Holiday Travel on a Budget? Here's How to Actually Save Money This Season

Planning your holiday getaway but worried about the bill? You’re not alone. According to recent data, nearly half of American adults are traveling during the 2025 holidays—34% for Thanksgiving and 37% for Christmas. The challenge? Covering flights, accommodations, rental cars and everything in between when prices are higher than usual.

The good news: with some smart planning and flexibility, you can significantly cut what you spend on travel. Let’s walk through six practical strategies that can help your wallet survive the holiday rush.

Timing Your Bookings Makes a Real Difference

Getting your bookings right comes down to understanding when prices drop. For flights, the sweet spot is typically mid-to-late October through mid-November. But don’t just book blindly—set up fare alerts and use rate comparison tools to catch genuine deals.

Hotel pricing works differently. Rather than booking months ahead, domestic hotel rooms tend to drop in cost closer to your stay—sometimes by as much as 26% if you book just a week out. However, beware of limited inventory and seasonal price spikes. If you’re savvy about monthly rates for hotels, you’ll notice that shoulder periods offer better value than peak holiday weeks. The key is balancing availability with pricing dynamics.

Be Strategic About Your Flight Choices

One of the biggest money-saving moves is ditching the convenience factor. If you’re flexible about which airport you use, check whether flying out of a less popular terminal saves enough to justify the extra drive. No-frills carriers like Frontier, JetBlue, or Allegiant often undercut major airlines—just factor in their add-on fees before committing.

Your travel date matters too. Thanksgiving travelers find the cheapest fares on November 24, while Christmas travelers should aim for Christmas Eve. As a bonus, these dates mean fewer crowds and less airport chaos.

Reconsider Your Lodging Strategy

Hotels aren’t your only option. Vacation rental platforms like Vrbo and Airbnb frequently offer better rates, especially if you’re traveling in a group. Factor in cleaning fees and service charges, but they can still beat hotel prices. Staying with friends or family? Even better—it’s often free or much cheaper.

If you prefer hotel stays, comparison sites like Tripadvisor and Hotels.com help you find deals. Pro tip: call hotels directly to negotiate rates, or explore platforms like HotelTonight and Priceline’s Express Deals for last-minute bargains. Understanding typical monthly rates for hotels in your destination helps you spot a genuine deal.

Question Whether You Really Need a Rental Car

Rental car costs can easily run several hundred dollars for a week. Before automatically booking one, do the math. If you’re only moving between the airport and your accommodation, or taking a handful of trips around town, rideshare services might be cheaper. Some areas have solid public transit, and local friends might offer rides.

If a rental is necessary, use price comparison tools, hunt for discounts, watch for hidden fees, and choose your vehicle size carefully. The small costs add up fast with rentals.

Maximize Rewards and Card Benefits

If you have travel rewards cards, this is your moment to put them to work. Redeem accumulated points toward flights, hotel stays, or rental cars. Many card issuers offer deals when you book through their travel portal, plus you’ll earn additional rewards on those purchases.

Beyond points, travel rewards cards often include valuable perks: complimentary flight or hotel upgrades, airport lounge access, flight cancellation reimbursement, and waived baggage fees. These benefits can deliver real savings or convenience during a chaotic holiday travel season.

Split Costs and Pool Resources

Traveling with family or friends? Don’t shoulder all expenses alone. Book a larger suite or vacation property where everyone splits the bill equally. Do the same for shared meals and transportation—whether that’s rideshares or a rental car.

The trick is tracking everything carefully. Use apps like Settle Up or SplitWise to log shared expenses, then settle up using Venmo, PayPal, Zelle, or cash. This approach keeps relationships smooth and ensures everyone’s accountable.

The Bottom Line

Holiday travel doesn’t have to break your budget. By booking strategically, staying flexible with dates and airports, exploring alternative lodging, reconsidering car rentals, leveraging credit card rewards, and splitting costs with travel companions, you can meaningfully reduce your travel expenses. The effort you put into planning pays off when you see what you actually save.