Tips for Saving Money on Travel and Cruise Vacations
Money Girl offers advice for taking a debt-free vacation and buying travel insurance, and reveals 7 tips to save money on a cruise vacation–like her recent trip to Alaska.
Taking a vacation from work is one of the best ways to have a happier and healthier life. Studies show that time off reduces stress, improves relationships, and allows you to refocus on your priorities.Â
But taking a vacation can also be expensive, and leave you with a pile of debt, if you’re not careful. In this episode, I’ll discuss how to plan a debt-free vacation that will benefit your mind, and your bank account.
Plus, I’ll tell you about my recent trip to Alaska, and give you 7 cruise tips that saved me a boatload on that amazing trip.
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Don’t Squander Your Paid Vacation Time
You’d think that employees with vacation benefits would consider themselves crazy not to take advantage of paid time off, known as PTO. But a recent surveyopens PDF file found that 4 out of 10 U.S. workers finished 2013 with unused PTO!
Employees only used 84% of their vacation benefit, leaving an average of 3.2 days on the table. That’s a total of 429 million potential vacation days that we squandered in 2013.
No matter your workload, make it a goal to take every one of your vacation days. Your time is valuable—so, even if you don’t use PTO for a luxury trip, use it wisely.
For instance, you could use a PTO to take a Personal Money Day, knock out an annual doctor or and dentist visit, meet with a financial advisor, or do volunteer work.
How to Plan a Debt-Free Vacation
But what if you want to go on a real vacation? According to Howard Dvorkin, CPA and personal finance author from Debt.com, there are 3 easy steps to planning a debt-free vacation:
Step #1: Choose an economical destination
Choosing where to go is the most important part of vacation planning, because prices will vary considerably depending on where you live. For instance, if you live in Florida, flying to Puerto Rico in the fall or winter could cost less than $175. On the other hand, the average ticket from New York or Chicago to Puerto Rico is about $229 or $279. Saving just $100 per ticket for a family of 4 will really add up.
Step #2: Book early and off-season
When it comes to buying airfare, travel experts say the sweet spot is 2 months before you want to travel. If you can fly during the middle of the week and middle of the day (as opposed to during rush hours), you’ll also generally get a better deal.
Off-season flights and hotel reservations are always less expensive, so vacation during those times when possible. Likewise, prices go up during major holidays—so consider flying during non-peak times, such as a few days before or after a holiday weekend.
Step #3: Estimate your total costs
Your airfare and hotel expenses are just the starters for your vacation. Do as much research as possible ahead of time to pick the attractions, events, and restaurants you don’t want to miss, and research those that may not be worth the price. It will also help you build out an estimated cost for your trip.
If you want a completely debt-free vacation, divide the total estimated cost by the remaining number of weeks or paychecks until your departure date, to see how much you might need to save.
If you won’t have enough saved up, consider delaying your departure date so you have more time to put money away. Or make another plan to visit a less expensive destination or hotel.
Think how great you’ll feel when you come home without a huge load of credit card debt from the trip. That’s one of the best ways to make sure your getaway is good for your mental health and your financial life.
7 Cruise Tips to Save Money
I recently took a debt-free cruise to Alaska with family to celebrate my parents’ 50th anniversary. What an amazing trip! The landscapes, glaciers, and wildlife we saw were spectacular.
We were on a beautiful, mid-size ship from the Oceania cruise line, which I highly recommend. This was my very first cruise, so I’m no veteran. But I did come away with 7 tips that saved me a boatload:
Savings Tip #1: Book early
Early-bookers definitely get the best deals on cruises. Most lines want to book ships months before the departure date, and may offer 2-for-1 pricing, free airfare, and cabin upgrades to pile on the value. I got all 3 of those discounts.
If you’re trying to decide between cabins, such as one with an ocean view or one with a balcony, go with the less expensive option. As the trip got closer, we were bombarded with offers to upgrade for very little cost.  Â
The cruise line may not advertise it, but all cabins in a specific tier are not created equal. For instance, I saved about $1,000 by booking an ocean view room that is “obstructed.” That means it’s exactly the same, but we could see part of a lifeboat from the window. I’ll take it.
Remember that anything a cruise line arranges for you will cost more than if you book it yourself.
Savings Tip #2: Book your own airfare
Most cruise lines offer packages that include the cost of airfare from certain cities. Â Remember that anything a cruise line arranges for you will cost more than if you book it yourself.
