1. Start Budgeting Now
If you have not been much of a budget person in the past, now is the time to experiment. What better reason to commit to saving money than for the post-pandemic trip of a lifetime to complement your lifestyle?
The best-kept secret about making a budget is that it does not have to be hard, and it doesn't have to include a massive spreadsheet. You could, for example, save for post -Covid travel using multiple bank accounts, which just means setting up a separate savings/checking account dedicated to travel and sending extra money there each pay period.
You will need to look at how much you have left over after covering necessities and debt payments each month and identify a reasonable amount to save for your vacation. That can help you figure out a ballpark amount you can afford to spend on your trip. If you have $100 left over each month, and you plan to travel in 10 months, you can book a trip worth up to $1,000.
Not sure how much you spend each month, and therefore how much you can save? Start using some of the online budgeting worksheets or we at 1st Capital can email you one that is “very easy to use” and can help you organize your thoughts. Also, you can ask your employer if there is an option to send a portion of your income directly to a separate account from your usual checking account. That can help you boost travel savings dramatically. Automate your travel budget lifestyle!
2. Book Early
Right now, is a unique time for the travel industry: Vaccines will be widely available this year, but travel has not yet rebounded to anywhere near where it was pre-pandemic. That means there are lots of flight and hotel deals available if you book soon for several months in the future. Prices may start to rise the closer we get to a post-lockdown world, but you can benefit by locking something down now. Even if your schedule/lifestyle will not allow you to travel for a few months, book whatever you can now.
3. Stay Flexible
Booking now may be the smart money move, but first make sure any trips you plan come with lots of flexibility. While vaccine availability in the U.S. will make travel markedly more possible, coronavirus variants, vaccination uncertainty internationally and shifting travel restrictions may keep 2021 (and even 2022) unpredictable.
When booking travel, you will save money and heartache if you keep an open mind regarding dates and destinations. Just for starters I have found that Kayak, the travel booking website, allows users to filter their flight results by characteristics including "no change fees" and car rental and hotel results by "free cancellation."
Airbnb now allows guests to search for vacation stays by duration (a weekend, one week or one month, for instance), rather than having to choose specific dates to view lodging options. That can help you find the cheapest option available at your destination. A permanent shift to working remotely, and the flexibility that comes with it, may make it possible for you to travel midweek, which is typically cheaper. You may have to quarantine at your destination, so consider booking a longer stay and working remotely from that location if you are able to so that you can maximize use of your vacation days. I know this could be a big lifestyle change; traveling midweek, but flexibility is part of making sure you get what you ultimately want in your travel budget!