Smart Travel: Upgrade Your Getaways – Episode Summary

Episode: How to Budget for Trips: When to Book and How to Avoid Hidden Fees
Release Date: February 26, 2025
Hosts: Sally French & Megan Coyle
Produced by: NerdWallet Travel

Introduction

In this episode of Smart Travel: Upgrade Your Getaways, NerdWallet's travel experts Sally French and Megan Coyle delve into effective strategies for budgeting your next trip. From understanding airfare trends to maximizing credit card rewards, the hosts provide a comprehensive guide to making your travel dollars stretch further.

Spring Break Travel Insights

Sally French kicks off the discussion with AAA's latest booking data, revealing a 7% increase in round-trip airfares and an 8% rise in domestic hotel prices compared to last year (02:03). The top destinations for spring break include popular Florida hotspots like Orlando and Miami, alongside cities like New York, Honolulu, and Chicago (02:16).

Megan Coyle highlights a surge in cruise popularity, noting that 19 million Americans are expected to embark on ocean cruises this year—the third consecutive record-breaking year (02:31). She shares her excitement about upcoming cruise ship debuts with MSC and Norwegian Cruise Line (02:55).

Travel Budgeting Strategies

The core of the episode focuses on effective budgeting for travel. Benjamin Din emphasizes the importance of starting early: “Figuring out how to pay for trips can be the trickiest part. So it's good that we're here starting early” (07:15).

Key Points:

1. Dedicated Travel Funds:

   • Megan compares a travel fund to a childhood piggy bank, suggesting a separate bank account or a designated portion of your savings (07:59).
   • Benjamin recommends automating savings through direct deposit splits or automatic transfers to ensure consistent contributions (14:06).

2. Budgeting for Flights and Hotels:

   • Megan uses tools like Google Flights to monitor average airfare prices and sets price alerts to stay within her budget of approximately $1,000 for holiday flights (09:35).
   • Benjamin advises using NerdWallet’s data to find the “Goldilocks booking zone” – booking flights one to three months in advance domestically and two to eight months for international travel (12:18).

3. Handling Airfare Inflation:

   • With airfares rising, Benjamin suggests budgeting slightly higher than last year’s costs to accommodate potential increases (10:31).
   • Megan shares her approach to staying within budget by opting for red-eye flights or flights with layovers when necessary (10:53).

4. Saving for Multiple Trips:

   • Megan discusses budgeting for multiple destinations, including weddings in Italy and potential side trips to New Zealand, by estimating flight costs early and saving accordingly (11:14).

Maximizing Points and Miles

Sally French and Benjamin Din explore the benefits of using travel rewards to enhance your budget:

1. Spending vs. Saving Points:

   • Benjamin argues against hoarding points unless planning a specific high-value redemption, citing Marriott’s recent award price hikes as a cautionary example (17:45).
   • Megan emphasizes planning her points strategy around upcoming trips, ensuring she can utilize them effectively without risking devaluation (18:23).

2. Earning Transferable Points:

   • Megan advises earning transferable points and transferring them to airline partners for greater flexibility and value (20:53).
   • They highlight the importance of timing when applying for new credit cards to take advantage of signup bonuses, recommending a six-month window before the planned trip to meet spending requirements (21:38).

3. Credit Card Benefits:

   • Benjamin shares his experience with the Hilton Honors American Express Aspire card, which offers free night rewards and other perks that significantly reduce travel costs (22:37).
   • Megan and Benjamin discuss the Southwest Companion Pass, which allows a companion to fly at minimal cost, providing substantial savings for frequent travelers (24:05).

Navigating Hidden Fees and Policy Changes

Sally alerts listeners to a new change in the Uber app: starting February 27, prices abroad will default to display in the user’s home currency, potentially leading to unwanted currency conversion fees (05:12). She advises travelers to adjust their app settings and use credit cards that charge no foreign transaction fees to avoid these extra costs (06:35).

Travel Planning Tools and Reviews

Capital One Lounge in Las Vegas:

• Megan praises the new Capital One Lounge for its extensive food options and generous guest policy, noting its capacity to accommodate around 135 guests (03:15).
• Sally and Megan also discuss the new Chase Sapphire Lounge in Philadelphia, highlighting its amenities like free facials, a kids' playroom, and an arcade (05:12).

Hot Takeoff: Middle Seat Preference

In a light-hearted segment titled Hot Takeoff, Benjamin surprises listeners by advocating for the middle seat. He argues that the middle seat offers more under-seat space for carry-on bags and reduces the number of passengers he needs to interact with during the flight (25:18). Despite pushback from Megan, this controversial stance adds a fun twist to the episode.

Conclusion and Key Takeaways

Benjamin summarizes the episode by emphasizing the importance of using tools like Google Flights, setting up dedicated travel funds, and leveraging credit card rewards to stay within budget while allowing flexibility for unexpected expenses (26:50).

Key Takeaways:

• Plan Early: Start budgeting and booking well in advance to take advantage of the best rates.
• Use Travel Tools: Utilize platforms like Google Flights and hotel aggregators to monitor prices and set alerts.
• Separate Funds: Create a dedicated savings account for travel to keep your budget organized.
• Maximize Rewards: Strategically use points and miles, and take advantage of credit card benefits to reduce costs.
• Stay Informed: Keep up with policy changes and hidden fees that can impact your travel budget.

Quotes:

• Megan Coyle: “Setting a price alert really early in the year and watch it come through my emails and say, okay, I've seen the prices for the past few months and this is the price I'm comfortable setting for the budget.” (12:18)
• Benjamin Din: “Use tools like Google Flights to get a rough estimate of your travel costs. Make a separate travel fund to budget for your trips. This can make it easier to stay on track and of course always leave wiggle room for those unexpected expenses.” (26:50)

Additional Resources

• Credit Card Recommendations & Signup Bonuses: Visit NerdWallet’s travel rewards page for detailed insights.
• Best Booking Times: Check out the episode’s show notes for an article on the best days to book flights and when to fly.
• Lounge Reviews: Explore reviews of the new Chase Sapphire lounges on the NerdWallet website.

Connect with NerdWallet Travel:

• Email: travel@nerdwallet.com
• Podcast Platforms: Available on Spotify, Apple Podcasts, iHeartRadio, and more.

Disclaimer: We are not financial or investment advisors. This information is provided for general educational and entertainment purposes and may not apply to your specific circumstances.

Stay tuned for more expert tips on making your travel budget work harder for you. Safe travels!