Don’t overpay for your summer vacation: 8 mistakes to avoid

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Enjoying a summer vacation doesn't have to cost an arm and a leg. Yet, many Americans appear more than willing to spend what it takes to plan the perfect family trip. For a one-week vacation in the U.S., the average cost for one person was $1,984 in 2023, up $400 from the year prior. For two people, that average cost rises up to $3,969. 

While there's nothing wrong with investing in memories, many travelers are overpaying for their summer trips. To help you stretch your travel budget without compromising on fun, we've found eight pitfalls to avoid as you plan your 2024 summer escape. 

1. Booking at the last minute

It's a common misconception that booking close to your departure date will yield the best deals. While you may occasionally find a last-minute deal, waiting until the eleventh hour often results in higher prices and limited options.

To secure the best prices and ensure a wider range of options, plan your travel well in advance. For flights, booking between one to four months ahead of your travel date is generally smart, depending on your destination and time of year. 

2. Being inflexible

Flexibility is key when it comes to finding the best travel deals. Some people have rigid travel preferences, such as only flying on weekends, staying in a particular hotel chain, or visiting a destination during peak season. This inflexibility can result in paying premium prices and missing out on potential savings.

To save money, Mercedes Zach, travel agent at ASAP Tickets, suggests flipping the script. Start by comparing flight costs across multiple destinations for your desired timeframe. 

"That offers you more flexibility and allows you to save on airfare that tends to get expensive around specific dates and especially during the busy summer months," she says. "Plus, this approach also gives you a chance to visit less popular destinations that are usually harder to reach or that you wouldn't even consider going to."

Be open to alternative travel dates, destinations, and arrangements. Flying on weekdays, particularly Wednesdays and Thursdays, can often result in lower fares.

Consider traveling during off-peak seasons, when prices are generally lower and crowds are smaller. Be willing to explore alternative accommodations, such as vacation rentals or boutique hotels, which may offer better value than big-name chains.

3. Booking travel a la carte

Another common misstep, says Zach, is booking each component of your trip individually. 

Many people default to booking flights, hotels, and rental cars separately, believing that they'll find the best deals this way. But this approach can be time-consuming. You may also miss out on package discounts or promotions.

Consider searching for all-inclusive holiday packages and bundle deals. These can streamline the booking process and often come with built-in discounts. All-inclusive resorts, which typically cover meals, drinks, and entertainment, can also be a smart choice for families looking to control costs.

"If you combine all the daily meals and activities for the whole family together, this option will help you save quite a lot of money at the end of your trip," Zach says.

If you prefer booking separately, use price comparison websites to ensure you're getting the best deal. 

4. Failing to shop around

Loyalty has its perks, but don’t let it blind you to better deals, says finance expert and author Matt Schulz. 

"Loyalty to an airline, hotel, or rental car company can be helpful if you have status, but it can also cost you if you're not willing to comparison shop every once in a while," he says. 

Some travelers book through the first website or provider they find, assuming that prices are consistent across platforms. 

Before defaulting to your usual providers, take the time to comparison shop. Even a modest price difference can add up quickly for a large family. 

Use price comparison tools to quickly see the best deals across different platforms. Don't forget to check the official websites of airlines, hotels, and attractions. They may offer exclusive discounts or promotions not available on third-party sites. 

5. Not having a travel budget

One of the most effective ways to avoid overpaying for travel is to stick to a well-defined vacation budget. Without a budget, it's easy to overspend on various aspects of your trip, from dining out to activities and accommodations, says consumer finance expert Andrea Woroch. This also includes smaller items like snacks and souvenirs.

"Most don't plan for these costs in their overall summer trip budget, but they add up quickly if you aren't paying attention," she says.

Before your trip, create a detailed budget that accounts for all anticipated expenses, including transportation, accommodations, food, and activities. Research costs ahead of time to ensure your budget is realistic.

You may also want to look for ways to save without sacrificing fun. This could include opting for accommodations with kitchenettes or packing your own food.

During your trip, track your spending and adjust your budget as needed. Consider using budgeting apps or spreadsheets to help you stay organized. You don’t need to be super strict with your tracking — you’re on vacation, after all! — but having an idea of how much your vacation will cost can help you avoid headaches down the road. 

6. Not being strategic with credit cards

Travel credit cards can be a powerful tool for saving money and earning rewards on your travel purchases. But many travelers fail to use them to their full potential. This could mean missing out on rewards by not using a card tailored to travel or neglecting to redeem points and miles for trip expenses.

Jason Gaughan, head of consumer credit card products at Bank of America, emphasizes the importance of choosing a flexible travel credit card that aligns with your needs. Some cards offer perks like free checked bags or priority boarding, which can add up to substantial savings.

Make sure you’re using a credit card that aligns with your spending habits and travel plans. Look for cards with generous sign-up bonuses, high earning rates on travel purchases, and valuable perks like travel insurance or airport lounge access. 

Use your travel card for all eligible purchases to maximize your rewards, but be sure to pay your balance in full each month to avoid interest charges.

7. Paying credit card interest

Carrying a balance on your card and paying interest can quickly offset any rewards you earn.

Treat your credit card as a tool for earning rewards, not as a means to finance travel expenses you can't afford. Charge only what you can pay off in full each month, and make payments on time to avoid interest charges and late fees.

If you do find yourself with a balance, focus on paying it off as fast as possible to minimize the financial impact. Consider setting up automatic payments or reminders to help you stay on track.

8. Stocking up on souvenirs

Once you've arrived at your destination, it's easy to get swept up in the vacation spirit and loosen the purse strings. Souvenirs can be a great way to remember your travels — but they can also be an expense that quickly adds up if you're not mindful of your purchases.

Many travelers fall into the trap of buying souvenirs impulsively, often paying inflated prices at tourist shops.

Before your trip, set a budget for souvenirs and stick to it. Consider the practicality of the items you're purchasing – will they be used and appreciated, or will they end up collecting dust on a shelf? 

Don't feel obligated to buy gifts for everyone. Instead, focus on a few meaningful presents or consider sharing your travel photos and stories as a way to include others in your experience.

The bottom line 

Summer travel is an opportunity to create priceless memories with your loved ones, but it doesn't have to come at an exorbitant cost. By sidestepping these common pitfalls, you can stretch your dollars without compromising on fun.

A little advance planning and flexibility can go a long way in securing the best deals. By setting a clear budget, maximizing credit card rewards, and resisting the temptation to overspend, you'll be well on your way to a summer getaway that's both memorable and financially smart. 

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.