LAST UPDATED: 2/11/24 – Tips for Making Travel More Affordable by learning how to save money on airfare, save money on hotels, save money on transportation, and save money on food and drinks.

Traveling can be an amazing experience that expands your horizons and helps you grow as a person. It can also be incredibly expensive if you don’t know how to find the best travel deals. We have all been in a situation where we have wanted to take a trip, but we just couldn’t find a way to make it work with our finances. Believe me, you are not alone.

The travel industry, like any other industry, is competitive. Because of that, there are deals to be had. With the right information, there are easy ways you can make travel more affordable. All you need to know is where to look and what to do (and not do) when making your travel plans.

In this article, I am going to share the wealth of travel experience I have gained over the last two decades with you. I have made more than my fair share of mistakes, and I have learned from each and every one.

I have been lucky enough to have other people pass their wisdom on to help me, and now I want to pay it forward. Using the tips I give you in this guide, you will be able to make travel more affordable to you.

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How to Save Money on Airfare

The airfare you book for your trip will often be your largest trip expense. It is also the area where you have the most potential for making travel more affordable. The airline industry is becoming increasingly competitive, and with that competition has come increasing opportunities to save on airfare. Below are some of the best tips I have on how to save money by booking airfare for your trip.

Be Wary of Budget Airfare Deals

Every once in a while you will see some airfare deals that appear too good to be true. Before booking these airfare deals, do your due diligence because in many cases they are. Often times these airfare deals involve basic economy fares, which often have hidden fees associated with them.

For instance, you may get a great deal on airfare, only to find out you get charged for things like reserving your seat or carrying on luggage. These extra fees can cost as much as $250-$300 on top of the fare you purchased. Understanding the fees associated with budget airfare deals is critical when trying to save money on airfare.

Another thing you will often see is a “bait and switch” scams online. For example, you may click on an advertisement for a $99 flight to Las Vegas, only to find the price has increased when you hit the payment screen. Unfortunately, these schemes aren’t just confined to the shady parts of the Internet. These schemes are often reported for some of the popular discount travel sites as well. So be wary of any deal for saving money on airfare that sounds too good to be true.

Be Creative in Your Flight Booking

When most of us think of booking a flight, we have been conditioned to think of booking a round-trip flight. That is what we are used to and what we typically do when booking a flight. The problem is, that this philosophy limits the flights available to look at, which may result in missing a chance to save money on airfare.

Look At Two One Ways Instead of Round Trip

One way that you can sometimes save money on airfare is by booking two one-way tickets instead of round-trip. This isn’t a conventional way to book airfare, but it sometimes pays to think outside the box. This approach doesn’t always lead to cheaper fares, but sometimes airlines will run promotions on one-way fares, and you can take advantage.

This allows you the opportunity to do more fare shopping than you would be able to when just looking at round-trip tickets. You may even end up flying with two different airlines, but if you save money that is what really matters. A great example is Southwest Airlines “Wanna Get Away” fares. They typically offer some ridiculously low fares, but usually one for one-way flights. Instead of booking a round-trip ticket, you may actually save money by booking two one-way fares.

Take Advantage of Free Extended Stayovers

Another way that you can make travel more affordable is by taking advantage of free extended stayovers for flights. If you are traveling to multiple locations, most people would think to book several different flights. However, instead of booking different flights, a better approach would be to look for one flight with an extended stayover.

Many international airlines offer reduced rates if not free, extended layovers in their hub locations. So, if you book your airfare to spend a few days on a layover, instead of a few hours, you can visit multiple locations for the price of one flight.

For example, Delta Airline’s big airport hub in Europe is Schiphol International Airport in Amsterdam. If you are flying to Europe, you could book an extended layover in Amsterdam and see it on an extended layover before flying to your destination. This can be a very effective way to save money on airfare. If you are interested in using extended layover, Orbitz has some great instructions on how to use their website to book one.

