3 Tips to Save Money on Holiday Travel

Ah, the holidays. It can be the most joyful—and sometimes the most stressful—time of the year.

For many of us, the holiday season means a busy social calendar, long shopping lists, and extra travel to be close to loved ones for every occasion. You may already have a budget for gift-giving, but travel expenses can also stack up quickly, especially when you’re traversing the country to attend each celebration.

But holiday travel doesn’t have to be a drain on your bank account. Follow these tips, and maximize holiday savings from one holiday event to the next.

1. Make it a road trip. In general, driving is cheaper than flying. If your destination is close enough that you can get there by car, you could easily save hundreds of dollars on airline tickets. Find additional savings by carpooling with friends and family and splitting up the cost of gas (and the rental car, if you use one).

A good way to make sure that you're saving money while driving is by calculating the approximate cost of the road trip. An easy way to do this is to multiply the gallons needed for the trip by the average cost of a tank of gas. AAA has a gas price map that could help with this. After that, you'll need to factor in how many days the trip will take along with hotel and meal expenses.

2. Book flights strategically. If you choose to fly, don’t procrastinate when it comes to booking your flight. Expedia released their 2024 Air Travel Hacks Report, and they found that booking domestic flights 28 days in advance was optimal to save money. For international flights, the same study found the least expensive time to book was about 60 days out. The same study also determined that Sunday was the cheapest day of the week to book flights. 

If you wait to book until a few weeks before Thanksgiving or Christmas, you could get stuck paying exorbitant prices. On the other hand, you could get lucky and score a last-minute deal—but it’s a gamble. If you know your holiday plans a few months in advance, booking early is generally a safer bet. 

To save even more on flights, AAA suggests avoiding peak travel days. If you don’t mind spending time in the airport on a holiday, you could find cheaper flights on Thanksgiving or Christmas Eve.

Flying on Dec. 26, on the other hand, comes at a cost—it’s the most expensive day to fly during the week of Christmas, according to AAA.

3. Cash in on points and loyalty programs. Being loyal to your favorite brands can pay off, especially when that loyalty earns you a free hotel stay or flight. Check your hotel and airline accounts to see if you have enough unused rewards to qualify for any freebies. Even small wins, like one free night of a four-night hotel stay, can add up to serious savings over time.

See this article for more tips on budgeting during the holiday season.