Inflation remains high, especially in service sectors like travel, despite the Federal Reserve’s best efforts to raise interest rates and slow the economy. In fact, Fed Chairman Jerome Powell voiced his fear that Inflation is still here.
With inflation rising, airfares for many popular destinations also increased again this year. The price spike is especially evident for international travel, where it’s usually a $2,000 economy fare to travel hot spots like Rome. That’s right: You can end up paying thousands of dollars for a standard economy class ticket to Europe.
Still, consumers are determined to keep traveling this summer, and travel demand is stronger than ever. A survey in May of summer travel trends from consulting firm Deloitte said about 50% of Americans will take a vacation this summer, up from 46% last year.
Despite high costs and tight budgets, no one wants to cancel their summer vacations — even when unexpected surprises like costly repairs or a drop in income hit. Luckily, there are several ways to get your all-important summer trip on the calendar without spending more than necessary.
Here are our top tips for keeping the trip you want while it’s discounted.
Track flight prices, even after you book
Many airlines allow you to rebook your flight if the price drops after you book your flight. Your fare type determines whether you are responsible for paying the change fee when rebooking and whether you receive a cash refund or credit to use on future flights.
For example, if your Southwest flight price drops After your first booking, you will receive a credit to use on future flights with Wanna Get Away or Wanna Get Away Plus fares. If you purchase an Anytime or Business Select fare, you will be refunded the full price difference if the price drops.
Delta Air Lines, American Airlines and United Airlines also have one no change policy for most flights and fare types. Once you’ve booked, check regularly for reduced fares and accumulate that credit to use on future flights should the price drop.
Related: Airlines give you a credit if airfare drops
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Rebook your hotel if the price drops
Just as flight prices can sometimes drop after booking, the same can happen with nightly hotel rates. The process to pocket the difference is often easier with hotels than with airlines.
Similar to flight bookings, you’ll want to keep track of the price of any hotel reservations you have to see if the price drops. If a hotel’s nightly room rate drops, reset the asset to a lower level.
Some programs allow you to change your existing booking when you see a price drop, but some do not. Double check the terms of your booking before making any changes.
Also keep in mind that booking with cash versus points can affect your ability to rebook after a discount. For example, you can cancel most hotel bonus nights until shortly before your stay is expected to begin.
If your loyalty program allows you to reserve duplicate rewards in advance, you may want to make a new reservation before canceling your current booking. If not, you’ll need to decide whether the risk of a rate hike or change in availability between cancellation and rebooking is worth the potential savings.
Alternatively, you can find reasonable cash rates that allow you to cancel up to a few days before arrival. Consider booking the first or last night of your trip at a airport hotelas these hotels can be cheaper than hotels near the city center or main attractions.
Related: Make rates work for you: How hotel rebooking can save you on bonus nights
Change your booking to a hotel that includes free meals
Tasting different cuisines and eating out can often be the highlight of any trip, but it can also seriously drain your budget if you do it for every meal.
In Europe, you can easily spend 10 euros ($11) just for a sandwich and coffee, and it’s not uncommon to spend 20 to 30 euros ($22 to $33) for lunch per person. Dinner with wine or cocktails usually costs around 35 euros ($38) per person, even at reasonably priced restaurants where you limit yourself to just one glass. If you’re dining at a more upscale place, it can go much higher than that.
You can easily save money on your trip by staying at a hotel that includes breakfast at your price, whether it’s a traditional hotel offering this privilege or an all-inclusive resort where all Meals, drinks and snacks are all included in the price you pay. Sure, the cost of accommodation may be a bit higher than you expected, but this one-time additional cost can free up money to book a special activity or performance.
For example, if you are heading to Disney World and need to control costs, consider Drury Plaza Orlando Hotel – Disney Springs . Area. Not only are all guests served a complimentary breakfast, but they also enjoy complimentary afternoon soda, popcorn, and even an evening appetizer with an adult beverage. That could easily save a family $100 a day over theme park prices.
Related: Disney’s meal plan is making a comeback, but is it worth it?
Track your journey price
Early train ride? If so, be sure to use a fare tracker, such as those from Cruiseline.com and CruisePlum, to track discounts.
