This content is created by AP Buyline in accordance with AP’s editorial guidelines and supervised and edited by AP staff. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn commissions from our partners’ links in this content. Learn more about AP Buyline here.
In a nutshell
Traveling on a budget doesn’t mean compromising on experiences or comfort. There are many practical ways to save money while traveling.
- By planning early, you can take advantage of early-bird deals and ensure your desired destinations and accommodations are available.
- Maximize savings and benefits by leveraging credit cards with rewards, travel insurance and other perks.
- Pack light and bring key items to save on baggage fees.
These 16 steps can help you get the most out of your travel dollars.
1. Start planning early
The earlier you start planning your trip, the better. Early planning allows you to catch early-bird deals on flights and accommodations. You also have a wider selection of options for hotels, lodging and attractions.
Planning early can also help you determine your budget, because you’ll know how much you need to save in advance and what’s realistic to spend.
2. Book at the right time
Timing is crucial when it comes to booking travel if you want to save money. According to Expedia, domestic airfare booked 28 days before the date of departure saved travelers as much as 24%. Expedia also advises booking international flights at least 60 days in advance for maximum savings.
Keeping an eye out for airline sales and hotel deals is also helpful. Hopper is a free app that helps you determine the best time to buy your ticket by tracking pricing over time. You can also use Google Flights to compare flight prices and set alerts for dropping prices.
3. Use the right credit cards
Using credit cards with travel perks can also help stretch your travel budget. If you have good or excellent credit, look for cards with reward programs, such as cash back or travel points. If you’re traveling abroad, use a credit card with no foreign transaction fee.
Of course, it’s always important to manage your card wisely and pay your bill down in full each month. Carrying a large balance on your card (and accruing a larger balance because of interest charges) can negate any of the benefits of the travel rewards you earn.
Airline mile cards
If you fly with a particular airline, consider applying for its credit card. For example, American Airlines’s AAdvantage credit card allows you to earn double the miles at restaurants, gas stations and on eligible American Airlines purchases.
Even some cards that aren’t associated with specific airlines offer miles or reward points on purchases; some of them also partner with different travel providers. The Capital One Venture Rewards Card is a great credit card option for travelers; it offers a large sign-up bonus for travel miles. With enough miles, you may be able to book a flight without any additional purchases.
Credit cards with travel insurance
Aside from points and miles, some credit cards offer free TSA PreCheck, free airport lounge access and travel insurance.
The Chase Sapphire Preferred card offers travel insurance if your trip is canceled or cut short due to sickness, severe weather conditions or other approved situations. The insurance coverage is up to $10,000 per person (and $20,000 per trip). The Chase Sapphire Reserve card offers benefits like rental car collision coverage, travel accident insurance and baggage delay insurance. Baggage delay insurance reimburses you up to $100 per day for essential purchases, such as clothes and toiletries, if your luggage gets lost.
Just make sure you read the fine print before signing a credit card agreement to make sure you understand the insurance coverage options that come with the card.
Related article: Best credit cards for travel insurance
Hotel credit cards
Hotel stays can be expensive, depending on the length of your trip and where you’re going. Some credit cards, such as the Marriott Bonvoy Brilliant, offer reward points for your spending, which can be used to book your stay at Marriott Hotels.
Some hotel credit cards offer other perks, such as one free night every 12 months on the date you opened the card. With the IHG Platinum Rewards credit card, you get an additional fourth night free when you use your rewards to book at least three nights at a hotel.
4. Pack light and bring key items with you
If you’re flying to your destination, your luggage will be weighed. If it exceeds a certain weight, you’ll be charged an overweight bag fee. Also keep in mind that not all airlines allow you to check or carry on a bag for free: You might be required to pay an extra fee for this.
To avoid these fees, pack light by only bringing what you need. You can use vacuum-sealed bags to store your clothes so they take up less space.
5. Choose an affordable destination
Depending on your destination, the expenses for your trip will be different. For example, food, hotels and attractions in some cities are more expensive than in others.
6. Avoid peak season
Traveling during the off-peak season could offer a more relaxed and authentic travel experience (with smaller crowds, too). The cost of flights and accommodations are cheaper as well.
