5 smart ways to save on flight tickets, hotel bookings and travel expenses during this festive season

Taking a trip during busy holiday times can cost a lot of money. Plane tickets go up in price, rooms at hotels become more costly, and the best places get booked up quickly. But a holiday need not stretch your budget if you plan your flight bookings early, compare hotel deals and keep track of how much you spend during your trip.

Here are five ways to save money on festive travel without compromising your plans.

How to save on flight and train tickets during the festive season

The biggest savings come from planning early, since festive dates sell out first and fares rise sharply in the last few weeks.

However, even if you're booking late, prices may occasionally dip. Travellers can set fare alerts for their preferred routes and book when fares drop.

According to WISE, flying a day or two away from the festival date, or choosing midweek and off-peak hours, is usually cheaper. Checking nearby airports and one-stop routes can also lower the fare.

For train journeys, booking as soon as reservations open can improve your chances of getting a preferred class and travel date.

How to find cheaper hotels and accommodation during festive holidays

Transport is only one part of the holiday budget. Accommodation costs can also rise during peak travel periods, so compare options before settling on a hotel.

Travellers can save on accommodation by booking a refundable room for their stay and keep watching for drops in price.

“Affordably priced hotels located away from major tourist attraction areas are often especially cost-efficient, assuming that public transport is available,” says Ravi Gosain, President, IATO.

However, the lowest advertised room rate may not always be the cheapest option. Compare the final price after accounting for taxes, breakfast, cancellation charges and other inclusions.

For international travel, WISE suggests travellers should compare the final price in rupees, including taxes and conversion charges. They should also pay in the local currency while staying in hotels or paying in restaurants to avoid hidden fees or dynamic currency conversion costs.

Using a prepaid forex card in such cases could help travellers save thousands of rupees on their trips, especially if they use it on international cabs or apps that support the same.

Usually, such apps have discounts built in for new customers, which could be very beneficial for first-time or new travellers.

Which festive travel offers are worth using?

A travel offer is worthwhile only if it reduces the final cost of a trip. Discounts and rewards can help, but they may offer little value if they encourage unnecessary spending or come with charges that outweigh the benefit.

According to WISE, travellers should assess offers based on the following factors:

• Credit card rewards: Check whether the value of the rewards outweighs the annual fee and pay the full statement balance by the due date to avoid interest.
• Bank discounts: Use them for purchases you had already planned, rather than spending extra just to qualify for an offer.
• Loyalty points: These can be useful for frequent flyers or hotel guests who regularly use the same brand. Check expiry dates, blackout periods and redemption conditions.
• Travel-app coupons: Compare the final payable price across platforms, including taxes and fees, before applying a coupon.

The aim should be to reduce the cost of a planned trip, not to spend more in pursuit of a discount.

Should you use savings, credit cards or personal loans to fund a festive holiday?

For a planned holiday, savings are generally the most sensible choice, as long as emergency funds and essential expenses stay untouched.

“A credit card is fine if you pay the full statement balance by the due date, and you may earn rewards. Paying only the minimum leaves the rest of the balance accruing interest, and credit card rates in India are often around 3–4% a month, so the trip gets expensive fast,” says Sarika Malhotra, MD, Greenview Travels and Services Pvt. Ltd.

A personal loan or EMI means paying interest or fees for a discretionary expense, so avoid borrowing if you can. If an EMI is advertised as “no cost,” compare the EMI price with the plain cash price, she adds.

The interest is often built in by reducing the discount. Also check processing fees, taxes and the total repayment. A holiday should fit your budget without creating months of financial pressure.

If the trip requires expensive borrowing or leaves you under financial pressure for months, consider a shorter holiday, a less expensive destination or postponing the trip until you have saved enough.

How can you build a holiday fund throughout the year?

Planning for a holiday should start with estimating the total cost of the trip, including flights, accommodation, local travel and other expenses, and working backwards to determine how much needs to be saved each month.

“Recurring deposits (RDs) can be a suitable option for individuals looking to save systematically for a planned holiday, as they allow them to contribute a fixed amount every month and earn interest over a chosen tenure,” says Saurabh Jain, Co-Founder & CEO, Stable Money.

The tenure can be aligned with the travel timeline to ensure that the funds are available when required. According to Jain, for those with a shorter savings horizon, a short-tenure fixed deposit or a suitable savings account may also be considered, depending on liquidity requirements.

Since a holiday is a short-term financial goal, the focus should be on capital preservation and access to funds rather than taking unnecessary risks for higher returns. Travellers should avoid dipping into long-term investments or relying on expensive credit to fund their trips.

Starting early, accounting for potential cost variations, and saving consistently can help individuals build their holiday corpus without compromising their other financial priorities.