Planning a holiday? Here's how you can save on travel

If you are rethinking holiday plans because of interest rate hikes and escalating living costs, know that there are many ways to reduce travel expenses. Flights, rail travel, cruises, tours and accommodation all have cost-saving hacks; you just have to be discount-savvy and ready to pounce on bookings.

Regardless of costs, love of travel remains ingrained in the Australian psyche and is still a priority for many. Gary Hunter, travel insurance expert at comparison price website Finder.com, says there are plenty of opportunities to plan an affordable getaway.

"These days you just need to look harder for those special deals and discounts for all sorts of travel, and adapt your plans accordingly," he says. A Finder survey of 1059 respondents in February revealed more than one in two, or 57 per cent, of Australians are planning a holiday in the next 12 months. The majority - 27 per cent - plan to travel only within Australia, while almost one in five (17 per cent) plan to holiday internationally, and a further 14 per cent plan to do both.

Here are more nifty tips to help keep travel costs down.

Sign up on booking sites such as KAYAK and Skyscanner for alerts whenever the price of your preferred flight drops and when it does, don't dilly-dally - due to set algorithms prices can quickly jump back up before your eyes. Orla Neligan, a contributor to travel guide book publisher Lonely Planet, advises signing up for credit card bonuses and loyalty programs to boost frequent flyer points to put towards flights and hotel stays.

Opt to fly on a Tuesday, according to Finder's Gary Hunter; it is often the cheapest day with weekend flights from Friday to Sunday usually the most expensive. Also, he says the second flight of the day is often less expensive than the first. Flight Centre travel consultant Nathan Varney suggests booking with airlines that have free seat selection or, if they do charge, wait until you're at the airport where airport staff do it for free. Neligan says also consider split-ticketing options - two single flights can often be cheaper than a return.

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Book as early as you can for all travel - and If you see a cheap international fare, snag it straight away. Varney says he can't stress this enough. "If you don't book early, there will be minimal seats left which airlines charge more for," he says. "Six months in advance is normally when sales drop and the best time for the best deals for international flights, be it to Bali, Europe or North America."

Cruising is booming and most cruise lines offer massive discounts on bookings made a long way out, as well as last-minute specials. Sign up for special alerts on websites such as Cruisemegastar.com. For example, Viking is offering 81 ocean itineraries across 2023, 2024 and 2025, with savings of up to $4600 per couple for a limited time, and Cruise Traveller has a Ponant Japan cruise with a discount of $4055 per person if booked before the end of March.

Look for cruise packages including alcohol and tours, or sign up for discounted packages as soon as you step aboard.

The Spirit of Tasmania offers discounted last minute walk-on fares for travel without a vehicle on selected day and night sailings. Night sailings from Geelong to Devonport have savings of up to $121 on set dates.

Package deals take the hard work out of travelling - companies such as Luxury Escapes, TripADeal and Wotif bundle holidays with flights, transfers, accommodation, meals and even massages. Melbourne travel agent Simone Davies says holiday packages are very popular because they take the guesswork out of costs and are paid upfront, so you just need spending money. "There are incredible packages available at international resorts in Thailand, Bali and Fiji including tours, free-flowing drinks, kids clubs and daily meals, which are very popular with families," she says.

Also see the Explore Deals site for more great packages and deals.

Try to book travel insurance as soon as you've locked in your trip to ensure you're covered for any cancellation costs, including those the airline might not cover such as pre-paid accommodation. A basic insurance policy can cost anywhere between $10 to $20 per day. Annual insurance is often a good option rather than purchasing small-trip insurance cover throughout the year.

Tours, cruises, flights and accommodation are generally cheaper in shoulder seasons outside local summers, when fewer people are on holiday, especially in beach spots such as the Greek Isles, Hawaii and Bali where you should avoid the peak months of June to September. An exception is Christmas time in the northern hemisphere, when travel to Europe and North America suddenly spikes for a two-week period.

Hunter advises to plan trips outside of school holidays. "It's a good way to keep costs down," Hunter says. "November and February are two of the cheaper months to travel that still have great weather in most parts of Australia." Holiday home and hotel prices also fall after peak seasons such as Christmas and Easter.

Rail travel in both Australia and Europe offers off-peak tickets. Rail Europe says travelling during the quieter months - usually spring and autumn - will also help with savings. (Bonus tip: overnight trains and coaches for interstate travel here and overseas means you can ditch the cost of a hotel for a night.)

Travel agents know how the systems work for tours, flights, cruises and accommodation and can combine packages. They also alert you to any itinerary changes, and sale fares are at their fingertips to get you the best-priced options. When it comes to flights, for instance, "often we can give you a few days' stopover in a transit destination for no extra cost or 'around the world' airfares," says Varney. "I book customers to fly around the world for $1600 where for example they have gone to Singapore, Europe and America all on one ticket at that low price."

Ring a hotel direct and ask the front desk for the very best price - it's often cheaper than online. Former Perth hotelier Sam Westman says you can always try to negotiate the best available price on arrival without a booking and always ask nicely for an upgrade - you never know. It's also worth checking websites such as lastminute.com for deals, and Airbnb offers discounts with codes and coupons that are often available from websites including coupons.cnet.com.

Hostels cater for all age groups by offering shared and private rooms, and are usually close to key attractions, and home swaps are also a great way to save - see lovehomeswap.com and homeexchange.com.