Photo by Dhruv Khichi

A version of this story was first published on www.moneycontrol.com on the 19^th of May. Read Here – https://www.moneycontrol.com/news/business/personal-finance/personal-finance-if-you-must-travel-do-it-smartly-to-make-the-rupee-go-farther-13923676.html

“To move, to breathe, to fly, to float, To gain all while you give, To roam the roads of lands remote, To travel is to live” – this is how Hans Christian Anderson expressed his love for travel.

Unfortunately, this beautifully romantic sentiment seems like a misfit in today’s turbulent times. Given the battering of global trade and an exaggerated hammering of our INR thanks to geo political conflicts which refuse to simmer, our Prime Minister has appealed to citizens to avoid or postpone non-essential foreign travel.

Yet, summer break will happen, travel plans exist. For many of us, sitting this one out is not an option.

Truth is that these are tough economic times world over, fuel and energy costs are spiralling and you may find that right from air tickets to hotel rooms, everything is costlier.

What can you do in such perplexing times?

The answer, at least in this context, may lie in smarter planning and mindful choices.

Here’s what you got to do.

Plan once and travel all year

Planning ahead for any activity has its obvious benefits, but when it comes to travel, the benefits multiply. Every year, take some time out and plan your travel itinerary in advance. In today’s chaotic times, planning ahead is not only financially wise but also smoothens out some uncertainty where you have control.  Jot down the long weekends, work holidays and school breaks you can utilise to travel. Pick the best few of these dates on which you wish to travel and lock them in.

Now decide the destinations and match your dates accordingly. An annual travel calendar does more than just organise, it build anticipation and makes execution easier and effortless. The financial upside is that you can potentially save 20%-30% on flight tickets when booked at least 3 months in advance. If you like to travel with others, rope in your friends and set up an annual travel fund where each of you can contribute a fixed amount; this helps to solidify plans and save costs as you are pool in more efficiently.

Once the tickets are booked, plans become inviolable. Plus booking ahead can give you a good price for refundable tickets, thus, keeping some flexibility in your travel plans.

Stay smart, spend better

After flights, accommodation is the biggest spends and also the easiest to overspend. While picking full service hotels may be easier, staying in multi room villas, bed and breakfasts, homes stays and Air BNB accommodation may be more fulfilling and less expensive.

In choosing accommodation focus on comfort, location and breakfast. How can I forget the beautiful service apartment we booked overlooking the central plaza in a charming European city, the vibrant culture was just a glance away through our bedroom window. I No five-star lobby could have matched that. If you pick the right location, you’re mostly outdoors, no need to overpay for hotel stays. Rationalising your accommodation cost can help you save more for spending elsewhere like local shows, adventure activities and shopping.

If you are travelling purely for rest and recuperation, then the hotel or spa choice is a lot more relevant and you may want to open up your purse string a little. Here too, planning this is advance will help you save and lock in prices that are at least 20%-30% cheaper.

Satiate that hunger and experience the sights

The chunky costs of stay and tickets done, focus shifts to everyday spending which, usually is harder to predict but not impossible to plan. Book some of your marquee experiences in advance. Especially for travel with children, I have found apps like TripAdvisor or Klook very useful for advance booking of events, activities and even restaurants.

If you have done your accommodation right, many sights and experiences will be walkable or covered with the help of local transport like buses, metros or autorickshaws. Unlike taking taxis or private rental cars, these options not only help you save money but also it’s an opportunity explore in depth and meet interesting people along the way.

For those who like to explore, the hop on hop off bus service in tourist destinations is pocket friendly and easily accessible, taking care of your day’s travel cost and in some cases, entry tickets to local sights.

When it comes to food, not everyone likes to experiment. It’s personal and us Indians often like to carry our own food or trek around looking for Indian food restaurants. We often indulge in eating local food from restaurants around street corners or street food and that is easy on the pocket, plus can really elevate your travel experience. Children love the excitement around street food along with a taste of local life.

Travelling in India comes with access to many food options, across price points and so you’re sorted. When abroad, another way to rationalise spending is to step into supermarkets for fresh foods, salads, wraps and bakery breads for on the go meals.

Lastly, don’t forget to negotiate. Whether it is boat rides, souvenirs or local guides – be it in India or overseas – you can always negotiate a better rate.

Best way to pay

Gone are the days where you carry wads of travellers cheques or local currency. India or abroad, cards and digital payment options are the best.

You can use your international credit card if you are travelling abroad. The reward points collected – to be redeemed in future – will balance out the forex markup of 1%-3.5%. Plus, credit card usage is wider as acceptance is expansive across merchants in India and overseas.

You can also get a specific Forex card preloaded with funds and use that. While credit card is about convenience and post spend benefits like rewards, if spending discipline is an issue,  preloaded cards will help you maintain a budget. Plus the exchange rate is locked in and fees and commissions are low. Also with credit cards you may run into issues later if you have overspent and repayment does not happen on time. The interest charge is very high on an overdue bill.

Keep some paper currency only as an emergency or for giving tips. The world is large and travel beckons. But don’t make your family’s summer break a windfall spend, make a plan instead. When you plan, savings accumulate more than you realise.

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