Book Flights at Strategic Times

You might think you paid the same price for a flight as the person sitting next to you, but that is very unlikely. Airline prices aren’t static, and chances are good most people on your flight paid a different price. This may be confusing if you aren’t used to booking airfare, but once you understand how airfare is priced you can use that to your advantage.

On average, airlines offer somewhere in the neighborhood of 10 different fare classes. On the high end are business class travelers, who often book last minute and don’t care as much about the cost. On the other end of the spectrum are people searching for budget fares, who care a great deal about cost.

Because the airline industry is so competitive, they have employed a strategy for pricing airfare referred to as Yield Management. Using this process, they charge different prices to maximize the money they make for each flight. It’s a very complicated process, but I am here to make it a little easier to understand.

How Yield Management for Airfare Prices Works

Let’s say you are an airline, and you have to sell 300 tickets for a flight from New York City to Los Angeles. On one side, you have a small group of business class passengers who are willing to spend $3,000 to take your flight. On the other side, you have cost-savvy travelers who aren’t willing to pay more than around $400 to book your flight. Do you price the flight at $3,000 and take advantage of what the business class travelers are willing to pay? Or do you charge $400 and sell more tickets, but lose out on the extra money the business class travelers would have paid?

As you probably guessed, the answer is neither. And with this example, the reasoning behind the different fare classes and prices for flights must make a bit more sense. That explains why they charge different fares, but you may still be wondering why they change fare prices so frequently.

Airlines employ complex applications that are constantly analyzing the demand for tickets. Not just with their flights, but with the flights of competitors as well. You may see the price of a flight jump up in price from one day to the next because several tickets were recently purchased for that flight or similar flights. Conversely, the price may drop because tickets for a flight or similar flights haven’t sold in a while.

When to Book Your Airfare

The key for you is to understand when it is the best time to book your ticket based on past fare pricing. This will allow you to save money on airfare and ultimately make travel more affordable. When exactly is that you might ask? According to industry research that I have read, and supported by my experience booking airfare, the best time to book airfare to get the lowest fare can be summarized as follows:

• Book airfare on a Sunday to save up to 15 percent on airfare.
• Book at least a month before domestic flights and six months before international flights.
• Depart before 3 p.m. to reduce the chance of cancellations.
• Depart on a Wednesday to save up to 15 percent.

An analysis of past fares by the Airlines Reporting Corporation has shown you can save up to 15% on the price of airfare by booking 50 days before it departs. They also say the best day and time to book is on Sundays. And while Sunday is the best day to find good fares, the best day to fly is on Wednesday if you want to save money on airfare.

Another option would be to use an app like Hopper to monitor a flight you are looking at. Hopper will automatically look at the fare history for that flight and recommend whether you should wait for a lower fare or book your flight right now.

Use Rewards Programs

This tip to save money on airfare may seem like a no-brainer, but you’d be surprised at how many people don’t use loyalty programs. These programs only take a moment to sign up for, and they can go a long way in making travel more affordable in the long run. In my opinion, these airline loyalty programs should be automatic for travelers.

Being a member of an airline loyalty program doesn’t mean you can only fly with one airline. I am a member of many airlines’ frequent flyer programs. However, I have a priority on which airlines I look at first. I like to fly with Delta, so I always check their airfare prices first.

If I can find airfare elsewhere for significantly cheaper, I will fly with another airline. However, if I cannot find a fare that is much cheaper elsewhere, I will pay a little bit more to fly with Delta Airlines.

Why, might you ask? Because following this strategy has earned me at least one free flight a year, oftentimes more. If you are weighing the option between booking with an airline you are a loyalty member with, or elsewhere for cheaper, I have a rule of thumb you can use. Use the value of the frequent flyer miles you won’t be earning by flying elsewhere to measure the opportunity cost of choosing the cheaper flight.

