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David Bach The Automatic Millionaire

David Bach, The Automatic Millionaire

Eight Ways to Slash Travel Costs

by David Bach

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Posted on Monday, May 5, 2008, 12:00AM

Summer travel season is approaching, and it's potentially the most challenging one in years. With the average price of gas climbing toward $4 a gallon, you might be rethinking the family road trip.

Add to that recent airline shutdowns of Aloha, Skybus, and ATA, and the mergers of Delta and Northwest, and you have fewer choices and higher fares. Then add in the devaluing of the American dollar against the Euro and rising hotel and food costs, and you may think that going on vacation this summer just won't work for you and your family.

Before You Hit the Road

Don't give up hope, though. You deserve a vacation, so let's see how you can get one at a reasonable price.

There are always ways that smart travelers can save money by looking at cost-cutting alternatives to the usual way of getting from point A to point B. You might worry that this means having less fun or depriving yourself, but look at it another way: If you're worried about the debt you're racking up for that family vacation, you're not going to truly enjoy yourself even if you're in paradise.

So get creative with these eight tips, travel off the beaten path a little, and save some of your cash for when you get home. Peace of mind is a fantastic travel souvenir.

1. Try the next generation of travel websites.

Surely you're familiar with the big three travel sites -- Expedia, Travelocity, and Orbitz. But more often than not they don't provide the best prices. Instead, I recommend checking out sites like SideStep, Kayak, and Mobissimo.

Rather than serving as online travel agents, these free sites search all of the other travel sites, dozens or even hundreds of airlines, discount websites, car rental companies, hotels, cruise lines, and more to find you the best possible price. Hotwire.com is another site you might want to try -- it's a clearinghouse of unused travel inventory that you buy at a discount. The catch is that you won't know who the provider is until you buy.

For best results, take some time to do many searches, including individual airline websites -- especially the small regional carriers.

2. Try the train.

If you're thinking about a car trip but balking at the skyrocketing cost of fuel, consider Amtrak as an alternative. Especially on the coasts, where the cost of gasoline is always higher than in the interior of the country, this can make a lot of financial sense.

For example, let's say you're thinking about driving from Los Angeles to Seattle with your spouse and two kids in the only car that makes sense for a long trip: your SUV. That's 2,270 miles round trip. If you presume that the average cost of fuel for your trip is going to be about $3.80 per gallon, and your SUV averages 18 miles per gallon on the highway, you're going to spend about $480 on gasoline just getting there and back, and that's without considering side trips and the cost of lodging.

Taking the same trip on Amtrak would cost about $700, but since you're also sleeping on the train and getting there in less than two days instead of the four or five it might take you to drive, you'll save big on lodging costs. You also don't have to worry about the hassles and fatigue of long-distance driving, and you're putting less carbon into the atmosphere.

3. Choose pedestrian-friendly destinations.

This one goes hand-in-hand with taking the train. Save hundreds on a rental car by traveling to a destination that's ideal for walking and has good public transit.

My own town, New York City, is an obvious choice for walkers because of the extensive subway system, but cities like San Francisco with its BART line; Portland, Ore., with its MAX light rail; Boston with its "T" lines; and Chicago with its El are also easily cities to navigate without ever stepping into a car.

Of course, European destinations like London and Paris have incredible subway systems, and you can always rely on taxis if you need to get somewhere by car. Or simply visit more compact cities like Portland, Maine; Madison, Wis.; or Santa Fe, N.M., where everything is within an easy walk. Avoiding car rental could save you $500 on a weeklong trip.

4. Travel where the dollar stretches.

Because of the weak dollar, most of the major destinations in Europe are ruinously expensive for Americans right now. London, Paris, Rome -- they're all budget-breakers because the Euro and the pound are pummeling the greenback. However, there are still many great destinations where the dollar packs a punch and you can get an incredible experience for a reasonable amount of money.

Nicaragua is much cheaper than its formerly inexpensive neighbor, Costa Rica, but along with $2 beers and $5 dinners you get the same gorgeous scenery, crystalline water, and the relaxed Central American pace. Vietnam can cost 30 to 40 percent less than a comparable Thai resort, the people are incredibly friendly, and the street cuisine is some of the best in the world.

