The holidays should be all about reconnecting with loved ones, not hurting your bank account. Between gift shopping, family gatherings, and skyrocketing travel prices, it’s easy to feel like you’re spending more time worrying about your budget than enjoying your trip. The truth is, you don’t have to overspend to have an unforgettable holiday vacation. You just need to plan smartly and travel with intention. Here are a few ways to do that:
1. Start with a plan (and an honest budget)
The easiest way to save money is to know what you’re working with. Before you start booking anything, decide how much you can comfortably spend. Break that number into categories like flights, lodging, food, and fun. And make sure to add some padding for unexpected expenses.
The trick here is to set your total budget first, then plan your trip around it. Not the other way around.
Pro tip: Open a mini “holiday travel” savings account or digital wallet through apps like Chime or Acorns. These apps allow you to deposit a small amount each week and can even invest your money for you, so by the time the holiday season hits, you’ve already built your travel fund. If you need some help tracking your expenses while on a trip, download apps like Splitwise or Tricount to easily split and track shared expenses.
2. Be flexible for real savings
A coupon code can save you some money, but flexibility can save you tons.
If you can fly out on a Tuesday instead of Friday, you might be able to save a few hundred dollars. If you’re open to nearby airports (like flying into Oakland instead of San Francisco), you’ll often find cheaper fares and less chaos.
You can also use tools like Google Flights, Hopper, or Skyscanner to track prices and get alerts when fares drop.
3. Don’t let the little extras sneak up on you
It’s not always the big purchases that hurt. A lot of times, it’s those sneaky extra fees.
Before booking a flight, check for things like:
- Baggage fees
- Seat selection charges
- Change or cancellation penalties
Paying a few extra dollars for a more flexible ticket can save you later if plans change. And remember, many times in-flight drinks, snacks, and WiFi will cost you.
4. Rethink where you stay
Hotels in downtown, popular tourist areas are notorious for having much higher fares during the holidays. Instead, stay just outside the city center near good public transportation, if possible. You’ll spend less and often get a quieter stay.
If you’re open to something different, try:
- Home exchange or rentals: swapping homes or getting a place through Airbnb or VRBO could help save hundreds.
- Split stays: stay at a nicer spot for a night or two, then move somewhere simpler for the rest of the trip.
- Loyalty programs: use hotel points or credit card rewards you’ve been saving up. They’re worth more during high-season travel.
5. Move around smarter
Once you’ve arrived, skip the pricey taxis and use local transit. Most cities offer multi-day passes that cover unlimited rides and can save a surprising amount.
If you’re traveling with friends or family, split ride-share fares. It’s easier on your wallet and the planet.
And when in doubt, walk. Some of the best memories (and views) come from simply exploring on foot.
6. Protect your trip with travel insurance
You can plan every detail perfectly, but sometimes, life has other plans. A snowstorm cancels your flight, your luggage takes a vacation without you, or you get sick the day before you’re supposed to leave.
While travel insurance might sound like an extra expense, it could be the very thing that saves you from losing money when the unexpected happens. It’s designed to protect your plans (and your wallet) when things go sideways.
Recognized as a TIME Best Invention of 2025, Faye is reimagining what travel insurance can be: fast, friendly, and built for real travelers.
With a Faye policy, you can get:
- Coverage for trip cancellations or delays: if weather or illness forces you to change your plans, Faye can reimburse you for nonrefundable costs.
- Lost, damaged, or delayed baggage coverage: if your bags don’t make it, or something happens to them, you can be instantly reimbursed through Faye Wallet to replace what you need.
- Emergency medical coverage: if you get sick or injured while traveling, Faye can cover your medical expenses and even help with coordinating care.
- Coverage for travel interruptions: if you have to head home early for a reason outside of your control, you can be reimbursed for the non-refundable parts of your trip you didn’t get to enjoy.
- 24/7 real-time support: Faye’s customer care team is there whenever you need help, no matter where you are in the world.
- Access to the award-winning Faye app: the Faye app keeps everything you need in one place. You can track your flights, file claims instantly, keep all your important travel docs secure, purchase eSIMs for your trips abroad, access 20K+ medical professionals through AirDoctor, and so much more.
‘Tis the season for smart travels
If you take one thing from this guide, let it be this: plan early, stay flexible, and protect what you’ve worked hard to afford. From picking the right flight to having Faye in your corner when things don’t go as planned, small decisions can make a big difference.
Your next holiday trip can be joyful and affordable, and that’s something worth celebrating.
