Foreign vacation? How to cut costs but keep the fun

If you’re scurrying to avoid the scalding summer with a foreign vacation, but the astronomical budget is the only thing keeping you from taking one, it’s time for a rethink. With proper research and timely planning, you can cut down expenses on almost every front, be it flight and hotel bookings, commutes, or the spending tools you use in a foreign country.

“A well-planned trip can showcase the difference between overspending and outstanding value. Start with booking strategically by choosing off-peak days, early bird offers, and redeeming airline, hotel and credit card offers, leading to significant savings,” says S.D. Nandakumar, President & Country Head, Holidays and Corporate Tours, SOTC Travel.

Adds Manjari Singhal, Chief Growth and Business Officer, Cleartrip: “The ideal approach is a combination of four things: booking early, booking during a travel sale, using bank offers, and redeeming loyalty points. Even two or three of these can help unlock the best value; not just cheaper fares, but a better overall deal.” Here are several other ways you can maximise your savings.

Picking the destination
The first step, of course, is to choose a destination that satisfies your budget and needs. Unless you have a specific country or experience in mind, conduct research on places that can provide the same experience at a lower cost. For instance, Central Asian countries like Kazakhstan, Georgia and Azerbaijan can give you the feel of Europe while offering savings of nearly 50% compared to destinations in western Europe. These are just 3-5 hours away and, apart from air fares, cost heads like stay and food are very low compared to Europe.

Another option is to pick countries where the rupee value is high. “With the rupee under pressure, look at destinations where the Indian rupee still holds significant value.

How to book the cheapest flights
Consider these tips to secure lower fares.
Aggregator cheaper than airlines
Airlines are typically more expensive than aggregators. For instance, Yatra offers a much lower fare compared to Air India and Singapore Airlines.
Delhi-Singapore one-way air fare for 30 May flight on….
YATRA
Rs.12,100
AIR INDIA
Rs.16,890
SINGAPORE AIRLINES
Rs.20,650

Book in advance, not last minute
While you may snag good lastminute deals, there’s a higher chance of getting cheaper fares if booked 30-60 days in advance.
On Ixigo, Delhi-Singapore one-way air fare showed a huge difference…
1 May
Rs.12,951
30 May
Rs.8,548

Keep dates flexible
If you keep your dates of departure flexible, you can pick the cheapest options.
On Goibibo, Delhi-Singapore one-way air fares were cheaper just a day apart
30 April
Rs.12,109
1 May
Rs.12,951

Direct flights are expensive
If time is not a constraint, long-haul flights with layovers will be cheaper than non-stop direct ones.
On Goibibo, Delhi-Singapore one-way air fare was much cheaper with one stop…
Non-stop
Rs.12,951
With 1 stop
Rs.7,548
with 1 layover of 10 h 50 mt at Chennai.
*All air fares as on 30 April.

"Countries such as Vietnam, Cambodia, Indonesia, Turkiye, Egypt, Kenya, and certain parts of eastern Europe like Georgia and Serbia offer fantastic experiences at a reasonable cost," says Bharatt Malik, Senior VP, Air and Hotel Business, Yatra Online.

Another option is to consider countries that offer visa-free travel since visa fee forms a big component of travel budget. Without the delay of visa processing, you can avail of last-minute travel deals and book tickets instantly. Some such countries include Serbia, Hong Kong, Mauritius, Bhutan, Barbados, Haiti, etc.

Flight bookings
“Flights are best secured well in advance, leveraging fare trackers and loyalty programs for substantial savings, besides availing of companion offers and upgrades,” says Rajeev Kale, President & Country Head, Holidays, MICE, Visa, Thomas Cook (India).

Airlines vs aggregators: Aggregator sites typically offer better rates (see graphic) compared to airlines. For best fares, compare across multiple platforms, such as Skyscanner, Goibibo, Cleartrip, Ixigo, Yatra, etc. If, however, you are a frequent flyer and part of an airline’s loyalty program, book through airline websites as you could add up air miles and redeem them for free or discounted tickets. Also, while booking tickets through aggregator apps, check if they allow free cancellations or with a fee.

Book early, be flexible: Booking 30-60 days in advance is bound to get you a better price than a last-minute deal, especially if you are travelling during peak season. Being flexible about departure dates also helps as most sites display date-wise rates and shifting even by a single day can help slash costs (see graphic). Remember, however, to opt for refundable tickets in case you get a better deal.

Use fare trackers & alerts: Sign up for fare alerts so that you can zero in on the lowest price for your route and book on a dip.

Discounts, card benefits: Look for all kinds of discounts posted upfront on travel websites, ranging from aggregator discounts, bank offers on credit cards or co-branded cards, free air miles and loyalty programs, seasonal promotions and flash sales.

Day, time, month: “Consider mid-week departures (Tuesday or Wednesday) for additional savings,” says Singhal. Similarly, early morning or red-eye flights will cost much lesser. MakeMyTrip’s Smart Travel Tips even tells you the day, time and airline that is likely to be the cheapest for your chosen route. For Delhi-Singapore flights, it suggests Air India Express flights on Mondays, before 6 a.m., to be the cheapest.

