Rising airfare and escalating gas prices: Here’s how to save on holiday travel

This year has seen a travel boom. This summer was the busiest on record for U.S. airports, with the TSA screening 227.5 million passengers from Memorial Day to the Fourth of July. Although there were some issues — like United's operational troubles in late June — there’s optimism that the holiday season will be smoother for travelers compared to the Christmas chaos experienced by Southwest Airlines customers in 2022.

With consistently high holiday airfare, soaring hotel rates, and ongoing loyalty program devaluations, being strategic about your holiday 2023 travel bookings is essential to avoid stress and overspending.

If you haven't secured your flights or accommodations yet, now is the perfect moment to start planning your holiday trips and discovering ways to save money along the way.

Choose your travel dates carefully

By tweaking your travel dates slightly, you could save a significant amount. Some days around the holidays see increased demand and consequently higher prices.

In both 2021 and 2022, the busiest travel day of the year, based on TSA checkpoint statistics, was the Sunday following Thanksgiving.

How much can you actually save by arriving a day earlier or departing a day later?

For example, if I'm flying from Dallas Fort Worth International Airport (DFW) to New York for Thanksgiving, the cheapest round trip on Delta Air Lines is $418, departing the Wednesday before the holiday and returning the Sunday after.

If I can hold off until Monday to book, check out how much the fare decreases: it's $198 for a round trip — a savings of 52%. A family of four could save $880 by waiting until Monday.

In its "Christmas in July" report, the booking app Hopper offered these recommendations:

Thanksgiving:

• Fly out on the Monday before the holiday for the best airfare deals.
• Return any weekday during the following week after Thanksgiving.

Christmas:

• This year, the priciest days are expected to be the Thursday and Friday (Dec. 21-22) before Christmas, which is on a Monday.
• To save money, consider flying out on Wednesday, Dec. 20, or choosing dates outside the peak travel days.

Naturally, the exact fares will also vary based on your destination and the timing of your booking.

Nonetheless, Hopper indicates that the optimal time to book holiday flights (for Thanksgiving, Christmas, and New Year's) tends to be in late September or early October.

Google Flights confirms this, stating that the best deals for trips in mid-December or later are usually available around early October — which is approaching quickly.

Learn how to search for affordable flights

A top tip for securing budget-friendly holiday flights is simply understanding how to search for them effectively.

TPG offers a comprehensive guide to scoring cheap flights, so I won't go over every detail here. But let me highlight a favorite tool from TPG: Google Flights. This platform features a search function that allows you to skip entering a specific destination, which is invaluable if your holiday plans are still undecided or if you want to explore various options.

You can input your departure city and desired travel dates, leaving the destination field empty. This will show you price options for various locations, near and far.

If you already know your destination for tree trimming, simply enter your origin and destination into Google Flights to quickly find the cheapest travel dates. Even a day or two of flexibility during the holidays can result in price changes of over $100 either way.

Google Flights now features a tool that suggests the best time to book your flight based on historical data trends specific to your route and itinerary.

For example, regarding our DFW to New York Thanksgiving trip, Google Flights recommends booking sometime between now and Nov. 8 (though waiting until the latter date might be cutting it a bit too close) to secure the lowest fare.

Additionally, explore price alert services like Hopper or Skyscanner. If you have a certain destination in mind, you can set up alerts to notify you of the best booking times.

Booking flights directly with the airline is usually the best approach, but leveraging these tools to find deals before making your direct booking can simplify your search for the lowest fares.

Travel to less popular destinations

While flying to sunny Cancun or Puerto Rico during Thanksgiving or the winter holiday season sounds enticing, it could set you back $400 to $600 per person. By choosing a different destination, you could save hundreds of dollars per traveler.

Tropical vacations often come with a hefty price tag during the holidays. However, from Houston, you can snag round-trip flights to Miami or New Orleans for under $200 per person during Thanksgiving week. Miami serves as a great alternative if you're seeking a warmer spot, while New Orleans offers an underrated fall experience for those wanting to explore the vibrant city without the sweltering Louisiana summer heat.

