Vacation, Without Breaking the Budget

Research Your Destination

Planning your vacation can be almost as fun as the trip itself. Watch YouTube videos, attend travel seminars, and let your fingers do the walking online to learn about your destination and determine general costs. You may even uncover hidden treasures that will help you avoid expensive, touristy areas.

• Pro Tip: start by pricing all-inclusive trips. This will give you a good initial benchmark of what you can afford. Then use this information to decide whether you want to get a package deal or plan your own adventure.
• Pro Tip: If you’re a member of AAA, Costco, Sam’s Club, AARP, or other groups; if you’re a veteran, a teacher, or a senior; and even if you just have Groupon, look for special travel discounts.

Be Flexible with Timing

If you have any flexibility in terms of when you travel, you can often find significant savings. Look at mid-week stays or last-minute deals that can offer deep discounts. Check with a travel agent for off-season bargains.

Set a Budget You Can Afford

Your budget should include:

• Transportation
  The cost of flights and rental cars can be expensive; always check prices on multiple sites. And, don’t forget to factor in the cost of checking your bags with the airline. For flights, you may be able to save by purchasing two one-way tickets on different airlines. If you’re getting a rental car, book early, but then check prices again right before you travel. Prices can drop if the agency has too many cars in inventory. If so, simply cancel your original reservation and rebook.
  
  

• Pro Tip: When planning your flights, it’s a great idea to use online travel sites to find the best airfare. But when it’s time to book, it’s usually better to do so directly with the airline. This way, if something happens (your flight is canceled, for example), you can deal directly with the airline to get rebooked.
  
  

• Accommodations
  While resorts and hotels make sense for many travelers, private home or condo vacation rentals can offer savings, particularly if you are traveling with a family. They also allow you to spend less since you can do your own cooking. Also, consider cutting expenses by booking inside cabins in the lower part of the cruise ship, or hotel rooms away from the beach. How much time will you spend in the room anyway?
  
  

• Pro Tip: It’s not uncommon to find daily valet parking rates at downtown hotels of $50 per day and higher. Skip the car, ask about offsite parking, or consider hotels outside the city center.
  
  
• Pro Tip: Check ahead to make sure the hotel’s Wi-Fi is free. Sometimes, all it takes is to join their ‘frequent traveler loyalty’ club to get charges waived.
  
  

• Meals
  Dining out can be a real budget buster. Plan a few special meals and then do your best to ‘eat locally’ for the others. Or, try dining a little early to take advantage of happy hour specials.
  
  

• Pro Tip: If you’re in a hotel, get a room with a refrigerator, then plan to have at least one ‘do-it-yourself’ meal each day. For example, buy fruit and breakfast bars, and skip the expensive breakfast buffet.
  
  

• Activities
  If there’s a special tour or activity you want to do, include the cost in your budget. But there are many ways to do fun things and not break the bank. For example, if you want to see a Broadway show, consider attending a matinee or look for ‘day of’ discounted tickets. A quick online search for ‘free things to do’ at your destination will give you a list of activities you may have missed otherwise. If you’re on a cruise, check into booking your own shore excursions instead of through the cruise line.

Before You Travel

• Save for your trip by establishing a separate savings account with automatic deposits.
• Do you have frequent flyer miles? Even if you don’t have enough miles for a free airline ticket, you can use the miles you have to ‘buy down’ the ticket price, or you can buy additional miles to make up the shortage.
• Hunt ruthlessly for travel discounts, they're everywhere!
  
  

• Pro Tip: File a travel notification for every ATM or credit card you plan to use while traveling. This will help you avoid having your card frozen because of perceived security risks.
  
  
• Pro Tip: Consider applying for a travel rewards card, like the Alaska USA Visa® Credit Card. The reward points you earn with everyday purchases could offset the cost of tickets. Apply today

While You’re on Vacation

• Avoid the ‘let’s splurge because we’re on vacation’ mentality and give yourself an allowance.
• Set a specific daily limit for your everyday spending, then keep track of your expenses.
• If you’re traveling overseas, use ATMs instead of your hotel to get money; you’ll usually get a better exchange rate.

• Pro Tip: If you’re traveling abroad, familiarize yourself with the exchange rate so that you are always aware of how much things really cost.