Budgeting for Holiday Travel Expenses
Approximately 115.2 million Americans were expected to travel more than 50 miles from home between Christmas and New Year’s in 2023, according to estimates by AAA. Traveling over the holidays can be a great chance to spend time with loved ones and get out of town. But it can also be stressful…and expensive.
To keep your holiday travel expenses in check, it’s important to understand what those expenses are, find ways to save where you can, and be prepared. If you’re budgeting for holiday travel expenses, here are some tips to get you started.
Decide if You Can Afford Holiday Travel
The first thing to do if you’re considering holiday travel is to look at your budget to determine what’s feasible
First, look at any money you have saved. Have you earmarked any of it for travel expenses? If so, make note of how much.
Then consider what expenses you will incur to travel during the holidays. Compare costs of airline tickets, rental cars, and hotels online.
Once you have an estimated cost, subtract any designated savings. This will tell you how much you need to fund from your budget.
Look for unallocated money in your budget or consider what costs you could cut back on or cut out temporarily to help you fund your trip. If you can’t find enough money in your budget to cover the trip, consider ways to travel cheaper such as changing the dates you fly, sharing lodging with friends or family, or going to a less popular destination. One thing that can be helpful as you assess affordability is to create a holiday budget. Take all the travel expenses you’ve researched and any other holiday expenses you anticipate, like gifts, and create a budget. Don’t forget to include things like food, entertainment, and souvenirs for the trip.
Seeing all your expenses in one place can help you determine exactly what a trip will cost. It can also help you fit your holiday travel into your regular budget.
If you start planning far enough in advance, you can create a savings goal for your holiday trip. Then break the goal down into the number of pay periods before you need to book your travel. Save this amount each paycheck so when it’s time to go, you’re ready. You can use this holiday budget and savings strategy for any trip you plan to take to ease the financial stress of travel!
Be Prepared and Have a Backup Plan
Between weather delays, crowds, and cold and flu season, lots can derail your holiday travel plans.
When getting ready to travel for the holidays, it’s good to always be prepared for a possible change in plans. You may end up spending more time than planned in an airport or at your final destination. Be prepared for these delays with extra clothes in your carry-on and some wiggle room in your budget if you need to book a last-minute hotel or rent a car. It is also good to have a backup plan in case any part of your travel falls through.
As you prepare for potential delays and cancellations, you may want to consider travel insurance. Whether you purchase it through your airline or another provider, travel insurance can offer you peace of mind in case you are unable to take your trip or your itinerary changes. Sometimes you can get your luggage protected too so that if you arrive without it, you’ll be given some money to buy necessities until you get your bags.
There are different types of travel insurance, and numerous companies provide it. Shop around to find the best policy for you from a reputable company and always read the fine print.
Be Flexible
The holidays are expensive and traveling is no exception. If you really want to travel over the holidays but don’t want to break the bank, you’ll need to be flexible. Look for travel days that are less popular and have less expensive fares.
Traveling on less busy travel days will not only save you money, but will also be less of a headache because things won’t be so crowded. Be sure to search for different dates to find the best deal on your holiday travel.
Check for Deals and Cashback Offers on Airfare, Hotels and Fuel
When booking your holiday travel, it pays to check for deals. There are several different sites and apps that let you compare prices and shop for deals, such as Google Flights or Kayak for flights and Hotels.com or Booking.com for accommodations.
You can also look for cashback offers that can help you fund your trip. One free app you may want to try for cashback is Upside. It gives you cash back on things like gas and food from over 45,000 businesses like Shell, BP, Valero, Burger King, Dunkin Donuts, and Taco Bell.
Don’t Forget to Factor in Hidden Travel Costs
When traveling for the holidays, it’s easy to budget for the big-ticket items you know you need. Things like airline tickets, rental cars, and hotels are top of mind as you plan a trip. It’s also important to factor in the little expenses that can pop up when you’re traveling.
If you are leaving your car at the airport, you’ll have to pay for parking. If you are using a shuttle, taxi, or rideshare, add that to the budget. It’s also important to see how much the airline charges for checked bags. You may be able to get everything you need in a carry-on, but if not, you’ll have to pay to check your luggage. Even if you don’t have to check a bag on the way there, you may need to check one on your return flight if you get gifts you need to transport.
Finally, if you have a pet at home, you may need to pay for a pet sitter or boarding. All these small costs add up quickly so make sure you factor them into your holiday travel budget.
Traveling over the holidays can be magical. It’s even more magical when you can eliminate financial stress from the equation. This is why it’s so important to create a budget for your holiday spending. Do your best to estimate your expenses and factor them into your current spending or save separately to cover them. As you create your budget, don’t forget about hidden travel costs and use comparison websites to find the best deals. Always make sure you’re prepared with a backup plan and go into the experience with flexibility in mind. Most of all, have fun and enjoy the season!