Wherever you're located, you can score great deals by visiting off-season destinations and choosing spots away from the usual crowds. Instead of a tropical escape in the Caribbean or Mexico, consider an early ski trip around Thanksgiving or visit a national park. Here are some of our top national parks to explore in winter.

Master your points strategy

One effective way to cut costs when booking holiday flights is to utilize your points.

Be cautious, though, to avoid overpaying. Many airline and hotel loyalty programs have adopted dynamic pricing for award flights and stays. This often means that when cash prices rise (which usually happens during the holidays), the points costs can also increase significantly.

A useful strategy to counter this is to transfer your Chase, Capital One, Citi, and Amex points to airline partners that offer more stable award pricing systems.

Looking to visit the snowy slopes of Aspen? You might consider booking a flight with United Airlines using Avianca Life Miles. If there’s availability, it will cost you just 10,000 Life Miles each way, compared to often over $300 per person if you choose to pay cash.

Being resourceful and exploring all the transfer partners available through your rewards credit card can significantly enhance the value of your points and miles, even during the holiday season.

Ship it or take it with you?

If you check a bag, you might incur fees of $30-$50 for a standard checked bag on domestic flights. Ideally, you would avoid these costs by having elite status or the right credit card handy. If you don't, those fees can add up quickly, especially if your luggage is overweight or oversized due to holiday gifts.

You might consider shipping your luggage using a UPS extra-large simple ship box (up to 50 pounds) for approximately $26. If you prefer not to shop around yourself, you can use LugLess to compare prices and arrange shipping for your items, with options ranging from DIY drop-off to doorstep pick-up and delivery.

While shipping may not always be the cheapest option, it is typically easier than carrying extra items and waiting at baggage claim. Additionally, it can alleviate some of the stress travelers have faced in recent years regarding luggage issues.

Just make sure to allow for some extra delivery time during the holiday season.

Don’t skip meals

There are significantly fewer closed shops in airport concourses compared to the peak of the pandemic (and even afterward, due to ongoing staffing challenges).

The cost of dining at the airport can be quite hefty, often exceeding $50 for a family meal, which can be a significant financial strain.

Check if your airline status or credit card offers you access to lounges or discounts, such as a Priority Pass credit at certain restaurants or complimentary entry to airline lounges like the Amex Centurion Lounge. Remember to verify access rules beforehand, as many lounge operators have tightened entry and guest policies to prevent overcrowding since last year.

For instance, if you hold The Platinum Card® from American Express and wish to bring your family into an Amex Centurion Lounge nationwide, you'll need to have spent $75,000 with your card in this year or the last. Otherwise, bringing in a guest aged 18 or older will incur a $50 fee, while a child aged 2 to 17 will cost $30.

Cut down on fuel expenses

While flying is a popular choice, many people opt to drive to visit family during the holidays. Although gas prices have dropped since the peak of 2022, the expenses for a long road trip can accumulate quickly due to multiple refuels and tolls.

AAA currently states that the average price for a gallon of unleaded gas is approximately $3.84. This is a slight increase from $3.70 a year ago, yet significantly lower than the all-time national average of $5.01 per gallon.

Utilize GasBuddy to locate the lowest gas prices nearby (and you might even save up to 40 cents per gallon with its prepaid gas card). Additionally, look into fuel rewards programs. Many gas station brands and certain grocery stores like Kroger and Harris Teeter offer loyalty programs that can save you as much as a dollar per gallon at the pump. We've compiled more tips for saving on gas here.

In summary

Reflecting on the past few years, it seems that traveling might be more manageable than last year.

However, as evidenced by the Christmas 2022 Southwest Airlines chaos and the omicron surge in 2021, booking with a credit card that includes trip insurance — or purchasing your own — can offer valuable peace of mind and protection if things don't go as planned.

Furthermore, if this summer's record airport crowds are any sign, it's essential to keep your PreCheck, Global Entry, and/or Clear Plus memberships current so you can navigate security more swiftly as the crowds increase.

Affordable holiday travel is achievable if you plan strategically regarding your travel dates, destinations, and the rewards programs you utilize to assist you in reaching your goals.