Holiday Travel Tips: How to Budget and Save During the Holidays

By the Mercury Team

It’s the holidays, and you want to spend it with the people you love the most. But let’s be honest — the journey home can feel more of a challenge than a celebration, considering the crowded airports, busy roads, and ever-rising costs of travel. It doesn’t have to be that way, though. You can take the stress out of holiday travel and make it budget-friendly with a little planning and a few smart strategies.

Whether you’re flying, driving, or taking a combination of both, this guide is here to help you easily tackle the holiday travel season.

Planning Your Holiday Travel: Tips for a Smooth Journey

Planning ahead is the foundation of budget-friendly holiday travel. The earlier you start, the more options you’ll have to save money and avoid last-minute stress. Here are some affordable travel tips to keep in mind:

Book Early for Flights and Accommodations

Timing is everything when you’re traveling during the holidays. Airlines and hotels usually increase prices as the holidays approach due to higher demand, so book early to lock in lower rates and avoid the stress of scrambling for last-minute deals. Plus, the earlier you book, the better your chances of snagging convenient flight times, preferred seating, and lodging at an ideal location. Consider using flight comparison tools or setting up price alerts to monitor deals and grab tickets when prices dip.

Another benefit of early booking? Peace of mind. Having your travel arrangements set in stone means you can focus on other holiday preparations, like planning your itinerary or wrapping presents.

Be Flexible with Travel Dates and Times

If you want to save money on holiday travel, be open to traveling on days like Tuesday or Wednesday or at non-peak hours like early morning or late at night. These times are less popular, so companies will lower prices to fill seats and rooms. As a result, you could score great deals on flights, accommodations, and even rental cars.

Use flight comparison tools like Google Flights or Kayak to see how changing your dates by a day or two affects prices. You might find that leaving just one day earlier or returning a day later can save you hundreds of dollars. Also, If you live near multiple airports, check prices at each one. Flying into or out of a smaller, nearby airport can sometimes lead to big savings.

How to Budget for a Holiday Without Overspending

The holidays are one of the most joyous times of the year, but they’re also expensive, especially if you’re traveling to celebrate with family and friends. Let’s look at some ways you can enjoy your holiday travels without breaking the bank.

Create a Travel and Stick to It

First things first: figure out what your trip is going to cost. You can do this by breaking it down into key categories:

• Transportation: Flights, gas, car rentals, or train tickets.
• Lodging: Hotels, vacation rentals, or staying with friends and family.
• Food: Meals on the go, holiday dinners, and snacks during travel.
• Extras: Gifts, activities, and unexpected costs like baggage fees.

Once you’ve estimated your total costs, set a realistic budget for each category. For example, if you know gas prices are high this season, allocate a bit more to your transportation budget and cut back on dining out.

Apps like Mint or YNAB can make budgeting super easy. They track your spending, give you a clear picture of where your money’s going, and even send alerts if you’re getting close to your limits. Spreadsheets work, too — whatever keeps you on track!

Maximize Discounts and Rewards

Maximizing discounts and rewards can stretch your travel budget further. Here’s how to budget for a holiday trip:

• Use credit card points and rewards: If you’ve been earning travel points or cashback rewards throughout the year, now’s the time to use them. Many credit cards let you redeem points for flights, hotels, rental cars, or gift cards for travel expenses.
• Sign up for loyalty programs: Airlines, hotel chains, and some gas stations offer loyalty programs that reward you with discounts or perks. If you’re driving, look into fuel rewards programs to save at the pump.
• Search for coupons and deals: Before booking, check travel websites, apps, and your email for promotions. Sites like Expedia, Hopper, and Google Flights usually highlight deals for travelers.
• Check your auto insurance for discounts: If you’re driving, your auto insurance might offer ways to save. Mercury Insurance, for example, provides various auto insurance discounts, which could help offset travel costs. It’s worth reaching out to your provider to see what’s available.

Driving Home for Holidays: Tips for Road Trips

Road trips can be a fun, flexible, and cost-effective way to travel. Plus, they come with few perks over flying — no TSA lines, no baggage fees, and no scrambling to catch a flight. Here are some tips to help you prepare and save along the way.

Prepare Your Vehicle for the Trip

Your car is what’s going to get you from point A to point B, so you want to make sure it’s in good shape before you hit the highway. Here’s what you need to do:

• Check your tires: Inspect your tire pressure and tread. Properly inflated tires improve fuel efficiency and help prevent blowouts.
• Top off fluids: Check your oil, coolant, windshield washer fluid, and brake fluid. Refill or replace anything that’s low or overdue for maintenance.
• Pack an emergency kit: Include essentials like a spare tire, jumper cables, a flashlight, first-aid supplies, water, and snacks. A portable phone charger is also a lifesaver if you’re stranded.

Save on Fuels Costs

Gas prices can be a major expense on a road trip, but there are plenty of ways to keep those costs in check. One of the easiest strategies is to use apps like GasBuddy, Waze, or Upside to find the cheapest gas stations along your route. Some apps even offer cashback on fuel purchases to help add to your savings over the course of the trip.

Driving smart is another way to save on gas. Things like maintaining a steady speed, avoiding sudden accelerations, and reducing idling time can all help maximize your fuel efficiency. Also, don’t forget to use cruise control on those long stretches of highway.

You should also try to lighten your vehicle’s load because the heavier your car, the more fuel it burns. Pack only the essentials and leave behind any unnecessary items to improve fuel efficiency.

Ensure You’re Covered with Auto Insurance

When you’re traveling long distances, especially during the busy holiday season, having reliable auto insurance is a must. Comprehensive coverage ensures you’re protected from potential issues like accidents, weather damage, or even theft, so you have peace of mind throughout your trip.

Before you leave, check your policy to make sure you’re fully covered for your trip. If you’re looking for cheap auto insurance, Mercury offers competitive rates and various discounts that could help you save while keeping you protected.

Smart Packing and Stress-Free Travel Tips

Packing may seem like a small part of holiday travel, but doing it right can save you time, money, and stress. Here’s how to make it easier and more efficient, whether you’re flying or driving.

Pack Light and Smart

Packing light saves you from paying extra baggage fees if you’re flying, but it also makes your journey easier and more organized if you’re driving.

When packing, choose multi-purpose items. For example, pack clothes that you can mix and match for different outfits or shoes that work for both casual and dressy occasions. This will help you cut down on unnecessary bulk without sacrificing style.

Another smart strategy is packing cubes. These handy organizers keep your suitcase neat and make it easier to find what you need without rummaging through everything. Plus, they help you fit more into less space, which is especially useful if you’re sharing luggage space in a car or on a plane.

Plan for Holiday Delays

Delays are an inevitable part of holiday travel. Whether you’re waiting out traffic or dealing with a late departure, having the right essentials on hand can keep you calm and comfortable.

Make sure to pack some snacks and drinks. Granola bars, trail mix, or a few packs of crackers can be lifesavers when you’re stuck at the airport or in traffic. It’s cheaper (and often healthier) than buying food on the go. For entertainment, download movies, books, or podcasts ahead of time so you’re never without something to pass the time.

Also, don’t forget the essentials: chargers, a power bank, and any medication or toiletries you might need if your trip takes longer than expected.

Conclusion

The holidays are about spending time with loved ones, creating memories, and soaking up the joy of the season — not stressing over travel costs or delays. So take these tips, plan your trip with confidence, and focus on what really matters.

And if you’re driving this holiday season, don’t forget to check your auto insurance. Mercury Insurance offers affordable rates and discounts to help you save even more.

Contact us today for a fast, free quote!