discounts: Airlines and travel agencies often run promotions for early bookings, providing an additional incentive to book in advance.
Optimal Booking Window
While booking far in advance can save money, there is a sweet spot:
- Domestic Flights: 1–3 months before travel.
- International Flights: 2–6 months before travel.
- For peak seasons or holidays, consider booking even earlier to lock in the best prices.
Exceptions to the Rule
Booking far in advance may not always yield the lowest price:
- Flash Sales: Airlines occasionally offer last-minute deals to fill empty seats.
- Ultra-Low-Cost Carriers: These airlines may maintain consistent pricing closer to the flight date.
By planning ahead and monitoring prices, you can secure better deals and avoid last-minute stress!
9. Use Flight Comparison Tools
Using flight comparison tools can save you money by helping you identify the best deals and make informed decisions. Here’s how they work to your advantage:
1. Consolidating Options
- Multiple Airlines in One Place: Flight comparison tools aggregate prices from various airlines and travel agencies, eliminating the need to visit multiple websites.
- Inclusive Search Results: They show results across budget, full-service, and regional carriers, ensuring you don’t miss out on lesser-known options.
2. Identifying the Cheapest Dates
- Flexible Date Searches: Many tools let you view prices across a range of dates or months, helping you pinpoint the most affordable travel days.
- Price Calendars: Features like Skyscanner’s or Google Flights’ fare calendars highlight the cheapest options at a glance.
3. Price Alerts
- Track Fares Over Time: Set up alerts to notify you when prices drop for specific routes or dates, allowing you to book at the right moment.
- Avoid Overpaying: By monitoring trends, you can avoid buying tickets during price spikes.
4. Filtering for Deals
- Customizable Search Options: Filter by budget, layovers, departure times, or airlines to find options that suit your preferences without sacrificing affordability.
- Highlighting Discounts: Many tools highlight deals, special fares, or limited-time promotions.
5. Discovering Alternative Routes
- Connecting Flights: Compare costs of direct flights versus those with layovers, which are often cheaper.
- Nearby Airports: Tools like Kayak or Momondo suggest flights from alternate airports, which can lead to substantial savings.
6. Identifying Hidden Fees
- Fare Breakdown: Some tools provide clear breakdowns of what’s included in the price, such as baggage fees or seat selection, helping you avoid unexpected costs.
7. Access to Budget Airlines
- Low-Cost Carrier Listings: Some budget airlines don’t appear on all booking platforms, but comparison tools like Skyscanner and Kiwi often include them.
8. Easy Multi-Destination Searches
- Complex Itineraries: Plan and compare costs for multi-city or round-the-world trips efficiently.
9. Leverage Insights
- Best Time to Book: Tools like Hopper analyze historical data to recommend the ideal time to purchase tickets.
- Comparative Analysis: See how your selected option stacks up against others in terms of price, convenience, and flight duration.
Popular Flight Comparison Tools
- Google Flights: User-friendly and excellent for flexible date searches.
- Skyscanner: Great for exploring budget and alternative routes.
- Kayak: Offers price alerts and robust filtering options.
- Momondo: Highlights fare trends and cheaper routes.
By using flight comparison tools effectively, you can maximize savings, minimize effort, and enjoy a more cost-effective travel experience.
10. Overnight Travel
Anyone up for a red eye? You can save one night in a hotel – or with Esther and her cats! – by choosing an overnight flight.
11. Do Outdoor Activities Like Walking or Biking
You can see a ton in a city by walking or biking around. You are also getting some fresh air and fitness while you explore.
12. Use Alternative Airports
Don’t rule out airports you don’t normally fly out of. It may be worth it to take a car to a further airport. Same for your destination.
For example, getting to some smaller ski towns is more efficient if you land in a major airport and drive the rest of the way.
13. Plan Ahead
Planning ahead saves money on travel for several reasons rooted in how the travel industry operates and consumer behavior. Here’s why it works:
In addition to lower prices on flights, planning ahead can offer many other travel benefits.
1. Better Accommodation Deals
- Early-Bird Discounts: Hotels and vacation rentals often offer lower rates for early bookings.
- Increased Availability: Booking early gives you access to a wider range of options, including budget-friendly accommodations that may sell out closer to your travel date.
2. More Options for Transportation
- Cheaper Car Rentals: Early bookings secure lower rates before demand drives up prices.
- Public Transportation Deals: Some trains, buses, and shuttles offer discounts for advance purchases.
3. Flexible and Discounted Activities
- Attraction Pre-Booking Discounts: Tickets for tours, museums, or theme parks often come with early-bird savings.
- Bundle Deals: Many travel providers offer package deals on flights, accommodations, and activities when booked together.
4. Avoiding Peak Pricing
- Holiday and Seasonal Rates: Popular travel times like holidays or summer see price surges as demand increases. Booking early helps lock in lower prices before these spikes.
5. Easier Budget Management
- Spread Costs Over Time: Planning ahead lets you book flights, hotels, and activities at different times, avoiding a large upfront expense.
- Find Discounts and Coupons: You’ll have time to research and use discount codes, membership benefits, or loyalty points.
6. Locking in Currency Exchange Rates
- Save on Exchange Rate Volatility: When traveling internationally, booking in advance can shield you from unfavorable currency rate fluctuations.
7. Avoiding Scarcity Costs
- Limited Inventory: As options become scarce, remaining flights, rooms, and activities are often priced higher. Planning ensures access to reasonably priced choices.
8. Research and Comparison Opportunities
- More Time to Compare: Planning ahead allows you to find the best deals by comparing prices across multiple platforms.
- Leverage Alerts: Use tools like Google Flights or hotel comparison sites to monitor price trends and book at the optimal time.
9. Peace of Mind
- Less Stress Equals Smart Decisions: Planning ahead reduces last-minute pressure, preventing you from overspending out of desperation.
By thinking ahead and strategically timing your bookings, you can reduce costs significantly while enjoying more control over your travel plans.
14. Work From Your Relative or Friend’s Home So You Can Travel on an Off-Peak Day
Do you have a remote work option?
Perhaps you want to use one of your remote work days to give you more freedom on when you fly.
Coming home for the weekend? Perhaps you can fly on a Saturday, then work from home on a Monday and Tuesday so you can fly home Tuesday evening. Off-peak for the win!
What Now?
OK, so in a nutshell, there are ton of ways you can save on travel.
- Use Hotel Points
- Offer to Help Cook
- Choose Thoughtful Gifts
- Use Credit Card Benefits
- Give a Gift That Keeps on Giving
- Pack Light
- Travel at Off-Peak Times
- Book Flights in Advance
- Use Flight Comparison Tools
- Travel Overnight
- Choose Outdoor Activities
- Use Alternative Airports
- Work Remotely
Acheive your travel dreams by booking strategically!
