Yahoo Finance How to Get Home for the Holidays Without Breaking the Bank
Traveling during the holidays can be costly. Commercial travel and lodging prices tend to be higher during peak travel times like Thanksgiving, and the hustle and bustle of the season often lends itself to higher spending in other areas like meals.
Here are five ways you can keep travel costs low this holiday season.
1. Take advantage of credit card point redemption.
About one-third of 48 million credit card reward points go unused each year, according to a 2011 study by the marking firm Colloquy. Don't give away free money by ignoring the credit card reward points you've built up. Instead, use them to help pay for travel and hotel costs this holiday season. Just make sure to check the terms of use regarding your credit card reward points so you book hotel and travel plans properly.
2. Plan ahead and pay with cash.
Set a holiday travel budget this year, and set aside cash from each paycheck to pay for holiday travel costs and other incidentals. By planning ahead for every holiday cost, from transportation and lodging to tipping, you can work your travel costs into your budget and pay with cash. This will help you avoid high January credit card bills.
3. Find alternative lodging.
Instead of booking at expensive hotels, check for more reasonably priced lodging options such as those available on Airbnb or VRBO. As with hotels, it's best to book early when choosing an Airbnb or VRBO location, as they do tend to fill up fast, especially during the holiday season. In some cases, staying with friends or family may be another option.
4. Pack thoughtfully.
Holiday travel often turns expensive because of the additional baggage costs charged by commercial travel industries. To avoid baggage fees, strive to pack light. Choose outfits that can be worn more than once, and don't pack more than what's necessary. If you need to bring gifts, plan to shop at your travel destination or bring gift cards or cash that won't take up precious packing space.
5. Save on meals and other incidentals.
Money spent during the holiday travel season often covers local transportation, dining out, shopping excursions, entertainment outings and unplanned or forgotten items that need to be purchased last minute. Here are some tips for saving money in those areas:
-- When traveling locally during your holiday stay, use public transportation instead of taxis. In some cases, Uber may be a cheaper travel option.
-- Bring your own food. This can be especially cost-efficient if you choose to stay in an Airbnb that comes with a full kitchen. In hotels, try to get a room with a microwave and mini refrigerator so you can store deli sandwiches or other low-cost meal items. Keep snacks in your bag or jacket for those in-between-meals hunger pangs or those long days of shopping.
-- Keep plenty of cash on hand for tipping and low-cost purchases so that you can avoid withdrawing money frequently from ATMs with fees or expensive surcharges.
-- Plan ahead and make a list of what you'll need before, during and after your trip. Many holiday costs are a result of last-minute purchases that arise due to a lack of planning. Make a thorough list of what you'll need for the trip so you can avoid those expensive last-minute necessity purchases.
Holiday travel can be expensive, but with some budgeting, planning ahead and ingenuity, you can find many ways to save on travel costs during this festive season.
Deacon Hayes is a financial expert and founder of Well Kept Wallet, a financial education company that provides personal finance curriculum for people across the world.
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