Of the Americans planning to charge a credit card for vacation travel expenses in 2021, they intend to charge an average of $ 1,471: a September 2021 NerdWallet survey found.
That’s a lot of money on flights and hotels, especially when you consider that only 21% of respondents say they’ll pay it off in the first statement. This data comes from an online survey commissioned by NerdWallet and conducted by The Harris Poll of more than 2,000 U.S. adults ages 18 and older, of whom 780 (38.5%) plan to spend money on flights during the 2021 holiday season / To spend hotel stays.
How can you minimize these costs when you travel by air? Here are six ways you can save money on vacation travel.
1. Redeem miles or points for flights
During the Covid-19 pandemic, many airlines have relaxed their rebooking and cancellation conditions, especially for bookings paid for in cash. However, if you need to cancel and rebook, you will have to pay the difference in price as the price of the flight increases.
However, if you book a flight with miles on an airline with an award schedule, you may not pay extra miles. In this case, the cost is based on the category, not the dollar value of the ticket. Even if you make a last minute change, the mileage price for both tickets can be the same.
There are a few exceptions. With some airlines like Southwest
LUV, -2.34%,
delta
DAL, -1.80%
or JetBlue
JBLU, -1.81%,
The number of miles required for an award flight is directly related to the cost of the cash and the demand for the ticket. In these cases, you will likely pay more miles when you change your booking than you originally did.
Still, Book flights with points or miles can help you save real money on part of the trip.
2. Be flexible with your travel dates
In general, if you don’t fly at popular times, you can find better deals. For example, a flight from New York to Miami can cost more miles if you fly on Friday than if you fly on Thursday. Traveling home on a Sunday evening can cost more than on a Monday evening.
In addition, it is usually cheaper to fly on the day of your vacation (or the evening before) than a few days before when you go on vacation. For example, a non-stop one-way flight from New York to Paris during the week of Christmas on December 22nd costs $ 868 or on December 23rd costs $ 910. However, those flying on December 24th or December 25th will only have to pay $ 482 and $ 563, respectively.
3. Take advantage of free overnight benefits with hotel award stays
There are also benefits to using points on hotel stays. Marriott
Mar, -0.75%,
Hilton
HLT, -0.61%
and IHG
IHG, -1.99%
offer a free fifth night benefit when booking a consecutive four night stay with points. This benefit does not apply to cash bookings.
So if you’re planning a winter vacation, take a look at some properties with one of these hotel groups and see if you have enough points to cover a four night award stay. If you don’t, you should go for one Hotel credit card– You can collect the points you need from the welcome offer.
Booking a hotel stay with points is a great way to save money, especially on longer trips.
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4. Use a credit card that offers travel insurance
Travel insurance protects you and your non-refundable deposits from emergencies that could affect your vacation. However, these guidelines can cost hundreds of dollars and have only gotten more expensive in recent years. According to Squaremouth, a travel insurance comparison engine, travel insurance purchases on the site have increased 300% since 2020 and 70% since 2019.
Some credit cards offer free travel insurance when you book travel with your card. Find out what travel insurance coverage your credit card offers. If you already have free travel insurance from your credit card, you can save a lot of money by not having to get separate insurance.
Read: A guide to travel rewards for the non-frequent flyer and budget conscious
While your card’s coverage may not be as comprehensive as stand-alone travel insurance, it may be sufficient. Most credit cards do not include health insurance as part of their free travel insurance. If this applies to you, then you should take out stand-alone travel health insurance. Health insurance only can be cheaper than comprehensive travel insurance.
Also on MarketWatch: The science of giving better gifts
5. Use a credit card that does not charge fees for international transactions
If you are planning to go overseas and don’t have a credit card that waives overseas transaction fees, you may be able to pay additional fees. An average foreign transaction fee of 3% of the purchase price is charged for each card swipe. These fees can add up quickly, and frankly, you can avoid them.
There are many credit cards available, including toll-free cards, that waive international transaction fees. Check if the card in your wallet already waives these fees. If not, you should apply for a card that offers 0% international transaction fees.
6. Use a bank that reimburses ATM fees
When traveling abroad you may find yourself in a situation where credit cards are not accepted and you will have to pay in cash. If you don’t have a bank account that refunds ATM fees, you may have to pay two rates: a fee charged by the ATM you use and a fee charged by your bank for withdrawing cash from another bank’s ATM will.
These fees can fluctuate and add unnecessary additional costs to your trip. To avoid this scenario, open an account with a bank that refunds ATM fees.
You can save money on vacation trips
If you’re looking to save money on your vacation trips, strategic changes to your approach can make a world of difference. First, remember to book flights with miles and hotel stays with points. Not only does this offer additional flexibility, it can also unlock benefits such as a fifth free night when booking four award nights in a hotel.
Plus, take advantage of the perks you already have from your bank and credit card issuer to avoid paying for travel insurance, international transaction fees, and ATM fees. These optimizations can save you money on vacation trips.
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Elina Geller writes for NerdWallet. Email: egeller@nerdwallet.com. Twitter: @themissmiles.