How to Determine if the Miles are More Valuable Than a Cheaper Fare

You can do this by determining how many frequent flyer miles you would have earned by booking with the airline you are a loyalty member. Then, determine the value of each mile and multiply it by the number of miles. If you aren’t sure about the value of each mile, both The Points Guy and One Mile at a Time have really good articles outlining the value of awards points for most airlines and hotels.

For example, let’s assume I am a frequent flyer member with Delta Airlines. If I am looking at airfare between New York City and Los Angeles and find the following flights, which should I book?

• Delta Airlines Flight for $438.40 with 3,056 miles earned
• Flight with another airline for $415.60

Believe it or not, the better value is the Delta Airlines flight. If you do the math, the miles you would earn for the Delta Airlines flight are worth an average of $36.67 in future flights. This means the opportunity cost for not choosing the Delta flight is higher than the savings I would get by choosing the cheaper flight.

How to Save Money on Hotels

If airfare is typically the largest expense of a trip, then the cost of accommodations isn’t that far behind. According to the Hotels.com Hotel Price Index (HPI), the average cost of a night in a hotel in the United States is over $200.

That means, not including taxes and fees, a ten-night stay in an average hotel room is going to cost you over $2,000. That is a big chunk of change. But fear not, as I have some tips that you can use to save money on hotels for your next big trip.

Use Hotel Rewards Programs

Again, this is something that seems like a no-brainer but is again a way of making travel more affordable that some people aren’t using. Not only do hotel loyalty programs allow you to earn free nights, but they often also provide other benefits. In other words, they aren’t just used to save money on hotels.

Points or Cheaper Rate?

When shopping for a hotel, you will want to go through the same opportunity cost exercise we went through to save money on airfare. First, determine the cost of a hotel room at a chain you are a loyalty member with. Then, you can compare the opportunity cost of not earning the rewards points by choosing a different hotel with a cheaper rate. Once again, you can determine the value of the reward points by referencing the value charts from The Points Guy and One Mile at a Time.

Any hotel you look at must be cheaper than the value of those points for the cheaper rate to be worth your time. For example, let’s say I am booking a 1-night stay and Hilton would give me 4,269 points for staying with them. That means any other hotel has to be more than $25.60 cheaper (4,269 x $0.006\pt) for it to be worth not booking with Hilton. If you use your points right, it can be a great way to save money on hotels.

Book Directly with Hotels

Another great tip to save money on hotels is to let your rewards programs work for you. Most hotel chains offer discounted rates for loyalty program members when you book directly with them. In fact, sometimes these discounts can be quite large.

For instance, I did a search for a hotel room in New York City and found a significant discount for HHonors members for the Double Tree Suites at Time Square.

A room with a king-sized bed typically goes for $359\night but is available for $334\night for HHonors members. If I am staying for 4 nights, that is $100 in savings. So, letting your loyalty programs work for you can allow you to really save money on hotels.

In addition to lower rates, most hotels are now offering their loyalty program members additional perks for booking directly with them. Everything from free Internet (yes, it is increasingly being charged for by hotels), to late checkouts, to free breakfast are perks you can get that will save you money versus booking elsewhere.

Sign Up for Hotel Rewards Credit Card Programs

I know you are probably thinking, not another credit card. However, if you have the credit to obtain one, a credit card through a hotel rewards program can help you earn rewards points faster. Not only that, but they can also be the key to helping you hold on to them. And not losing your points will go a long way in helping you save money on hotels.

Most likely you are aware that you can earn hotel rewards points with cards like Hilton’s Honors American Express Card. Not only points for money you spend, but you often get bonus points for spending a set amount on the card in the first few months. However, what you might not be aware of is that most hotel rewards points expire.

Unlike airline miles, most hotel rewards points expire if you don’t earn or use points within a certain period. For instance, to keep your Hilton points, you have to earn or redeem points within 12 months. If you have 12 months of inactivity, the points you have earned will all expire.

Prevent Points from Expiring

This is where the hotel rewards credit cards become extra valuable. Not only can you rack up new points, but they can help you keep the points you have. Spending a little bit of money on the card each month will prevent your other points from expiring. This makes a huge difference when trying to save money on hotels because these points can be quite valuable.

