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For many of us, a summer escape is the best way to recharge and unwind, but that rest and relaxation can often come at the expense of financial peace of mind. According to a survey conducted by UMBC, roughly 47% of Americans stated they would skip a summer vacation this year due to financial restrictions.
Between high prices for airfare, hotels, and activities during prime time, it’s easy for costs to spiral out of control and deter us from vacationing. The good news? With some planning and smart decisions, your clients can take a refreshing trip and not break the bank. Here’s how I’m helping mine plan ahead.
Key Takeaways
- Build a realistic travel budget based on your financial picture, and start saving early.
- Booking early and avoiding peak travel dates can significantly reduce overall costs.
- Use price comparison tools and consider bundling flights, hotels, and activities to save where possible.
- To stretch your dollars further and avoid hidden costs, take advantage of credit card rewards, loyalty programs, and fee-free travel tools.
What I’m Telling My Clients
1. Start with a Realistic Budget
Before you book your flight or hotel, step back and create a good, realistic budget. Then there are the basics: travel, accommodation, food, activities and of course, a little cushion for unexpected costs. To find your magic number, take a holistic look at your household budget and see what makes financial sense for you without depleting your savings and using credit.
I recommend saving money as soon as you can. Setting up regular transfers to a dedicated fund for travel can also make saving a painless routine. And it never hurts to put extra money aside; you’ll want a cushion in case your flight is delayed due to weather, your bag is charged an extra fee, or you encounter some other unforeseen hiccup.
Tip
Establish a daily spending target and assess your spending at the end of each day. This will give you an opportunity to stay on course and make changes if your spending begins to inch over budget.
2. Book Early and Travel Smart
Timing is everything. Booking in advance means better prices on flights and accommodations, not to mention greater selection. Keep away from peak travel times if you can, such as holiday weekends or the heart of summer. Early June and late August see better pricing and smaller crowds.
Additionally, consider places where your dollar goes further. A quick glance at currency exchange rates might uncover some budget-friendly gems.
3. Compare, Prioritize, and Bundle Where Possible
Do some homework before you book to determine the most cost-effective option for your trip. Tools like Google Flights, Skyscanner, or Kayak can help you find those details you wouldn’t otherwise spot. If bundling makes sense, consider it. Travel packages that group hotel, airfare, and even activities together can offer hefty savings, especially for longer visits or a trip with the family.
4. Use Loyalty Programs and Keep and Eye on Hidden Fees
We all love our reward points on credit cards, frequent flyer miles, and hotel rewards programs. In some cases, travel cards have generous sign-up bonuses that can pay for a flight or a hotel night (exceeding the cost of an annual fee). Furthermore, the perks like free checked bags or built-in travel insurance can add up quickly.
To avoid sneaky costs, check out credit cards without foreign transaction fees. Rather than using airport kiosks, which often have unattractive rates, withdraw or exchange currency via local ATMs.
Warning
Check beforehand that your bank doesn’t charge extra for international withdrawals.
The Bottom Line
It can be stressful to think about taking a summer vacation, but thankfully, there are ways to plan for a trip without destroying your wallet. With a bit of foresight and a few smart strategies, your clients can enjoy your getaway without the guilt, allowing them to relax on the beach and take comfort that their financial goals are still on track—with your help.
