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How to Save Money for Travel

11 min read
Last Updated: October 15, 2025
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Key Takeaways

  1. To build your vacation fund, consider your dream vacation goals and how much money you may put into a vacation savings account.

  2. Travel credit cards may allow you to redeem travel rewards for flights, hotel bookings, or other travel expenses.

  3. You may save money by traveling during off-peak times, flying midweek, or booking a travel package that includes airfare, hotel, and a rental car.

If you’ve looked at photos of luxurious vacations in stunning locations on social media and thought dreamy vacations are out of reach, think again. No matter your destination, booking flights at the right time, looking for deals, and redeeming credit card rewards for travel purchases may help you save money on your adventure.

 

By using a vacation budget and building a travel fund, you may treat yourself to a lovely getaway without emptying your bank account.

How to save money for a travel fund

Saving up for your dream vacation may seem intimidating, but with a little financial planning, you may achieve your savings goal sooner than you expect.

 

Consider keeping your travel fund in a separate savings account with a high interest rate. That way, you can keep track of your travel savings and make adjustments as needed. Plus, it’s harder to dip into your vacation savings when they’re in a dedicated savings account.

 

A thoughtful budget may help you plan your dream vacation and keep travel costs under control.

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Set a travel savings goal

To begin building your travel fund, set a savings goal with specific travel expenses in mind. Make sure the figure you come up with accounts for the following:

 

  • Travel costs, including baggage fees if you’re flying or gas prices if you’re driving
  • Accommodations 
  • A resort fee, if applicable
  • Food and drinks 
  • Excursions and activities 
  • Transportation at your destination, like taxis or rideshares 
  • Shopping 
  • Travel insurance 

 

Of course, the longer your trip, the more you’ll want to save. Depending on your destination of choice, some seasons may also be more expensive than others.

 

Next, set a monthly savings goal. To determine how much you may regularly put into your vacation savings account, add up all your expenses—like rent, groceries, streaming services, and bills—plus other monthly savings or investments. Subtract that amount from your net income. If you deposited the remainder into your savings account each month, how long would it take for you to afford your dream trip? If the answer is “too long,” consider cutting some expenses or sticking to a tight budget.

 

If you receive any extra cash, like a birthday present, consider putting at least half toward your vacation fund.

 

You may even want two separate savings accounts for a short- and long-term travel goal. For example, you may want one account if you’d like to spend a summer in Europe in the next five years, and another account to save for a long weekend at the beach in the next six months.

Use your credit card rewards for travel expenses

Your credit card rewards may supplement your travel budget. If you have a travel credit card, you may be able to redeem rewards for airfare or hotel bookings. Depending on your credit card issuer, you might also be able to exchange rewards for a statement credit to cover other travel expenses, like a rental car.

With the Discover it® Miles card, earn 1.5x Miles on every dollar of every purchase. Turn Miles into cash. Or redeem as a statement credit for your travel purchases like airfare, hotels, rideshares, gas stations, restaurants, and more.2

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To make the most of your travel credit card rewards, try to repay your balance in full each month and avoid missing credit card payments. If you accrue a high balance, interest charges may offset the value of your rewards.

How to save money on flights

Whether you’re traveling across the country or around the world, airfare likely accounts for a significant portion of your travel costs. Fortunately, a few tricks and strategies may help you save on flights.

Pick your destination based on airfare

Instead of choosing your destination first and then searching for a cheap flight, try to identify some locales with affordable airfare that align with your travel preferences. For example, if you know you want a luxurious beach vacation but aren’t picky about the specifics, you may choose the tropical island with the most affordable airline tickets for your upcoming trip.

Save money by traveling off-peak

Traveling during the destination’s peak season is often expensive and crowded. You might save serious cash by booking your dream vacation before or after the peak. Just be sure to research your destination’s climate during the off-season so you’re not stuck with bad weather during your trip.

Fly midweek

Airline costs may fluctuate throughout the week. For example, Sunday flights may be costly as travelers begin or end their vacations. But fewer people may fly on Thursdays or Wednesdays, which may sometimes mean lower fares.

Plan your flights ahead

Because flights fluctuate in cost so much, you may want to start watching ticket prices long before your trip. Many trip-planning websites allow you to set price alerts for chosen destinations. And some airlines offer discounted rates for taking connecting flights instead of nonstop.

 

You might even be able to include your hotel room and car rental reservations with a flight deal package that costs less than it would if you had booked each element separately.

Watch for savings within 24 hours

U.S. law requires that airlines allow you to cancel your booking within 24 hours of making a reservation. So, if the flight you booked last night suddenly drops in price, you may be able to cancel your booking and buy tickets at the lower rate.

Did you know?

Introductory offers may boost rewards on your travel credit cards. For example, at Discover®, we’ll automatically double all the miles you’ve earned on your credit card at the end of your first year. There is no limit to how much we’ll double.3

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How to save money on hotels

Accommodations can make or break a vacation, but they don’t have to cost a fortune. A few money-saving tips may cut the cost of your stay.