7. Book refundable rates and avoid online travel sites
When booking flights and accommodations, always look for refundable rates. That way, you can take advantage of better deals if you find them later. Also, consider booking directly with airlines and hotels, rather than using online travel agencies, which may charge extra fees.
8. Consider hostels or vacation rentals
Hostels are a budget-friendly alternative to hotel stays, and companies like Airbnb and Vrbo have made it easy to book a rental house or private room for your trip. Plus, it’s easier to save money on meals when you have access to a stove in a rental property. Many hostels also provide private rooms and amenities for budget-conscious travelers.
9. Look for accommodations outside the city center but near public transport
If you’re visiting an expensive city, such as New York, staying just outside the city center can reduce your accommodation costs. For example, you may find it cheaper to stay in New Jersey and take public transit into New York City. Wherever you stay, it’s a good idea to make sure that your chosen location is close to public transport. This will make it more affordable to get to attractions than taking rideshares or renting a car.
10. Check for transit and museum pass deals
Some cities, like Chicago, offer transit and museum passes that provide unlimited travel on public transport — plus entry to multiple museums at a discounted rate. Research these options ahead of your trip to save money and time.
11. Go to bakeries or grocery stores to get breakfast and lunch
You can still indulge in a nice dinner when you’re on vacation, but if you want to stick to a lower food budget, plan to stop by local grocery stores and bakeries when you arrive. You can grab breakfast items, such as pastries, cooked sausage and fruit, and items to make sandwiches for lunch. Preparing an easy and affordable breakfast and lunch will give you more of your budget to spend on attractions and experiences.
12. Cook some of your own meals
Dining out for a meal can quickly add up, especially if you’re traveling as a family. If you’re staying at a location with a kitchen, take advantage of this by preparing breakfast in the morning. Or cook a few dinners to save on restaurant costs. Even If you’re staying in a hotel room, you might still have access to a microwave and fridge, and you can prepare light meals and snacks.
13. Shop outside the tourist areas
Avoid the high prices in tourist areas by shopping where the locals do. Whether it's for souvenirs, groceries or dining out, venturing outside of the city center can lead to significant savings.
14. Avoid roaming charges
If you’re traveling abroad or outside of your network’s coverage area, roaming charges can impact your travel budget. Use Wi-Fi whenever possible. Also, check with your mobile phone service provider before your trip — you may need to purchase a local SIM card or an international travel plan from your mobile carrier.
15. Find free activities ahead of time
Many destinations offer a variety of free activities, such as walking tours, parks, festivals and museums with free entry days. Check the city’s website to see if there are any events coming up.
16. Avoid tourist traps and scams
Be wary of overly pushy salespeople, “free” tours that end with mandatory tips and overly priced attractions. Only book excursions from legitimate travel companies and carefully read reviews to help you spot any scams.
The AP Buyline roundup
Traveling well on a budget is about being resourceful, flexible and planning ahead. Identifying your budget and researching your destination early is key. Be honest about the travel experience you’d like to have — and what you’re willing to give up — so you can focus on what is important to you. By following these tips, and using tools like credit card rewards and flight price alerts, you can enjoy memorable travel experiences while also saving money.
Frequently asked questions (FAQs)
What is a reasonable travel budget?
This depends on the destination, duration of travel and personal preferences. Jimmy Miller, the founder of Baobab Wealth Management, estimates a reasonable budget for an international traveler is $271 per day, and for domestic travel it’s $144 per day.
What is the best place to travel on a budget?
There are many affordable destinations around the world. Some popular, budget-friendly regions are Southeast Asia, Eastern Europe and South America. Researching and comparing prices can help you find the best destination for your budget.
What is the most cost-effective method to travel?
While flying is one of the more expensive ways to travel, it’s often the only option. Time is also a consideration. While taking public transportation or driving is more affordable than flying, there are budget airlines and train routes that are affordable options for longer distances.
This content is created by AP Buyline in accordance with AP’s editorial guidelines and supervised and edited by AP staff. Our evaluations and opinions are not influenced by our advertising relationships, but we may earn commissions from our partners’ links in this content. Learn more about AP Buyline here.