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Saving More Doesn’t Mean Experiencing Less
Traveling can be an incredible way to broaden your horizons, experience new cultures, and even change your perspective on life. In fact, it is said that to travel is to live. But the cost of flights, accommodation, and everything which surrounds travel can leave you feeling like that “dream vacation” is out of reach. Nevertheless, with a little bit of planning, the right tools, and some smart choices, it’s simple to significantly cut your travel expenses and still preserve the integrity of that dream trip.
Contrary to popular belief, being a proper cost-conscious traveler is not about skimping and penny-pinching while sacrificing fun and excitement. Quite the opposite really — it’s about getting the most out of your travels. In actuality, cost-conscious traveling is about taking all possible expenses into account and managing your trip in such a way as to achieve two things simultaneously: efficiency and effectiveness. Through efficiency, you avoid wasting time, money, and effort while effectiveness guarantees that your trip is still everything you desire it to be (and possibly more). Whether you’re a budget-conscious backpacker or just looking to make your travel budget go further, here are some realistic ways to significantly cut travel expenses and save more money during your next trip.
How To Save Money While Traveling
1) Track Your Expenses Before And During Your Trip
That which is measured gets improved. The first step to successfully managing and reducing your travel expenses is to get an accurate picture of what the total spend could like and actually looks like. There’s a plethora of tools out there to track estimated expenses during the planning process and during your travels seamlessly. Check out the Financial section of my Travel Resources page for more details on the ones I personally use and recommend. At the end of the day, it doesn’t matter which one(s) you go with. Just makes sure you’re actually using something!
2) Respect The Sum Of All Parts
“Beware of little expenses. A small leak will sink a great ship.”
Benjamin Franklin
While you shouldn’t be painstakingly and meticulously overthinking each and every little expense incurred during your travels, it’s important to acknowledge how sneaky these can be and how quickly they may add up. The key here is to bear in mind that this principle can work just as much in your favor as it can against you! So make sure it’s the former and not the latter. By simply being mindful of where you can save on relatively small expenses, you can combine these seemingly insignificant savings into a total sum of significance. This total can then help cover both anticipated and unanticipated trip-related expenses or be set aside for future travel.
3) Leverage The Right Travel Resources
Alright, so you’ve started the trip-planning process and you’re beginning to track your estimated expenses. Now it’s time to ensure you’re searching for and booking your flights, accommodations, car rentals, etc. in the right place by using specific flight search aggregators and deal websites. The truth is that not all travel sites and platforms are created equal and it’s important to know where to look and what to look for. Depending on where you’re traveling to, the most significant cost components of any trip tend to be flights and accommodation. Platforms like Booking.com and Hostelworld tend to offer the best overall accommodation rates while Skyscanner and StudentUniverse can save you a considerable amount on flights. QEEQ can also help you save on car rentals compared to other sites. Check out the summary list of recommended resources across these categories on my Travel Resources page.
4) Be Strategic And Think Beyond The Price
One common mistake that I notice a lot of travelers make is they let the [initial] price of something be the deciding factor. It turns out that many times this is just the tip of the iceberg. In the case of an accommodation booking, for example, think beyond the nightly rate. Does it include free breakfast? Is parking included? Is it conveniently located near a subway or bus station so as not to have to pay for a taxi or rideshare service? Does the room include a small kitchenette for a cheaper meal or two? Does it have a washer and dryer, thus letting you pack less and not pay to check in a bag? If it’s a hotel does it have an airport shuttle? Are there any after-the-fact daily resort fees? It could be that a slightly more expensive accommodation option at first glance turns out to be more inexpensive all things considered.
Here are a few other questions in the case of a flight booking. Does the price of a flight include carry-on bags or will you need to pay extra? If you have your pick between two airports (LGA or JFK in New York City for example), is one of them cheaper to get to than the other? All else being equal, do you have access to an airport lounge with one airline or airport terminal versus another, consequently granting you a free meal? Alright, I think you get the point.
Don’t feel that you need to go down a rabbit hole with every aspect of your trip but simply get into the habit of thinking this way and you’ll be (re)wired to approach trip planning in a whole different way. Broaden your scope and dig a bit deeper when travel planning and you may be surprised at what you can catch that you didn’t think of originally. Remember the journey starts with planning. Make it a game and have fun with it!
5) Capitalize On Travel Rewards And Travel Hacking
Hold on… Did someone say “airport lounge” just now?! Simply put, taking advantage of travel rewards is the equivalent of generating free money from thin air. From airline and hotel loyalty programs to travel credit card rewards, these programs let you reap multiple benefits, including free flights and free cabin upgrades, free hotel stays and room upgrades, preferred status, airport lounge access, expedited airport security, car rental insurance, no foreign transaction fees, maximizing your travel cash value, and more. There’s a misconception floating around out there that travel hacking is complicated, a luxury, and only for frequent travelers. This couldn’t be further from the truth. Despite the many possibilities, understanding the value of rewards as well as where and how to redeem them is actually quite simple. Furthermore, all airline and hotel loyalty programs are free. And those credit cars that do have an annual fee more than pay for themselves. The perks are there for the taking. Don’t leave money on the table!
