Planning on reuniting with your extended family this holiday? Or maybe you’re counting the days until the vacation you’ve arranged to escape awkward family get-togethers. Like Kevin McCallister in the famous holiday film “Home Alone,” the commotion of travel makes it easy to let your budget fall by the wayside. 

Traveling and other holiday expenses can turn the most wonderful time of the year into a season of financial dread. Then again, it doesn’t have to. Read on to learn about ways to save on travel this holiday season.

How much do people spend on holiday travel? 

A 2021 survey from Deloitte found that 42% of Americans travel during the holidays. Two-thirds of those individuals pay for airfare and lodging, and one-third drive to their destination. 

Over 40% of holiday travelers spend $1,000 to $5,000 on travel costs, while 30% spend at least $5,000 to fund a holiday getaway. But don’t worry about keeping up with the Joneses. Depending on your location, a budget getaway or road trip may be a fun way to enjoy family time without breaking the bank.

What factors should you consider when planning travel? 

The first step to saving on traveling during the holidays is determining what you will spend on the trip. Make a trip budget, a list of spending categories to help you estimate (and choose a limit) for your total costs:

1. Transportation. Getting around can be costly. Transportation costs typically include gas, parking, airfare, local transit, and rideshare. 
2. Lodging. If you aren’t bunking with friends or family, you’ll need to consider hotel or lodging rentals. Vacation rentals from companies like Airbnb and VRBO can be a great option, but closely read property reviews to ensure you know what you’re getting and paying.
3. Activities. Most people want to avoid traveling somewhere to sit in one room. Activities may include events, museum admissions, amusement parks, and seeing movies. Payactiv Visa^® Card* cardholders can get AMC tickets at a fraction of the cost, a helpful tool when taking the group to see a holiday film.
4. Food and restaurants. Eating at restaurants for every meal is costly. To save on restaurants and food delivery, consider buying some basic groceries and taking advantage of a fridge, microwave, or even a full kitchen if you’re lucky.
5. Miscellaneous costs. Plan for those small costs like travel-sized toothpaste and transit snacks. Add a buffer to your budget for those and other unplanned expenses.

Create a holiday travel budget

Creating a budget is a cornerstone of personal finance. You can apply the same logic to your travel plans to give yourself a spending roadmap.

Start by deciding the total amount you’d like to allocate for your trip. Then, divide that money into buckets for each spending category you need for your trip, or you can go with our list above.

Your budget works as a spending guide, clarifying where each dollar goes. Your budget’s clear-cut instructions can help you avoid overspending. It’s also a way to permit yourself to spend on something guilt-free. You know you can afford it if it’s in your budget and you have the savings or incoming payroll funds. 

What else can you do to save on travel during the holidays? 

Book transportation early, but not too early  

Unsurprisingly, December is the most expensive month to fly, followed by November. More people travel during those two months than any other time of the year, meaning airlines raise rates to match demand. 

There is a sweet spot for booking plane tickets to find the best deals. If you wait too long and have to book your plane ticket last minute, you’ll likely pay more than necessary. However, airlines also set higher initial rates for their flights, so you’ll likely pay more than you need to when booking early. Based on travel data, the best time to book a plane ticket is between three weeks to four months in advance. 

Travel on less-popular days

Most people want to spend the actual holiday and the days surrounding it at their destination. However, you can save a lot on airfare if you are flexible on the exact days of your trip. And the savings can add up fast. Traveling on holidays can be less expensive than flying a few days before. Shop around and compare different flight days to find the best price.

Make travel purchases with credit cards

Some credit cards have excellent points programs devoted to travel purchases. If you use a credit card year-round and pay it off in full every month, you can earn rewards redeemable for free and discounted travel. Depending on the card, you can earn bonus points for purchases at hotels, restaurants, gas stations, grocery stores, and other commonly used categories.

Other cards offer cash back rewards, paying around 1% to 5% back on every purchase, depending on the purchase category. 

Also, be sure to factor in annual fees for credit cards when deciding on one for your needs. Seasoned travelers and credit card rewards experts quickly absorb most sign-up fees, but those on a tighter budget may want to steer clear of a card you have to pay a fee to use.

Use your Payactiv Visa Card* everywhere else

Another great way to pay for travel is with the Payactiv Visa Card. The Payactiv Visa Card works just like a debit card and can be used everywhere Visa is accepted.  Your purchases are automatically tracked in the Payactiv app to help you stay on track for your ideal budget.

The Payactiv Visa Card may help prevent you from spending more than you budgeted by allowing you to keep tabs on your budget and account balance from your phone, which may save time and stress during your trip.

You can also rest assured knowing there are no overdraft fees. If you don’t have enough funds on your card to make a purchase, the charge will most likely not go through.

Plan your meals

Choose where you would like to eat your meals ahead of time. That way, you aren’t eating at pricier restaurants than you planned. You can also pack travel snacks or visit a local grocery store instead of paying for overpriced airport food.

If your lodging destination allows for it, purchase groceries and make some of your meals in your hotel to save money. Many delivery apps offer grocery delivery, which can be less expensive than taking an Uber to a restaurant.

Stick to the itinerary 

42% of holiday travelers trek to big cities with lots of attractions over the holidays. It’s easy to rack up costs for museums, national landmarks, shows, and concert halls. Before your trip, consider which attractions you’d like to visit and how much tickets cost. Make an itinerary in advance, then stick to it to avoid extra spending. Even if you see something that’s a “good deal,” if it busts your budget, it’s not a good deal for you.

Strategize your location

When booking your hotel or other lodgings, pick one near the places you want to see. That way, you can walk instead of spending on rideshare, cabs, or car rentals to get you where you need to go.

Walking and bike share programs include the added benefit of exploring the area and exercising along the way.

Bottom line

Traveling during the holidays can be expensive, but by implementing savings strategies, it doesn’t have to be. The more you plan your trip and its potential expenses, the more likely you will be able to stick to your budget and save.

Most importantly, be realistic with your holiday travel savings. Permitting yourself to spend on things for others (and even yourself) is part of what makes the holidays unique—by implementing these savings tips, you’ll likely have more flexibility.

* The Payactiv Visa Prepaid Card is issued by Central Bank of Kansas City, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Certain fees, terms, and conditions are associated with the approval, maintenance, and use of the Card. You should consult your Cardholder Agreement and the Fee Schedule at payactiv.com/card411. If you have questions regarding the Card or such fees, terms, and conditions, you can contact us toll-free at 877-747-5862, 24 hours a day, 7 days a week.

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