First and foremost, let me clarify this post is not about vacationing at the minimum possible cost. While we all want that dream vacation without spending a fortune, my experience is that one needs to pay for convenience. As a teenager or young adult, it is possible to make lot of adjustments but in the later years, the need to save money by sacrificing comfort and convenience will just be not there.
Even then, over the course of several years and several travels, I have learnt a few tricks to optimise travel costs. And yes, it makes eminent sense to focus on significant items of expenditure such as air-fare and accommodation. I know there is a counter argument that a rupee saved is a rupee earned and that every drop makes an ocean! So take your pick. I would prefer to strike a balance.
As a matter of fact, the best way to lower the cost of vacation travel is actually not related to money at all.
Don’t sacrifice experience because of cost
Always keep in mind that the return on travel expenditure is non-monetary – it is the experience, knowledge and the enjoyment one gains. When I look back upon the travels in my younger days, I can recall several instances where, in hindsight, I should have spent money on certain experiences instead of holding back due to high perceived cost. The worst part was converting all foreign currency costs to Indian rupees and then trying to decide whether to spend or hold back. This never works. Consciously avoid. I still regret not taking the gondola ride in Venice 20 years back due to erroneous conversion!
Choice of destination impacts cost
Every country is not equal when it comes to cost of living. And cost of travelling. It costs far less to travel to nearby countries such as Thailand, Malaysia, Vietnam and UAE. Within Europe, East European countries such as Ukraine, Czech Republic and Hungary are relatively cheaper compared to Western Europe. The choice of destination will definitely impact cost but in my experience, most travellers tend to fit the chosen destination into the available budget. But if the budget is truly limited, choose nearby countries.
My top 3
My top 3 suggestions to optimize travel costs are as follows:
1. Travel during the shoulder season or the non-peak season.
2. Book ahead of time, at the minimum 4-6 weeks – whether it is air or train tickets or accommodation. I prefer refundable fares, though it costs a bit more.
3. Consider hotels located away from ‘best’ or ‘top’ places to stay for a tourist, provided public transport is good. Consider apartments if the stays are for over 3 nights.
The above 3 suggestions will deliver bulk of the savings. Two other areas that can deliver reasonable savings are paid activities and food and beverages. But there are plenty of other ways to save nominal sums on a daily basis.
The suggestions given apply during normal times. Until we get back to the pre-pandemic state, international travel costs will remain elevated.
Do basic Pre-work
Once the destination is decided, a little bit of pre-work is essential if you wish to keep control over the travel costs. This includes all of the following aspects and perhaps more.
– Tentative itinerary, with day-to-day plan
– Likely dates, great to remain flexible
– A rough budget. In my case, a travel budget is of immense help in preparing me psychologically to spend the money. Be a bit strict about sticking to the budget but ensure it is realistic based on your needs.
Travel during non-peak season and be flexible on dates
Travelling during the shoulder season (between peak and off season) is probably the best way to cut your travel budget. For few destinations, off-season too will work but do some research on what is open and what is closed during off-season.
The savings while travelling during non-peak season can be substantial. Air-fares, accommodation, entry fee at key attractions (not always though), and cost of eating out are all generally lower during non-peak seasons. More importantly, I enjoy the lesser crowd I encounter when travelling during the non-peak season.
Remember, the distinction between peak, shoulder and off-season can often be blurred and varies from one country to another. So do adequate research before deciding. As an example, if you are heading to Europe, check out the months of March or October.
Book air tickets ahead of time
Research(unproved) will have us believe the best time to book air-tickets is 8-12 weeks before international(or even domestic) travel and that ticket prices are at their lowest during mid week, as compared to weekends. If my travel dates are flexible, I check the fares for each day of the week/month either on airline websites or travel portal such as Cleartrip or ‘google flights’. There is no doubt fares vary by the day of the week. By avoiding weekends for both departure and arrival, the savings can be upto 10%(indicative only). Add this to the savings by travelling during non-peak season, the total savings may well be 20% or more(indicative only).
Other options include flying a low cost airline with stoppages, skipping all extras such as seat selection, opting for red-eye flights and so on. There is a fair degree of cost difference in flying directly to London by British Airways and taking Oman Air flight to London via Muscat. Just make sure you check about transit visa requirements if breaking the journey.
