Ken is very analytical and I am thrifty. Between the two of us we have explored every possible avenue to find the best travel values. We take advantage of all the perks, options, deals, special offers and reward plans we can find to reduce the overall cost of our travel. Perhaps some of our hard earned lessons will help you get the best value out of your hard earned dollars.
Budget
We start planning each trip about a year ahead. Our employment allows us to choose a set vacation period well in advance and our seniority helps to guarantee we can get the time of year we want. I also tend to take off season to avoid the more popular times for coworkers with families. Time also allows us to include the cost of travel in our monthly budget. Our travel is as important as our monthly RRSP contributions and the phone bill. Our plan so far may stretch the possible for many of you, but that is why this is advice. You take what you think you can use and discard the rest, so please read on.
When you pay off the cost of your trip in smaller monthly installments it reduces the chance of having a large balance on a credit card that may incur interest. Even if you do not have a trip scheduled consider putting money aside in a separate savings account. This will make it easier to take advantage of the perfect travel vacation when you find it.
Many folks live for the last minute deals on cruises and tours. I wish I had the flexibility to do so without fearing I will miss out. I have found however, that booking a cruise as soon as the itinerary is announced generally offers the best price before the demand for that itinerary increases the cost.
Be sure to ask about the cancellation and / or change policies of the company you are booking with. Decide if booking early is worth the loss if you do have to change or cancel, or consider paying extra for cancellation insurance. I tend towards the cheapest, non-cancellable price and keep my fingers crossed.
Buy foreign currency on a regular basis in order to dollar cost average the exchange. Our bank offers a pre-paid foreign currency VISA card that is chip and pin protected. If the card is lost or stolen while away thieves cannot access the cash without the pin number. Also the bank will send you a new one if time allows. Pre-paid cards also help to protect your regular credit card (which usually has a higher limit) from being lost, stolen or hacked.
Flights are another big travel expense, especially if you are travelling to Europe. Check numerous airline sites regularly to find the best deals. Airline prices seem to fluctuate with no rhyme or reason so keep an eye on your preferred flight (and tour or cruise) dates. Although time consuming this will produce the desired reward. Everything I have researched recommends booking flights to Europe about 4 – 6 months in advance and domestic 3 – 4 months beforehand. Results may vary, but I have found my best deals in that time frame. And it does pay to book midweek. Not sure why, but it does.
Next week we will continue this discussion around getting all the best perks and rewards with your travel dollar, and explore the value of loyalty programs as well.