Stopover flights: Direct, non-stop flights are invariably costlier than those with one or more layovers (see graphic). Don’t forget, however, that these will also take much longer and can increase your travel period.

Should you pick forex or credit card?
If you have a zero mark-up credit card, it could be cheaper, especially with reward points, air miles, etc. If not, forex cards can be more cost-effective.


Stay options
Bundling can save 10-15% on an average compared to standalone reservations. While many travellers still bundle hotels and flights, separate bookings are becoming popular due to access to alternative accommodation like homestays, villas and vacation rentals, combined with experiences, says Singhal.

“For hotels, early booking, location efficiency and benefits like complimentary breakfast/transfers or upgrades deliver strong value. Bundling flights and hotels unlocks negotiated rates that individual bookings may not match,” says Kale.

Booking early can also secure early-bird rates and come with perks like free upgrades. Filtering options based on key preferences, such as breakfast inclusion or free cancellation, ensures value-driven choices. “Comparing room amenities helps find the best value for money, while booking during promotional periods increases the chances of better prices and room offers like complimentary food & beverage coupons or room upgrades,” says Gaurav Malik, Country Director, India, Sri Lanka and Nepal, Agoda.

When should you opt for DIY or package tours?
DIY may be cheaper if…
You are a budget, solo or seasoned traveller
Instead of the set accommodation, flights and meals in a package, you can pick less expensive options.
You have time for research & planning
You can find good deals and discounts for flights, hotels and sightseeing.
You like flexibility
You can opt for free sightseeing options, instead of expensive, popular tourist sites, or stay for longer in a budget-friendly place.

Package tour is cheaper if…
You are travelling in a group
Tour operators get discounted prices for booking flights and hotels in bulk.
You want a structured tour
You can get discounted passes and entry tickets for tourist sites.
You have no time for research
You may not be able to scout for cheaper deals than those available with a package tour.

Spending tools
Always spend in local currency, not rupees, because it will be more expensive after conversion. You can use a combination of forex cards, credit cards and cash. “One can use a prepaid forex card for better control over budget and to avoid high foreign exchange conversion charges. A mix of small cash for daily use and cards for larger purchases provides flexibility,” says Yatra Online’s Malik.

While forex cards are preloaded with one or multiple currencies, the exchange rate is fixed at the time of loading and is not affected by currency fluctuations during the entire usage period. A mark-up (rate charged for foreign currency conversion), which is typically 2-3.5% for forex cards, happens only if a transaction is conducted in a currency other than the one loaded on the card.

Credit cards, on the other hand, will have a mark-up of 1.5-3.5% for every transaction that is conducted, the reason they are considered more expensive than forex cards. However, if you have a card with zero markup it can prove to be cost-effective and more convenient. “Several fintechs like Scapia and banks like IDFC First and RBL offer zero mark-up cards. You’ll also get the best rates, and if something goes wrong, you can always dispute the purchase,” says Ajay Awtaney, Founder of Indian credit card platform, LiveFromALounge.com.

Agrees Sumanta Mandal, Founder, TechnoFino: “At the time of loading, forex cards charge a higher rate, while premium credit cards with zero markup are less expensive, especially as you can use reward points and air miles that you earn every time you swipe.”

Commute costs
Public transport (metro, tram, bus) is easily the most affordable option for commuting. For inter-city travel, overnight trains are a good choice and you can get discounts if you book in advance. “For frequent travel, purchasing weekly or even day passes can help save significantly compared to single-ride tickets in countries like Japan, Thailand, Singapore and Germany,” says Singhal. Options like metro passes are also available for advance booking on platforms like Agoda.

“Many cities also offer tourist travel cards, such as the JR Pass in Japan or the Oyster Card in London, which provide unlimited travel for a fixed price,” says Yatra Online’s Malik. Eurail Pass in Europe or the Octopus Card in Hong Kong are other such options. “These often include additional benefits, such as discounts on attractions or retail purchases,” adds Singhal.

Sightseeing
Book day trips in advance via GetYourGuide or Viator apps, which sometimes include transport and meals. Group day tours can cost much lesser, as can multi-day tours. You can also search for free cultural landmarks, free local tours, museums with complimentary entry on certain days, and donation-based walking tours led by locals. “Planning the itinerary by grouping nearby attractions can reduce travel time and cost,” says Singhal.

“Check for bundled offers or attraction passes provided by destinations. For instance, Singapore’s Sentosa Fun Pass offers flexible access to multiple attractions across Sentosa Island at attractive prices,” says Nandakumar.

City passes offered by many cities globally offer a range of sightseeing options too. “These are often cheaper than buying on site and help avoid long queues. These include free or discounted access to a curated list of museums and attractions,” says Singhal. For instance, London Pass or Paris Museum Pass allow multiple attractions at a discounted rate. However, they have a fixed expiry and the clock starts after you swipe at the first venue. So check as many as you can in the time limit.