Travel costs continue to climb year after year. Americans plan to spend $5,915 on travel in 2025, which is 31% more than the $4,600 that was spent per traveler in 2024.
With vacation expenses reaching new heights, finding ways to cut costs becomes critical. Savvy travelers use both obvious and unexpected strategies to stretch their budget further. Here are some of those strategies that can help you lower your vacation costs.
1. Book Accommodations with Kitchen Access
Hotel restaurants and room service can quickly drain your vacation budget. Booking a vacation rental or hotel suite with a kitchenette can make a significant difference when it comes to spending on meals.
For example, you can prepare breakfast instead of paying $25 per person at the hotel restaurant. Packing a lunch for day trips rather than buying overpriced food at the airport or in tourist areas can result in significant cost savings.
Even preparing just one meal per day saves hundreds on a week-long trip. Another bonus? Getting to visit local grocery stores to experience the destination like a local while spending less.
2. House-Sit or Pet-Sit for Free Accommodations
Free accommodation through house-sitting eliminates your biggest vacation expense. Platforms like TrustedHousesitters, Rover, and HouseSitter.com connect travelers with homeowners.
It’s simple – you receive free housing in exchange for providing basic home care and pet sitting services. Many opportunities include getting to stay at gorgeous homes in prime locations that would cost hundreds per night should you have booked them the traditional way.
Note that some of these sites do include membership fees that range from $50-$200 annually, but really pay for themselves with just one free stay. And when it comes to safety, background checks and reviews help create trust between homeowners and sitters.
This works especially well for extended stays where hotel costs would be substantial. Some opportunities also include car use and other perks beyond just free accommodation.
3. Use Public Transportation and Walk When You Can
Rental cars, parking fees, and gas expenses add up quickly. Many destinations offer excellent public transportation that costs a fraction of the cost of car rentals.
Research day passes or weekly transportation cards before arriving. Most cities offer tourist transportation packages that include multiple days of unlimited use of public transit.
And instead of paying for expensive bus tours, opt to do a walking tour instead, which often costs less and offers more in-depth local insights. Another bonus? You burn calories while saving money and experiencing destinations more authentically.
4. Take Advantage of Free Activities
Most destinations offer free or low-cost activities that many tourists overlook. Research before you travel to find these hidden gems.
Many museums offer free admission days or reduced price evening hours. Parks, beaches, hiking trails, and scenic viewpoints offer memorable experiences at no cost.
Free walking tours operate in most major cities worldwide. Also, local festivals and events often welcome visitors at no charge.
5. Buy Groceries and Pack Snacks
Food costs in tourist areas are 2-3 times higher than in regular local restaurants. Buying snacks and drinks at grocery stores instead of convenience stores near attractions can save a significant amount of money.
Pack a day bag with water bottles, snacks, and lunch for sightseeing days. This prevents impulse purchases at inflated tourist prices.
Local markets also offer fresh produce and local specialties at reasonable prices. You can experience the local culture and tastes while keeping food costs manageable.
6. Book Refundable Rates and Monitor Prices
Many travelers book non-refundable rates to save money upfront, but miss bigger savings opportunities. Booking refundable hotel rates costs slightly more but creates flexibility to capture potential price drops.
Hotel prices fluctuate constantly in response to demand and availability. Use price tracking tools or check rates weekly after booking to ensure you’re getting the best deal.
When you find a lower rate, cancel your original booking and rebook at the new price. The small upfront cost for refundable rates often pays for itself through price monitoring.
This strategy is most effective for destinations with volatile pricing or when booking far in advance. Some hotels match competitor prices, but rebooking often yields better results.
7. Use a Personal Loan Instead of Credit Cards
Using credit card debt for vacation expenses can lead to long-term financial stress. A smarter choice would be to use a personal loan, where annual percentage rates range from about 6% to 36%, while credit cards often charge higher rates.
Personal loans offer fixed monthly payments and set payoff dates. This creates a clear repayment plan, rather than minimum payments that extend over the years.
If you already carry credit card balances, a personal loan can serve as a double-duty solution. You can consolidate existing debt while adding vacation expenses into one manageable payment with a lower interest rate and lower monthly payment than juggling multiple credit card bills.
Rates for vacation personal loans typically range from 5% to 36%, with an average rate of around 10%. Good credit borrowers access rates significantly lower than credit card APRs.
Credit Direct connects you with over 25 trusted lenders to find the best rates available. You can check offers with no effect on your credit score and enjoy a simple, secure application process.
8. Download Apps for Last-Minute Activity Deals
Mobile apps often offer exclusive discounts that websites may not match. Apps like Groupon, Viator, and local tourism apps provide same-day deals on attractions and activities.
Many attractions offer flash sales through their mobile apps. These limited-time offers can save 20-50% on admission prices.
Restaurant apps frequently feature happy hour specials and location-based discounts. Download destination-specific apps before traveling to access local-only deals.
When you’re there, set location services to receive push notifications about nearby discounts. This strategy works exceptionally well in tourist-heavy areas where businesses compete for customers.
9. Book Connecting Flights Instead of Direct
Direct flights cost more, but connecting flights require research to find good deals. Use flight comparison tools to explore different routing options to ensure you’re finding the cheapest way to reach your destination.
Longer layovers may seem like a burden, but they can actually offer opportunities to explore additional cities at no extra cost. Some airlines allow free stopovers in their hub cities.
However, it’s important to be realistic about connection times and potential delays. The savings must justify the additional travel time and inconvenience of traveling a longer route.
10. Negotiate Everything
Many travelers accept posted prices without asking for discounts. Tour operators, restaurants, and activity providers often negotiate, especially during slow periods.
Ask about group discounts even for small parties. Student, senior, military, and AAA memberships frequently qualify for reduced rates.
Cash payments sometimes earn additional discounts since merchants avoid credit card processing fees. Always ask politely but confidently about available discounts.
Plan Your Next Vacation Smartly
These strategies can help you experience amazing destinations without breaking your budget. Some require advance planning, while others offer instant savings.
The key is combining multiple approaches for maximum impact. Using a personal loan instead of credit cards, booking accommodations with kitchens, and traveling during shoulder season can cut costs by thousands.
Ready to finance your next vacation the smart way? Check your personal loan offers with Credit Direct today. Our simple application process connects you with over 25 trusted lenders with no effect on your credit score.
Sources
- Survey: Americans Plan to Spend $5,915 on Travel in 2025 — 31% More Than 2024 – Beach.com
- 129 U.S. Tourism Trending Statistics 2025: Domestic Travel – Savvy Nomad
- The Average Cost of a Vacation in 2025 – The Motley Fool
- Vacation Loans: Finance Your Travel in 2025 – NerdWallet
- Should I Use a Personal Loan for a Vacation? – PenFed