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Preserving the Family Vacation — Top
Tips to Keep Spending in Check
As the economy continues its climb out of recession, many
families might be thinking twice about what they spend on the
annual summer vacation. But there are ways to preserve the
tradition by being smart about spending. Some ideas:
Get on the mailing list.
For any possible destination you can think of, go to their
Web sites early and get on their mailing list. You might get
plenty of endless chatter from the hotels, amusement parks and
other destinations you're interested in, but you might also find
coupons to those locations and other linked businesses that
could save you money. Also go to travel magazines to see whether
signing up might deliver similar money-saving offers. Most
important, go to the tourism Web sites of the states you're
planning to visit to take advantage of coupons and specials — you might also find events and activities to attend that aren't
publicized anywhere else.
Weigh the value of driving vs. flying.
Even though energy prices might not approach the
stratospheric levels of 2008 this summer, you might find that
driving vacations aren't necessarily the cheapest alternative.
If you haven't measured the gas mileage lately on your car, do
so after your next fill-up and see what it would really cost you
to drive to your desired destination — and don't forget wear and
tear on the car (roughly 10 to 20 cents a mile), meals, or hotels
on the road. If you plan significantly ahead of time, traveling
by air might not only get you there faster — but cheaper. At the
same time, if you fly and need a rental car, don't forget to
figure in that cost. Also, go to the Web sites of the airlines
you fly the most and sign up to get advance notice of cheap
fares.
Make your reservations online.
Tourism businesses save money when you reserve online — that's one less human they have to pay to handle your call. So
chances are good you might get a slight discount for using that
option. If you're not a regular user of the Internet, you should
know that airlines and hotels particularly have migrated more of
their deals for rooms and meals to their websites because
visitors can complete the whole reservation process themselves.
That saves airlines, hotels and rental car companies
considerable labor cost.
Go for the package deal.
Online travel sites make it easy to combine hotel, airfare
and rental car at a cheaper rate. And remember the days and
times that are typically cheaper to fly — Tuesdays, Wednesdays
and Saturdays if you're willing to fly early in the morning or
late in the evening.
Know when to use travel agents.
A good travel agent can be a great money saver, particularly
for lengthy or complex trips. It's OK to compare prices
yourself, but consult a travel agent if you are going to remote
destinations — they'll know the territory, and if you have to
make changes, they might be able to help you do so without
paying a lot of extra money. Don't be afraid to consult the
company travel agent since their corporate status may make them
a destination for specific deals that non-affiliated travelers
wouldn't get.
If you're going abroad, check currency rates.
Do a review of currency rates before you go to see how much
money you'll really have to spend on the trip. Also, see if
there are specific ways you can save money for dining, lodging
and shopping in that country. Also, check in with your credit
card company before you go — some might charge high currency
conversion fees, and you can either negotiate them downward or
apply for a card with a lower conversion rate that you'll use
only for this kind of travel.
Make sure phoning home is affordable.
Make sure you can use your cell phone affordably wherever you
go. Check with your wireless provider to make sure your
destination has adequate network strength for your phone, and
particularly check what it will cost to call home or other
destinations abroad if you're overseas. There's nothing like the
shock of a wireless bill with unchecked charges. You might also
check with your arriving airport to see if local stores rent
cell phones or disposable cell phones at a significant savings.
Check on car insurance.
We've all heard how buying rental car insurance is a bad
deal, but not so fast. For domestic trips, double check whether
your own car insurance policy is likely to pick up the bill if
you crash your rental car. For overseas trips, check with your
rental agencies as well as your credit card company to see what
insurance options you have. Don't think only in terms of
accidents. Think about blown transmissions in small towns with
only one mechanic who doesn't speak English. Also, if you're
driving to Canada or Latin America in your own car, be very sure
you have adequate coverage required in every country. You might
have to buy supplemental coverage.
Consider travel insurance.
There is insurance coverage available for travelers who face
sudden cancellations as well as medical needs. Trip cancellation
can reimburse you for non-refundable costs in the event of
things like an illness for you or a family member that causes
you to cancel your trip. Look into what your current health
insurance covers at your destination, so that you can understand
your risk exposure and weigh it against the cost of supplemental
insurance. It's important to realize that health insurance
issues crop up on domestic trips as well as those overseas — for
instance, your health insurer may not cover claims in other
parts of the country. Always check. Also, if you're on a
business trip, make sure your company health plan will cover you
in an emergency, and if your work takes you to a dangerous
country, ask if your employer carries kidnapping and ransom
insurance. Don't laugh. According to the Insurance Information
Institute, kidnapping is on the rise internationally.
Prevent theft at home and abroad.
Photocopy your driver's license and passports and keep the
originals with your valuables in the hotel safe. Also, don't
forget to hold your mail and pay all your bills before leaving
town so identity thieves aren't attracted.
May 2009 — This column is produced by the Financial
Planning Association, the membership organization for the
financial planning community, and is provided by Don McCarty of
Financial Decision Partners, a local member of the FPA.
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