Yahoo Finance Going on a summer vacation? Here's how to keep costs in check when you travel
As exciting as summer vacations can be, they might come with a hefty price tag.
Canadians spent an average of $4,200 on their last vacation, according to the 2024 Blue Cross Travel Study, and 94 per cent believe the cost of travel is increasing.
But with thoughtful planning, it’s possible to keep some of those costs in check. Whether you're gearing up for a local road trip or an international adventure this summer, here are some expert tips to help you save money on your upcoming getaway.
Be flexible on location and timing
If you haven’t booked your trip yet, one of the easiest ways to find the best deal is to be flexible, says Barry Choi, a Toronto-based personal finance and travel expert. He suggests researching three or four different locations to get a rough idea of the costs.
“Sometimes, you might think a certain destination is really expensive,” Choi said in an interview with Yahoo Finance Canada. “In reality, it might not be too bad.”
For instance, flying to Tokyo from Vancouver on low-cost airline Zipair can be reasonable, Choi notes. Roundtrip flights in September are available for around $1,000, according to Google Flights. While the travel costs would be more expensive than a road trip within Canada, Choi says there can be other factors to consider.
“Over there, there’s no tax and no tipping,” he said. “So, when you think about it compared to Canada, it’s almost a 30 per cent discount.”
Being flexible on timing can also lead to savings. With hotels and car rentals, Choi suggests locking in a fully refundable booking and then keeping an eye on prices to see if you can find a better deal, since their pricing is “dynamic.” As for flights, he says prices are typically cheaper when you fly mid-week, between Tuesday and Thursday.
That said, summer is the busiest travel season. Flights are going to be expensive regardless, he notes, especially this late in the game.
“If you can avoid the summer completely, do it,” Choi said.
Take advantage of credit card loyalty programs
There are many ways travellers can benefit from credit card loyalty programs, Choi says, and it goes beyond booking flights. Take Air Canada’s Aeroplan rewards program, for example.
Until the end of the year, Aeroplan credit cardholders only have to pay for three nights if they use points to book a four-night stay at select hotels, he notes. They can also use their points on cruises, vacation packages, and car rentals. (Choi has previously appeared as a paid expert in an Aeroplan campaign, according to a disclosure on his website.)
And with some credit cards, “it’s more than just using your points,” Choi adds. It’s also about getting access to special experiences that can help elevate a trip.
“So, what it really comes down to is understanding two or three loyalty programs, and then focusing on them so you get the benefits and become engrained into the ecosystem,” Choi said.
Limit foreign transaction fees and roaming charges
If you’re leaving the country, there are some additional costs that can add up if they’re not planned for. Choi says most credit cards in Canada charge a foreign transaction fee of 2.5 per cent on any purchase not made in Canadian dollars.
“The easiest way around this is to simply get a credit card without foreign transaction fees,” Choi said, adding that some of these cards don’t have annual fees.
Other options to consider include prepaid cards from EQ Bank, Wealthsimple and Wise, he says. Most merchants will accept such cards, but Choi generally recommends converting some cash to the local currency prior to leaving Canada – at least to cover a cab ride to your hotel.
To avoid cellphone roaming charges, Choi says the cheapest option is to use an eSim like Airalo, which connects you to a local carrier using a mobile app, or to buy a local SIM card.
“You could use free Wi-Fi, but there’s always a security concern,” Choi said. “(These) days, honestly, there are so many apps that make your life easier … getting a data plan should just be one of those things that’s built into your budget.”
Create a vacation budget
Janet Gray, an Ottawa-based certified financial planner with Money Coaches Canada, says her biggest piece of advice for anyone going on vacation is to have a plan.
“You can’t just say, ‘I’m going to spend $5,000’ and figure out later that you shouldn’t have spent $5,000,” Gray told Yahoo Finance Canada. “So, it’s to have a plan backed up by a little bit of awareness of what you can actually afford to spend.”
When creating a budget, Gray stresses the importance of including any potential expenses, such as gas, clothing, snacks, and meals. And not every meal needs to be at a restaurant.
“Maybe part of your plan is just to eat lunch at a park in a really cool place,” she said.
Gray also suggests adding a buffer for unexpected costs.
“If you think your spending is going to be $5,000, just know it’s going to be $6,000,” she said.
Ideally, the amount you spend on vacation shouldn’t create new debt, Gray says. But she realizes that won’t necessarily be possible for everyone. Part of your plan might also be planning how you’re going to pay off that debt. That way, at least you’re not going in blind and just hoping everything is going to work out.
“I mean, it could,” she said. “A lot of people have a lot of fun that way. But is it financially responsible? Probably not.”
Farhan Devji is a freelance journalist and published author based in Vancouver. You can follow him on Twitter @farhandevji.
