Vacation Tips That Make $en$e

A YourMoneyCounts® exclusive by author Bernice Kanner

Sun and surf, hike and bike, it hardly matters what you’ll find fun this summer; chances are it will cost money.  Big time.  (The American Automobile Association estimates $2,300 on average).   How you dole out it can make the difference in whether you suffer PVSS -- Post-Vacation Sticker Shock. 

Here are some tips to avoid it:

I.          Planning and Booking

If you’re flexible about where to vacation, and inflexible about how much to spend …. 

• Sign up for promotional e-mails about prospective vacation spots at websites like expedia.com, Travelocity.com, priceline.com, biztravel.com, previewtravel.com, trip.com, cheaptickets.com or luxurylink.com, as well as with various airlines, hotels and travel sites.

• Contact tourism boards, chambers of commerce, and visitor centers where you’re thinking of going.  In addition to discount coupons for restaurants, hotels and area attractions, they’ll provide ideas for inexpensive activities.

• Travel off-peak, like Caribbean or ski destinations in spring.  Hotels in cities are usually cheaper on weekends while you’re likely to snag a better deal at resorts frequented by leisure travelers during the week.  (Dining out midweek can also be cheaper than on weekends and eating your "big" meal midday can often be a relative bargain.)  Early morning and midweek flights are often less too (and less crowded) and staying over a Saturday night or using less popular airports can also slash fares.  You can often save by flying into Oakland rather than San Francisco, for example.

• Head where the dollar remains strong.  Right now that means Mexico and not Spain, Jamaica but not St. Kitts.  If money is really tight this year, take a vacation at home.  Almost one in five people did that last year and found it surprisingly joyous. 

• Packages tours (like “king” sizes at supermarkets) aren’t always the best deal. MONEY Magazine recently found you could do better carefully assembling a la carte pieces of a European trip.  Compare so you don’t despair!

• Air travel can be grueling enough without hearing your seatmate paid half what you did.  Avoid SP envy (seat price) by shopping around at airline package sites online as well as at Expedia, Orbitz, Travelocity, Smartertravel and Bestfares.  Remember to check out smaller discount airlines like JetBlue, Airtran and Southwest not listed on the main trip packagers’ sites.

• Book far in advance to assure a reservation and some protection from rate hikes.  Sometimes you can snag a rental car at low season rates for use in peak season.  Often airport car rentals cost more than non-airport locations -- and tack on surcharges.

• If you haven’t booked early, consider booking late – very late.  After airlines sell their few low-price seats most raise fares; then lower them again a few days before takeoff.  Log on to their websites daily after midnight -- when they update specials.  Also look at CheapTickets.com and LastMinuteTravel.com.

•  Book flights online, not on the phone.  Airlines charge a live-chat surcharge.  And go with an e-ticket instead of a paper one.  You’ll save trees AND money (up to $25 for a paper ticket.)

• If you spring for travel insurance (not recommended IF the loss will be small) make sure the policy covers any contingency.  At roughly 5% of a trip’s cost, it may be worth it for peace of mind when you consider that, according to research I conducted for Are You Normal About Money, 72% of travelers have had a flight cancelled, 64% have lost luggage, 11% have required medical care on a holiday and 30% have cancelled a trip at the last minute. 

• Call a hotel directly (not the chain’s booking office) to fish for discounts and room upgrades based on belonging to AAA or a professional group.  Some hotels will offer a second room for families at half price.  Ask what else they’ll throw in: Airport shuttle? Complimentary breakfast? Free loaner snorkeling gear? If the rental-car agency doesn’t have the class of car you reserved, ask for a higher grade at no extra charge.

• Before you sign on the dotted line, make sure there are no hidden costs and that the price you’re paying includes air taxes, fees and fuel surcharges (often listed in miniscule print).
  
  

II.         How to Pay for The Fun

• The word ''budget'' smacks of self-denial so why not call it a spending plan? Whatever you call it, just do it.  That means starting to feed next year’s vacation account -- with automatic deposits monthly the day you return from this year’s holiday.  Watching that dedicated balance grow contributes to the enjoyment of a vacation.

• People without healthy savings sometimes take a short term vacation-loan (costly!) or use a planned refund from overpaying their income tax (forfeiting the interest they could have earned and instead making an interest-free loan to Uncle Sam) for vacation dough.  Neither is brilliant: much worse is raiding your emergency stash.

  Subtract the costs of food, lodging and transportation from your spending plan to see what’s left for day-to-day activities.  Divide this by the number of days on vacation to get a daily spending allowance so you don’t wind up cutting your good time short or sharply economizing because you spent too much too soon.

• Pack two credit or debit cards to access ATMs from your bank and avoid withdrawal fees (could be $5).  If you MUST use a rogue ATM, withdraw larger amounts, fewer times. At grocery stores when you stock up on sunscreen and bottled water (cheaper than at tourist traps), get cash back to avoid fees.  Steer clear of cash advances: fees and interest rates can be steep.  You’ll usually find better rates for traveler's checks at local banks than at your hotel.

• Your cards should offer insurance if things go awry — and rewards if they go right.  If traveling abroad, beware of additional fees tacked on for currency-conversion.  Keep the account number, expiration date and phone numbers of card issuers separate from your cards.  Consider copying key ID documents, converting them to PDF documents and e-mailing them to an accessible online account.  

• Back home, pay off your charges, pronto.  They’re really short-term loans that can add up and cause havoc with your non-vacation life.

• While you’re vacationing your finances shouldn’t be.  Pay property taxes due August 1, before you leave.  Put your finances on auto-pilot with direct deposit, payroll deductions, etc. and have your mortgage and credit card payments made automatically from your checking account.  Have the post office hold your mail so identity thieves won’t scour it for pre-approved credit offers, etc.,  that they can use to establish bogus accounts.

III.        On the road, consider…

• Leaving early in the morning vs. after work to save a night's hotel. Stop for breakfast during peak rush hour.

• Bringing a meal to eat on the road or on the plane.

• Packing light enough to avoid an airline’s weight excess fee.

• Declining car rental insurance if you’re putting it on a card which already covers you.

• Going out of your way to refuel before returning a rental car.  (Their “convenience” fees to refill for you are hefty).

• Accepting an airline’s offer to be bumped if you’ve got the time and can drive a hard bargain –like a round trip anywhere in the country vs. an upgrade to first class.

• Buying peanuts at a nearby grocery store for, well, peanuts, and ignore the hotel mini-bar.

• Indulging on the breakfast buffet instead of ordering room service.

• Checking out JiWire.com and MetroFreeFi.com for hotels, cafes and public spaces worldwide that offer free Internet Wi-Fi hookups before you bring your laptop to the pool,

Vacationers can sometimes argue about money. Some thoughtful preparation can prevent the after-vacation nasty shocks and in-vacation nasty shouts.