Hungary is one of the great European countries, with the Danube, the divided city of Budapest, and a wonderful wine region; since it's not yet on the Euro, however, dollars can still buy a lot of paprika beef and local beer. Morocco is yet another exotic destination where cheap local currency translates to rich travel, and you can save even more by discovering the amazing ancient markets in cities like Marrakech and Casablanca.

5. Get creative with lodging.

Rather than staying at a major chain hotel like Hilton, Hyatt, or Marriott, why not consider more innovative options? For example, bed and breakfasts throughout the country offer great rates that often beat the major chains, along with other money-saving promotions. Visit BedandBreakfast.com for a list of locations offering the "tanks a lot" program, where visitors get free gasoline with their stay.

If you're adventurous and don't care about amenities, try youth hostels. These backpacker-friendly lodgings are clean, safe, and usually full of interesting folks from all over the world. Many offer private rooms for four or more people for as little as $25 a night. Try Hostels.com to find hostels anywhere.

Finally, consider a house exchange, where you and another family in a place you'd like to stay swap homes for an agreed-upon period. You stay in theirs, they make themselves at home in yours. You'll have to list your home on a website like HomeExchange.com for $100 or so, but that will be your only lodging cost other than food. Other sites to check out are HomeLink International and INTERVac.

6. Pay for a kitchen.

If you're staying in a hotel, pay a little extra to get one with a full kitchen, especially if you're going to be at your destination for a while and you have kids.

Being able to buy food from local stores or farmer's markets and prepare fresh meals in your hotel room kitchen can be a huge money saver. It also keeps you from constantly pulling out the credit card at expensive local restaurants.

7. Find someone to take you on a tour.

Tours of a destination from a local tour company can get expensive, as the tour operators sell you on extras or hit you with "surprise" fees. So if you're staying at a bed and breakfast, why not ask the innkeeper to take you on a tour of the town in exchange for a fine dinner? Or in a bigger city, offer a local merchant $25 to guide you around the great local neighborhoods after he or she closes her store.

This has so many advantages beyond saving money I can barely list them all: meeting local people, getting a taste of the area from a local's perspective, making new friends, avoiding the hard-sell from tour guides, and being surprised by sights you'd never have seen on a package tour.

8. Stay close to home.

When the cost of gas, the rigor of air travel, and the hassle of packing up the kids is just too daunting, consider staying home and discovering nearby attractions you may never have seen.

Tape a map of your metro area to a dartboard. Once a month, throw a dart at the map. Wherever the dart lands, that's where you go that weekend to explore, even if you've been there before (the obvious exception is areas that might be dangerous). You can still make some amazing discoveries in your own backyard, spend quality time with family, and recharge your batteries -- not to mention save a bundle of cash.

Now get out there, travel smart and creatively, and if you come up with more great "travel rich" ideas of your own, please share them in the comments section.

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99 Comments

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  • linus - Tuesday, February 3, 2009, 7:16AM ET  Report Abuse

    • Overall: 2/5

    Sometimes you must live a little. Money does not rule life.

  • Kevin - Monday, February 2, 2009, 5:41AM ET  Report Abuse

    • Overall: 1/5

    Sorry, I love your advise on saving but now is not the time to be encouraging people to go on a cheap vacation. A good article on how to save money on a vacation should say, "If you have to read an article on how to save money on a vacation, than you cannot afford to go on a vacation." Now that deserves 5 stars

  • Mach - Wednesday, January 21, 2009, 11:31AM ET  Report Abuse

    • Overall: 1/5

    This article sucked! www.wallstclothing.com

  • Fillup - Tuesday, January 13, 2009, 3:21PM ET  Report Abuse

    • Overall: 1/5

    Sorry, but where is it written that you deserve a vacation. That is something you can give up to fund your health care, or your IRA or 401 fund. You can give up a vacation to reduce your credit card debt or repair a car to last another 4 years which is how long this financial nightmare may last. There are no bargains in vacations out there. Believe me I have checked. They are expensive and the fine print is everywhere. If you thinks cruises are cheap take the fare they tell you and multiply it by two because thats what it will cost you before you get off the ship. Do yourself a favor and stay home this year and reduce your debt and you will sleep better nights. If you have to save money on your vacation you can't afford it.

