15 Simple Ways to Cut Travel Costs This Holiday Season
Holiday travel brings a mix of excitement and financial strain, especially with airfare, hotel rates, and car rentals spiking around Thanksgiving and Christmas. According to the American Hotel and Lodging Association, over a third of Americans plan overnight travel during the season, driving demand (and prices) even higher.
But cutting costs doesn’t have to mean cutting corners. A few practical shifts can lead to real savings. These travel strategies can help keep your holiday plans intact and your expenses in check.
Book Flights Three to Eight Weeks Ahead
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Waiting too long can hurt your wallet, especially near Thanksgiving or Christmas. Booking domestic flights weeks ahead usually lands you a better deal, according to Google Flights. For Thanksgiving travel, late October to mid-November is the optimal time frame in terms of price for most U.S. routes.
Fly on Less Popular Days
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Leaving the day before a holiday tends to cost more, sometimes a lot more. Surprisingly, flying on Thanksgiving Day or Christmas Eve often means cheaper tickets and smaller crowds. Even adjusting your trip by just one day in either direction can lead to noticeable savings.
Redeem Credit Card Points During Peak Weeks
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If you’ve built up points through regular spending, use them for holiday bookings when cash rates are high. Many travel cards allow you to redeem points for flights, hotels, or car rentals. Hotel-branded cards often include free night awards you can use when rates spike.
Compare Fares at Alternate Airports
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Major hubs aren’t always the most affordable option. In some cities, smaller airports, like Burbank instead of LAX or Oakland instead of SFO, offer lower fares. Factor in ground transportation, but even with an Uber or shuttle, the total price can still come out ahead.
Stay With Friends or Relatives if Possible
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Lodging prices during the holidays can increase your overall cost, especially in major cities. If you have family or friends residing at your destination, staying with them can help you avoid those inflated hotel rates entirely. It’s also a practical option for more extended visits.
Book Lodging With Free Cancellation
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Plans change, and prices drop. If you’re booking early, look for hotels or rentals with a free cancellation option. This gives you the flexibility to rebook if a better rate shows up later. Most major booking platforms allow you to filter by cancellation policy, so you don’t get stuck.
Use Public Transit Instead of Renting a Car
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Car rental prices haven’t fully come down from their pandemic highs, especially around the holidays. Public transit can be a cheaper and less stressful alternative in many cities. Airport trains, subway systems, and city buses often get you where you need to go for a fraction of the cost.
Limit Yourself to a Carry-On Bag
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Luggage fees can sneak up on you. Traveling with just a carry-on means fewer fees, faster airport exits, and less chance of lost luggage. Plus, it forces you to pack only what you actually need for the trip.
Track Prices With Fare Alert Tools
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Airfare changes fast. Tools like Google Flights, Hopper, and Skyscanner allow you to track prices and receive alerts when fares drop. You can monitor multiple dates or destinations to get a better idea of what a reasonable price looks like, and book when the timing is right.
Look for Flight and Hotel Packages
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Some travel sites bundle airfare and lodging at discounted rates. JetBlue Vacations, Priceline, and Expedia regularly offer holiday packages that undercut the cost of separate bookings. Compare bundled options with standalone prices to see if the savings are worthwhile for your itinerary.
Check for Free Local Holiday Events
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Holiday activities don’t have to cost anything. Many cities host public events, such as parades, tree lightings, and markets, in December. New York’s Bryant Park Winter Village and Chicago’s Christkindlmarket are free to visit. City tourism websites typically post calendars a few weeks in advance.
Sign Up for Loyalty Programs Before Booking
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Joining airline or hotel rewards programs before booking lets you earn points immediately. Over time, those points lead to upgrades, discounts, or complimentary stays. Programs like Delta SkyMiles or Hilton Honors are free to join and can pay off even after a single trip.
Claim VAT Refunds on International Purchases
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If you’re shopping abroad in countries that charge a Value Added Tax, you may qualify for a refund. Make sure you request a VAT receipt at the time of purchase and allow time to process the claim at the airport. France, Germany, and Japan all offer this option.
Bring Food to Avoid Airport Markups
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Airport vendors often charge 50–75% more than outside retailers. Packing snacks or a light meal can save you a surprising amount, especially during delays. Just make sure what you bring meets TSA guidelines. Items such as sandwiches, fruit, and protein bars are typically allowed to pass through security.
Use eSIM or Local SIM Cards to Avoid Roaming Fees
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International roaming charges can quickly add up. Switching to a local SIM card or installing an eSIM service, such as Airalo, can help you stay connected at local rates. For occasional users, relying on public Wi-Fi and apps like WhatsApp or Messenger is often enough to keep in touch.