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Nearly half of American adults will travel overnight during the 2025 holiday season, according to a survey that Morning Consult conducted for the American Hotel and Lodging Association. This includes 34% with Thanksgiving travel plans and 37% with Christmas travel plans.
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As your budget feels the pain of inflation, you might wonder how you’ll cover your flights, rental car, accommodations and other holiday travel costs. The good news is that getting creative with how you plan and pay for your trips can give your wallet some relief.
Here are six ways you can reduce your travel costs this holiday season.
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If you haven’t booked your holiday flights yet, you’ll generally save more by doing it as soon as possible. According to ABC News, Oct. 28 through Nov. 19 is a good window for scoring cheaper fares. Still, use rate calendars and set up fare alerts to make sure you’re getting the best deal.
Hotels are a different story — prices often drop closer to your stay. Kayak found that domestic hotel rooms can cost up to 26% less if you book a week in advance. Just beware of limited availability and peak-season price hikes.
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While it adds to your trip planning time and may be less convenient, being flexible with your holiday flight arrangements is a smart financial decision.
Rather than going with the major airport nearest you, check if it’s worth traveling out of the way to spend less on airfare. Also, consider forgoing some luxuries and booking with a no-frills airline, such as Frontier Airlines, JetBlue or Allegiant Air, but account for any add-on charges.
The chosen travel day will also affect your holiday costs. Kayak noted that the cheapest domestic flights are on Nov. 24 for Thanksgiving travel and Christmas Eve for Christmas travel. As a bonus, you’ll likely deal with smaller crowds and less chaos at the airport.
While a hotel stay can be convenient, it’s worth exploring other lodging choices to save money.
Platforms like Vrbo and Airbnb may offer cheaper options — especially for larger groups — though you’ll want to account for cleaning and service fees. Staying with friends or relatives can also be a budget-friendly (or free) alternative.
If you prefer hotels, use price comparison sites like Tripadvisor or Hotels.com. In a blog post, money expert George Kamel also recommended negotiating rates directly with hotels, using HotelTonight or checking out Priceline’s Express Deals.
While August 2025 data from the Bureau of Transportation Statistics showed a slight year-over-year decline in vehicle rental costs, this expense can still total several hundred dollars over a weeklong holiday trip. So, reconsider whether you need a rental car to get around.
If you only plan to catch rides to and from the airport or take a few trips around town, paying for an Uber, taxi or airport shuttle may be cheaper if you do the math. You can also check whether the area has reliable public transportation or if someone you know locally is willing to drive you.
If you can’t go without the rental car, do some research to get a better deal. The Federal Trade Commission suggested using price comparison tools, researching deals, watching for extra fees and choosing your vehicle wisely to minimize costs.
As long as it doesn’t lead to overspending or costly interest, using the right credit card might save you some cash and make your travel experience more enjoyable this holiday season.
In addition to redeeming points or cash back you’ve earned to cover travel purchases, you can sometimes get deals if you book your hotel stay or flight directly through your card company’s travel portal. Plus, your travel purchases will often lead to additional rewards that you might redeem for holiday gifts, such as gift cards or merchandise.
If you use a travel rewards card, you might qualify for additional money-saving perks. Chase listed complementary flight or hotel upgrades, premium airport lounge access, canceled flight reimbursements, free snacks and waived checked bag fees as examples.
When you’re traveling with friends or family for the holidays, you might feel like being generous and fully covering certain group expenses yourself. However, agreeing to share costs can save you a lot of money.
You might book a large hotel suite or rental property for everybody and have each person pay an equal share. You could do the same with shared meals and transportation, including your Uber rides or car rentals.
To make this work, track shared expenses carefully in a spreadsheet or app, such as Settle Up or SplitWise. You’ll also need to decide on a convenient way for everybody to pay their part of the bill, whether that’s with cash or a payment app like PayPal, Zelle or Venmo.
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This article originally appeared on GOBankingRates.com: 6 Ways To Cut Your Travel Costs This Holiday Season
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