Take Advantage of Internet Booking Rewards Programs

In addition to hotel brand rewards programs, there are other awards options available with more flexibility. Most Internet hotel booking sites have rewards programs of their own. These sites give you rewards for booking hotels through their website.

My favorite Internet booking site rewards program is that of Hotels.com. With the Hotels.com rewards program, every ten hotel nights you book gets you one night free. If you book a lot of hotel nights, the ability to save money on hotels with this program is significant.

Other Internet hotel booking sites, like Orbitz.com, reward you with points on all your bookings through them. This includes bookings for hotels, flights, car rentals, etc. Those points can then be used to pay for future bookings. However, you need to be aware that these points also expire with account inactivity.

Check Airbnb or VRBO for Deals

If you aren’t finding affordable hotel options for your travels, another option is to look for a rental property. Sites like Airbnb and VRBO make this quite easy these days. If you aren’t familiar with these sites, they are online marketplaces for accommodations. They allow people to rent rooms, apartments, or houses to travelers.

There are some amazing deals that you can find on these sites that will help you save money on hotels. I have used both frequently and have had great luck with both. In addition to offering flexible rates, they can also help find accommodations where there aren’t hotels.

A great example of this was when I took a golf trip to Nova Scotia. We were visiting a fairly remote part of Cape Breton Island and there weren’t a lot of hotel options. To make matters worse, the available hotels cost much more than we wanted to spend.

Instead of paying more or staying further away, we found a really nice 3-bedroom cabin to rent on Airbnb. It was only 6 minutes from where we were visiting and cost us half of what the resorts were charging. Now that is a deal!

Don’t Be Afraid to Stay in a Hostel

If you need to lighten your trip expenses even more, another option to save money on hotels is to stay in a hostel. I know the word “hostel” has some connotations that are difficult for some to get past.

However, I think you would be surprised at how rich of an experience staying in a hostel can be. In fact, I would rank quite a few of the nicer hostels I’ve stayed at over some of the cheap, bargain hotels I’ve picked.

Of course, not all hostels are equal. You do have to do your due diligence before booking one. I would make sure you do some research on what the hostel offers before booking. A very good Internet resource you can use is HostelWorld. Some of the important factors you should consider are:

• Sleeping accommodations – How many people per room?
• Shower situation – Stay away from push-button showers
• Breakfast – Is breakfast included?
• Internet – Does the hostel have free internet access?
• Air Conditioning – Are the sleeping areas equipped with air conditioning?
• Check-In – When is check-in and check-out?
• Common Areas – What common areas are available to guests?
• Concierge – Does the hostel include a concierge service?
• Location – Is it close to where you want to be?
• Guest reviews – These can be invaluable!

How to Save Money on Transportation

Another way in which you can make travel more affordable is to find ways to save money on transportation. You would be surprised how quickly these costs can add up when you travel.

After flying to your destination, you then have to determine how you will get around when you are there. This can mean renting a car, using a taxi or car service, or using public transportation to get around. No matter which option you choose, it will cost money.

By using these tips to save money on transportation, you can use that money on other travel-related things you will enjoy. Every dollar saved on transportation can be used for a nice dinner out, a souvenir, or an excursion you want to book.

Be Strategic in Where You Stay

The best advice I can give you to save money on transportation is to be strategic in where you stay. The closer you book your accommodations to what you want to see, the less money you will spend getting around.

Typically, I will map out the things I want to see at my destination, and then start my search for accommodations near the center. I have included a map below that I used in my travel planning for my Sydney, Australia trip. As you can see below, the first thing I did was mark what we wanted to see on a map with circles.

Then, I put circles of various diameters on the map and try to include as many of those things in them as possible. The Red circle is an area with a 10-mile diameter, blue is a 5-mile diameter, and purple is a 2.5-mile diameter. Finding a hotel in the Purple Circle would be ideal because it would get us as close as possible to the most attractions.

