Know where to save and spend on a holiday trip

Chennai: It is that time of the year when one packs bags to travel solo, with friends or with family. A little bit of research and early planning will help the value conscious cut the corners and make most out of his precious money. But there are a few things one should not mind spending on even on a shoestring budget.

A budget traveller will have to start the planning process a bit earlier than one who is willing to lavish on a relaxed holiday.

If the person recognizes an overseas holiday as one of his financial goals, he also has to start investing well ahead of the date. Some of the tour operators offer travel savings scheme in which one can make systematic monthly investments for a 12-month period. Apart from accumulating the money, this also a few more advantages.

One will decide the destination months in advance and will be able to lock the flight and hotel charges at the best rates. He can also avoid the adverse currency movements.

Tour operators also offer credit card loans for those who have not saved for a holiday. The money can be repaid post the travel in equated monthly installments and the interest rates are typically 12 to 18 per cent.

Tour operators can be of help when it comes to booking airline tickets and hotel rooms or planning your travel itinerary. But one always have to do the homework on gathering information about the destination, weather, places of interests, festivals and other activities that can be indulged in. One also should have a fair idea about places to get good and safe food.

Group travel, where one can avail the benefit of bargaining in a group, is largely for the first-time travellers. The itinerary is mostly fixed by the tour operator and can become sometimes hectic. The evolved traveller wants to plan his travel as per his needs. Nowadays, tour operator sits with the customer in preparing a customized plan based on his budget and needs.

In many of the developed countries, hotel stay can eat away a large portion of the travel budget. Hence a budget traveller would like to search for other options. Compared to hotels, homestays, hostels and guest houses owned by institutions or bed-and-breakfast options offered by individuals and families are much cheaper. Couch surfing networks are also available globally and by becoming a member one can get a couch or a bed for free while travelling to a different city. Such alternate options also provide a different experience of interacting with the local population and knowing more about the culture and cuisine of the country. Sometimes, the host also becomes a guide for the traveller. However, the traveller will have to ensure that such options turn out to be safe.

Even if you are on a shoestring budget, there are a few things that you should not mind spending on. Travel insurance is a must while travelling through an unknown destination. An insurance cover can protect him from several unforeseen eventualities. A medical emergency can drain out all your money in several developed countries. Travel insurance also secures one from loss of baggage, flight cancellation, burglary at home in your absence. Some of the policies also provide urgent cash in case of emergency.

Similarly, one should not go after the cheaper non-refundable tickets. A non-refundable ticket could be a tad cheaper than the refundable one. But in the event of a cancellation of the trip or the flight, it can turn out to be a big loss. Same can be the case with a pre-paid hotel booking.