Everyone deserves a vacation, but with exorbitant prices caused by inflation and the demand for travel, it doesn't always seem possible to have one. Things have improved as the inflation rate has slowed. When comparing October 2023 airfare prices to October 2022 airfares, US airfares are down 13.2% according to the latest round of Consumer Price Index data released in November 2023. Car rental prices are also lower – down 9.6% compared to October last year and Hotel prices have been relatively stable over the past year according to Nerd Wallet.
The slowdown in inflation is good news, but it does not erase the increases which are now being reflected in prices. But don't let travel costs deter you. There are ways to budget correctly your vacations and get the trip you dream of. It just takes a little flexibility, time and a lot of planning.
Plan your trip early
If you've ever had to book a last-minute flight, you know that prices skyrocket the closer you get to the departure date. The best way to get a good deal, whether it's accommodation or transportation, is to book as early as possible.
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According to Expedia's travel tips for 2024you must book a domestic flight no later than 28 days before your departure to avoid sharp price increases. When traveling abroad, reserve your place at least three months in advance of your trip.
Another benefit for early birds: The sooner you start planning, the sooner you can start putting money aside each month to fund your vacation.
Be flexible
Often we have our hearts set on a particular destination when we dream of a vacation, but if you can be flexible about the location, do so.
For example, domestic flights are often more affordable than international beaches and you can find beaches in the United States that are just as stunning as those in the south of France. The beaches of Alabama, for example, have incredible white sand that creates a picturesque scene, and you will find many incredible beaches. Airbnb and lower-cost hotel rooms.
On the other hand, you may find that accommodation or activities are cheaper when you decide to leave the United States. If you are traveling to a Central American country, your dollar will go further than in Florida: you'll find accommodation, meals and other activities at a lower price than in the United States.
Do your research before deciding where to vacation, and be sure to consider the costs and benefits of similar alternatives before settling on the perfect spot.
Think about the outdoors
When most people travel, it is to see beautiful sights and relax. A super affordable way to do it? Go camping.
Opting for the great outdoors doesn't mean you have to forgo modern conveniences. Rent camping gear like thick sleeping pads to make your tent even more comfortable, or check the price of renting one Motorhome or cabin. It's an economical way to enjoy the natural splendors the world has to offer.
Determine what you are comfortable cutting
Ideally, vacations would mean going out to eat every night, trying every activity possible, and shopping at any store you see. In reality, your budget is probably limited, so you'll need to think about what's most important to you on this trip.
If eating isn't the main goal of your trip, do your shopping so you can cook in your accommodation. You can also limit the number of excursions to treat yourself to those that excite you the most. Opt for a walkable destination or somewhere with good public transportation to avoid costly extras like renting a car.
There are always small cuts you can make to reduce the amount you spend on vacation.
Traveling in a group
Some holidays are arguably better as a celebration. Consider inviting your friends or family to travel with you and share the costs.
A Airbnb sharing six ways is often cheaper than the price of a hotel room for two. According to the travel site Hopper, the the average cost of a hotel room in 2023 is $212 per nightwhile NerdWallet shows the median price of an Airbnb for 6 people at $60 per person per night. In a shared accommodation, you'll also share costs like food and car rental. Plus, a group trip means that there is always someone around for whatever activity you want to do during your trip.
Benefit from points and miles on your credit card
Make sure to book flights, hotels and other major expenses with credit cards that give you cash back on every purchase. You won't pay less upfront, but you'll essentially give yourself a discount when you make money on your spending. As an added bonus, many credit cards offer extra cash back when you charge certain travel categories.
Don't forget to use air miles to help you pay for your holiday flights. Otherwise, why did you keep them? Additionally, look at your company benefits: Many companies offer discounts on transportation and hotels.
Keep an eye out for discounts
Groupon is a great option for booking discounted activities on your vacation site, and some of the best travel sites regularly offer excellent hotel deals. When looking for deals, be sure to do your research and use trusted suppliers. If a deal seems too good to be true, it probably is.
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