  • Yahoo! Finance User - Wednesday, November 26, 2008, 10:25AM ET  Report Abuse

    • Overall: 1/5

    I would NOT BUY anything for a few months; not cars, homes, stocks, or shoes. PRICES WILL COME DOWN. This GLOBAL RECESSION was a decade in the making, and it won't blow over in 2 quarters or 2 years. Stop falling for Consumerism (aka Slavery to your job and your belongings) and Hang on to your assets folks =(

  • Yahoo! Finance User - Saturday, November 8, 2008, 2:12AM ET  Report Abuse

    • Overall: 1/5

    WOW don't you guys know you get what you focus on? instead of living miserably and trying to save every penny , start getting and increasing sweet passive income by starting a part time business. Who wants to have a million bucks in their bank but is still a cheap fart looking to save at every corner??? Also, with no 7 figure passive income for true financial freedom? Look to expand your means. learn to sell. learn to market. increase your passive income. Don't even think about gambling in the stock market until you have banked your millions and mastered operating/owning businesses.

  • spinaltap58 - Friday, October 31, 2008, 9:17AM ET  Report Abuse

    • Overall: 1/5

    What we have recently seein in the Market runup is a suckers rally. Most of the major players are still sitting on the sidelines waiting for a further retreat. Of course the stock market is forward looking but we are in for a double dip recession that could very well last for several years.The Dow will suffer steep losses again and we have not seen bottom

  • michael - Tuesday, September 23, 2008, 3:25PM ET  Report Abuse

    • Overall: 5/5

    GO JESUS

  • dalef - Saturday, August 2, 2008, 8:03PM ET  Report Abuse

    • Overall: 5/5

    Some good practical advice - thanks

  • Yahoo! Finance User - Tuesday, July 22, 2008, 5:53PM ET  Report Abuse

    • Overall: 5/5

    This article gives a lot of people options that may give them a vacation they wouldn't get to have otherwise. Years ago I went on a trip and stayed at a YWCA. It ended up being one of the most interesting places I've ever stayed. The people were friendly and generous inviting me to have dinner with them in their lounge and giving me a tour of the town. I wouldn't hesitate to try some of these alternatives to the commercially advertised promotions.

  • christie - Tuesday, July 22, 2008, 4:37PM ET  Report Abuse

    • Overall: 3/5

    I just came back from a 2 week vacation in florida. The smartest thing my family has ever done as far as vacations is to purchase a time share condo. the maintainance fees are about $500 per year and I can trade my time at my home resort for one of thousands of other resorts in other places. With a family of 6, it is hard to find a regular hotel room that will hold us all and they aren't very comfortable, so we were always having to pay for 2 rooms and still not very comfortable or affordable. Well, last week I stayed in a 2 bedroom condo about 5 miles from disney, it cost me $29 exchange fee. This condo had 2 small living rooms one for the kids and one for us. one small kitchen with a fridge and microwave for the kids and one large kitchen with stove and dishwasher. Both sides had a washer/dryer, full bath and balcony overlooking the pool. There was a foyer seperating the two units making it feel like there was a lot of space between us and the kids but they were still close enough to keep a close eye on. This resort like many others we have exchanged for in the past had gas grills on property with picknick tables and lots of organized kids activities. All together, we spent about $400 for food (including eating at disney a couple of times.) We like having drinks and snacks in the fridge for the kids and limiting eat outs by fixing breakfast in the room before we go out to the parks and then coming back in the evening and fixing supper (usually steaks or hamburgers on the grill). Another great tip that I tell all my family and friends is get an American Express starwood perferred guest card. I charge every eat out, every regular bill I can, and most of all everytime I gas up my car. Very important---Make sure you pay it off in full every month to avoid finance charges. Like most credit card rewards, You get one point for every dollar you charge. The great thing about this card is that you usually get around 10000 bonus points just for signing up, and it only takes about 2000 points to stay at alot of nice Sheraton hotels. I stayed in Orlando in a suite with a kitchette which had a bedroom with two double beds and a living room/sitting area with a sofa bed. It was only 4000 points per night. Sometimes like on weekends its a little higher. A very nice place. I have been a huge fan of Sheraton Hotels for a while now. It seems that they have the friendliest people working there and they offer lots of amenities like shuttle service and laundry facilities. I have used my points from this credit card for the last 4 years to get my parents a room at the beach in June and July. I finally convinced my mother to get her own a card for our last trip. Most other programs I have tried blackout the dates that I would want to travel in the summer to popular destinations like the beach, but I have never had a problem using these points. On July 4th when my parents decided to join us in Orlando and called me that day to tell me they were on their way and see if I could get them a room I thought theres no way, but I went down to the front desk and asked if I could possibly get a room for them with points for that night and they had no availability. I went back to my room and started looking in the phone book for hotel close to us to call and check availability. By the time I got back to my room the reservations desk had called to tell me that they had found me a room. There were people in the lobby wanting a room and willing to pay for any room available and I thought it was absolutely awesome that I could get the room with points. So needless to say I think its a great program. I also used the points I had left over to buy a gift card for Olive Garden for a free dinner. You can use them for alot of different places. Free place to stay and a free meal, can't beat that.

