Summer spending
How to use this year’s vacation to fund next year’s
Summer vacation may leave you wincing at the cost. Plane tickets, hotels, meals and more can add up. But what if this year’s vacation could help pay for next year’s?
Here are a few tips to consider:
1 Be loyal
Reserve your 2019 hotel in the same hotel group that you’ll stay with in 2020, and sign up for that chain’s loyalty program.
Look at hotels in the place where you’ll spend your upcoming vacation, note a few you like, then search hotels in the place where you expect to vacation next year. Most will be part of the Marriott, Hilton, Hyatt, IHG, Wyndham, Best Western, Radisson or Choice Hotels chains. Now pick a 2019 favorite and a 2020 favorite within the same family.
2 Fly right
The same philosophy applies to your airline: Fly this year and earn points toward next year’s trip. This can be trickier, though, as a carrier with great fares to your 2019 vacation spot may not be competitive to your 2020 destination and fares frequently change.
Just make your best educated guess. Search for tickets for this year’s destination and next year’s to see which airlines have the most competitive fares right now. Sign up for that airline‘s frequent flyer program.
3 Credit cards
This is where you’ll earn the bulk of points to redeem next year. And there are a few ways to max out your credit card perks for travel.
Credit card sign-up bonuses offer you tens of thousands of hotel points or airline miles after you’re approved and meet a minimum spending requirement. Find one that works with your chosen hotel group and airline and apply. These cards often come with perks that make travel easier, such as free checked bags or late-checkout privileges.
Proceed with caution, though: Earning that big bonus typically requires you to spend a minimum of $2,000 to $5,000 on the card in the first three months. Be sure you can meet that requirement and pay it off in full to avoid interest charges. And be aware of cards’ annual fees, which can eat into the value of the bonus.
Consider that credit card rewards are often much higher when you use a card that offers partnerships with certain hotel chains, rental cars or airlines. Make sure to use the right card to pay for flight, hotel and other costs.
Routine spending can help pay for next year’s vacation, too, as you typically can earn one point per dollar on anything you buy. Some cards give you a points boost in certain spending categories, like restaurants and gas stations.
If you don’t like the idea of a hotel- or airline-branded credit card, use a similar strategy with general travel rewards or even cash-back credit cards that can be applied next year.
This article was provided to The Associated Press by the personal finance website NerdWallet. Want to suggest a personal finance topic that Quick Fix can address? Email apmoney@ap.org.