Published on 07/19/2007

Sometimes, you just need to get away from it all. But vacations can be expensive, and the last thing you'll want is to come home to a stack of bills from your too-few days of fun. In this guide, we'll give you tips for making your next vacation affordable, less stressful and even more enjoyable. And who knows? You might even come back with money in your pocket!

What's Your Plan?

Budgeting may not be the best part of vacation planning, but it's essential.

According to the American Automobile Association, a family of four should budget at least $224 per day for transportation, lodging and meals. Here's the breakdown: $105 a day for meals, $108 a day for lodging, and about $11 per 100 miles of traveling for automobile costs. That, of course, applies to vacations where you'll be driving to your destination. If you plan to travel overseas or far from home, you'll have to budget for airfare and local transportation.

It sounds obvious, but your vacation dollars will go much further if you have a plan and allow yourself plenty of time to find the best deals. If your usual scenario is to decide you just "have" to go somewhere, scrape up what cash you can, then put the rest on plastic, your vacation is likely to cost you a lot more than if you had planned ahead.

There's no reason you can't start planning for next year's vacation now. Sit down with your family or traveling companions and start brainstorming destinations, types of activities, when you want to go, how many places you want to visit, etc. Then visit a travel agent, your local library or check out some Internet-based travel sites to get an idea of how much your fantasy trip will cost.

Once you have an idea of what you want, decide how much you can realistically afford and start to shape your vacation around that budget. Set a weekly or bi-weekly savings goal and get the whole family involved. One family wanted to go to Disney World for years, but never had the money. Myvesta showed them how to create a savings plan, then Mom drew a thermometer-style chart to hang in the kitchen so the family could keep track of their vacation savings and watch it grow. Next year they'll be shaking hands with Mickey!

Hold a garage sale or find another way to raise your seed money. Ask everyone in the family to come up with creative ways to save money toward the vacation. You may be surprised at what your kids can do when they are motivated! All special earnings or savings should be put in the vacation fund, off-limits to the family. You may want to buy a piggy bank that can't be opened until its broken if someone in the family might be tempted to dip into the fund.

Your goal should be to have enough cash saved to cover the budget for your trip. Creating a plan for your trip is the best way to prepare.

Cutting Costs

Here are some more travel tips to make that vacation affordable:

Travel off-season whenever possible. Visiting a popular location just a week or two before or after the busy season can mean substantially lower costs, fewer crowds and proprietors bending over backwards to make sure you enjoy your stay. If you have a certain vacation time in mind (August, for example) look for locations where August is considered off-season, rather than following the crowds.

Driving there. . .

When traveling by car, pack snacks, treats, sodas or juices, and staples like peanut butter and jelly sandwich ingredients or cereal for the kids. You'll easily save money and face fewer arguments with the kids at each fuel stop.

Make sure your kids have enough money to enjoy the trip without asking you for cash every time you turn around. Ahead of time, set guidelines describing what you'll pay for and what you expect them to cover. ("We'll buy your meals, but you'll be expected to buy any other food, like snacks." Or, "We'll give you $35 to spend at the amusement park, but the rest is up to you.") Then help them find ways to raise spending money by doing chores for you or neighbors, holding a bake sale, etc.

Before you take your car on the road, get an oil change, properly inflate the tires and make sure there aren't any mechanical troubles waiting to happen. The last thing you want is to spend a fortune on repairs with a mechanic you don't know.

Flying there. . .

Myvesta recommends that you call at least three airlines, or use a good travel agent, to compare prices. The sooner you start shopping, the better. Consider smaller, no-frills airlines as well as airports that are less popular. Fares at Chicago's Midway airport, for example, can be much cheaper than those to and from O'Hare. Similarly, smaller airlines, like Southwest, often offer attractive deals. Typically, you'll get the best fares on Tuesday, Wednesday and Saturday - and if you stay over a Saturday night.

