As fuel prices have climbed amid the conflict with Iran, airfares have followed. Meanwhile, with more people facing a cost of living crisis, the rates for hotels, experiences and even airport sandwiches seemingly creep up every time you look. This means that for many the idea of travelling in 2026 feels like a luxury the budget may not stretch to accommodate.
So we ask four travel and finance experts for their best advice on making your money go further this year, without sacrificing your trips.
Set a total budget before you book anything
The single most important step happens before you book anything. “Research consistently shows that people spend more when they commit to a purchase first and calculate later,” says personal finance coach Carol Glynn. “Booking flights before setting a full trip budget is one of the biggest drivers of overspending.”
Before confirming anything, she advises calculating a realistic total: flights, accommodation, insurance, transfers, food, experiences, shopping and a 10 per cent to 15 per cent buffer. “That buffer is important,” she adds. “Unexpected opportunities are part of travel, but planning for them stops them becoming debt.”
Open a dedicated travel fund – then start filling it
Once you have a budget, the goal is to save for the trip in advance rather than paying it off afterwards. “The most effective way to reduce the cost of travel is to remove interest from the equation,” says Glynn.
“As soon as you return from a trip, calculate what you actually spent. If you'd like to travel in a similar manner again, start saving immediately in a separate account.”
Automate a monthly transfer into a dedicated fund, ideally one that earns interest, because carrying a credit card balance at typical rates – often 35 per cent to 46 per cent annually – can make a holiday 20 per cent to 30 per cent more expensive over time.
Book smart
Dubai travel agent Ipshita Sharma urges travellers not to fixate on the headline price of a flight. “Book early, but don't just grab the cheapest flight and pray. Right now, with route changes, delays and random price hikes, it's worth checking layovers, baggage and how chaotic a route actually is.”
Oman travel specialist Sabine Reining adds that the standard round trip isn't always the best-value option. “Open-jaw tickets and smart one-way combinations can unlock surprisingly good fares,” she says. “Departing midweek – especially on a Tuesday or Wednesday – also often comes with noticeably lower fares.”
Stay informed, but don't panic-book
With so much noise around travel disruption, the temptation is to lock everything in immediately. Sharma says: “Don't let scary headlines bully you into panic-booking. Prices can spike, but they also change fast. Sometimes waiting a little and watching trends saves more than stress-booking.”
That said, staying informed matters. If you’re going to spend more on any part of the trip, it should be to build flexibility into your itinerary. This can save you a lot of money in the long run if things go awry, says Reining, as “delays, rerouted flights and short-notice cancellations are more common than usual right now”.
She also advises registering with your embassy's travel notification system. “It makes communication much easier in case of sudden disruptions or evacuations.”
Sort visas, insurance and paperwork early on
Admin may be the least glamorous part of travel planning, but leaving it until late is expensive. “Sort your visa early,” says Sharma. “Nothing hurts quite like paying extra because you left it too late, or realising your 'cheap' flight has a transit visa surprise.”
Insurance deserves equal attention. Reining warns that many travellers underestimate what their policy actually covers. “Make sure your travel insurance covers political unrest, medical emergencies and unexpected trip interruptions – many standard policies don't.”
Your credit card may already include travel insurance as a benefit, saving you the cost of buying it separately. So check before purchasing any expensive insurance policies.
Use credit cards strategically – then pay them off in full
A well-chosen credit card can offset genuine travel costs, but only when managed correctly. Glynn recommends looking for cards with air miles or travel reward programmes, cashback on overseas spending, no foreign transaction fees and airport lounge access. “This benefit not only provides comfort at the airport, but also saves in costs as the food is free in the lounge.”
Interest wipes out rewards quickly, though, she warns. “If you carry a balance for even a few months, the value of the points is often overwritten by the interest charged.”
She also suggests reducing your credit card limit before departure. “Behavioural finance research shows that people spend more when their available credit is higher. Reducing your credit card limit before travelling creates a natural spending cap.”
When using air miles and points earned via credit cards, travel industry data consistently shows better redemption value on big-ticket items such as flights, hotel stays and long-haul upgrades, adds Glynn. “Lower-value redemptions, like gift cards or merchandise, often give reduced return per point. Think strategically. Use points to eliminate large expenses, not small treats.”
Plan ahead and pay in instalments
For bigger trips, travel content creator Yvonne Mtengwa swears by organising well in advance. “My favourite hack is to plan several months ahead. A lot of travellers don't know that most hotels allow you to make payments for your stay and activities via instalments, with last payment due 30 to 60 days before travel.”
Having a plan for your time also prevents impulse spending on the ground, she adds. “Adequate research and assistance with activity bookings at your destination helps you stick to a plan. We end up spending money unnecessarily if we don't have a hit list already in place for things to see and do.”
Be flexible about where you sleep
A hotel isn't the only option – and often not the best-value one. “With the rise of Airbnb and private home rentals, you can save on your stay while enjoying bigger, often more aesthetically pleasing spaces than a traditional hotel room,” says Mtengwa.
For hotel stays, Reining says: “If you're staying more than a few nights, always ask about weekly rates. Many hotels offer discounts that aren't advertised online.”
For those open to something different, she suggests swapping a night in a hotel for one under the stars by camping. “It’s cheaper – and far more memorable.”
Cut daily costs on the ground
Some of the most effective savings happen not before the trip, but during it. Reining's first stop in any new destination is the supermarket. “Water, snacks, and breakfast basics from there can easily cut your daily food costs in half,” she says.
She also steers clear of restaurants on famous squares. “Ask locals where they eat. The spots away from the mainstream are often cheaper, more authentic and way more delicious.”
Sharma has a similar take on souvenirs. “Don't buy your souvenirs right next to the biggest tourist attraction. Walk a little, explore a bit and you'll usually find better prices, better stuff and a much better story.”
Or do what Mtengwa suggests and “avoid shopping” altogether. “It's only going to cost you more in extra luggage to ferry your items back home.”
Another way to cut costs on the ground is by researching discount options ahead of time, says Glynn. “Are there offers like Groupon or The Entertainer-type companies operating in the country you are travelling to? Do your research and utilise these offers on food, drinks, activities and even accommodation.”
Spend for meaning, not for the feed
“Research shows that comparison increases discretionary spending,” says Glynn. “Ask yourself: 'What would make this trip genuinely meaningful for me?'”
When spending reflects personal values rather than the pressure to post something impressive, the total cost tends to fall – and the satisfaction tends to rise.
Avoid the 'holiday upgrade effect'
Behavioural economists call this “present bias”, says Glynn, “when we prioritise immediate pleasure over future consequences”. For example, a slightly better hotel, a premium flight, an extra excursion.
“Each decision feels small, but combined they can inflate the cost significantly. If those upgrades are funded through credit, the cost rises further with interest added.”
Decide in advance what matters most to you and allocate your budget there deliberately, she adds.
As Glynn puts it, the biggest travel savings in 2026 “rarely come from cutting the trip short; they come from preventing credit card interest, reducing hidden fees and making conscious decisions before and during the experience.” That, more than any flight deal, is where the money is.
