With the worst phase of the pandemic largely behind us, overseas travel has surged this year. Be ready for higher prices, though. Smart planning and strategic decisions are necessary to stretch your travel dollars.
More Americans are eager to travel in 2023, and international reservations are up by more than 200% versus 2022, AAA booking figures show. That elevated demand is pushing fares higher, with international plane tickets running about 30% pricier than last year.
“Travel is back in full force and bookings are very strong, so it’s beneficial to plan in advance,” says Debbie Haas, vice president of travel for AAA-The Auto Club Group.
Europe and Canada remain top draws. London leads the pack with roughly a 350% rise from last year. Rome, Paris, Dublin and Barcelona are other hot European spots, while Vancouver, Toronto and Calgary are the most sought-after Canadian cities.
Below are 12 practical tips to help you save money while still enjoying global adventures without accumulating debt.
12 Ways to Save on International Travel
1. Travel in Shoulder or Low Seasons
Offseason travel means fewer tourists visiting a destination. Timing and location matter. In Europe, the low season typically runs from November through March. Southeast Asia’s quieter months are June through October. In North America, offseason timing depends on the area.
When you travel during the off months, you’ll generally find cheaper international flights, lower-cost accommodation choices and fewer crowds.
2. Pick the Right Travel Credit Card
Use a travel card that waives foreign transaction fees. Many cards charge about 3%, which amounts to $30 for every $1,000 you spend abroad.
Some cards also offer rewards that can earn you discounted or free travel and include travel protections, which may cover lost luggage and costs (like meals, lodging or car rentals) associated with delays or cancellations.
3. Skip Airport Parking
Parking at big metropolitan airports — and even smaller ones — can get expensive fast. Ten days of parking can easily top $100.
Rather than driving and paying to park, save by getting a lift from a friend, using public transit, or taking a rideshare.
Even if you don’t live nearby, an Uber or Lyft might still be cheaper than long-term parking. Use their fare estimators to compare a rideshare cost against parking fees before you decide.
4. Explore All Accommodation Options
Of course check hotels, but don’t dismiss other possibilities like short-term rentals. An Airbnb or similar rental — whether a full place or a private room — can often be less expensive than hotel options. For instance, the average Airbnb price in Rome is $166 per night. A three-star hotel in Italy tends to be pricier.
Rentals often provide extra space and a kitchen, letting you shop at local markets and prepare meals instead of dining out for every meal.
5. Be Careful Converting Money
Avoid unnecessary currency conversion charges by choosing a card without foreign transaction fees and by planning how you’ll get local cash.
Ask your bank about ordering foreign currency before you leave. For example, Wells Fargo lists 70 currencies available for more than 100 countries, so you can have local bills on hand before you depart.
Exchange booths in airports often tack on high service charges and poor exchange rates, so steer clear when possible.
6. Review Your Mobile Plan Before You Go
Your smartphone can become a major surprise expense when traveling abroad. Using your usual plan overseas without changes can result in steep roaming charges.
Contact your carrier before traveling. You may be able to add a temporary international plan or purchase a travel pass to avoid roaming fees. For example, AT&T lets you use your phone overseas as usual for about $10 per day. Verizon has a $10-per-day option and a $100 monthly alternative.
Buying a local SIM card can be more economical for longer stays, though switching SIMs has trade-offs, so research what suits your trip best.
7. Think About Travel Insurance
If your credit card doesn’t include travel protections, consider buying a travel insurance policy. Policies typically cost up to about 10% of your total trip price when purchased from an insurer.
Travel insurance can seem like an extra cost, but it protects your investment similarly to home or auto insurance. If you’ve spent thousands on a trip, insurance can help you recoup losses or cover emergency expenses that otherwise would be out-of-pocket.
Standard travel policies commonly cover trip cancellation, trip interruption, emergency medical care (including evacuation), delayed or damaged baggage, and travel delays.
8. Pack as Light as Possible
This one’s obvious but worth repeating: travel light and stick to carry-on luggage when you can. Checked bag fees can add up quickly, especially across multiple flights.
Prioritize versatile clothing, wear bulky items on the plane, and streamline toiletries to fit everything into a smaller bag. Don’t waste your personal-item allowance on a tiny purse; a backpack or larger tote is more practical and can hold a smaller bag when desired.
9. Be Smart About Laundry
Packing less becomes easier if you plan for laundry — nobody enjoys hunting for a laundromat in a foreign city.
If you rent an apartment you might have access to a washer, but you can also wash items in a hotel sink or bathtub as a low-cost option.
Frequent travelers may want a portable wash solution. The compact 5.3-ounce Scrubba wash bag folds small and has a flexible internal washboard, so you can clean clothes anywhere without electricity.
With quick laundry options, you may only need a handful of outfits for a multi-day trip.
10. Fly Overnight on a Weekday
Late-night flights are often the cheapest choice, particularly versus morning weekend departures. Not the comfiest, but a weekday red-eye can cut airfare and may cover a night you’d otherwise pay for lodging.
Arrive early, enjoy a meal and a drink, then settle in for the long haul. Use the flight to rest and prepare for your time away or to recover before returning home.
11. Be Deliberate About Dining Choices
You’ve researched everything else; dining deserves the same attention.
Decide in advance whether you’ll eat out for every meal or reserve restaurant meals for one or two occasions. Save money by choosing lunch instead of dinner at sit-down spots, picking up snacks from stores, and carrying a refillable water bottle.
Planning ahead lets you budget for meals and spot money-saving opportunities like happy hour deals.
12. Start Saving Early for Your Trip
Before you go, set a target cost for your trip and build a sinking fund to put money aside. A sinking fund is a straightforward method to save for major expenses like travel, a new car or home repairs.
For example, if you plan a $3,000 trip in two years, saving $125 a month will get you there in 24 months ($3,000 ÷ 24 = $125). Even without a fixed trip, maintain a rolling travel fund so you always have savings to draw on for future getaways.
Whether you reach your full target or not, having a dedicated travel reserve gives you a financial cushion for your next international trip.
Alex Morgan is a senior writer for Savinly. Senior writer Mike Brassfield contributed.
