In the age of inflation and high gas prices, traveling is way more expensive than it used to be. Travel, accommodation, food, and other requirements are eating away at vacation budgets more and more. Some domestic travel costs as much as international travel did before the pandemic! And in this day and age, we all want to save more money.
When we are traveling, we know how little things can all add up – take out for every meal, paying for attraction admission, and last-minute accommodation in some instances. At the end of our holiday, we could be facing ramen for dinner every night for a while – or a big credit card bill!
So how can you save money when you’re traveling? Here are five sure-fire ways to ensure you make every dollar go further.
Buy your tickets as early as possible
When it comes to long-haul overseas flights, booking your tickets as far in advance as possible is better for your hip pocket. Some agencies recommend you buy tickets at least six to seven weeks before your intended departure. However, you can even get cheaper prices if you buy 20 to 30 weeks out from your intended flight date. Prices will skyrocket in the last two weeks before departure, and this is especially true for domestic flights. Remember to cash in any rewards points you may have; this is the time to put them to use! Just be sure to make up any shortfall using cash or debit card, so you don’t pay extra in interest.
The Money Girl podcast’s Laura Adams shows you how to take a debt-free vacation and save serious money on a cruise vacation.
Shop around for deals
Always shop around for the best deal. Don’t just go directly to the airline, as they may mark up the prices. Use trusted travel agents or aggregator websites to see if you can obtain the lowest possible price. You should also book one leg at a time and consider mixing and matching airlines to ensure you get the most competitive possible.
The same goes with hotels and accommodation. Just because you’re staying at one chain doesn’t mean you’re beholden to it. Also, be mindful that longer layovers or traveling on unpopular days can also save you money. If you have frequent flyer miles saved up, use them as soon as you can. Most expire and will be useless to you if you don’t intend on traveling again straight away.
Save money on travel insurance
We can balk at the cost of travel insurance sometimes, but in most cases a lot of the higher-tier premiums are unnecessary. You can save money on travel insurance in a few ways. First is to shop around and not just accept the travel insurance your travel agent or booking website offers you. You could save a lot that way. The second is to not over-insure your trip. Some airlines offer refunds in the event of cancellation or emergency – so don’t pay for the same coverage twice – or coverage for millions of dollars’ worth of medical care! $20,000,000 of medical coverage sounds good on paper but is totally over the top. Coverage in the $250,000-$500,000 range is more than adequate.
Also, don’t use your credit card just because they have “free” travel insurance. You are paying for it with annual fees and interest.
Money Girl, Laura Adams shares the many protections you can choose with travel insurance, as well as how it fills gaps in your medical coverage, the typical cost, and how to save money when shopping for a travel plan.
Use international money transfer exchanges
Let’s say you’re heading to see family in Manila for Christmas. You may be wondering how to send money to the Philippines ahead of time. Don’t use your bank or your credit card who will both slug you with massive fees. Credit cards will give you the worst possible rates and charge 1%-3% of the purchase price just for making an international transaction. To save a lot more, use international money transfer exchanges instead. These usually offer better exchange rates and lower fees than banks and may save you more as they can execute orders when the exchange rates are most favorable. That way you end up with more money to use.
Leverage freebies where you can
When you’re traveling abroad there are usually many free activities you can take advantage of in any given city. When booking your accommodation, see if you can find one with kitchen facilities so you can cook or prepare your own food instead of buying expensive takeout for every meal.
Cultural sites and lookouts are usually free, as are parks and historical sites. Many cities have a “tourist trail” or historical markers on buildings to show where significant events took place. Another idea is putting together “walking tours” around cities or towns too. Museums, galleries, and some tourist attractions may have discounted or free tickets on certain days or at certain times, so make sure to read up on what you can do with as little outlay as possible and you can still have a great time!
Whether you can only get away for long weekends or take extended tours, find out the tricks experienced travelers use to see the world on a budget from Money Girl, Laura Adams in episode 540 of the Money Girl podcast.