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 u