After a long, hard year, there’s nothing like taking a much-needed vacation. You daydream, research destinations, start to make plans for the place you’ve always wanted to visit. Then, a money issue arises, making you question whether or not it makes sense to go forward.
If you’re feeling the pinch, you’re not alone. According to a March 2023 TripIt survey, 79% of respondents say inflation has affected their travel planning, 26% say higher prices have caused them to budget more than usual for travel and 18% say it has caused them to plan fewer or different types of trips.
Whether prices exceed your initial projections or your personal financial situation isn’t quite as great as you thought it would be, you may not have to abandon your trip entirely.
Change Your Destination
Now that the COVID-19 pandemic has subsided domestically and internationally, the world is largely open for travel. A 2023 AARP survey shows 81% of adults older than 50 who plan to travel in 2023 believe it’s now safe to roam, though inflation and high associated costs are impacting their vacation decisions.
Whatever your age, you can make the most of your travel plans by thinking outside your top destination. If it’s too expensive, skip to what’s next on your list if it’s a better bargain. That’s what Brian David Crane, founder of Spread Great Ideas in Sioux Falls, South Dakota, is doing.
“I had summer travel plans for Amsterdam with my in-laws and friends but it has been tough to find suitable travel deals even though we were flexible with dates and airports,” Crane says. “Clearly, it is becoming costly. So, we are considering vacationing in Southeast Asia as a cheaper alternative. Inflation is affecting everything. Even the amenities on flights are getting expensive.”
Industry professionals like Laura Gambardella, who works in public relations for the Radisson Hotel Group in Milan, are also pivoting.
“I am changing my summer plans because of the high flight costs,” she says. “I was meant to visit Scandinavia but the costs are excessive. Therefore, I’ll tour Northern Europe and the United Kingdom — but on a budget.”
In the end, the No. 1 destination on your bucket list will still be there. Maybe by next summer the prices will come down, but even if they don’t you’ll have extra time to set cash aside for it.
[READ: Surprisingly Cheap Tropical Vacations]
Cut the Costs, Keep the Fun
Rising travel expenses are alarming but there are ways to mitigate them. With a few modifications you may be able to fit the vacation you want within your original financial parameters.
Review all the expenses associated with your summer vacation and pinpoint the areas where you can reduce spending without sacrificing pleasure. Chances are you can find at least a few.
Faye, a travel insurance company, gave a survey that found last year’s dedicated vacationers were willing to economize so they could get away as planned. Thirty-seven percent opted to stay with friends or family to save on hotel costs, 36% cooked at their accommodations rather than eating out and 28% packed lightly to cut down on baggage costs.
If you’ll be staying in a hotel or resort and there’s an all-inclusive package option, definitely consider it, Gambardella says. Not only can it ease the pressure of seeking inexpensive places to eat, it can save you a lot of money when you’re traveling with multiple people, especially teenagers with big appetites.
Want to stick to luxury accommodations and dining, even amid higher than expected costs? Consider shortening your trip by a day or two, Brigit Zimmerman, chief commercial officer for Priceline, says.
And when booking the hotel, try staying from Sunday to Thursday or Monday to Friday to avoid peak weekend rates. If your schedule is flexible, flying midweek tends to be cheaper, and Tuesdays typically offer the best airfares.
Delay, if Necessary
Can you wait just one more year to take that coveted summer vacation? It may be worth the delay.
Vast numbers of people sat out their traditional summer vacations during the COVID-19 years, so expect larger crowds in popular tourist spots, as well as higher prices.
According Google Flights, the most popular travel destinations between June and August are London; Paris; Orlando; Rome; New York City; Tokyo; Dublin; Seattle; Boston; Cancun, Mexico; and Barcelona, Spain.
Yvette Cuca, a San Francisco-based research specialist, was looking forward to finally taking a European jaunt with her family this summer. When it came time to book, however, she decided to wait it out.
“We had planned to go to Barcelona, Spain and Madrid, but our somewhat complicated itinerary meant the flights alone would cost about $2,000 per person,” Cuca says. “Added to high in-country hotel prices, it just didn’t seem worth it.”
This summer the Cucas will enjoy local spots, then try again in 2024.
[MORE: Countries the U.S. Government Warns Not to Travel Right Now]
When Debating Driving Over Flying, Do the Math
In the event your summer vacation will be in the U.S., perhaps driving instead of flying will save you money. It very well may, but if you’ll be renting a vehicle, be careful: It could could a lot more than you think.
“This summer, the average round trip domestic airfare is $450, so it’s on par with the average cost of a five-day car rental at $403 and a tank of gas,” Zimmerman says. “While it may feel intuitive to drive if you’re going a shorter distance, you may actually save by flying.”
“For rental cars in particular, keep in mind that vehicle type availability is variable and pricing among car rental locations in the same city may differ, so traveling across town to pick up your car could help you save,” Zimmerman adds. “When looking at your overall travel budget, don’t forget to factor in gas and insurance for car travel and ground transportation or airport transportation for air travel.”
Carefully Book and Manage Flights
Ready to move forward with your desired travel plans? Great, but be careful when booking — and read all the terms and conditions, Zimmerman says. If you need to cancel or change your travel plans, there are ways to protect yourself and your wallet.
“Most carriers instituted more flexible policies during the COVID-19 pandemic, and some airlines still offer these more lenient change and cancellation policies,” Zimmerman says. “However, each airline has its own set of change and cancellation policies, and they can vary by individual fare types, so it’s important to review the policies for your specific ticket before booking a flight.”
[Read: Best Airline Credit Cards.]
Basic economy tickets tend to be the least expensive, but they are also the most restrictive. After paring down your budget so you can afford an anticipated trip, you don’t want to be hit with fees.
For example, if you book a basic economy fare on United Airlines you can’t bring a carry-on bag. If you do, you’ll be charged the standard baggage fee of $35 plus an additional $25.
Sure of your timing and destination? Nonrefundable booking options often offer travelers a better deal, Zimmerman says. They’re particularly good options if you’re planning last-minute travel and want to maximize savings.
But if you think your plans may change, go for a flexible fare class, which may be more expensive, or hold off on finalizing your travel plans.
As for travel insurance, it can help protect your trip. Rather than automatically buying an additional policy, though, check to see if you already have sufficient coverage through your insurance provider or credit card. The right amount of coverage is important, but when every dollar counts for your summer vacation, it pays to be precise.
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Summer Travel Plans Upended by Financial Instability? Here’s How to Adapt originally appeared on usnews.com
