Time to read : 5 Minutes
There’s nothing more exciting at the start of a new year than working out your travel plans for the next 12 months. But as the cost of living bites, holiday budgets are getting lighter and tighter.
Luckily, there are plenty of things you can do to stretch your money further next time you head off on a trip. Here are some of my favourite tips to make your travel dreams a reality – even when you’re on a budget.
Research and plan ahead
The earlier you start planning, the more options you’ll have to be able to secure the best deals on flights, accommodation and activities. Airlines and hotels will run promotions throughout the year, so sign up to their newsletters so you can be notified as they’re announced.
You can use platforms like Skyscanner and even Google lets you set alerts for flight price changes. Set these before you book so you can get an idea of the price fluctuations and the cheapest times to book.
Planning ahead also gives you time to do your research on the best areas to stay in your destination, how the public transport system works and what activities you might want to do.
You can often save money on accommodation by staying slightly out of town, and if you acquaint yourself with the easiest ways to get around this shouldn’t impact your holiday or your budget.
Yes, but… if you stay too far out of town or somewhere remote, and public transport is not accessible, you may need to rely more on taxis, ride share options or private drivers to get around. So the cheaper accommodation costs may be offset with greater transportation expenses.
Be flexible
Another benefit of doing your research and planning ahead also gives you the chance to be flexible.
Less popular days to fly offer better rates, so try to identify a travel window rather than specific days.
Tip: you can get considerably cheaper flights on Christmas Day and New Year’s Eve.
If you have specific restaurants you want to visit, or activities you want to do, check to see if they offer deals on weekdays or during off-peak times. Tripadvisor can help you find alternative providers for activities like tours.
Once you arrive, take advantage of last minute deals for cheap tickets to musicals and theatre. This works particularly well if you’re flexible with dates and times. You can check each day for any special prices on tickets and snap them up.
Tip: do your research in advance to find out which ones offer last minute discount tickets in your holiday destination and sign up to their mailing lists.
For ultimate budget stretching, being flexible with your destination is helpful too.
If Europe is where you’d like to head, there are places like Tuscany which are more affordable in the summer. Latvia is also less expensive than other well known European locations.
Closer to home, Bali – while not as cheap as it used to be – can still be affordable by staying in budget accommodation instead of upmarket resorts. And if you’re keen to hop around the island, there’s ample basic accommodation options across Bali which will help stretch your dollar further.
Live like a local
Hotels and flights usually require the biggest outlay, but there are other areas you can save on a holiday.
Platforms like BlaBlaCar connect you to drivers with spare seats in their car for long journeys, Turo lets you rent local vehicles and Trusted Housesitters will connect you to people you can house or pet sit in exchange for free accommodation.
Airbnb may not always offer a cheap alternative to a hotel, but it can connect you to a local who can give you cheap food and drink recommendations.
Accommodation with kitchen facilities will also allow you to prepare some food at home saving you on eating out for every meal. And you can generally get more space with an Airbnb than a “shoebox” hotel / motel room.
Travel light
There are a number of discount airlines operating that usually don’t include luggage in their ticket prices. Airlines like Jetstar, Scoot and Air Asia offer bargain basement fares without any of the bells and whistles, but if you can travel light and bring your own snacks and entertainment you can find much cheaper fares than other carriers.
Tip: it’s worth considering how much clothing you actually need to take with you and how much you can save by keeping it light. For example, in destinations like Vietnam you can get a stack of laundry done for just a few dollars. This could work out much cheaper than upgrading a flight to include checked baggage.
Save on the day-to-day
There are ways to save on the everyday. Many major cities offer free:
walking tours
museum entry on weekends (or heavily discounted) online self-guided tours.
Also, many cities also offer tourism passes. These will give you discounted, or free, access to major attractions and museums, as well as savings on public transport.
London, Paris, Tokyo and Helsinki all offer different versions, as do other major cities. The passes themselves are quite expensive, but if you’re planning to cram a lot of sightseeing into a short time they can save you a considerable amount of money.
Tip: many major cities offer free public transport in the heart of town on buses or trams. Locals often share tips on Reddit or TripAdvisor as to the best passes to get for people visiting the area.
Be aware: different countries have different requirements on public transport, including how and when you validate your ticket. Make sure you’re clear to avoid getting a nasty fine.
It’s also a good idea to learn about the common transportation scams for your destination. Here’s how to plan and keep your finances safe when on holiday.
Set a budget
Ok, this might not sound like the most fun option for a holiday, but stay with us. If you’re someone who gets really loose with your wallet as soon as you hit the airport, setting a daily budget might help keep you on track. It also makes it easier to make decisions about what activities you’re going to do or where you’re going out for dinner.
If you track what you spend, you avoid the end of vacation bank account fear, and if you’re tracking well through the first half of the holiday you can always splurge a bit in the second half!
Master the admin
Foreign exchange fees, ATM fees, or bank charges can add up. It might be the path of least resistance to just use your credit card when you’re overseas. Travel cards – offered through providers like CommBank or Wise – allow you to use local currency and not be regularly hit with exchange fees.
You can also track the exchange rate daily, and once you’re happy with the rate you can transfer your money with just a few clicks. It then sits in your digital wallet for when you’re ready to use it.
If your credit card is the best option, check to see what it covers. Some credit cards include travel insurance which can save you money in taking out a plan.
Be aware: any travel insurance that comes with your credit card covers what you need. And the same goes for any travel insurance you need to take out separately – check it covers you adequately.
Tip: if you’re going overseas and plan to use your debit or credit card, let your bank know about your travel dates and destinations. This can reduce the possibility of your transactions being blocked when you least expect it.
Bottom line
We go on holiday to destress and experience new things, so the idea of staying on top of your finances at the same time can seem like a bit of a buzzkill.
But by using some of these easy tips, you can create memories in 2025 without the financial stress, and make every dollar count.
Go deeper:
Should you pause health insurance when going overseas for a long trip?
What does good travel insurance look like and why do you need it?
The hacks and apps I use to take my family on holidays for less money
Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