If your sailing costs drop and you still haven’t reached your final payment date, you can request an adjustment from your cruise line.
If the buyer regrets it and doesn’t want to bet on a reduced fare, you can also change to a more affordable cabin class as long as your booking allows it and you don’t exceed the final payment deadline. It will get you on the same ship and journey but for less money.
Related: How to save money on a cruise: 33 money-saving tips from a cruise expert
Get home delivery
If you’re worried about saving money for an upcoming trip, consider limiting yourself to just one restaurant meal per day and replenishing the remaining meals with groceries. You can easily order grocery delivery instead of wasting precious vacation time at the grocery store.
Even if your accommodation doesn’t have a kitchen area, you can stock up on protein bars, fruits, raw veggies, ingredients for peanut butter sandwiches, microwaveable meals and other easy to prepare foods. Order ground coffee or even a pot of iced coffee so you don’t have to spend extra money on caffeine adjustments. (In expensive cities like New York City and Los Angeles, this simple switch can save you as little as $6 per person per day.)
If you want to order grocery delivery through DoorDash, use Chase Sapphire Priority Card or Chase Sapphire Reserve Card. Both cards include at least one year of a free DashPass membership, which gives you free shipping and reduced service fees on qualifying DoorDash purchases (activation by December 31, 2024).
Chase also launched Instacart Mastercard, making it easier to save money when using a grocery delivery app. The card offers a free year of Instacart+ membership, comes with free unlimited shipping (for orders over $35), lower service fees, and 5% credit back on full orders condition. Cardholders will also automatically receive a $100 Instacart credit upon approval. Best of all, the card has no annual fee.
If you don’t want to sign up for Instacart Mastercard but have another Chase card, you can be eligible to become an Instacart+ member for a few months to a year.
Related: The best grocery credit cards
Use some points, save some cash
You should pay with points whenever it makes sense. Accumulate points and miles rarely works for a long time, because Points and miles lose value over time.
Although it is not quite as problematic as currency inflation, airline devaluation happens frequently. Not to mention, the addition of fees like fuel surcharges can reduce the value of points over time.
That’s why it’s always a good idea to check your cash value against your points value. An easy way to check is to use Valuation of TPG. You can also ask yourself if you should buy back any money to keep cash in your pocket.
For example, you may find that using point currencies like Delta SkyMiles to book domestic trips that would otherwise be very expensive is the way to go. It may not give you the greatest redemption value, but sometimes, using up some extra points is a better option than spending your hard earned money.
Also keep in mind that some hotel brands like Hyatt And Hilton Hotel Free resort or room fee for bookings made by points. That can also save you a significant amount of money.
Related: Here are ways to avoid paying resort fees
Take advantage of car rental discounts and pricing tools
There are several ways to save cash when booking a car rental, most of which you can cancel until the last minute.
For starters, you probably have access to the company code from your job or university. Visit your company’s travel website or your university’s alumni deals page or student benefits page to see if a car rental discount is available.
If you’re an AAA member, know that your membership often includes access to various car rental discounts. The same applies to AARP, which you can join, even if you are not yet retired.
Some credit card travel offers car rental perks and discounts as well. For example, the Chase Sapphire Reserve cards up to 30% off at Avis and 25% at National.
You can also rent through Automatic slash, a website that helps you find and book affordable rental cars. One of AutoSlash’s most useful features is tracking car rental prices. Once you’ve booked with free cancellation, you can return to the AutoSlash website and fill out your existing booking form to track your rental discount. If the rate falls below what you paid, then you can reset to a lower rate.
Related: How to never pay full price for a rental car
bottom line
As personal budgets tighten, you may want to refrain from discretionary spending on certain expenses like vacations. However, before you accept failure and hit the cancel button, consider trying some of these methods to save on the trips you’ve booked.
Following these tips can help you save your vacation and allow you to pay for some extras you didn’t expect to have enough money to enjoy. You may even find that the money you save can help you reduce the cost of a future trip.
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Additional reporting by Becky Blaine, Katie Genter, Clint Henderson, Ashley Kosciolek, Caroline Tanner and Jordan Waller.
