Plan Ahead to Save More on Your Next BIG Vacation

As we head into late summer, you may have already taken your vacation, or plan to do so in the coming weeks ahead. But it’s never too early to plan for that next awesome trip. And although traveling for vacation can be expensive, you can still have a great time without breaking the bank by following these saving tips for traveling locally or abroad:

Tip #1) Book airline tickets early. According to an in-depth study on airfare prices by Cheapair.com, the best time to book a domestic flight is during a window between three months to three weeks prior to your departure date. Typically, you can find tickets within 5% of the lowest average price during this period. And, you can expect to save nearly $200 per ticket by booking the right time.

Purchasing tickets on a certain day of the week can also affect ticket pricing. You may find yourself paying an extra $80 more if your flight leaves on a Sunday, but could save more by departing on a Tuesday or Wednesday.

Save by flying off-holiday season as flights tend to be more expensive during these times. You can save money on your next flight by researching important holidays at and around your destination. For example, an international flight in East Asia would tend to be more expensive around Chinese New Year because many people are flying home to see their friends and family members.

Tip #2) Reserve hotel rooms later. In contrast to flights, according to Skyscanner.com, it’s better to buy hotel tickets later, within a week of your intended stay. You will likely save about 21% on a hotel by booking at the last minute. If you’re not comfortable cutting it so close, then you can save an average of 8% by booking your room up to two weeks early.

Domestic hotels are about 6% more expensive approximately one month before your stay. Thus, if you’re already at that point, then you may want to wait another week or two to book your room and save. To stay at an international hotel, you can pay more if you reserve two to four months out before your stay. But, can save about 18% by booking during the week of your arrival date.

The average price of a hotel room also varies based on the month you book. Domestic reservations are usually 6% cheaper in December and more expensive in October. For international stays, save an average of 9% for a hotel room in July, pay 9% more in December. As with flights, it’s important to research all relevant holidays when booking your room.

Tip #3) Rent a car early. if you want to save money and have a wider selection of vehicles to choose from, book your car several months prior to your trip. Car rentals at airports are much more expensive and come with a ton of additional fees. Instead, rent from the nearest non-airport rental service. Note that some car rental shops may try to pressure you to pay for a GPS, but such an expense is not worth it as your phone might have a better GPS. Take note to look at the fine print of car rental agreements. They vary and you want to avoid a fine for going over the mileage limit or driving on a muddy road.

Tip #4) Research sight-seeing activities. Another way to save money on your vacation is to research attractions and activities. Make sure to read reviews to ensure the activity lives up to the expectations set by the website or advertisement. By doing your research, you won’t run into any unpleasant surprises and you can be sure that what you’re getting, is what you’re paying for.

Tip #5) Create a vacation budget. After you’ve mapped out your flight, hotel, and destinations, it’s important to budget for other aspects of the trip. How much does the average taxi cost? What will it reasonably cost for meals throughout the trip? Will you need to bring extra luggage to bring back souvenirs? Once you have the answers to all of these questions, you can build your budget. While the focus is on saving money, with a budget you always want to assume that things will be slightly more expensive than usual, and you want to have some money set aside for an emergency.

If you’ve marked the calendar for your next big trip and want to start saving smartly, a great first idea is to create a budget worksheet to help you set goals. Also, check out NIHFCU’s “You Name It” account which provides a disciplined option to save for that well-deserved vacation.