So do your research on airfare, and then ask the cruise line how much credit you’d receive if flights were removed from your package. I saved about $600 booking flights myself, which paid for several shore excursions!
This same book-it-yourself tip applies for pre- and post-cruise hotel stays, and transfers between the airport and ship. We were offered a shuttle from the Seattle airport for about $150 per person. Meanwhile, the taxi we hailed only cost $40.
Savings Tip #3: Book your own shore excursions
Shore excursions are what really make a cruise interesting. Although some luxury lines include the cost of excursions, they’re typically an expensive add-on. I’d say that if you splurge on one thing during a cruise, make it the excursions.
We went on terrific day trips that got us really close to glaciers, icebergs, and different kinds whales, like humpbacks, minkes, and orcas. In Prince Rupert, Canada, we took a beautiful tour boat into the Khutzeymateeen Grizzly Bear Sanctuary. We saw about 7 bears throughout the day, including mothers and cubs coming down to the shore to eat sedge grass. I was spellbound.
Every port we stopped in had plenty of excursions and guide companies ready to go. I didn’t think about researching these ahead of time—but it would have been easy to do. Again, book it yourself (or BIY) to save money. See what excursions from your itinerary look interesting and research them online. You’ll probably find the exact same companies that offer those trips for the cruise line. Purchasing directly from the local company will definitely cut the cost.  Â
Savings Tip #4: Know the beverage policy
Beverage policies vary considerably from cruise line to cruise line. For instance, the price on most high-end ships includes all beverages and alcohol, but the less expensive ships make you pay for both.
Most cruise lines allow you to bring 2 bottles of wine or champagne aboard. So that’s what we did—although no one riffled through our bag to make sure we weren’t smuggling in a case. I’ve heard stories of people filling empty wine bottles with liquor and re-corking them–but don’t tell anyone Money Girl mentioned that strategy!
On our cruise, all soft drinks were included in the price, but not alcohol. They did offer a beverage plan where you could get unlimited bar drinks for $59 a day. I estimated that at about $12 each, you’d have to drink 5 cocktails a day to make it worthwhile. While I didn’t reach that limit, I probably should have signed up my husband for the booze plan. Oh well…
If you like wine with meals, buying a bottle is always less expensive than ordering by the glass. If you don’t finish it, they can label the bottle with your cabin number, and you can enjoy the rest of it at your next meal. Or you can bring your own wine and pay a $10 or $15 corkage fee.
Savings Tip #5: Avoid onboard Internet
Unless you really need to spend a lot of time online, I’d avoid expensive onboard Internet altogether. You’ll have a faster connection in an Internet café on shore.
And remember that if you make calls from your cell phone or get online through your mobile device, you’ll be racking up roaming charges when you’re outside the U.S.
Savings Tip #6: Ask about spa discounts
Most cruise lines have full spas services, but they charge a premium. Unless you really want to try an onboard spa, you’ll save money getting a massage or your hair and nails done before you leave home.
However, some spas offer discounts if you book early or want service on embarkation and port days.
Savings Tip #7: Consider travel insurance
Travel insurance is available for a variety of situations that range from an inconvenience, such as losing your luggage, to bumping-up against a hurricane, or having a life-threatening medical emergency that requires airlift to the nearest hospital.
Don’t forget that most health insurance plans, including Medicare, offer no or extremely limited coverage when you’re outside of the U.S. So check your plan, or speak to an insurance representative to make sure you understand what costs you’d be responsible for outside of the country.
Travel insurance can be a wise investment, because the typical policy may cost less than a visit to the ship’s doctor. And it’s a tiny fraction of the cost of an emergency evacuation, which could cost tens of thousands of dollars.
Check out sites such as Allianz, Travelex, and Travel Guard to get free quotes for different levels of coverage. Get quotes as early as possible, so you have plenty time to do some research and weigh the pros and cons of buying travel insurance.
And a final quick and dirty tip for booking a cruise is to try to compare them based on total price, not just the listed per-person fare. For instance, add up the fare, flights, beverage package, specialty restaurant fees, gratuities, and average cost of excursions.
You may be surprised to find that the cost to cruise an average mega-ship isn’t much less than the cost of a smaller, luxury vessel with much better service and food.  Smaller ships can also visit more exclusive ports and get closer to sights, such as the magical glaciers I saw up close in Alaska.
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Passenger Ship on the River, Piggy Bank at the Beach, Map, and Person at Airport images courtesy of Shutterstock.
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.
