Travel’s money-savings hacks for mid-year holiday escapes
Heading overseas or interstate this winter? These money experts’ travel hacks can reduce the strain on your finances.
Travel bugs are biting millions of people as the post-Covid cost surge moderates and households seek to reward themselves after two years of painful interest rate and inflation rises.
American Express research has found three-quarters of Australians have planned multiple trips this year, and nine out of 10 are using “travel hacks” to save money.
These include travelling on off-peak days of the week and times, using reward points for flights and accommodation, chasing cheaper connecting flights, and seeking complimentary hotel benefits such as room upgrades.
Three quarters of people have cut back on daily expenses such as coffee and food delivery to save for their 2024 holidays, with travel spending this year costing an average $9131 per person, the global credit card giant found.
American Express Asia Pacific general manager of travel and lifestyle services Corinne Ng says demand for international travel has returned to pre-pandemic levels and three quarters of adults have planned up to three vacations this year.
“Looking at destinations such as Japan and New Zealand for example, the exchange rate is favourable for Aussies right now, so these destinations are proving to be very popular,” she says.
POINTS PILING UP
Collecting reward points is an increasingly common way to pay for travel, and it’s not just free flights on consumers’ radars. Accommodation bookings can also be made purely using points, and many do not come with the attached extra airport taxes and other charges that flight bookings usually carry.
“In the last 12 months, more than 60 per cent of all point redemptions made by American Express card members in Australia have been for travel,” Ng says.
MyBudget director Tammy Barton says she is seeing more clients with holiday savings plans for 2024 and 2025.
“Over winter we see clients set savings goals for shorter holidays to places such as Northern Queensland, Northern Western Australia and the Northern Territory looking for some warm weather,” she says.
International travel is popular too and the UN World Tourism Organisation forecasts travel will be back to pre-pandemic levels by the end of this year, Barton says.
She says travellers looking to save money should be flexible with dates, avoid peak times and events where possible, book in advance and use comparison websites.
“Subscribe to rewards programs and travel blogs. They often have exclusive sales and member offers.”
CONTROL COSTS
Barton recommends considering budget-friendly accommodation such as Airbnb or guesthouses rather than expensive hotels.
“Use a travel debit card like WISE, with no international fees, and use your own money, not credit,” she says.
Ng says there will always be enticing deals and offers “but don’t fall into the trap of booking a holiday that you can’t afford”.
“Remember to look into what your credit card benefits are before you jet off,” she says.
“Too many times I hear people paying for travel insurance when their credit card has it already included as a benefit. When the pandemic struck in 2020, American Express card travel insurance was one of the few providers that covered people who were stranded.
“If you can, be flexible with your travel timings and destination, as you’ll find better seat and upgrade options by being flexible with your flights,” Ng says.
“Travelling off peak also allows you to save on travel costs as there are often deals.
“Many travel providers are making pay-with-points a more readily available option. Look for value added deals such as breakfast included too.”
TRAVEL SPENDING TRAPS TO AVOID
• Avoid borrowing money for your trip.
• Aim to have a couple of money access cards and options on hand.
• Do not exchange money at the airport – the rates are often less competitive.
• Travel insurance is vital, but shop around and read the fine print.
• Budget for as much as you can before leaving, to ensure you have enough funds to last.
Source: MyBudget
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