Budgeting

5 Smart Ways To Save Hundreds On Your Next Vacation

A nice vacation is something we all deserve every once in awhile. But when you’re on a budget, it may be the furthest thing from your mind. Fortunately, vacationing doesn’t have to be forgotten in the midst of achieving other financial goals. There are ways to save money on your next vacation.

In fact, you could even save hundreds if you plan ahead of time and consider alternatives to the most costly expenses that come with vacationing. Here are five smart ways to save money on your next vacation:

1. Take Flights On Weekdays
If your vacation plans involve flying, you’ll definitely want to find some savings there. The cost of flying could be the largest expense of your trip.

Fortunately, Expedia conducted a study on airfare trends to help us navigate saving on flights. The cheapest days to fly tend to be Thursday and Monday. Departing and returning on those days can result in up to 20% savings as opposed to flying on Fridays on Saturdays.

Flying during the weekdays may mean shortening or extending your trip. You’ll want to consider how this will impact other parts of your vacation – like your hotel stay.

2. Travel Off-Season
Traveling off-season will help you save money on your next vacation as well. There are three times you want to avoid traveling if you want to save:

  • Holidays
  • Summer
  • School breaks

Holidays are prime time for traveling. This means that flight and hotel prices are at their peaks. One example is Christmas time. The last two weeks of December will be pricey for taking a vacation. You’ll find the first two weeks of December to be a lot cheaper.

I know it’s a bummer that traveling during the holidays is more expensive. Consider hosting holiday parties and the such at your home rather than traveling in order to avoid the costs of a vacation.

3. Avoid Foreign Transaction Fees
A foreign transaction fee is a charge that your credit card issuer charges you when you use your credit card outside of the United States. This fee can easily cost you a lot if you’re not careful because it’s charged with each and every transaction.

There are two main ways to avoid foreign transaction fees:

  • Convert currency in the U.S.
  • Use an ATM abroad one time

Converting currency before you travel will likely be cheaper than converting it in the foreign country. Before I traveled to Toronto this summer, I converted U.S. dollars to Canadian dollars at a local shop. The fee was only five U.S. dollars!

If you don’t have the chance to convert currency before you leave, the next best option is to use an ATM once you reach your destination. You’ll be charged a small fee by the ATM and possibly another fee by your credit card issuer. Even with these ATM fees, it’ll still be cheaper than all the foreign transaction fees you’d rack up if you used your credit card for each purchase.

4. Skip The Fancy Restaurants
Restaurants in general pose a higher price tag than the alternatives: cooking at home and ordering takeout. When you’re on a vacation, you may think that dining out is a must. That doesn’t have to be the case.

If you’re visiting a place you haven’t been before, you can still experience that place’s cuisine without going to a restaurant. For example, if you’re visiting Wisconsin, you can go to a grocery store and get a selection of its best cheeses. Pair that with some fresh bread and crackers; and you have yourself a great Wisconsin culinary experience! Mental Floss has a map that shows the signature foods for each state.

If you feel that eating out is a necessary part of your vacation, don’t worry. There are ways to eat out on a budget as well. Try to find local eateries that aren’t high end restaurants but still offer waiter service.

5. Consider Hotel Alternatives
After flights, the cost of a hotel stay will likely be your biggest expense when vacationing. To save money on your lodging, it’s best to find hotel alternatives. Two options are Airbnb and hostels.

Airbnb is a marketplace for people to list and book accommodations across the world – often at a fraction of the cost of hotels. These are real people renting out rooms in their houses and in some cases the whole house. Airbnb charges a small administration fee. But besides that, there is no overhead cost, which means more savings for you.

A hostel is an inexpensive establishment that offers lodging in a dormitory setup. You usually rent a bed in a room with other travelers; though private rooms may be available. Hostels are under tight supervision and come with a lot of ground rules, making it generally a safe alternative to a hotel. Of course, you’ll want to keep your valuables secure.

Wrapping Up

It’s possible to save money while vacationing. In fact, you can save hundreds if you plan ahead and consider money-saving alternatives while traveling. Five tips to help you save money on your next vacation include:

  • Take flights on weekdays
  • Travel off-season
  • Avoid foreign transaction fees
  • Skip the fancy restaurants
  • Consider hotel alternatives

Taking flights on weekdays and finding hotel alternatives are probably the biggest money savers. Avoiding foreign transaction fees is easy to do and should definitely be taken into consideration. You may not want to skip dining out while you vacation. But there are satisfying alternatives such as buying groceries that represent your destination’s culture. Traveling off-season may not be an option, especially if you’re traveling during the holidays. If you have the option though, definitely take it.

How do YOU save moeny on vacation?

About the author

Aliyyah Camp

Aliyyah Camp is a personal finance writer who specializes in writing about ways to save money, make money, build credit, and invest. She has a Bachelor's Degree in Communication from the University of Pennsylvania.

1 Comment

  • If your going to eat out on vacation do lunch instead of supper. Lunch prices are much cheaper and the serving sizes are not that much smaller. (Gaining weight is one of the down sides of vacationing.)

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