12 Tips to Better Plan Your Holiday Vacation on a Budget

Do your holiday fantasies involve cavorting to a tropical destination with your clan instead of going to the usual family gatherings? If so, you're not alone. More Americans than you think—23%, to be exact—prefer to vacation in the winter than in the summer.¹

While a winter getaway has undeniable appeal, holiday traveling tends to be expensive. But it is possible to skip the typical fanfare and festivities that come with visiting family for the holidays and enjoy a vacation instead—without breaking the bank. Here's how you can plan and save for a holiday getaway.

1. Decide on the Destination Early

First, land on where you'd like to go for your winter vacation. There's a lot to mull over when it comes to destinations. Here are a few tips:

• • Look for lower-cost locales. Start by researching places that are less expensive to travel to. This might include a trip to Boston, Nashville or Lake Tahoe,² or a city that's closer to home.
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• • Travel during a destination's shoulder season. Beyond locations that are generally more affordable, look for places where the winter months are considered off-season. That's because traveling during peak seasons can drive up the total cost of your trip. Plus, you can enjoy fewer tourists during the off-season.
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• • Check what the weather is usually like. Do you enjoy trekking in the snow, or are you trying to escape the end-of-year chill in a warmer climate? Make travel plans based on your preferences.
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• • Track deals. You can use Google Flights or apps like Skyscanner and Hopper to see when flights might be the lowest for the destination you have in mind.

2. Research Food Options

No need to dine at Michelin-rated restaurants for every meal to get the complete vacation experience. To save a buck, opt for happy hours and enjoy an early dinner, or ask for the bar menu, which usually has smaller portions or specials.

You can also consider staying at a place with a kitchenette and buying locally at farmers markets and holiday bazaars to eat well on vacation without breaking the bank.

3. Look for Free or Bundled Attraction Packages

Flights, hotels and car rentals can eat up a massive chunk of cash. To save on sightseeing and entertainment, see if there are any free art and culture offerings. Holiday bazaars, free museum days and donation-based local tours are good places to start.

You can also look for bundled excursions and attraction packages, which can be less costly than going the à la carte route. For instance, if you're traveling to Northern California's wine country, there might be a bundled package to go horseback riding, visit a petting zoo, take a wine tour and do a wine tasting.

If you're a Synchrony credit card account holder, take full advantage of your access to Mastercard Travel & Lifestyle Services, which can connect you with travel, entertainment and dining experiences.

4. Consider Traveling for the New Year

The busiest days to travel are usually the Tuesday and Wednesday before Thanksgiving and the Sunday after Thanksgiving.³ In December, you're looking at a high number of travelers the week before Christmas and on Christmas Eve. So not only are flights more expensive, but car rentals can cost more, too.

You can steer clear of paying for pricey flights and rentals by planning your getaway with friends in the New Year. To further save, see if you can split costs on accommodations. Look for a lower-cost destination, consider staying in a hostel or book a room in a vacation rental instead of renting an entire house.

5. Save Early and Automatically

Start stashing away funds toward your vacation ASAP. The earlier, the better. Once you have a destination in mind, you can figure out how much you need to save and by when. Because it's peak travel season, book your flight or train ride early.⁴

Consider setting your savings on autopilot with an automatic savings plan. Figure out how much you need to save, and put a little away each week. Let's say you're three months out from your trip and ideally want to save $3,000. That means stashing away about $250 a week ($36 a day) to reach your goal.

6. Park Your Savings in the Right Savings Vehicle

If you have a Synchrony Bank high yield savings account, set up a special account for your holiday vacation. That way, you can grow your savings with a more competitive interest rate.

And if you have at least six months to save for your getaway, consider a certificate of deposit (CD)—a type of savings account that offers a competitive interest rate. With a CD, you can grow your savings risk-free simply by locking in your funds for a set time frame. Because CDs have fixed and guaranteed interest rates, you can also calculate exactly how much you'll earn in interest for the duration of the CD.

7. Use the "Piggyback PTO" Technique

Make the most of your paid time off (PTO) with the piggyback technique: Pair a weekday holiday with paid vacation days in the same week. That way, you don't have to use as many PTO days, giving you an extended, uninterrupted break. What's more, you don't have to worry as much about playing catch-up when you return from vacation.

For example, let's say Christmas falls on a Monday, and your workplace gives you that Monday and Tuesday off. In that case, use your PTO to take the rest of the week off. Instead of taking five PTO days, you'll only need three.

8. Communicate With Your Family as Soon as Possible

Nobody likes being blindsided. Loop in your family as early as possible that you won't be present in person to celebrate the holidays. They'll appreciate the advance notice, and it will give you ample time to get your heads together and drum up ways to spend time together without a holiday visit.

9. Organize Ways to Connect With Your Loved Ones

Instead of meeting "IRL," consider coordinating a virtual meetup where you can bond and enjoy the holidays without traveling to see your family. You can connect with them via a scheduled virtual hangout or holiday movie streaming party.

Another idea? Plan a Bake-Off, where you don your culinary hat and compete in a virtual baking contest. Award prizes such as "most festive," "most wacky" and "most original."

10. Do a Low-cost Holiday Gift Exchange

To avoid having to dole out a pretty penny on gifts for your entire clan, let them know you're on a budget, and if possible, do a pared-down version of a holiday gift exchange. For instance, pick a family holiday treat recipe and send baked goodies to your extended family.

Or, before you leave for your trip, consider mailing a box of handpicked stocking stuffers and having your relatives hide them around the house for the kids to find on Christmas morning. These won't cost much money, and they'll show that while you won't be present for the holidays, you can do your part to add some festive cheer.

11. Avoid Credit Card Fraud

Take the proper steps to safeguard yourself from credit card and identity fraud. Set travel notifications on your credit cards or freeze the cards you aren't using during your vacation. For instance, if you're a Synchrony credit card holder, you can set travel notifications before you embark on your trip.

12. Consider Travel Insurance

Global health scares, canceled flights and pandemics. In the last few years, we've learned that anything can happen when traveling—and to prepare accordingly. Sure, it's an added cost, but travel insurance can cover pricey mishaps en route to your destination, such as canceled or delayed flights and lost luggage.

Note that if your travel credit card includes trip cancellation as a benefit, you won't have to fork over extra money for this valuable protection. You'll just need to use the card to pay for your flight. Be sure to check your credit card perks before booking travel.

You Deserve a Break—and Synchrony Can Help

A holiday getaway with your family is indeed within reach. Savvy planning, foresight, creative thinking and tapping into useful information and resources can help you enjoy a wonderful trip this winter.

 

Jackie Lam is an award-winning, L.A.-based money writer whose work has appeared in Salon.com, Refinery29, Time, Forbes, CNET, Business Insider and BuzzFeed, among others.

 

READ MORE: Get More: Joy From the Holidays

 

Sources/references

1. Leposa, A. (2019, October 28). Stats: 23% of Americans Prefer Winter Vacations. Travel Agent Central.

2. Rhodes, E. (2021, September 27). The Most Affordable Winter Vacations in the U.S. Travel + Leisure.

3. Baran, M. and Berg, B. (2023, August 23). These Are the Busiest Travel Days of the Year, According to TSA. Afar.

4. Chang, R. (2022, May 20). 10 Mistakes to Avoid on Your First Long Train Ride, According to Experts. Travel + Leisure.