Beat the Heat: How To Budget for Summer Vacation (2024)

Tips for Planning a Summer Vacation on a Budget

Without doing the math up front, your summer vacation could easily set you back. But it’s possible to calculate a reasonable budget. Here are a few tips to save money, while still allowing room for fun.

Gather Research About Your Destination

It’s a well-known fact that some places are more expensive than others. It’s important to understand the true cost of your destination before committing to a trip there.

“Do your research. Know your costs and add a cushion for unforeseen events,” said Andrew Coggins, business professor at Pace University. He advised that people can take advantage of real-time info available on the internet as a preliminary travel hack.

If the costs of your ideal destination seem out of reach, it might be a good idea to settle for somewhere cheaper.

According to a study conducted by the U.S. Bureau of Transportation Statistics, 98% of long-distance travel in the United States happens domestically. So don’t feel too left out when you see those few lucky friends going abroad this year. “Don’t be influenced by social media and the ‘extravagant vacations’ you see your friends and acquaintances taking — it is never as perfect as the pictures,” said Virginia D’Antonio, psychology and sociology lecturer at the University of North Alabama.

Book Travel in Advance

The prices might be exorbitant if you look at airline tickets a few weeks out. But when anticipating a vacation early, you might be surprised by the deals you can find. According to a pricing forecast from travel app Hopper, airfare through April remained lower than it was last year. But around May, prices started to rise as people finalized summer trips. Prices are set to drop off towards the end of August, so it’s good to be proactive for those planning their trip during the busy season.

“We used to travel days ahead of a spring or winter break, so it wasn’t on a Friday night or early Saturday morning. We’d have to miss a day or two of school, but the hassle-free cost savings was worth it,” said Suzanne Bagnera, tourism professor at Florida International University. She said she feels the increasingly common ability to work remotely allows more flexibility with dates, accommodation and ticket prices.

Book Outside of the Season

Who said vacations have to happen when it’s warm out? Many attractions are open year-round, and there is a quiet charm that can be discovered during less popular travel months.

“Thinking forward, try some places in the off-season. We love the beach in the fall and winter,” said Robert O’Halloran, a business professor at East Carolina University. He also suggested that families consider outdoorsy options such as state forests and national parks, where affordable beauty can be found 365 days a year.

It might also be wise to consider an off-season road trip. According to a study from the U.S. Bureau of Transportation Statistics, the number of vehicle miles traveled slowly rises through the summer, before tapering off until the winter holidays. Traveling by car can save you money and spare you airport anxiety, shaving stress off the journey.

Use Credit Card Rewards

Certain credit card rewards programs offer ways to make travel more attainable. Loyalty programs can help you pay for expenses like hotels and airfare with rewards instead of cash. But take care not to run up a monthly bill you can’t pay: Interest charges on unpaid balances can quickly outweigh any of the benefits you’ve accrued.

For example, with a $550 annual fee, the Chase Sapphire Reserve Credit Card isn’t exactly cheap, but the benefits may be worth the upfront cost for those who travel frequently. When purchased through Chase Travel, users can earn five times the total points on flights and 10 times the total points on car rentals.

Capital One offers a few solid options, including the Quicksilver Cash Rewards Card and the Venture Rewards Credit Card. The Quicksilver Cash Rewards Card allows you to earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, which grants you access to improved prices on trip options. The Venture Rewards Credit Card allows you to earn twice the miles on every purchase, and offers a one-time bonus of 75,000 miles.

American Express offers a range of options for Delta SkyMiles cards, which allow users to start earning perks as soon as they have signed up for a SkyMiles membership.

Map Out The Cost Of Your Trip

There are many factors to consider when preparing a vacation budget. The infographic below breaks down the costs that a family of four might expect on a visit to Virginia Beach.

Once you have an idea of the cost of your trip, you can start setting money aside in a high-yield savings account to pay for it.

Start Saving Early

If you’re asking yourself, “How can I travel cheaply in the summer?”, one solution is to commit to travel at the start of the year and set aside money slowly. “Before making vacation plans, individuals should seek out the information necessary to make informed decisions, and when possible, they should plan their vacation and travel months in advance,” said Meredith David, marketing professor at Baylor University. Putting a bit of each paycheck aside over time instead of blowing an entire month’s earnings on a getaway isn’t just practical — it helps give you something to look forward to.

*Please note: this is a recommendation of things to consider when budgeting. It is not meant to account for all costs you may encounter on a vacation.

Cut Down On Spending While On Vacation

Once on your trip, you might feel bombarded by hefty price tags. Here are a few pieces of advice from our experts to reduce spending and save money as you sightsee.

Set A Strict Budget For Souvenirs

While admission to the attraction you hope to visit might not break the bank, a trip to the gift shop could be what puts you over the edge. After mapping out the cost of essentials, it’s wise to note how much money you have left over in your budget for trinkets and merchandise.

Bagnera said you should ask yourself in the moment: “While you might want to splurge for the memory, how many times will you really wear that sweatshirt?” She recommended keeping loose change, since a penny press can provide the rush of making a purchase for a fraction of the cost.

Prioritize Cheap or Free Activities

Most cities have free museums and parks. A walk around a new neighborhood can offer an architecturally interesting experience or a glimpse at local life.

More remote areas may offer proximity to national parks or free beaches, where you can spend time resting or exercising outside. “Recently, my friend and I took our collective four kids in an RV across four states to a state park campground. This method of transportation served as our hotel and kitchen for meals,” Bagnera said.

Avoid Eating Out for Every Meal

Speaking of eating on vacation, it’s smart to plan to cook for yourself. While getting a feel for local restaurants can be an important part of travel, it’s good to make a few meals yourself, too. Staying at an Airbnb usually means access to a kitchen, and eating in can cut costs.

“I’ve seen so many people not plan for the cost of food — whether restaurant or grocery store — in various locations,” said Kevin Nelson, tourism professor at Western Colorado University. “Prices are so easy to find online, and we should be prepared for those costs before we make the trip.”

Purchase Mid-Week Flights

Flight prices soar on certain days, but they’re often more reasonable at less bustling times. According to Experian, the cheapest days to fly are Tuesday, Wednesday and Sunday. Flying early in the morning or in the evening can also be a way to cut the cost of a ticket by hundreds of dollars. If work allows, structuring your trip between two weekdays can be a way to set more money aside for fulfilling activities.

A study from Hopper showed that prices fluctuate near the start of the summer months, before tapering off in August, so book that ticket as early on as possible.

Our Conclusion

Travel costs are high, but there are some hacks that can allow you to take a vacation worry-free.

Brush up on destination costs, and consider reverse-engineering a trip around a cheap location or an off-season. Flying in the middle of the week can be a game changer, and taking a road trip can be even better. Setting aside money over the course of the year can give you something to look forward to, and make for less of a hefty splurge in the moment. Enrolling in a credit card rewards program can pay dividends over time.

With research and preparedness, that dreamy escape is well within your grasp.

Our Experts