Smart Vacation Planning Tips
Everybody deserves a vacation, but with the eye-popping prices caused by inflation and travel demand, it doesn’t always feel feasible to have one. Fortunately, prices have pulled back a little as the rate of inflation has slowed down. Domestic airfare dropped 5.9% in May 2024, versus May 2023, according to the latest Consumer Price Index data. Car rental prices are also lower, down 8.8% versus May 2023, and hotel prices are relatively flat over the past year.
Slowing inflation is good news; however, it doesn’t erase the increases that are now baked into prices. Therefore, don’t let trip costs deter you from planning the adventure you’ve been dreaming of. There are effective ways to budget for your getaway—it just requires flexibility, time, and diligent planning.
Plan Your Trip Early
Have you ever had to pay a fortune for a last-minute flight? Your best bet for securing a great deal, whether on lodging or transportation, is to plan and book as early as possible. According to travel experts, booking a domestic flight no later than 28 days before departure can help you avoid substantial price hikes, while international flights should ideally be booked at least three months in advance.
Be Flexible
While it’s common to have your heart set on a specific destination, being flexible can lead to significant savings. Domestic flights tend to be more affordable than international options, so consider beautiful U.S. beaches that rival costly vacation spots overseas. For example, Alabama’s stunning white sand beaches can provide an incredible experience at a fraction of the cost.
Conversely, some international locations may offer more affordable lodging and activities. In certain Central American countries, for instance, your dollar will go further than in popular U.S. destinations. Therefore, conduct thorough research to weigh the costs and benefits of alternative vacation spots before making your decision.
Consider the Outdoors
If the aim of your vacation is to relax amidst beautiful scenery, why not consider camping? Opting for outdoor adventures doesn’t mean sacrificing comfort. You can rent equipment such as comfortable sleeping pads or an RV to enhance your camping experience, allowing you to enjoy nature’s splendor more affordably.
Determine What You’re Comfortable Cutting
While traveling often sparks visions of dining out and indulging in every activity possible, budget constraints usually require prioritization. If fine dining isn’t your main objective, consider grocery shopping and preparing meals in your lodging. By limiting excursions to only those you are truly excited about, you can more effectively manage your budget. Choosing destinations with good public transportation also helps avoid the additional costs of car rentals.
Travel in Groups
Some vacations are even better when shared with family or friends. Traveling in a group allows you to split costs, making it more affordable for everyone involved. For example, renting an Airbnb can be substantially cheaper than hotel accommodations. In 2024, the average price of a hotel room is around $206 per night, while a shared home can often amount to only $60 per person per night. Additionally, group vacations provide ample opportunities for fun activities and shared experiences.
Take Advantage of Credit Card Points and Miles
When making travel arrangements, always consider using a cash back credit card or one that offers rewards for travel-related expenses. While this may not lower your upfront costs, it allows you to earn cash back or other benefits that can be applied to future expenses. It’s also wise to consider any airline miles you’ve accumulated to help offset the costs of your vacation flights.
Keep an Eye Out for Discounts
Sites like Groupon can provide excellent deals for activities at your travel destination, and various travel websites regularly feature great hotel discounts. Nonetheless, it’s essential to stay vigilant—research prices and vendors to ensure you’re not falling for offers that seem too good to be true.
