Between gifts, meals, decorations, and events, we try to squeeze a lot into our holiday budgets—and travel often takes up a big slice of the pie. Flights, hotels, gas, and meals add up fast. But even if you’re just beginning to think about the cost of visiting loved ones this season, it’s not too late to save. And the decisions you make now can also set you up for smarter travel spending in the new year.
According to a recent NerdWallet study, U.S. adults are expected to spend a total of nearly $311 billion on holiday travel. Their survey also found that 45% of Americans plan to spend money on flights or hotels this holiday season, spending $2,586 on average.
Whether you’re booking last-minute holiday travel or already thinking ahead to 2026 trips, these tips can help you save now and build better habits going forward.
1. Start watching rates early (and keep watching)
Holiday travelers tend to book flights for Christmas by the end of October. While that window may have passed for this season, setting up price alerts can still help you avoid overpaying.
Use tools like Google Flights or Kayak to track prices. If fares begin creeping up as your travel date approaches, it’s often better to book sooner rather than wait for a last-minute deal that may never come.
New Year takeaway: For trips next year, start tracking prices as soon as you know your dates—even if you’re not ready to book. Awareness is often the difference between a good deal and an expensive one.
2. Free up cash where you can
According to NerdWallet’s survey, 91% of holiday travelers are acting to save money on their upcoming holiday travel-related expenses. Even if time is short, you can still make room in your budget.
Take a temporary pause on optional spending like dining out, entertainment, or impulse shopping. Skipping a few meals out or happy hours over several weeks could easily cover baggage fees, airport parking, or a rideshare or two.
New Year takeaway: Consider creating a dedicated travel fund in the new year. Setting aside a little each month can make future trips far less stressful.
3. Make your credit card work for you
A quarter of holiday travelers plan to use their credit card rewards to pay for at least a portion of their holiday travel to save money. Cash-back cards, travel rewards cards, and cards with perks like trip protection or no foreign transaction fees can help you earn while you spend.
It can be tempting to save points for a major trip, but points and miles can lose value over time, so it’s best to use them as you need them.
New Year takeaway: Review your cards and benefits early next year. Using the right credit card consistently throughout the year can turn everyday spending into future travel savings.
4. Avoid paying interest at all costs
Rewards don’t mean much if you’re paying interest. In fact, 31% of people who charged last year’s holiday travel are still paying it off today.
If you expect it’ll take more than a month or two to pay off travel expenses, plan. An interest-free introductory credit card can help if you qualify. Otherwise, aim to pay more than the minimum each month to reduce interest quickly.
New Year takeaway: Build travel costs into your annual budget so you’re not relying on credit without a payoff plan.
5. Keep shopping after you book
Booking doesn’t have to mean you’re done saving. Many airlines offer a 24-hour refund window, even on non-refundable tickets. If you see a lower price within that window, you may be able to cancel and rebook.
The same goes for hotels. If your reservation is cancellable, continue checking rates. If prices drop, you can often rebook and save—just be mindful of cancellation deadlines.
New Year takeaway: Flexibility is one of the easiest ways to save on travel. When possible, choose refundable or changeable options.
6. Let your presence be the present
If travel is your top priority and you’ve done what you can but still feel stretched, don’t be afraid to rethink traditional gift-giving. With inflation driving up the cost of everyday essentials, many families feel the pressure more than ever.
Being able to show up, spend time together, and make memories may matter far more than exchanging gifts, especially during a season when costs are already high. Conversations about money can be awkward, but setting that expectation now can help ease financial stress and create more sustainable holiday traditions in the years ahead.
New Year takeaway: Have open conversations about expectations. Setting boundaries around travel and gift-giving now can make future holidays more enjoyable—and affordable.
Bottom line
Holiday travel doesn’t have to derail your finances, and it doesn’t have to be stressful. With a few smart moves now and some planning for the year ahead, you can enjoy time with the people who matter most, without carrying the cost into the new year.
