12 Tips to Travel on a Budget as Prices Soar

Inflation is wreaking havoc on everyone's bottom line, and travel budgets are no different. Still, people are planning to travel more this year despite the rise in inflation, which is increasing prices at popular destinations even more.¹

With prices continuing to rise, your summer trip this year will likely cost more than it did last year. As you plan your travel trips, here are some tips to stay thrifty and still have a great vacation.

1. Take Advantage of Membership Perks

If you already have a membership card, you might get extra perks that you can use when you travel. For example, a Costco membership may help you get a deal on a vacation package or car rental.² And AAA members get discounts on car rentals, hotels and even major theme park attractions.³

You may also get access to travel discounts or extras when you use a credit card to book. For example, the RVC Premier World Mastercard® gives cardholders access to Mastercard Travel & Lifestyle Services, which include car and hotel discounts, upgrades, travel assistance and more.

2. Use Your Loyalty Points and Miles

The cost of food and travel might be going up, but loyalty points and miles may also be worth more, especially for programs that use award charts (a list of how many miles or points you need to receive rewards like flights).⁴ So if you have a stockpile of points and miles, consider using them to lower the cost of your airfare or hotel. Just make sure to do a cost comparison to check the value of points vs. dollars.

3. Sign Up for a Cash Back Credit Card

While you certainly don't want to max out your credit cards to take a cruise around the world, you can sign up for a credit card that offers cash back, which you can put toward the cost of your trip. You can also accumulate cash from your everyday spending and use that extra money toward your next trip. RVC Premier World Mastercard®, for example, gives cardholders unlimited cash back on every purchase.

4. Check Out Hostels Instead of Hotels

Hostels aren't just for students and backpackers. With the rising costs of hotels and vacation home rentals, staying at a hostel can help you travel on a budget. In fact, you can get private rooms in hostels for a fraction of the price of a hotel. Check out Hostelling International or Hostelworld, where you can compare reviews and find a hostel in most major cities worldwide.

5. Take the Train

While traveling by train in areas outside the Northeast Corridor may be unrealistic, you can find sales on the Amtrak® deals page. For example, you can save money by booking in groups or by traveling at night (which also saves on a hotel!).

There are even more train options if you're traveling to Europe. If you're planning a summer in Europe, consider taking the train when you arrive instead of flying. You can get a Eurail Pass, which offers five days of travel within a month for about $323 for adults over 28.⁵

6. Offer to House-sit

Instead of paying for a hotel, see if anyone needs a house sitter in your prospective destination. You may need to take care of furry friends or water plants in exchange for free lodging.

There are also sites where you can do a house swap and stay in someone's place while they stay in yours. HomeExchange, for example, lets you connect with other members and exchange homes for an annual membership fee of $175.⁶

7. Take a Midweek Trip

If you travel during the week instead of the weekend, you might be able to save money on airfare and hotels. After all, with more demand for hotels and flights, weekend getaways can be expensive. You're more likely to find good deals if you take a trip during the week.

8. Consider the Great Outdoors

Camping is often cheaper than staying in a hotel, especially if you already have a tent and camping gear. Plus, there's an abundance of fantastic national parks across the U.S. There may even be a few parks close to where you live!

While the price of campsites varies depending on the time of year and location, it is often much cheaper than a hotel. Just make sure to plan and book ahead, as sites can quickly fill up, especially in the summer months.

9. Eat Out for Lunch Instead of Dinner

When traveling, you can save on meals by eating out for lunch instead of dinner. Lunch menus are often cheaper than their nighttime counterparts. You may also be able to get discounts during happy hour. Check out apps like Too Good To Go or Groupon® to find deals from local restaurants.

10. Set Up Alerts Months in Advance

If you want to find the best deals, start planning early. You can use airfare tracking sites like Google Flights to get fare alerts so you can keep an eye out for when prices go down. Booking early might help you save money on flights, hotels and even attractions.

11. Travel Domestically Instead of Internationally

Traveling internationally can be expensive, especially with inflation increasing prices at home and abroad. Instead, you might be able to save money by traveling domestically this summer. Choose a state you have yet to visit, or take a trip across the U.S. and camp along the way!

12. Pack Light to Save on Baggage Fees

Unless you have elite status at an airline, chances are you'll need to pay for checked bags. And the more bags you check, the higher the fees. Try to pack as light as possible to avoid paying an extra $30 to $230 when you fly.⁷ Only bring the essentials, and consider doing laundry at least once if you're taking a long trip and have access to a washing machine.

The Bottom Line

Prices are rising, but you can still take some well-deserved time off this year without breaking the bank. By signing up for price alerts, reconsidering your international travel plans, taking midweek trips and using a cash back credit card and other rewards programs, you might be able to combat inflation and save some money when you travel.

 

Moriah Costa is a personal finance and investing writer. Her work has appeared in Thomson Reuters, S&P Global, The Washington Business Journal and others.

 

LEARN MORE: Maximizing Your Luxury Travel Dollars

 

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* 2% CASHBACK: Valid on net purchases (less credits, returns and adjustments) of goods and services made with your RVC Mastercard. Cash back earned will be applied as a statement credit within 2 billing periods after an eligible purchase is made. See Reward Terms for details. NO ANNUAL FEE: For new accounts the Variable Purchase APR will be 16.24%, 22.24% or 29.24%. The APRs are accurate as of October 1, 2022 and will vary with the market based on the Prime Rate (as defined in your credit card agreement). Minimum interest charge is $2.00.