Everybody deserves a vacation, but with the eye-popping prices caused by inflation and travel demand, it doesn’t always feel feasible to have one. Fortunately, prices have pulled back a little as the rate of inflation has slowed down. Domestic airfare dropped 1.3% from August 2023 to 2024, according to the latest Consumer Price Index data. Car rental prices are also lower — down 8.4%. However, hotel prices have slightly risen over the past year (up 1.8%), according to NerdWallet.
Slowing inflation is good news, but it doesn't wipe out the increases that are now baked into prices. However, don't let trip costs make you feel like you have to throw in the towel. There are ways to properly budget for your vacation and go on the trip you’ve been dreaming of. It just requires a little flexibility, some time and a lot of planning.
Don't let high prices keep you from going on a trip. Use these budgeting tips to plan a vacation even when prices are high.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Plan your trip early
If you’ve ever had to book a last-minute flight, you know prices soar the closer you are to the departure date. Your best bet to get a good deal — whether it’s on lodgings or transportation — is to book as early as you can.
According to Expedia’s 2024 travel hacks, you should book a domestic flight no later than 28 days before your departure to avoid big price hikes. When traveling internationally, reserve your seat at least three months before your trip.
Another perk for the early bird: The sooner you start planning, the sooner you can start setting aside money each month to fund your vacation.
Be flexible
Often, we have our heart set on a particular destination when dreaming of a vacation, but if you can be flexible with location, do it.
For example, domestic flights are often more affordable than international ones, and you can find beaches in the United States that are just as gorgeous as the ones in the south of France. The beaches in Alabama, for example, boast incredible white sand that makes for a picturesque scene, and you’ll find plenty of incredible Airbnbs and hotel rooms for a lower cost.
On the other hand, you may find lodging or activities are cheaper when you do decide to depart the U.S. If you head to a country in Central America, your dollar will go further than it would in Florida: You’ll find accommodations, meals, and other activities for a lesser price point than stateside.
Do your research as you decide where to go for vacation, and make sure to consider the costs and benefits of similar alternatives before you settle on the perfect spot.
Consider the outdoors
When most people travel, it’s to see beautiful sights and relax. An ultra-affordable way to do that? Go camping.
Opting for the great outdoors doesn’t mean you have to forgo modern conveniences. Rent camping equipment such as thick sleeping pads to make your tent even more comfortable, or check the price of renting an RV or a cabin. It’s a cost-effective way to enjoy the natural splendors the world has to offer.
Determine what you’re comfortable cutting
Ideally, vacation would mean going out for meals every night, trying every activity possible, and shopping at any store you see. In reality, you’re probably on a budget, so you’ll need to consider what you value most on this trip.
If dining isn’t the main objective of your trip, buy groceries so you can cook food in your accommodations. You can also limit the number of excursions to afford the ones you’re most excited about. Opt for a walkable destination or someplace with good public transportation to avoid pricey add-ons like renting a car.
There are always small cuts you can make to reduce the amount you’re spending while on vacation.
Travel in groups
Some vacations are arguably better as a party. Consider inviting friends or family to travel with you and split the costs.
An Airbnb split six ways is often cheaper than the cost of a hotel room for two. According to travel site Hopper, the average cost of a hotel room in 2024 is $206 per night, while NerdWallet lists the median price of a 6-person Airbnb at $60 per person per night. In a home share, you’ll also split costs like food and rental cars. Plus, a group trip means there’s always someone around for whatever activity you’re raring to do on your trip.
Take advantage of credit card points and miles
Make sure you book flights, hotels, and other large expenses with the best cash back credit cards, ones that offer you cash back on each purchase. You won’t pay less up front, but you’ll basically give yourself a rebate when you earn money on your expenses. As a bonus, many credit cards offer extra cash back when you charge certain travel categories. Here's a look at some of the best travel rewards credit cards.
Don’t forget about using airline miles to help pay for your vacation flights. Why else have you been saving them up? Additionally, look into your corporate benefits — many companies offer discounts on transportation and hotels.
Keep an eye out for discounts
Groupon is a great option for booking discounted activities at your vacation site, and some of the best travel websites and apps regularly offer excellent hotel deals. As you bargain hunt, make sure to do your research and use trusted vendors. If a deal sounds too good to be true, it likely is.
Related Content
-
Why Uber Stock Is Volatile After GM's Cruise AnnouncementUber stock is swinging this week following news that General Motors is restructuring its Cruise unit. Here's what you need to know.
-
UnitedHealth Stock Falls as Lawmakers Eye Insurers, PBMsUnitedHealth stock is continuing to fall Thursday after the introduction of bipartisan legislation targeting PBMs and healthcare giants. Here's what to know.
-
I Won’t Be Handing Out Gift Cards This Christmas. Here’s WhyGift cards are usually considered a safe bet at Christmas, but in these strained times, how can you be sure your gift won't go to waste?
-
Quicken Launches New Tool to Protect Your Financial Documents: Is it Worth It?If you're looking for a secure place to store your financial documents, Quicken's LifeHub offers you an easy and affordable way to do so.
-
CPI Report Casts Doubt on Rate Cuts in 2025: What the Experts Are Saying About InflationCPI November Consumer Price Index data sealed the deal for a December rate cut, but the outlook for next year is less certain.
-
Quiz: Test Your Financial LiteracyTry your hand at these three questions designed to gauge your knowledge of the ABCs of personal finance. In a survey, only 43% of Americans answered correctly.
-
How to Get the Maximum Social Security Check in 2025
The maximum Social Security check is $5,108 in 2025, up from $4,873 in 2024. Even if you don't qualify for the maximum monthly benefit, you can still increase your payments.
-
The Best Ways to Use Your Year-End Bonus (and the Worst)'National Lampoon's Christmas Vacation' shouldn't be anyone's go-to for financial advice, but it does remind us how not to spend a holiday bonus.
-
Never Talk About Money? For Women, That Can Spell DisasterHow can you plan for retirement when your husband holds the purse strings and talking about money is taboo? Help is at hand for this common problem for women.
-
How to Guard Against Identity Theft in 2025Scammers are getting better at impersonating legitimate businesses.
