Americans enjoy going on trips, especially during their vacations. Many like to go to beaches, theme parks, and even spend time in other countries. One thing’s for sure is that Americans don’t like being cooped up in their homes, even during the pandemic.
However, American’s don’t plan to spend a lot on their vacations. An average American family only spends 2% of their annual earnings on vacations. That’s a tight budget if you think about it. But some still spend more than this, especially when they plan to leave the country, with reports of families spending well over $4,700 on their trip. Considering that most Americans only earn about $30,000 per year, and most of it is used to pay utilities and bills every month, a $4,000 budget is quite high. If you’re planning to spend less than this on your next trip, then you’ve come to the right place. Here are some ways you can save money on your next trip.
Use Reward Programs and Buy Tickets Early
Believe it or not, Americans spend about half of their budget on transportation alone. That’s a lot, considering how little they would have left for other things. The main problem here is that many of these families pay with cash for their tickets and buy it too late.
Paying cash for airplane tickets can seriously put a hole in your wallet. The cost of airplane tickets when you buy them in the airport tends to be more expensive than what they actually cost online. Additionally, there are no promos to speak of when you purchase an airplane ticket on the same day of your flight. This is because you’re subjected to buy a ticket from an already booked plane, which means that the airline isn’t looking for more passengers. This can be twice the cost of an average ticket, and tanking that for your trip will hinder how much you’re going to have left for other things. To reduce transportation costs, set yourself up a rewards account or even buy tickets earlier for a discount.
When you get a rewards account, you can get tickets at a far more discounted price. Moreover, the points you can get from it can be enough to buy a ticket for your next trip. The more you travel, the more it’s suggested that you leverage an airline’s rewards program. In addition to this, it’s wiser to use your credit card to book your flights because some banks are actually affiliated with airline companies. This can help increase your reward points, which can lead to more savings on transportation costs.
Booking your flight is also an excellent way to reduce transportation costs. Airplane tickets tend to be expensive because you’re buying tickets from flights that are already almost fully booked. Airlines aren’t incentivized to get more passengers from this flight once they’ve reached their quota, so the tickets would be more expensive. However, when you book tickets earlier, let’s say, three months before your trip, you can snag tickets for flights that have little to no passengers. The ticket would then be cheaper as the airline tries to fill their quota for that flight.
Be Cheap During Layovers
Layovers are certainly problematic for anyone traveling. The fact that you’re not in your desired location yet, and you have to wait a couple of hours before your next flight, can be really stressful. This leads many travelers to go out and fully spend their money before their real trip has even begun. It’s essential to keep your eyes on the prize and keep your layover spending to a minimum.
One way to get the best out of your layover without spending too much is to spend less money on accommodations. In places like Singapore, airport accommodations usually offer a short-time stay, which can be useful if you’re there for only a couple of hours. Additionally, these hotels can be affiliated with nearby airlines, which means you might be able to spend your reward points to get a room. By spending less on your accommodation, you can spend more on other things while you wait for your next flight.
Travel Using Cash
Using credit when you travel is a sure way to overspend. Studies have found that people are more likely to spend more money using their credit cards than cash. Additionally, spending with credit is one way for you to go into serious debt.
Planning out a budget is essential before you go out on a trip. It’s also a good habit to only spend the money you have in your wallet when you’re out there traveling. By doing this, you can assure yourself that you won’t go over-budget.
Traveling on a budget can be challenging for most families. However, by following a couple of these tips, you can travel without the need to spend too much or going over your budget. These are also essential when you’re planning to go on multiple trips every year.