  • Yahoo! Finance User - Friday, July 11, 2008, 3:44PM ET  Report Abuse

    • Overall: 2/5

    Some okay ideas, but if you really want to save on transpo, try megabus.com. Service isn't everywhere, but I looked up info for a trip from Madison, WI to MPLS, MN and one option was for $1!!! And I live in Madison, WI and it's only walkable downtown. The other areas with malls and typical stores like Barnes and Noble are not walkable. Come to think of it, downtown can be crazy with construction and bad drivers, especially when the college kids move in, or jacked up rates during a home football game. Maybe the best way to save on vacation is to not go now when the dollar is so weak!

  • Jose - Wednesday, July 2, 2008, 7:56PM ET  Report Abuse

    • Overall: 4/5

    Good advice to avoid overspending. Another good point is to invest in making your home a more enjoyable place... gym room, arts and crafts, sauna, whirpool... etc. Therefore you can enjoy the "vacation feeling" all year round and for many many years. Spend and invest in yourself... you and your family are worth it.

  • hair - Wednesday, June 25, 2008, 4:54PM ET  Report Abuse

    • Overall: 5/5

    I've read your books and I love the advice /choices you give your readers/viewers I really appreciate this knowledge and am on my way to becoming an automatic millionaire. thx.

  • Lew - Saturday, May 31, 2008, 5:58PM ET  Report Abuse

    • Overall: 3/5

    While the article might have been not all that insightful, there sure are a lot of down right nasty comments posted. Maybe those folks need a vacation more that they know.

  • Doreen - Tuesday, May 20, 2008, 5:46PM ET  Report Abuse

    • Overall: 4/5

    Decent, but not enough examples.

  • Skippy - Monday, May 19, 2008, 3:35PM ET  Report Abuse

    • Overall: 2/5

    Amtrak is notoriously late, and should never be used if you are on a schedule or want to get back to work on time. Some cross-country trains arrive as much as an entire day behind schedule.

  • Yahoo! Finance User - Thursday, May 15, 2008, 9:16AM ET  Report Abuse

    • Overall: 5/5

    Excellent article. It is great to hear we are awakening to RATIONal spending habits. Unlike the government who has taken a loan out in the name of stimulus that our kids will have to pay back. Debt caused our economic problems and we solve it with more debt? For those ready to get a grasp on their finances, a budget is a must. We must know where we are and where we are going with our finances. If you are ready for that, here is a FREE, online, budgeting tool that is amazingly simple and better than any others on the market: http://www.checkthebudget.com

  • SexiBabe691 - Tuesday, May 13, 2008, 1:57AM ET  Report Abuse

    • Overall: 1/5

    The most stupid article I have read on cheap travel. 1. Train = significantly more time travelling than actually enjoying the holiday 2. Cook yourself = travel is to try new things 3. Stay near the home = why not stay IN the home What things I do? 1. Try travelling in groups, sharing rooms help, splitting meals helpe 2. Book way in advance 3. If you travel a lot for business, try using your miles 4. Try travelling where your friends stay and do an exchange of house? 5. Try and carry clothes that wash easy or use laundry outside the hotel 6. Fly budget airlines (d9nt take the trains) Its a holiday, enjoy, and dont make it into some stupid experience by taking train and cooking your meals. Might as well stay at home then!

  • Yahoo! Finance User - Monday, May 12, 2008, 7:07PM ET  Report Abuse

    • Overall: 1/5

    ginoreza@sbcglobal.net is correct. Unless there are problems, there will be no invention. Some one who bad mouthed ginoreza@sbcglobal.net is really nuts. That person doesn't know the basic thing 'Neccessity is the mother of invention'. This article makes no sense - when I really ant to go to Thailand I want to go to Thailand - not Vietnam. Please provide tips on saving while I'm in Thailand or point me to some travel agent who can give me a good deal.

