Here's how can you reduce your travel costs without compromising on comfort and experience

Beautiful beaches, colourful markets, dream destinations—you’ve worked hard through the year, looking forward to your well-deserved vacation. But surging airfares and a depreciating rupee could be giving you sleepless nights. How, then, do you plan for leisure travel that won’t break the bank?

“Travellers are always on the lookout for ways that can truly elevate their travel experience. But the real ‘aha’ moment for any traveller is when she finds an option that can help sweeten the deal. There are some definite ways that can help travellers save some extra money,” says Vipul Prakash, COO of online travel firm MakeMyTrip.

Let’s start with air tickets. The golden rule is, the sooner, the better. Experts say that you should plan your travel in advance and ideally book your tickets 40-45 days before your journey. And by choosing the right booking days, you can bring costs down further. “The common notion associated with air tickets is that weekends, especially Sundays, are the right days to make bookings. On the contrary, we would suggest people book their tickets on Mondays and Tuesdays. It is advisable to book afternoon flights as they are comparatively cheaper than early morning or late-night ones,” says Rikant Pittie, Co-founder of online travel company EaseMyTrip.

There are a few more innovative ways that not only promise savings but come with added flexibility. For example, the Price Lock feature (by paying a token amount) on MakeMyTrip and Goibibo allows flyers to lock airfares for about seven days. Features such as ‘Book with No Payment’ allow travellers to book a hotel in India or overseas with no upfront payment. “This feature has been designed to benefit travellers who book much ahead of the travel date by giving them an option to pay later before check-in, as per hotel policy, thereby taking away the worry of a payment block before the actual travel,” says MakeMyTrip’s Prakash. Apart from these, he adds, initiatives like Daily Steal Deals on Goibibo offer year-round benefits to flyers and hotel bookers across 2,000-plus properties in the country. “Benefits include up to 15 per cent off on domestic flights and 40 per cent off on hotels.”

You can also save a lot if you plan to travel during the off season. Data from KAYAK, an online travel search engine, reveals that Indian travellers are keen to travel to international destinations over the next six months, with Dubai, Bangkok and Singapore being the popular destinations. “Our search insights suggest that early March represents a great time to travel with great deals available for international flights. Avoiding the peak travel dates such as around New Year’s Eve can allow Indian travellers to secure the best possible fares, and we recommend setting up price alerts for your chosen destination to help secure a great deal for your holiday,” says Tarun Tahiliani, India Country Manager, KAYAK.

Earn and redeem

Another way to reduce your travel costs is to efficiently use your credit card. Check out the benefits your card offers—some offer air miles in place of reward points, while others allow you to convert reward points to air miles.

According to online credit marketplace Paisabazaar, some of the most popular travel credit cards offer air miles (See table On a Wing and a Credit Card). Most air miles credit cards in India are co-branded with popular airlines and offer air miles under the airline’s loyalty programme. They are useful if you prefer a particular airline.

While getting the card, do understand that the value of air miles depends on your usage. For instance, a co-branded credit card may offer you four air miles for every Rs 100 spent on the card. However, you get 30 air miles per Rs 100 spent if you book your tickets with the partner airline on its website. Then there are sign-up bonus miles and miles for reaching spending milestones on the card. The same applies to redeeming points and air miles as well.

“Your issuer may allow you to redeem air miles against flight tickets, hotel bookings, or even package tours. So you’ll need to look up what it would cost you to book your hotel room or airfare using cash instead of air miles or reward points,” says Pankaj Bansal, Chief Business Officer of BankBazaar.com, a fintech co-branded credit card issuer. For instance, you may be eligible for a 40 per cent discount on your hotel bookings or a free air ticket. Redeeming your reward points may save you Rs 15,000 on hotel bookings while the cost of the flight ticket may be only rs 10,000, explains Bansal.

“So, you need to understand what rewards to leverage. Make sure to factor in redemption charges as some issuers charge a fee at the time of redemption,” he says.

The redemption value of reward points also matter. This is because converting them into cash or air miles might not be as lucrative. “In most cases, 1 point does not mean Rs 1; this is why understanding the redemption rate is important. Similarly, for cards that allow reward point conversion into air miles, the rate of such conversion matters. Understand the reward structure, compare the rates and read the fine print before availing the facility,” says Sachin Vasudeva, Director at Paisabazaar.  

Lounge matters

Food tends to be costly at airports. But that doesn’t mean you need to carry your own snacks. Most debit and credit cards give you access to airport lounges that serve an unlimited buffet. If your credit card offers complimentary access, present it at the lounge. On swiping, a minimal amount will be deducted, which is usually reversed.

“Most credit cards offer a limited number of free lounge visits after which regular rates will apply. Cards also provide complimentary membership to Priority Pass—a popular lounge access programme—along with a limited number of international lounge visits,” says Vasudeva of Paisabazaar.

However, your card may offer access to specific lounges or lounges at specific airports, so do check if the airports on your route are covered.

Coverage and claims

A well-planned trip is one where you are protected against uncertainties such as loss of baggage, flight cancellation or personal injury. For that, you need travel insurance. “Options like ‘Cancel For Any Reason’ on MakeMyTrip and Goibibo offer added convenience, security and comfort, along with an option to avail full refunds for any last-minute international flight cancellations,” says MakeMyTrip’s Prakash. You can also buy a separate travel policy from an insurance firm that gives you comprehensive coverage against uncertainties while travelling. In case of any insurance claim, make sure you provide the original ticket or boarding pass, or a photocopy of your passport indicating the travel dates.

Foreign currency conversion expenses can also eat into your travel budget. “It’s important to note that airports have the highest rates for these charges. The most convenient and economical option to convert foreign currency is to take money from a local ATM in the destination country,” says EaseMyTrip’s Pittie.

So, if you want a stress-free vacation, plan your travel well. After all, well planned is half the battle won.

@Teena_Kaushal