Are you ready to hit the road or take to the skies this summer? A majority of Americans are. One survey found that nearly 85% of American adults intend to travel this summer, and more than 40% say they'll travel more than they did last summer.1
However, if you're grappling with the effects of inflation and rising costs, you might be wondering how to make the most of your travel dollars. Here's a suitcase worth of ideas for how you can maximize your vacation while minimizing your budget.
1. Work Your Rewards
Who doesn't want to get something for free? That's the concept behind joining rewards programs. Start by prioritizing a rewards credit card that lets you earn points or cash back for everyday expenses like groceries and gas. Just make sure you pay off the total balance each month to avoid incurring interest charges.
You also could join a travel site where you earn points for all travel-related bookings you make. As you accrue points, you'll bump up your tier status, which can unlock additional savings.
Also, sign up for loyalty programs offered by airlines and hotels. It can take a while to earn a free flight or room, but in the meantime, you may be offered perks like free bottled water or free Wi-Fi just for being a member.
2. Choose a Budget-friendly Destination
Your destination will affect the majority of your big-ticket travel expenses, so take a hard look at your budget and consider how your vacation will fit into it. For example, camping will be cheaper than a theme park, and a lesser-known location will have a smaller price tag than more popular destinations. A beach vacation in Gulf Shores, Alabama, for instance, will cost a lot less than Hawaii, while still offering all the sandcastle building and wave jumping you crave.
3. Schedule Strategically
Timing your trip right can also help you save. "Shoulder season," which falls either just before or just after the most popular times, will be less costly. So will flying on nonpeak days. In fact, flying midweek—such as on Wednesdays—can save an average of 17% on domestic airfare.2 Purchase tickets about three to four months in advance of your trip to nab the best prices and availability.2 And keep in mind that booking travel on a Sunday could get you your best fare.3
When perusing airfare, spend time playing with a variety of combinations—try different airlines; look at more than one airport if there are multiple options near your destination; and consider the time and day you're traveling, if you have flexibility.
One tool to consider is “Price guarantee," a pilot program available on select "Book on Google" itineraries within Google Flights.4 Once you purchase your airfare, it will monitor prices and refund the difference between the price you paid and a lower future ticket price. Make sure you read all the details to ensure it applies to the bookings you're considering and that buying the flight is still a good deal compared with other booking options.
4. Consider Various Lodging Alternatives
Short-term vacation home rentals have changed the game, adding an option other than hotels. However, those costs have edged up recently, with taxes and cleaning fees often making the final screen of your booking look much higher than the per-night rate you were expecting.
Yet hotels can also have their own sneaky add-ons, such as hefty daily resort fees and exorbitant parking charges. So it pays to compare all costs, taking into account the savings you might realize from cooking in a full kitchen in a rental home rather than eating out if you're in a hotel. When looking at reviews and comparing the bells and whistles of various properties, consider how much you'll really be using the amenities that could be driving up the price. If the main purpose of your trip is to relax and lounge by the pool, the accommodations are a lot more important than if you're just planning to crash in the room and head out for a full day of sightseeing.
Once you know your general destination, widen your potential range of properties. If you're traveling to a large metro area, sometimes staying in the downtown core can be surprisingly affordable because there are so many competing properties. It also might position you closer to the landmarks you want to see, which can save money on transportation. You may find your top destinations are within walking distance or easily accessible on public transit. On the other hand, the suburbs might offer better prices and more affordable dining and parking options.
5. Go Sightseeing on a Shoestring
Your activities don't have to break the bank. Start by seeing if your destination offers passes like Go City® and The Sightseeing Pass® that bundle attraction passes for a discounted price. Hop-on, hop-off bus tours are another convenient and cost-effective way to visit top attractions. Before you go, search sites like Groupon® and LivingSocial for discounted admissions or restaurant deals. You can even sign up for alerts weeks before you go to start watching for coveted offers; just be sure to check the expiration dates.
Some museums have free admission days, or if you're a member of your local museum or zoo, you might be able to get reciprocal entrance. Also, search your destination for free activities taking place while you're in town, such as a street fair or art exhibition.
The best way to get intel on top activities or dining options is from locals, so don't be shy about posting queries on your own social media sites to see if a friend can put you in touch with a resident who can point you to must-do (and fine-to-miss) activities.
6. Consider a Cruise
A cruise can be an incredibly affordable way to spend time in a variety of locations—no extra transportation, lodging, or packing and unpacking needed. To save money on your expedition, look for older, less-posh ships and book an interior room rather than one with a view or balcony.
As you assess the total cost, make sure you understand what is and isn't included. For example, basic meals and drinks might be included, but you'll likely need to pay extra for specialty dining and beverages, as well as excursions. Many cruises also have a required tip that can add up over the course of the trip.
7. Avoid “Little" Expenses That Add Up to Big Bills
Incidentals can take a big bite out of your budget, but many of them can be avoided with some planning. First, pack carefully to avoid having to buy items that can be pricey at tourist destinations—think sunscreen, over-the-counter medicines, hats, sunglasses, etc. Even if you're staying in a hotel or you plan to make cuisine a highlight of your trip, stop at a local big-box store for snacks and beverages, and bring a refillable bottle to avoid wasting money on environmentally unfriendly bottled water.
You can also save a lot of money by going easy on souvenirs. If you come across a fun memento that will bring back fond memories and extend the good feelings of your trip, then by all means, get it. But think twice about shirts, tote bags and other spendy options that might get shoved in a drawer on your return. If you have kids, put a spending limit on souvenirs to encourage them to think through their choices.
8. Start Planning Your Next Trip
The post-vacation glow can fade pretty quickly without something else on the books. Fortunately, you can start building anticipation all over again by making vacation planning part of your everyday budgeting and saving money each month in a vehicle like a high yield savings account or money market account. You also can watch your cash-back rewards pile up on your credit card, so when vacation time rolls around again, you can enjoy it without financial stress.
Plus, by having a time frame and destination in mind ahead of time, you can watch for special travel sales throughout the year to take advantage of surprise deals and start a list of affordable activities and outings.
Advance Planning Can Help Save Money and Stress on Vacation
With a little foresight, you can create lasting memories without sacrificing excitement or breaking the bank on your next vacation. Whether you're headed to a nearby destination or a far-flung adventure abroad, taking the time to plan ahead ensures you can get the most out of your getaway.
Cathie Ericson is an Oregon-based freelance writer who covers personal finance, real estate and education, among other topics. Her work has appeared in a wide range of publications and websites, including U.S. News & World Report, MSN, Business Insider, Yahoo Finance, Market Watch, Fast Company, Realtor.com and more.
READ MORE: How to Make Your Vacation the Ultimate Productivity Boost
Sources/references
1. Jones, E. Summer Travel Survey & Trends 2023 — Nearly 85% to Travel, 42% to Travel More than Last Summer, More than 54% to Fly on a Plane, 100 Million to Road Trip Over 250 Miles. The Vacationer. Updated May 20, 2023.
2. Berg, H. 2023 Travel Booking Hacks Guide. Hopper. Published January 23, 2023.
3. Expedia's 2023 Air Travel Hacks Report: U.S. Travelers Can Save On Airfare By Booking And Traveling On This Day To Avoid Flight Delays. Expedia. Published October 19, 2022.
4. About Price Guarantee on Google Flights. Google.
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