15 Ways You’re Wasting Cash on Vacations
According to the U.S. Bureau of Economic Analysis, in 2023, Americans spent over $1.1 trillion on travel, and quite a bit of that was for leisure journeys. Driven by inflation and post-pandemic demand for travel, airfare, lodging, and dining costs are higher than ever.
A report by IMARC Group showed that the global online travel market was valued at $566.7 billion in 2024 and is expected to grow at a CAGR of 9.85% from 2025 to 2033. This highlights the continued popularity of online booking platforms and personalized travel experiences. Yet, convenience almost always comes at the cost of unaccounted expenses and oversights that drain vacation wallets.
Booking Your Flight at the Wrong Time
Timing plays a huge role when booking flights, and ticket prices fluctuate wildly. A 2023 study by CheapAir.com said domestic flights are best booked about 70 days before departure, with prices tending to rise significantly as the travel date draws near.
For international travel, one needs to be even more forward-looking. Depending on the destination, the sweet spot lies between 120 and 200 days in advance. Skyscanner says those who wait until the last minute can pay up to 50% more.
Not Using Fare Comparison Websites
Ignoring fare comparison tools means overpaying for flights and accommodations. Websites like Kayak, Skyscanner, and Momondo collate prices from several airlines and booking sites to ensure you get the best deal.
In a 2022 Consumer Reports survey, travelers who used comparison tools reported saving up to 15-25% per booking on average. Many of these platforms also offer flexible date searches, showing that slight changes in your schedule could result in huge savings.
Not Considering Package Deals
Most travelers ignore this, but package deals save quite a lot of money for many travelers. Websites like Expedia, Priceline, and Orbitz can offer bundled options: combine flights, hotels, and car rentals, offering huge discounts of about 20%.
According to the U.S. Travel Association, the bundling may save time and money, especially if the family is going on vacation or traveling internationally. Most packages offer something extra, such as free breakfast or upgraded room options.
Eating at Tourist Traps
Eateries around major tourist hotspots tend to be overpriced and disappointing. A Trip Advisor analysis of dining habits states that travelers can save as much as 50% by opting for local eateries.
Genuinely local food experiences are found within less touristy neighborhoods where locals dine. Mobile apps like Yelp or Google Maps can help identify highly rated but affordable options. Doing some research beforehand ensures you get the best of both worlds—great food at reasonable prices.
Ignoring Public Transportation
Travel costs can quickly add up if you choose taxis or ride-share apps over public transportation. In fact, the European Travel Commission shows that public transit options like buses, trains, and metros cost as much as 70% less than taxis in major cities.
While a single metro ride in Paris would cost about €1.90, the base price for any taxi ride is €7.50. Many cities also offer day passes for unlimited rides, which are cost-effective for sightseeing.
Failing to Research Free Activities
Most travelers pass over the opportunity to take advantage of free things to do, which are sometimes more memorable than paid activities. Free walking tours of European cities, open parks, and free museums are all ways to reduce expenses greatly.
FreeTour.com provides listings for many guided tours operating on a tip-only basis. Researching local events or cultural festivals can also uncover free entertainment.
Not Utilizing Loyalty Programs
Frequent travelers who do not utilize loyalty programs are simply wasting money. Marriott Bonvoy, Hilton Honors, and airline mileage plans are programs that offer free nights, flight upgrades, and discounted rates to their members.
An Accenture survey found that loyalty programs could save frequent travelers 12-18% annually. Less frequent travelers can benefit from these programs by earning points or rewards on their current trip.
Purchasing Last Minute Travel Insurance
Purchasing travel insurance at the last minute often results in higher costs and reduced coverage. Insurers often offer early-booking discounts, and buying coverage during booking means immediate protection against cancellations.
NerdWallet highlights that buying insurance early on average saves travelers 10%. Comprehensive plans also cover medical emergencies, lost baggage, or trip interruptions.
Not Considering Currency Exchange Rates
Converting money into other currencies can be another hidden cost of travel. According to Investopedia, people who change money at airport kiosks or tourist areas often have to pay exorbitant fees, with markups as high as 10%.
Unlike many other credit cards, the Chase Sapphire Preferred and Capital One Venture have no foreign transaction fees. These cards offer much better exchange rates and eliminate such extra charges. Using local ATMs with a card that doesn’t charge international fees is another cheap alternative.
Overpacking
Overpacking can result in high baggage fees. On average, airlines charge $30 for the first checked bag, with increased costs for subsequent or overweight bags. For instance, Delta Airlines charges $100 for any baggage weighing over 50 pounds for domestic flights.
The secret is to pack smart: focus on versatile clothing and only what you need. Utilize packing cubes, for example, that can fit more into your luggage while minimizing bulk.
Not Setting a Budget
Travelers who do not set a budget are most likely to overspend. The American Express Global Business Travel notes that individuals who plan and track their expenses save an average of 15%.
Budgeting tools like Mint or Trail Wallet can help you allocate funds for accommodation, food, activities, and emergencies. Having a clear financial plan means you can enjoy your vacation without worrying about spiraling costs.
Not Reading the Reviews
Not reading through accommodation reviews or tour packages will only result in less value for money. Sites like TripAdvisor, Booking.com, and Yelp offer intricate feedback from guests on experiences, outlining both positive and negative aspects of the services provided.
BrightLocal research shows that 84% of travelers trust online reviews as much as personal recommendations. Research thoroughly to make informed choices that optimize your budget and overall satisfaction.
Paying with Cash Only
Using only cash while traveling is a big risk and very costly. Credit cards often offer better exchange rates and fraud protection, while carrying large amounts of money exposes you to theft.
Cards like Capital One Venture X or American Express Platinum have no foreign transaction fees and offer some travel-specific perks. Digital wallets, such as Apple Pay or Google Pay, further enhance convenience and security.
Not Considering Off-Peak Travel
That drastically raises the cost of traveling. According to Hopper, flights and accommodations during shoulder seasons just before or after peak travel times are, on average, 20-30% cheaper.
Off-peak travel also means fewer crowds and better availability for popular attractions. Destinations like Europe in early spring or tropical locations in late fall offer the same beauty without inflated prices.
Not Planning for Hidden Fees
Unexpected fees can quickly inflate your travel budget. Resort fees, parking charges, and Wi-Fi costs are common examples that catch travelers off guard.
For instance, Las Vegas hotels often charge resort fees of $30-$50 per night, even for budget accommodations. Researching potential extra costs and factoring them into your budget prevents unpleasant surprises.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information.
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