6) Book Flights Early… But Not Too Early
With most things in life, timing is everything, and when it comes to booking flights things aren’t much different here. Annual airfare studies like the Annual Airfare Study conducted by CheapAir.com, have highlighted the most promising times to book flights depending on your destination and the time of year you travel. With respect to domestic flights, the best time to purchase flights for domestic travel is approximately 11 to 10 weeks out. Now, this doesn’t mean that you should hit the confirmation button exactly then or that you won’t get a solid ticket price outside of that timeframe. These are averages! But presumably, it plays to your benefit, in the long run, to book sometime around there. When it comes to international flights, the majority of the time it pays to book early versus later. The windows for striking the best deal tend to vary by the destination region as follows:
- Africa: Approximately 10 to 2 months in advance; The average cheapest travel day is Tuesday ($90 average savings compared to the most expensive which is Saturday)
- Asia: Approximately 10 months in advance; The average cheapest travel day is Wednesday ($286 average savings compared to the most expensive which is Saturday)
- Caribbean: Approximately 5 to 2 months in advance; The average cheapest travel day is Tuesday ($79 average savings compared to the most expensive which is Sunday)
- Central America: Approximately 5 to 2 months in advance; The average cheapest travel day is Wednesday ($67 average savings compared to the most expensive which is Sunday)
- Europe: Approximately 6 months to 1 month in advance; The average cheapest travel day is Tuesday ($121 average savings compared to the most expensive which is Saturday)
- Middle East: About 10 to 2 months in advance; The average cheapest travel day is Tuesday ($96 average savings compared to the most expensive which is Sunday)
- South America: Approximately 4 to 2 months in advance; The average cheapest travel day is Tuesday ($75 average savings compared to the most expensive which is Saturday)
- South Pacific/Oceania: Approximately 10 to 9 months in advance; The average cheapest travel day is Tuesday ($141 average savings compared to the most expensive which is Wednesday)
The target booking windows for those destinations countries neighboring the U.S. are as follows:
- Canada: About 10 to 4 months in advance; The average cheapest travel day is Tuesday ($47 average savings compared to the most expensive which is Sunday)
- Mexico: About 4 months to 1 month in advance; The average cheapest travel day is Wednesday ($95 average savings compared to the most expensive which is Sunday)
With regard to the universally busy summer and year-end travel periods, the ruling is as follows:
- Summer Travel: At least 6 months in advance with prices declining
- Holiday Travel (November and December): Aim to book 12 to 8 weeks in advance, nevertheless start scanning and observing flight prices as early as mid to late summer
7) Be Flexible With Trip Timing And Location
The sky is truly the limit when you’re flexible with travel. No pun intended. But in all seriousness, being flexible with your plans, such as traveling off-peak season or off-peak day, is one the most effective ways to save big on travel. When you book your flights, when you travel, and where you travel can all be optimized for major savings on travel expenses — all without compromising the experience. Going (formerly Scott’s Cheap Flights) alerts you and grants you on-demand access to travel deals that turn “too good to be true” travel fares into reality. Remember that flexibility can take on many forms and is one of your biggest assets. Open-mindedness and adaptability can yield an equally or even more rewarding journey than your initially desired destination.
8) Let Your Home Currency Take You Further
Very few “travel cost hacks” can match the power that a strong currency wields. Having a lower cost per day as a result of actually getting more bang for your buck lets you stay in unimaginable accommodations, eat out on a more frequent basis, charter private transportation, opt in for high-end services, and ultimately live like a king or queen. Sure, France, Italy, Switzerland, the United Kingdom, and Scandinavia are incredible. But so are cost-effective destinations like Malaysia, Thailand, Vietnam, Colombia, Mexico, Costa Rica, Guatemala, Panama, Nicaragua, Poland, Latvia, and Lithuania.
If you want to pay the ACTUAL exchange rate and avoid the hassles of exchanging currency and paying costly ATM withdrawal fees, check out the multi-currency accounts or the international card offered by Wise. They let you transfer, spend, and receive money like a local across 170 countries and 50 currencies with one universal account.
9) Travel How The Locals Travel And Take Public Transportation
Not all destinations have reliable infrastructure or worthwhile public transportation but when they do go for it! Not only is it a great opportunity to save money but it gives you the chance to experience day-to-day culture and the adventure of navigating yourself through a different setting. Depending on what country or city you’re in, this could mean the difference between a $10-$25 bus or train and a $75-$100+ taxi or rideshare service. Note that if you’re traveling with one other person or in a larger group the opposite may be true. If it’s cheaper or just the same to split across the group and go with the more direct and practical option then needless to say go with it.