 

  • Don’t be afraid to ask hotel staff about promotions or specials when you book.
  • If possible, book your trip during an off-season. You may snag a three-star hotel at a one-star price. 
  • Browse travel websites for opportunities to bid on bookings or secure low rates. 
  • Feeling spontaneous? Try booking a room at the last minute to take advantage of cancellations. 
  • If you see a great hotel rate online, ask the hotel to match it. 
  • Join your favorite hotel chain’s loyalty program to access exclusive rates and perks. 

Save money by skipping the hotel

Avoid hotel up-charges by avoiding the hotel altogether. You may be able to find a better deal on a vacation home rental through an app. Plus, you might save money by spending a few nights of your trip enjoying dinner or drinks in the comfort of your luxurious vacation rental.

Ways to save money when you travel by car

A road trip may be the best option for some cost-conscious travelers, but driving may come with its own costs. The following tips may save you money on the open road.

 

  • Take your car in for a tune-up before you leave—no one wants to deal with a costly emergency repair on vacation.
  • Pack a cooler with snacks, sandwiches, and drinks so you don’t have to stop for expensive food on the road.
  • Plan your route carefully. Look for opportunities to cut down on tolls or gas.
  • Use apps and online tools to map out affordable parking spots at your destination before you leave.
  • Fill up your tank outside of major cities to avoid higher gas prices.
  • Use a credit card that rewards gas station purchases when you buy fuel.

Ways to save money on other travel expenses

Saving money doesn’t have to mean missing out on the fun or relaxation. Consider the following tips and tricks to make the most of your vacation, even on a tight budget.

Account for dining in your travel budget

Don’t forget to include dining in your travel budget. From local delicacies to gourmet restaurant experiences, food is often at the heart of travel. With careful planning, you may enjoy all the delicious smells and tastes your destination has to offer.

 

Consider splurging on one or two expensive dinners on your trip and sticking to more affordable options the rest of the time. Or ask locals about affordable gems most tourists overlook.

Cook your own meals

Dining out isn’t your only option. If your hotel room or vacation rental comes with a kitchen, pick up some groceries at a local grocery store. Preparing a few meals at your home away from home may save you a lot of money. When you shop local, you may still enjoy some regional ingredients.

 

If you carry water and snacks with you throughout your adventures, you may avoid spending extra money on overpriced water bottles and food during the day.

Use public transportation

Taxis or rideshares may make a real dent in your budget if you don’t plan on the cost. But if you’re staying in a city with reliable public transportation, you may be able to save money by exploring via train, subway, bus, or even ferry. Plus, getting around on public transit may give you a unique perspective on a region that you might miss in a car.

 

On top of that, walking is a free and easy way to explore every nook and cranny a city has to offer, extending your travel budget even more.

Go all-inclusive

Travelers who have a hard time sticking to a budget may want to opt for an all-inclusive vacation, where meals, activities, lodging, and some amenities are typically included in the package or resort fee. An all-inclusive vacation package may cost more upfront. But you might save money by avoiding unnecessary expenses. Plus, it’s often easier to budget when you know how much you’ll spend on your trip before you even leave home.

 

If you opt for an all-inclusive trip, you may want to buy travel insurance to protect your money, in case you have to cancel your trip for any reason.

Don’t let shopping derail your travel budget

Shopping can feel like a travel treat that may allow you to experience a different aspect of your destination. But if you’re not careful, it may break your travel budget.

 

Set a shopping budget for your trip and stick to it. If you’re travelling internationally, be sure to account for the exchange rate and research the least expensive ways to exchange cash.

 

For credit card purchases, keep foreign transaction fees in mind. Discover® has no foreign transaction fee, but other credit card issuers may charge you for purchases in another currency.

 

Instead of buying souvenirs at pricy boutiques, look for markets where you may find unique local gifts and lower prices.

Save money on popular attractions

Museums, shows, theme parks, and other attractions may seriously increase the cost of your travel. As you plan your trip, look for discounts.

 

You may save money if you book well in advance, for example, or if you’re a AAA member. Students, seniors, and military members may also qualify for discount tickets.

How to save money on cruises

If you want to hit the high seas on a cruise, start by researching the most affordable cruise lines and the best times of year to book.

 

Your boarding location may significantly impact your costs. Flying across the country to board may not make sense if you live close to the coast and can board the ship closer to home.

 

Cruises often offer a range of packages at different prices. Take the time to read the fine print and compare your options carefully. The least inclusive package may cost less initially, but you may end up spending more on additional onboard expenses like food and drinks.

The bottom line

Whether you want to explore the rainforest, sip a drink on the beach, or sight-see across Europe, your dream vacation is within reach. By setting a realistic savings goal and sticking to your budget, you may satisfy your wanderlust without breaking the bank.

 

One last tip to keep in mind: Before you travel, be sure to inform your banks and credit card companies that you’ll be accessing accounts from unusual locations. Otherwise, a charge on your credit or debit card from a foreign merchant may set off fraud alerts. Discover makes it easy to register your travel plans online or through our mobile app.

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