Holiday times can be very expensive, so avoid peak days. (See our list of travel sites below where you can check for low fares.)

You may be able to get a cheap fare through a consolidator or discount travel agency, both of which sell tickets for airlines, sometimes at a substantial discount. Your best deals are likely to be for overseas travel during busy seasons when few sale fares are available. The downside is you may not earn frequent flier miles on your trip; if your flight is cancelled, the airline may not be required to put you on another flight; and refunds may be nonexistent if you cannot travel.

Be careful when using one of these agencies: make sure you understand all restrictions and refund policies and pay with your credit card to have access to their purchase protection just in case you need it.

You can usually buy consolidator tickets through your local travel agency, which may add a measure of comfort (but no better terms).

You may consider using frequent flier points for part or all of your travel. Points are estimated to be worth about 2 cents each, so compare the cost of cashing in your points with buying a discount ticket. If you stay at a hotel or rent a car, be sure to ask whether you can earn frequent flier points, and consider using points for hotel stays or other types of awards.

Cruising there. . .

If you dream of a cruise, book early to get the best rates and stay in a cabin within your price range. Work with a travel agent who specializes in cruises to make sure you're getting the best deal possible. Alternatively, some discount travel clubs may offer rebates or specials on cruises. While cruises are all-inclusive, you will need to budget for drinks, side trips, tips and souvenirs.

Staying there. . .

Hotels will often quote their highest rate if you call their toll-free reservation numbers. To get a better deal, call the hotel where you plan to stay directly, and ask about specials or discounts. Members of travel clubs like AAA or Traveler's Advantage can often get discounts, so it may be worthwhile to join one of these organizations. (Our list is on the last page of this publication).

Suite hotels often include cooking facilities, which can be a real moneysaver, even if you just make your own breakfasts and lunches. If you're planning on feeding the family, check to find out whether you'll actually have a stove and refrigerator or just a microwave oven and a mini-fridge.

Camping, whether in an RV, camper or a tent, can make for an inexpensive and adventurous vacation. National and state parks may also rent out clean and comfortable cabins for lodging, at nice rates. (Visit www.nps.gov for a list of national parks, or use your favorite Web search engine to find a list of state parks.) Some universities rent out dorm rooms during holidays or the summer, and the prices can be very low. You may have to state an educational purpose for staying there, but the rules are usually lenient.

Enjoying it. . .

If you'll be traveling overseas, use your credit cards when possible for a good exchange rate. Major credit card companies exchange purchases at wholesale rates, which are better than you can get on your own. And before you leave, ask your card issuer if it charges a one to three percent conversion fee for overseas purchases. Some do, some don't. Just make sure you pay your bill in full when it arrives so interest charges won't blow your budget!

If you rent a car at your destination, use a credit card that offers free Collision Damage Waiver (CDW) coverage to avoid paying for rental car insurance. This benefit alone can save you $10 or more a day! (Keep in mind that CDW is not accepted in all countries. Check with your travel agent and/or the company from which you will be renting in advance.) If you don't have a credit card that offers such coverage, call your own car insurer and find out what is covered when you rent a car. Your own insurance will often suffice, at least for rentals in the United States.

Before automatically renting a car at the airport, check the prices at off-airport locations. These can sometimes be cheaper, and the savings may outweigh the cost of a taxi to the rental agency.

Senior Specials. . .

Seniors can enjoy discounts on airfares, lodging, meals, as well as entertainment and activities at their destinations. Almost all major airlines offer both senior coupons (which are purchased in advance) as well as discounts on flights booked by seniors. Many hotels also offer discount programs for senior travelers, and most do not charge an annual fee. Once you turn 50 you can join AARP and you'll get access to many discount services. Visit www.aarp.org for more information.

And Deals for Youth and Students. . .

Students and children are sometimes eligible for discounts on airfares and they may get free lodging or meals if they are young and are accompanied by an adult. Still, traveling with a family can add up, so find out ahead of time if any special discounts are available.