10) Pack Light
Checked baggage fees add up and can be avoided most of the time. Even if you can check a bag for free due to airline status or through a particular travel reward credit card, it doesn’t necessarily mean you have to. Carry-on luggage saves you valuable time at the airport by not having to check in your bag before your flight and pick it up after. Furthermore, you always run the risk of the airline inadvertently losing it or misrouting it which is the last thing on earth you want to be dealing with when you’re meant to be enjoying yourself after weeks, months, or even years of planning. Lastly, packing and traveling light makes taking public transportation even easier since you don’t have to haul larger checked luggage on and off ground transportation or up and down a couple of blocks.
11) Eat How The Locals Eat
Even if you’ve made reservations at fancier or more renowned restaurants, be sure to also eat where the locals eat. The trick here is to ask working-class people or frontline workers not working in your hotel for recommendations on where they themselves would go (given they’re on a budget). These spots tend to have a “Menu Of The Day” that’s as delicious as it is affordable. Watch out as anyone with a vested interest in your satisfaction will likely direct you to higher-end places that may not even be worth the final bill. The best meals I’ve had throughout the world have mostly come from street-side vendors and hole-in-the-wall places. Not only will you save money, but these spots will also be the most memorable.
12) Swing By The Local Grocery Store Or Market
When it comes to travel, food is usually the third largest cost component after flights and accommodation, or usually near the top of the expense list. Similar to taking ground transportation, this tip elevates your travel experience as much as it benefits you financially. After all, food is culture. If you’re petrified of cooking, dislike it, or simply don’t want to, then combine some of-the-rack ingredients. Some cities, domestic and international, are also known for their local markets which sell food made to order at very affordable prices. You can strike a balance somewhere in the middle and still save money by frequenting these places. At the very least you’ll save on gratuities, service charges, and/or the relatively higher food prices charged at restaurants. If you decide to cook, learn a new recipe to bring back home with you. Maybe ask a local for inspiration. If not, pack something premade, post up somewhere with a killer view, and make an experience out of it.
Not long ago, my girlfriend and I had the pleasure of traveling to Norway, a stunningly beautiful country known for its high cost of living. While we still took advantage of what Scandinavian dining had to offer, we made our own store-bought meals here and there when suitable which saved us a TON of money throughout our trip. This in turn allowed us to do more and reallocate for upcoming travel. Like everything, it’s what you make of it. Make it count!
13) Eat Larger Meals Or Lean On The Earlier Ones
You may follow a certain meal schedule and have a habit of eating a certain number of meals during your regular day-to-day. However, who says this needs to be the case when you travel? You can if you want of course! But there’s something to be said about flexing as needed to manage your spending and even experience more in the time you have. A couple of possibilities include having a heavier breakfast and just snacking until dinner (to avoid interrupting the day’s flow) or enjoying a big lunch somewhere (which tends to cost less than the identical dinner menu) and eating something light in the evening.
14) Occasionally Skip Drinks And Dessert
I know what you’re thinking. Way to spoil the fun Mr. Party Pooper. Before I take any more accusations remember that this doesn’t have to be all the time! Yet the expectation when we travel is that because we’re on vacation or outside of our usual routine we should be indulging. Drinks and dessert really add up when enjoying lunch or dinner at a restaurant and oftentimes aren’t as worth it as the principal meal itself. Your wallet (and your health) will thank me later. Another option is to skip drinks and dessert at the restaurant and simply enjoy them at a nearby bar or dessert shop (ice cream shop, bakery, etc.) where they’re cheaper. This will also let you experience more places and different viewpoints.
15) Pack And Carry A Water Bottle
Not purchasing bottled water or reducing your purchases of bottled water is one of the easiest ways to save money while traveling. This is especially true when you consider the price of bottled water in some countries, around popular tourist attractions, and at the airport. Looking for a new travel water bottle? Check out the Hydration section of my Travel Gear page for a shortlist of my favorites. Also, see my Can You Bring A Metal Water Bottle On A Plane? post for more details on what to consider.