Arrival and departure airports need not be same
In many countries, domestic air-fares converted to INR can be higher than international air-fares for equivalent distance or flight time. If my itinerary covers more than 1 international airport, I always consider flying into one airport and flying out of another airport, instead of taking a domestic flight or train back to the city I flew into. Sure, this would make sense only if the same airline(or partner airlines) serves both the airports. I first realised this when I was travelling to Canada. The fare on Air Canada domestic flight from Vancouver to Toronto was higher than Lufthansa international flight from Vancouver to Frankfurt via Toronto which was operated by the same Air Canada!
Stick to one airline
I stick to one airline (or its partner airlines) for the entire journey as much as possible. This helps in accumulating mileage points and also costs lower when compared to using multiple airlines. The only drawback is that when the entire journey is booked on a single PNR, there will be difficulties in rescheduling or cancelling a portion of the journey. This normally cannot be done online and you need to reach out to customer service.
Consider accommodation away from ‘best’ places
Accommodation is another big cost item on vacations and a careful selection can mean significant savings, especially when visiting larger cities. The tricks are age old-
– Instead of city center, look for hotels in the suburbs;
– Explore non-hotel options such as full apartments or full homes, especially if the stay is for 3 nights or more and the group size is 3 adults or more.
Essentially, avoid places advertised as top or best places to stay for a tourist, unless there are strong reasons not to ignore. To give one example, in Niagara, best to book a room with great views of the Niagara Falls. Staying elsewhere would take a lot away from the overall experience. When staying away, the only catch – make sure there is public transport available else you will end up spending the savings on commute by taxis. Take into account the commute time as well. I would also worry a bit about food options as I am a vegetarian.
One added advantage of staying in an apartment or home is that one can cook simple meals at a fraction of the cost of meals in restaurants.
If staying for longer durations(say 4 nights or more), enquiring directly for better rates or upgrades or free breakfast often works.
My preference
For 1 or 2 nights, I prefer hotels and many a time, the location has been close to airports or railway stations, depending on the subsequent mode of travel. Beyond 3 nights, I do consider centrally located independent full apartments. More than the lower cost, it is the larger available area that appeals to me.
Activities
It is good to zero in on planned activities ahead of time, and check if advance booking will save you money. The activity can be a concert or adventure sport or a boat ride or sightseeing tour or anything similar. Choose activities in a way that optimises cost without sacrificing experience. Avoid trying to see every advertised attraction. For example, instead of multiple viewpoints or churches or museums or palaces, choose one or two. I normally avoid paying entry fee for advertised attractions such as Parliament house. Choose free walking tours(but do leave a tip). Explore by walking as much as possible.
You can also opt for a tourist card if it makes sense based on chosen activities and duration of stay.
Food
The possibilities include cooking simple meals when staying in an apartment or independent homes instead of eating out all the time. More than the cost saving, this is also fun. But remember to carry few ready to eat food packets from India. Rest of the stuff like bread, fruits, salads, yogurt, wine etc can be picked up at the local grocery stores.
If eating out in restaurants, limit alcoholic drinks. Restaurants in star hotels can often be more expensive than stand alone restaurants.
While I normally book hotels with breakfast, on couple of occasions, I have booked hotels without breakfast. Fresh fruits, bread, cheese, muesli, and milk procured from local grocery store cost much less than what the hotel was charging. This is true for vegetarians only but savings will be significant only if the stays are longer.
Few other tips to optimise travel costs
Packing light has several advantages, the key one being able to avoid expensive taxi rides to and from airports. But just in case, if the weight of the check-in baggage is likely to be more than what is allowed, it is cheaper to pay for the excess baggage online ahead of time rather than at the airport counter.
Be aware of the costs of using debit card, credit card or travel card overseas. As much as possible, avoid converting currency at airports or train stations. Use debit card for cash withdrawls.
An obvious rule is to use public transport where convenient. Buy travel card depending on the number of days of stay. Opt for Uber or similar taxi services instead of regular taxis.
Download local maps and other useful stuff before your depart just in case you do not have access to free WiFi during travel.
Mileage/reward points – Even if you have frequent flyer mileage points or own a premium credit card, don’t get carried away by prospects of future rewards. Between future rewards and lower price today, I always choose lower price.
Sign up for subscriptions to newsletters, updates etc. This can clutter your eMail or WhatApp as you will not know who will come out with offers and at what point of time. Airlines, Travel portals, hotels – all announce offers from time to time. You should also be prepared to travel at short notice if the last minute offers are indeed too attractive to pass. Skip if you are like me who decides when and where to travel and then evaluate available offers.