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12 Tips To Better Plan Your Holiday Vacation on a Budget

Updated Dec 03 | 7 minute read

Do your holiday season fantasies involve running off to a tropical destination with your clan instead of attending the usual family gatherings? If so, you're not alone. According to one survey, 16% of respondents said they would be skipping at least one holiday celebration in favor of a vacation. Meanwhile, 40% of respondents in another survey said they booked trips over the holidays on purpose to avoid spending the whole season with their family.

While a winter getaway has undeniable appeal, holiday traveling tends to be expensive. But it is possible to skip the typical fanfare and festivities that come with visiting family for the holidays and enjoy a vacation instead—without breaking the bank. Here's how you can plan and save for a holiday getaway.

1. Decide on the Destination Early

First, land on where you'd like to go for your winter vacation. There's a lot to mull over when it comes to destinations. Here are a few tips:

Look for lower-cost locales. Start by researching places that are less expensive to travel to. This might include a trip to Boston, Nashville or Lake Tahoe, or a city that's close to home so you don't need to fly.
Avoid the crowds. Beyond locations that are generally more affordable, look for places where the winter months are considered the shoulder or off-season. Even though you're traveling during the holidays, unconventional winter destinations may be less crowded.
Check what the weather is usually like. Do you enjoy trekking in the snow, or are you trying to escape the end-of-year chill in a warmer climate? Make travel plans based on your preferences.
Track deals. You can use Google Flights or apps like Skyscanner and Hopper to see when flights might be the lowest for the destination you have in mind.

2. Research Food Options

No need to dine at Michelin-rated restaurants for every meal to get the complete vacation experience. To save a buck, opt for happy hours and enjoy an early dinner, or ask for the bar menu, which usually has smaller portions or specials. Consider visiting pricier restaurants for lunch rather than dinner as a more affordable alternative.

Pick accommodations with a kitchenette so you can prep some of your meals yourself—breakfast in particular is often easier and more enjoyable to eat at "home." Buy groceries at local shops, farmer's markets and holiday bazaars to eat well and experience regional specialties without breaking the bank.

3. Look for Free or Bundled Attraction Packages

Flights, hotels and car rentals can eat up a massive chunk of cash. To save on sightseeing and entertainment, see if there are any free or low-cost art and culture offerings at your destination. Holiday markets, free museum days and donation-based local tours are good places to start.

You can also look for bundled excursion and attraction packages, which can be less costly than going the à la carte route. For instance, if you're traveling to Northern California's wine country, there might be a bundled package to go horseback riding, visit a petting zoo, take a wine tour and do a wine tasting, all for one flat cost.

If you're a Synchrony credit card account holder, take full advantage of your access to Mastercard Travel & Lifestyle Services, which can connect you with travel, entertainment and dining experiences.

4. Consider Traveling for the New Year

The busiest days to travel are usually the Tuesday and Wednesday before Thanksgiving and the Sunday after Thanksgiving. In December, you're looking at a high number of travelers the week before Christmas and on Christmas Eve. Not only are flights more expensive, but car rentals can cost more, too.

You can steer clear of paying for pricey flights and rentals by planning your getaway with friends in the new year. To further save, see if you can split costs on accommodations. Look for a lower-cost destination, consider staying in a hostel or book a room in a vacation rental instead of renting an entire house.

5. Save Early and Automatically

Start stashing away funds toward your vacation ASAP. The earlier, the better. Once you have a destination in mind, you can figure out how much you need to save and by when.

Consider setting your savings on autopilot with an automatic savings plan. Figure out how much you need to save, and put a little away each week. Let's say you're three months out from your trip and ideally want to save $3,000. That means stashing away about $250 a week ($36 a day) to reach your goal.

6. Park Your Savings in the Right Savings Vehicle

A Synchrony Bank high yield savings account is a smart place to put money aside for your holiday vacation, as you can grow your savings with a more competitive interest rate. You might even want to use a budgeting tool called bucketing and set up a separate account just for your trip.

