Five ways to save money when you travel
Going on vacation? Prepare to pay up. Thanks to both demand and inflation, the cost of airfare, hotels, car rentals and restaurants have gone up in recent years. But that doesn’t mean you need to pay top dollar. With the following tips in mind, stretching your money is easier than you think.
1. Be flexible
If you’re flexible with your dates and location, there’s usually a travel deal to be found. Generally, the summer, winter holidays and spring break are the most expensive times to travel, so avoid those periods if you can. Alternatively, consider flying Tuesday to Thursday or in the afternoon/evening since it’s typically cheaper than departing Friday to Monday or in the mornings.
Some destinations are naturally cheaper than others. Thailand, India, Mexico, Colombia and Jordan are just a few countries where your dollar can go far. Even countries such as Japan and Turkey can be reasonably priced, but many people assume they're expensive. The critical thing is to do your research in advance so you’ll have a good idea of what your expenses will look like on the ground.
2. Know where to exchange money
How you exchange your money could significantly affect your bottom line depending on the country you're going to. For example, if you’re going to the U.S., the exchange rate at your home bank will likely be competitive. However, if you need an uncommon currency, such as the Vietnamese dong or Brazilian real, you may want to use a foreign exchange counter (at home or abroad) that offers better rates. It’s worth noting that the best and cheapest way to convert currency differs by country, so it's worth doing additional research.
It can be convenient to pay with a credit or debit card abroad, but beware of merchants that give you the option of paying in your home currency — you may be getting a steep exchange rate markup and a foreign exchange fee (plus exchange rate)2 in return.
If you need cash, you can use your debit card at global banks that use the same network, though beware of one-time fees and exchange rate markups. With a Tangerine Client Card, you get free access1 to Scotiabank's Global ATM Alliance, paying only the 2.5% foreign currency conversion fee. It’s a convenient and reasonably priced way to get more cash abroad.
3. Avoid roaming charges
While every wireless carrier in Canada offers roaming data plans when you’re abroad, they’re still pretty expensive compared to other options. The cheapest way to get data abroad is to use an eSIM, which can be purchased online directly from providers such as Airalo and KnowRoaming. After you buy a data package via the apps for specific countries or regions, they’re installed automatically on your phone. That said, you do need to adjust a few settings to your mobile data and eSIM to get things working.
For those who aren’t tech-savvy, it might be easier to buy a physical SIM when you arrive in your new country. Local carriers will typically have a SIM designed for tourists that provide you with data and talk minutes. Best of all, these SIMs can usually be purchased in airports and installed by staff.
4. Use loyalty points and credit card benefits
One of the best ways to save money on travel is to cash in on any loyalty points you may have earned over the years. Since every loyalty program is different, you need to understand the basics of how each one works. For example, an airline loyalty program would give you the best return when redeeming your points or miles for flights. However, since flights are priced dynamically, the value of your points/miles may differ depending on which flight you choose. For example, a flight to Venice during summer vacation may cost more points than the same flight offered in mid-winter.
Hotel loyalty programs are also often priced dynamically, so always compare the cash price to the number of points required at multiple properties to determine which room gets you the best value. It’s also worth noting that some hotel programs give you an extra night free on points when you book three or four nights.
In addition to points you may collect, don't overlook the additional benefits your credit card may provide on your travels, including insurance coverage and airport lounge access. If you're renting a car, many cards offer collision and loss damage insurance as long as you pay for the rental with the card.
5. Split the costs with your travel companions
Splitwise is one popular mobile app that makes it easy to split costs with your friends and family. When travelling, you can create a group in the app. Group members can add any of their expenses, and even upload a photo of the bill. At the end of the trip, Splitwise will determine how much money everyone owes, and to whom.
How to reach your travel savings goals
You can save on a trip, but how do you save for a trip? With Tangerine’s Goals feature, you can easily set aside a monthly amount for a dedicated travel goal. This will allow you to monitor your savings and encourage you to save even more.
Another way to maximize your travel fund is to use Tangerine’s Savings Calculator, since it’s a quick way to see how regular savings can help you reach your goal. For example, if you estimate a trip will cost you $5,000, it’ll take about 20 months to achieve that goal if you put aside $250 each month. But if you can increase your monthly savings to $400, it’ll take just 13 months.
While the cost of travel may seem out of reach, it’s still possible with a few money-saving tips and consistent saving. If you do your research, budget accordingly and use the right tips and tools, you can often travel for less.
¹ Tangerine will waive the ABM Withdrawal Fee and Global ATM Alliance members will waive any surcharge fees for withdrawal transactions performed at a Scotiabank or Global ATM Alliance machine with your Tangerine Client Card. Some exclusions apply; see our Fee Schedule for details. The current Fee Schedule can be found at tangerine.ca/feeschedule.
² 2.50% is added to the exchange rate, and is reflected in the converted Canadian dollar amount of the transaction.