Know Where to Go for Car Rentals

If you have to rent a car, there are car rental tips you should follow to make travel more affordable. The most important tip to save money on transportation is to rent from the right place.

By far, the best place to go for car rentals is autoslash.com. They have been around for a long time and have a history of generating great prices. In fact, their prices are so great that car rental companies once revolted and tried to stop taking their reservations.

Their dispute with the rental companies has forced them to stop doing instance pricing, but their prices are still unmatched. Using their site, they will email you a quote on any car rental that you want to reserve. If you are serious about making travel more affordable, this is the site I would recommend for car rentals.

Use Ride Sharing Apps

An easy way to make travel more affordable is to try and avoid renting a car when you travel. If you need to get around but can survive without a car, a ride-sharing app can save you money on transportation. Ride-sharing apps, such as BlaBlaCar, allow you to share a ride with someone else. The app uses a trusted network of drivers and passengers, so it is safe. And it allows travelers to share the cost of traveling between cities.

It is a bit different than other apps such as Uber and Lyft, in which you are hiring someone to drive you to a destination with their car. Those apps can be good ways to save money on transportation too. However, with ride-sharing apps such as BlaBlaCar, you are sharing the transportation cost with other travelers, not just your group. This allows you to save considerable money and make traveling more affordable.

Take Overnight Trains and Buses

For those looking to save significant money while traveling, there are outside-the-box options you can look into. One of these options that can really save you money is to take an overnight train or bus between destinations.

This will allow you to avoid having to spend money on accommodations for a night. As you can imagine, this can be a big cost saver. Not only in money but also in the amount of time you have to sightsee.

Granted, some overnight transportation options are more comfortable than others. With some overnight trains, you have access to a free sleeper car. However, other transportation options, like most buses, only have seats for you to sleep in. So, I would suggest doing your due diligence to understand the accommodations before booking overnight transportation.

Walk Where You Can

Arguably the best way to save money on transportation when traveling is to walk wherever you can. If you aren’t in a hurry and feel safe in the area, it can go a long way in making travel more affordable. Every taxi or Uber ride you forgo in favor of walking is money you can spend on other activities. Not only can this be a huge money saver, but it is great for your health.

This is why it is important to book your accommodations in the right place when traveling. If you book your hotel or hostel correctly, you won’t have to walk far. Sometimes, booking a cheaper hotel that is further away from what you want to see isn’t the money saver you think it is. Something you may want to keep in mind when looking for accommodations.

How to Save Money on Food and Drinks

You may not think that food and drinks will cost you a lot when traveling, but you’d be surprised by how fast these expenses add up. This is especially true if you like to go out for nice dinners or enjoy the nightlife.

Now, I am not saying you should avoid going out for nice dinners or enjoying cocktails when you travel. These are some of the things that make travel so enjoyable.

However, if you are strategic in how you spend your money on food and drink using these tips, it will certainly help in your efforts to make travel more affordable.

Use the Six-block Rule

The six-block rule is a travel guideline that suggests that you not eat at any restaurant within a six-block radius of popular tourist areas. The premise of this rule, which I have found to have merit, is that establishments around popular tourist areas tend to charge more.

Most travelers are looking for convenience. When you are near a popular tourist spot, many people will pay more instead of traveling further away to find cheaper prices.

So, if you are looking to make travel more affordable, and have the time to venture off the beaten path, you can save money. In addition to being cheaper, I think you will find some of the best local food available outside the popular tourist spots as well.

Eat Where the Locals Eat

This guideline goes hand-in-hand with the Six Block Rule, and the premise for this suggestion is the same.  If you eat where the locals eat, you will be avoiding the expensive tourist traps that tend to charge more.

This goes a bit further though in that eating where the locals eat means immersing yourself in the local customs and traditions, which includes the food.  Don’t just seek out a cheap restaurant with poor-quality food. 

