If one of your goals this year is to save money for travel, here are some tips to learn how to create a travel budget, use credit cards wisely, find deals, and save for future trips stress-free.
Traveling more this year is officially at the top of my wish list. I’ve been dreaming of wandering the streets of France with a croissant in one hand and a coffee in the other — and of course eating as much cheese as I can while I’m there (cheese is my favorite food!) I’m also hoping to squeeze in a few shorter weekend trips with friends this year (including the official Mazen cruise) Harry Potter books, I now have a promised trip to Universal with the boys to plan sometime in the future so we can fully immerse ourselves in Hogwarts, butterbeer and all.
Trips like these to look forward to make everyday life a little more exciting. Traveling is such a fun and memorable experience for kids, and some of my most vivid memories as a teenager were from traveling with my family. Of course, as fun and magical as traveling is, nothing about sleeping and eating away from home comes cheap. Between flights, hotels, meals and activities, it’s easy to watch the dollars fly faster than the plane that flew you there.
Since I started using points and miles to lower my travel costs in all of the above areas, I’ve been able to travel more than ever before. Here’s my guide to how to save money on travel so you can keep exploring – this year and beyond.
How to save money on travel
My approach to saving money for travel means creating systems that make saving easier and more automatic, as well as being mindful of how you spend money when planning the trip.
Ballpark and plan the cost of your trip
Before I even set aside dollars, I park everything I’ll need for a trip: flights (or gas) to get there, lodging and food, and activities while on the ground. Don’t forget airport parking, airport food and taxis if you need them! Start by calculating how much your trip will cost, including transportation, accommodation, food, activities and a buffer for unexpected expenses.
Once you know your total, divide it by the number of months until your trip. This number becomes your monthly savings goal. Having a clear plan makes it easier to prioritize saving money and avoid overspending in other areas.
Plan far ahead when you can be very flexible
Flexibility is one of the best ways to save money on travel. Traveling during off-peak periods, booking midweek flights and being open to different destinations can lead to significant savings. Set price alerts, compare dates and don’t rush bookings unless you have to. A little patience often leads to much better deals.
Use travel credit cards strategically
The right credit card can help you save money on travel through rewards like points, miles or cash back. If you already use a credit card for everyday expenses, choosing one with travel privileges it might be a smart move. And if you tend to favor an airline or hotel brand, this is definitely a smart move.
The key is to pay your balance in full each month so the interest doesn’t cancel out the rewards. Over time, these points can be converted into free flights, hotel stays or travel credits, all of which help increase your travel money even further.
For example, if you have lounge access, you can plan to spend $0 on food and coffee at the airport on the day of your departure. Or if you have $300 in travel credit, you can put it toward your hotel. Or better yet, if you have a load of points/miles, maybe your flights are free and you don’t even have to budget for them!
Set up a dedicated (high interest) travel savings account
One of the best ways to save for travel is to open a separate high-interest savings account specifically for the expenses you’ll pay in cash. When your travel money stays in its own account, it’s less likely to be accidentally spent on everyday expenses.
Set up automatic transfers from your bank account every month — even small amounts add up over time. This also works great for deposit bonuses, tax refunds or extra cash.
Use a travel advisor
Of course I’ll tell you to use my sister, Laura Allen! She works with Fora Travel and whenever I’m not booking a spot trip I use her to help me plan and book accommodations. This doesn’t cost me (or you) because it’s commission paid by the hotels (almost all except Airbnb-type places.) And the best part is that it can almost always come with perks like free breakfast or resort credits, so you save money too!
Select A Walkable Hotel
Whenever I can, I book hotels in the best location so I can walk as much as possible. This saves money on Uber/Lyft and also means I get a lot of steps! Trains, buses and metros are often cheaper and sometimes faster than taxis anyway. Walking and using public transportation can also help you experience a destination more authentically, which is one of my favorite parts of traveling.
Look for breakfast or lunches
Another factor I consider when booking a hotel is whether or not breakfast is included. I try to find hotels where this happens and eat a big breakfast, a smaller lunch (which saves money!) and a normal, fun dinner. This reduces the overall cost of the food. There are also all-inclusives and cruises to consider where you don’t have to pay each food once you get there. I know food can be hit or miss, but I just like knowing I’m paying for everything in advance.
Clear the food with points
And finally, another way to save money while you’re on your trip is to use a card that can write off travel expenses with points. If you buy tickets (like Disney tickets – more here) or charge food/beverage on your hotel card then you can often write off those costs with points. You can find cards with benefits like this here.
Where to find the best travel deals
Finding deals can be half the fun of planning a trip. These are some of my favorite tools and websites to save money on travel.
Google Flights
Google Flights is my go-to when looking for flights – whether I use cash or points. The site makes it easy to compare prices across all airlines and dates, both flexible and general. You can view price calendars, set alerts and quickly find the cheapest days to fly.
Skyscanner
A friend recommended Skyscanner, which is great if you’re flexible with your schedule or destination. You can search by month or even browse the cheapest places to fly, which is great for spontaneous travel. I found some tropical flights for as little as $39. (And coincidentally, my friend Jonathon went to San Salvador for 24 hours on one of those cheap flights a few weeks ago!) I think the Skyscanner site is generally a bit busy, FYI.
Crucible
Hopper predicts whether flight prices are likely to rise or fall, helping you decide when to book. I also like how you can select hotels with their price slider and see them on the map to hike to your favorite spots.
Airbnb and VRBO
For families or groups, vacation rentals can often be more affordable than hotels. Having a kitchen can also help you save money by preparing some meals at home. The only downside is that they can be hit or miss and more off the beaten track at times.
Travel credit card sites
If you have a travel card, using its portal can help you get extra benefits even if you book with points. Sometimes I find there are fewer options available, but in a big city there should be plenty. And if you pay with cash at the gate, you often earn a big points multiplier – like 10x or 5x – on travel spend, so you’ll be banking points for later.
FAQ
How much money should you save for travel?
The amount of money you’ll save on travel obviously depends on where you’re going, how long you’ll be there, and your style of travel. This is why it is important to imagine your trip and plan day by day before you go. For example, before we went to Disney, I calculated what we would pay for breakfast, lunch, dinner, and treats and multiplied by the number of days (4) we were there. I added an estimate for travel day food and airport parking and I had a rough guess of our costs on the ground. I added a little extra padding as things can always come up.
Another easy rule of thumb for two people eating out: $50 for breakfast, $100 for lunch, and $200 for happy hour and dinner = about $350 per day. It seems like a lot, but the coffees, food, desserts and alcohol add up! Obviously, if you got a free breakfast, skipped happy hour, and ate at more mediocre restaurants, you could cut that down a lot.
Where to save money on travel?
A dedicated savings account, preferably with good interest, is one of the best places to keep money for travel. Keeping it separate from your day-to-day expenses makes it easier to track progress and avoid dips.
Are travel agents saving you money?
Travel agents and consultants can save you money, especially on cruises, all-inclusive resorts or complicated itineraries. They often have access to group deals and perks that you might not find on your own.
Do credit cards help save money on travel?
Yes, when used responsibly. A good credit card with travel rewards can help reduce annual costs for flights, hotels, rental cars and more. Just make sure you pay your balance in full and make sure you’re just spending everyday on it and not more than you need “just to earn points”.
Some of our favorite trips come from finding a lot first and building the vacation around it. And if you’re looking for something closer to home, I’ve shared a roundup of great family resorts in Virginia here: Family Resorts in Virginia.
I’d love to hear from you — what are your favorite tips for saving money or finding great travel deals? Leave a comment and share your suggestions so we can all travel smarter together.