  • Yahoo! Finance User - Monday, May 12, 2008, 4:15PM ET  Report Abuse

    • Overall: 3/5

    May we ponder why NOT putting more carbon into the air is "disgusting"? This is according to the commentor "ginoreza@sbcglobal.net"... Excuse me sir or madame, but are you quite possibly developmentally disabled?? That's a politically correct way of asking if you are effing retarded!! I'm so disgusted by your ignorance, there are no words.

  • Chucky Gee - Monday, May 12, 2008, 11:56AM ET  Report Abuse

    • Overall: 3/5

    Good, but you missed a major problem with train travel. Once you get there, what then? We like the convenience of a car to tour the local area, see the sights, and go where the locals go - really get to know the area. BUT, car rental booths are rarely found at train stations. I've had to take a cab - not cheap - to the Airport just to rent a car for the few days we'll be in the area, and then have to drive bact to the train station to ge tthe family (of 4) and our baggage, or pile everyone into the cab for the ride to the airport. You also didn't factor in the cos tof wear-n-tear on the family vehicle when taking a road trip - it's not just the cost of gasoline - I usually double that cost to try to factor in the actual cost considering wear, depreciation for mileage, etc.

  • Yahoo! Finance User - Monday, May 12, 2008, 11:28AM ET  Report Abuse

    • Overall: 1/5

    First I agree that these are simple things that A LOT of people already do! Second..how can he tell me to go to Morrocco and Vietnam in one paragraph then a few scrolls down the page he advises me to stay in my immediate metro area...any of you have a townhome in Budapest? I dont...

  • Yahoo! Finance User - Monday, May 12, 2008, 10:28AM ET  Report Abuse

    • Overall: 5/5

    This article will be most appreciated by those who have learned that it's the simple things that bring the most satisfaction in life. To live in gratifute of whatever one can afford can make a budget vacation as joyous as it really is.

  • JAMES - Monday, May 12, 2008, 10:20AM ET  Report Abuse

    • Overall: 1/5

    This is stuff that I already do. I walk to the store, post office, to buy small items (milk, bread, etc.). However, your comment about not putting more carbon in the air is disgusting. Tree huggers like you is what has made gas go up. No refineries built, no drilling in our country. We need to elect politicians who want to drill for oil here in our country.

  • Yahoo! Finance User - Monday, May 12, 2008, 9:53AM ET  Report Abuse

    • Overall: 2/5

    Per #2: isn't the problem really that folks are driving gas-guzzling SUVs in the first place? :)

  • Yahoo! Finance User - Monday, May 12, 2008, 9:51AM ET  Report Abuse

    • Overall: 1/5

    I have to agre with the majority of the readers, your not giving us any info. that we didn't already know. I feel that you really didn't put much effort into doing this topic.

  • Yahoo! Finance User - Monday, May 12, 2008, 9:25AM ET  Report Abuse

    • Overall: 1/5

    Really? come'on...we know this stuff, what we really needed was something useful, like how to find the great local deals instead of telling us stuff just about everyone already knows.

  • Kim - Monday, May 12, 2008, 8:12AM ET  Report Abuse

    • Overall: 1/5

    Thank You MR.Obvious, Why don't we pitch a tent in our yard?

  • Melissa - Monday, May 12, 2008, 6:53AM ET  Report Abuse

    • Overall: 2/5

    Agreed that there were not any novel ideas here for travel bargain secrets, and that ideas like trying a bed and breakfast for economy's sake will certainly backfire-you are totally left out of coupon or discounting opportunities available through the chains. I gave him more than one star simply because he cited my personal travel favorite with kids-booking at the suite chains with a kitchen, as well as weekday evening meal and complete hot breakfast buffet daily. I sponsor a travelling youth basketball team (currently scurrying to try to find resources so they can make their national tournament spot they've earned in MN), and it is incredible how much savings can be had by spending $20 extra per night at one particular chain. With 4 to a room, the chain's free laundry policy (have to wash those jerseys at least daily!), the 2 free meals (this will depend upon your/our schedule during the day as to whether you can take advantage of these), the workout room and indoor pool, and being able to fill the fridge with store-bought Gatorade & bottled water and snacks, and free shuttle from the property to local attractions, the savings are incredible. Keep the big picture in mind.

Showing comments 6-35 of 99<< PreviousNext >>

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