Home for the Holidays (Not!): How to Save Money Travelling this Holiday Season

Home for the Holidays (Not!): How to Save Money Travelling this Holiday Season

 

 
While the snowy Canadian winter offers an idyllic landscape to ice skate on the Great Lakes, take in the picturesque views while skiing in the Rocky Mountains, and indulge in all the wintry fun the holiday season has to offer, you may be in search of something else – something warmer.
 
A 2018 survey revealed that one of the most common reasons for Canadians to travel abroad over the December holiday season is to “leave behind the winter blues”. Other popular reasons included ‘seeking relaxation’, ‘getting out of a routine’, and ‘treating oneself’. Regardless of the reason, if you are contemplating travelling abroad this holiday season, there are several things to consider before you escape the cold in search of piña coladas. 
 
The first section of this article will provide you with tips on how to avoid breaking-the-bank when travelling at the most expensive time of the year. You will, then, be provided with a pre-departure checklist that will help you get your financial and legal affairs in order before you jet off.
 
 
Money-saving travel tips
 
Temporarily escaping another harsh Canadian winter by seeking refuge in a sunny destination tends to come with quite an expensive price tag. According to MoneyTalks, the most expensive month of a year to fly in December. Not only does airfare peak at this time of the year, but accommodation does, as well. Considering the fact that accommodation and transportation make up the largest expenses associated with travel, by finding ways to lower these costs, you can still travel over the holiday season while avoiding a debt headache in the New Year.
 
Save on transportation
 
First, ask yourself: “Do I have to fly anywhere?”
 
When deciding where you want to spend your holidays, don’t write off destinations that are a bit closer to home. Rather than flying somewhere, going on a good old-fashioned road trip with your family of five can save you thousands of dollars. This gives you hours of quality family time, which is really what the holiday season is all about anyway.
 
 If there are no desirable holiday destinations a driveable distance from you and you have to take an airplane, there are still ways to save money:
 
Shop on Tuesday and Wednesday.  Several studies from companies like FareCompare and SkyScanner have concluded that the cheapest day for Canadians to purchase airfare tickets is on Tuesday or Wednesday.
 
Be flexible.  What day you decide to fly on can change your flight price by hundreds of dollars. The cheapest days to fly are typically on Christmas Eve or Christmas Day. You can still find fairly good deals if you travel right before or right after Christmas, as well. For more details on the daily fluctuations of flight prices around the holiday season, check out this article.
 
Rewards points.  Check to see if you have any reward points you can redeem for discounted flights. If you travel often or are passionate about travelling but are not yet enrolled in any travel rewards programs, join rewards programs so you can start saving for the next big trip.
 
Budget airlines.  While budget airlines are more accessible and popular in Europe, Canada’s airline industry has seen the emergence of a few budget-oriented airlines in recent years. Airlines like Swoop offer their services to cost-conscious customers who don’t care for the additional services (entertainment systems, extra baggage allowance, etc.) that other airlines offer and charge more for. These airlines currently do not fly out of major Canadian airports, but usually, are not too far. For example, several budget airlines do not operate through Toronto Pearson International airport but do service the Hamilton airport.
 
Ask your friend for a lift to the airport.  Depending on how far you live from the airport, this can save you enough money to cover a nice dinner out on the town.
 
Pack light.  Pack light to avoid having to check a bag or pay overweight baggage fees. This seemingly small tip can end up saving you hundreds of dollars, especially if you are travelling as a family.
 
Save on accommodation
 
Unless you come across a super deal, booking your stay at a hotel or a resort tends to be quite expensive. Here are a few cheaper alternatives that offer more privacy and can satisfy that comfortable, homey feeling you might crave around holiday time.
 
Stay with family.  If you have the option, stay with your family. This way you can save money and spend time with your loved ones at the same time.
 
Home exchanges.  There has been an increase in the popularity of home exchanges in recent years. Essentially, a home exchange involves you finding another family to swap houses with for an agreed-upon amount of time. There are many websites that can help you explore potential destinations, get in contact with other prospective homeowners, and facilitate this process.
 
Home rental sites.  With the rise of Airbnb, Vrbo, and other online home rental platforms, finding a home that fits your needs has truly never been easier. Choosing a more modest option can prove to have a much cheaper nightly rate than a hotel or resort would. 
 
Basic budgeting
 
While the tips provided above can help you save big bucks on the two largest travel expenses – accommodation and transportation, don’t forget to practice good financial habits and basic budgeting while travelling. Cook meals at home when you can. Think ahead to save yourself from being caught in a situation where you have to spend a premium. For example, if the country you are going to requires a visa, apply well in advance so you don’t have to pay express processing fees. Many experienced travellers recommend using prepaid cards when on vacation. This can help you stick to the original budget you set, rather than allowing you and your credit cards to get carried away.
 
Now that you are equipped with a wealth of money-saving techniques for your holiday vacation, what are some things any responsible traveller would do before setting sail?
 
 
Pre-departure To-Do List
 
Update important documents
 
Before departing, make sure that all-important documents including life insurance policies, beneficiary designations and wills are up-to-date. Other important documents such as birth and marriage certificates, professional appraisal reports, and property deeds and ownership forms, should be filed away in a safe, secure place, as well.
 
Review or assign powers of attorney
 
If you don’t already have a Power of Attorney, consider assigning power of attorney privileges to someone that you trust. Depending on the type of power of attorney you appoint to a person, their privileges will differ regarding when they are allowed to act on your behalf, for how long, and on what matters. For example, a financial power of attorney is designated to make financial decisions, whereas a medical power of attorney is designated to make decisions regarding your medical and health needs. The people that are designated to act on your behalf need to know where to find important documents, accounts, and passwords, that are relevant to their role. Providing them with a list of all relevant contact numbers (i.e. lawyer, financial adviser, etc.) will also make their lives much easier in case they do need to act on your behalf.
 
Organize your finances
 
Creating a document that has an organized and complete list of all your financial accounts, including account numbers and institutions, is also helpful in the event of an emergency. This list should include chequing and savings accounts, as well as retirement and investment accounts. Further, it is advised that you inform your bank and credit card companies of the dates you plan on being out of the country to ensure that your bank cards aren’t flagged (and your accounts subsequently were frozen) while you are abroad.
 
Check exchange rates
 
Be sure to check the exchange rate for the country you are going to. Keeping your holiday budget in mind, take a trip to the bank and take some cash out in your destination’s local currency. Do this ahead of time to save yourself money by avoiding the high processing fees and commission that airport currency conversion services charge.
 
Ensure you’re insured
 
Prior to going on your holiday, reach out to your insurance provider to inquire about purchasing additional travel and medical insurance for the time that you are out-of-country.
 
This list of things-to-do before jetting off isn’t meant to scare you, but instead, give you peace of mind knowing that all of your financial and legal affairs are in order. Any responsible traveller is ready for even the most unexpected circumstances.
 
 
Whether you plan to be home for the holidays, or off exploring a foreign land, we hope this holiday season is an incredible one - filled with friends, family, and food. From the entire team at Bongard Wealth Advisory Group, we want to wish you the happiest of holidays! Looking forward to what 2020 has to bring.