Look for the restaurants that are the favorites of all of the locals.  These are the restaurants that will provide the best travel experiences.  And chances are, they will be cheaper than touristy joints as well.

Explore the Local Markets

Another great tip for making travel more affordable with your food and drink choices is to frequent local markets. Not only can this save you some money, but it is also a great way to experience the local culture. There is typically a bounty of freshly prepared food that you can enjoy, and often for less money than restaurants will charge.

How to Save Money on General Travel Expenses

I have covered some of my favorite tips on making travel more affordable by looking at airfare, lodging, and food and drink purchases. Now I would like to change gears and talk about some ways to save money on general travel-related expenses. You can use these tips to help keep your travel expenses low and your travel budget in line.

Time Your Travel Strategically

One of the very best general travel tips I can give you for making travel more affordable is to strategically plan when you travel. If you are traveling to a destination during prime tourism season, you are undoubtedly going to pay more. Not only will you pay more for airfare and hotels, but you will likely pay more for tours and restaurants as well.

That doesn’t mean you have to travel at the worst possible times. You don’t want to visit a destination when the weather is notoriously bad or when you are guaranteed to not see a wildlife event you’re hoping to see.

However, it may make sense to target the shoulder seasons. The shoulder seasons are the periods in between the off-season and the peak tourist season. These shoulder seasons typically have good conditions for visiting and are much cheaper.

For example, if you want to visit Banff National Park in Alberta, Canada, you will pay an arm and a leg to visit during the summer. And unless you are visiting to go skiing, you probably aren’t interested in visiting during the winter. In this case, the best times to visit would be during the shoulder seasons of spring and autumn. This is when you will find the best rates and still have good weather.

Be Careful When Booking Online

This tip for making travel more affordable might seem like hokum, but I have seen evidence that it has merit. If you are going to book your airfare or hotel online, make sure you clear your browser’s cookies before you do it. I have read accounts with evidence that support the fact that companies increase their rates with repeated searches.

If you aren’t familiar with what cookies are, they are your web browser’s way of tracking where you have been on the Internet. This includes what you have searched for. They are typically used to help identify you to the website you are visiting and save login credentials or customizations.

Your Browser Cookies May Be Used to Target Your Travel Shopping

These cookies are also being increasingly used by advertisers to help target advertising towards you. You might have noticed after shopping for shoes on a dozen different websites that all of a sudden you start seeing more ads for shoes. This is all accomplished by looking at your Internet cookies to determine your past Internet browsing history. This is also why legislation aimed at privacy is being increasingly introduced across the globe.

There are conflicting reports out there on whether airlines and travel websites are using these same cookies to target travel shoppers. The premise is that the more you search for that flight to Hawaii, the more it can be assumed you are serious about traveling there. And if you are serious about traveling there, you might pay more to do so.

Whether the reports are true or not is unclear, but clearing your browser’s cookies is an easy process. So, I say it is better to be safe than sorry. If you aren’t sure about how to clear your browser cookies, Google has a very good help article on the topic you can review.

Always Withdraw Money Instead of Exchanging

An easy way to save money when traveling is to withdraw money instead of exchanging currency. If you are traveling overseas and need cash, the best exchange rate you will find is with your own bank.

To avoid paying a lot of money in fees, I would take money out in a few larger withdrawals. This way you will get the local currency you need, and not pay a lot of ATM fees. You will also get the better currency conversion rates that your local banks offer.

Use Skype or FaceTime to Call Home

The final tip I have for you on making travel more affordable relates to the calls you make while overseas. If you have ever had to make a call from overseas, you probably know how expensive it can be. Those charges can rack up fast. As an alternative, try signing up for a Skype package or use Facetime to call home instead.

You can find Skype plans for as little as a few dollars a month. It’s easy to do from a phone app and will save you a ton of money. Better yet, if you have access to free WiFi, using Facetime to call home will be free. Using Facetime or Internet calling uses a WiFi connection instead of your cellular service, so there is no charge to you.

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