16) Reclaim VAT Where Possible
VAT (Value Added Tax) is a consumption tax that is incrementally levied on goods from their production to their sale. If you’re a visitor to some countries and regions (such as the EU), you may be able to purchase products free of VAT in certain shops by reclaiming the tax amount paid before returning to your home country. The VAT amount could be quite hefty especially if you do any extensive shopping. Because it requires taking a few extra steps, most eligible individuals don’t take advantage of this opportunity out of convenience or even lack awareness of eligibility. More often than not, you will usually take advantage of this opportunity for goods such as clothes, shoes, designer handbags, etc. While the required steps may vary from place to place, here are the basics:
- Ask the shop in advance whether they provide this service
- At checkout, show proof that you are a visitor by showing your passport and fill out a refund form with the necessary details
- On the day of your departure, and when clearing customs, you will simply show the customs officer the good(s), their invoice(s)/receipt(s), and ask the officer to stamp the form as proof of export. Note that you’re not supposed to use your purchased good before you leave the country as this may deny you the refund.
- You can then claim your VAT refund immediately (at bigger airports) or send the refund form to the address provided in the shop.
17) Plan Ahead And Anticipate The Unexpected
Lastly, as I often like to remind everyone, thinking ahead is always key.
- Did you forget to add something indispensable to your packing list that you would’ve otherwise had to purchase had you not remembered just now? Have a look!
- Does your current card charge you foreign transaction fees? What happens if it gets declined while abroad or away from home? Are you wary of the conversion rate? You can mitigate all this!
- Are you prepared to avoid call/data roaming charges? You can be!
- Do you have travel insurance in case something happens? You bet!
Running through these very simple questions upfront can and will save you A LOT of money down the road.
Ask yourself, “What’s the worst that can happen?” Don’t worry, it won’t. Plus, I just knocked on wood for you. Believe me, I’m very much an optimist. But ironically, thinking through these worst-case scenarios for a moment will only ensure optimal results (and savings) in the end.
BONUS TIP: When paying with a credit card abroad you may be prompted to pay in the local currency or your home currency (e.g., U.S. dollars). Always stick with the local currency even if you have no foreign transaction fees as this prevents a “dynamic currency conversion” provider from setting the exchange rate.
Putting It All To The Test
Finally, let’s put this into action by playing out a brief travel scenario and adding up some conceivable cost savings from a few of the tips above. We’ll even be conservative by going with averages or lesser amounts and avoiding other possibilities.
- You and your friend decide to start planning a week-long trip from NYC to Madrid! Those sangrias can’t come soon enough…
- You book your flight on Skyscanner 5 months in advance to ensure a good deal. You decide to travel in September to avoid the hottest months, the bulk of the summer crowds, and take advantage of seasonality pricing which averages $334 less than May through August
- By traveling the first week of September you also take advantage of the Labor Day holiday to use one less vacation day
- While you’re unable to fly out on a Tuesday (the cheapest travel day to Europe on average) due to work, you decide to fly out on a Thursday instead and save not all but a portion (let’s say 50%) of what you would’ve spent had you flown out that Saturday. So, $60.50 (50% of the $121 average) less on the flight ticket.
- You use Booking.com to book your accommodations. Hotels are still a bit expensive that time of year but you also don’t mind paying more to be as central as possible so you go for a highly-rated serviced Aparthotel which comes with a small kitchen and a washer.
- You form part of Booking.com’s free Genius rewards program and while you’re only at Genius Level 1 (almost at Level 2!) you get 10% off bookings so that knocks $112.10 off your total booking for the week (saving you $56.05 each). The reservation also includes free breakfast (valued at $10/day): $10 x 7 = $70).
- The day has finally arrived! You and your friend live in different parts of the city so there’s no point in splitting a ride to the airport. You just decide to take public transport to JFK, saving you about $75 each.
- Your Priority Pass gives you and your friend lounge access so you have a bite and enjoy some refreshments, saving each of you $45 had you paid NYC prices in the main terminal.
- You land early morning in MAD and take the 20-minute metro into the city center — more so to avoid morning traffic — and save approximately $15 each compared to having split a taxi.
- Despite having access to a kitchen you decide not to cook throughout the week as you’re out all day and dining in Spain is quite affordable compared to most places. You eat out for every meal (except breakfast of course.
- You forgot your water bottle (silly you) so you just buy bottled water out but at least you’re staying hydrated.
- On the day of your return, you take the metro to the airport once again to avoid rush hour traffic and because the subway is so close (by design thanks to your planning), saving each of you $15 again.
- While you did dabble in some shopping, there’s no VAT to reclaim at the airport.
- You land back in NYC and since you’re tired and jetlagged from the trip you each “splurge” on a ride home in place of taking the subway.
We add up these individual amounts for a grand total of $670.55 in savings per person with no major tradeoffs whatsoever. The potential for savings is even greater when you factor in other reward redemptions, travel hacking opportunities, and trip decisions. Regardless of how you play this scenario out, my intent is to emphasize that these effortless cost cuts add up and add up fast. If you’re traveling as a group or family, the savings increase exponentially. Again, the potential is there. Now comes the fun part of making it happen.
It’s time for less overpaying and more traveling. Happy savings and many more odysseys!
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