And if you have at least six months to save for your getaway, consider a certificate of deposit (CD)—a type of savings account that offers a competitive interest rate. With a CD, you can grow your savings risk-free by locking in your funds for a set time frame. Because CDs have fixed and guaranteed interest rates, you can also calculate exactly how much you'll earn in interest for the duration of the CD.

7. Use the "Piggyback PTO" Technique

Make the most of your paid time off (PTO) with the piggyback technique: Pair a weekday holiday with paid vacation days in the same week. That way, you don't have to use as many PTO days, giving you an extended, uninterrupted break. What's more, you don't have to worry as much about playing catchup when you return from vacation.

For example, let's say Christmas falls on a Monday, and your workplace gives you that Monday and Tuesday off. In that case, use your PTO to take the rest of the week off. Instead of taking five PTO days, you'll only need three.

8. Set Up a Budget-Friendly Itinerary

Sure, surprises and serendipity are fun on vacation. But lack of planning can also translate to not-so-fun surprises, like giant hotel bills. Not only do many destinations see a lot of visitors during the holidays, but lodging and attractions might have staffing challenges due to employees taking time off.

Planning your itinerary means you get your pick of what's available, not the last room in town. It can also help you understand the costs of your trip and how you can organize your budget to make sure you splurge on the things that matter the most and save on those that don't.

9. Organize Ways To Connect With Your Loved Ones

Instead of meeting "IRL," consider coordinating a virtual meetup where you can bond and enjoy the holidays without traveling. For instance, you can connect with them via a scheduled virtual hangout or holiday movie streaming party.

Another idea? Don your culinary hat and compete in a virtual baking contest. Award prizes such as "most festive," "most wacky" and "most original."

10. Do a Low-Cost Holiday Gift Exchange

To avoid having to dole out a pretty penny on gifts for your entire clan, let them know you're on a budget, and if possible, do a pared-down version of a holiday gift exchange. For instance, you can draw names so that each person has only one other family member to buy for. Another affordable but personal option is to pick a family holiday treat recipe (like Great-Grandma's famous shortbread) and send baked goodies to your extended family.

Or before you leave for your trip, consider mailing a box of handpicked stocking stuffers and having your relatives hide them around the house for the kids to find on Christmas morning. These won't cost much money—and they'll show that while you won't be present for the holidays, you can do your part to add festive cheer.

11. Avoid Credit Card Fraud

Take the proper steps to safeguard against credit card and identity fraud. Set travel notifications on your credit cards or freeze the cards you aren't using during your vacation. For instance, if you're a Synchrony credit cardholder, you can set travel notifications before you embark on your trip.

12. Consider Travel Insurance

Major storms, a pandemic and canceled flights. In the past few years, we've learned that anything can happen when traveling—and to prepare accordingly. Sure, it's an added cost, but travel insurance can cover pricey mishaps en route to your destination, such as canceled or delayed flights and lost luggage. It can also help cover medical costs required while traveling, such as extended hospital stays or evacuation to get you home in case of emergency.

What should you look for in a travel insurance plan? It depends on your particular trip and needs, but some options to consider include:

Coverage of costs during trip delays, such as hotels and food should a flight be cancelled
Coverage of costs associated with lost or delayed luggage, such as purchasing clothing and toiletries should your suitcase go missing
Emergency medical and dental care
A 24/7 contact line so you can consult with your insurance provider at any time

Note that if your travel credit card includes trip cancellation as a benefit, you might not have to fork over extra money for this valuable protection. Be sure to check your credit card perks before booking travel to find out if you get travel insurance benefits and how you can access them.

You Deserve a Break—and Synchrony Can Help

A holiday getaway with your family is indeed within reach. Savvy planning, foresight, creative thinking and tapping into useful information and resources can help you enjoy a wonderful trip this winter.

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