How to save money on vacation expenses

Saving money on vacation expenses is actually more about how informed you are, rather than about sacrificing luxuries or the amount of time you spend on vacation. Stretching tourist dollars needs you to do extensive research about your destination and all the expenses that you'll incur on and for the trip.

So rather than bloviate about cheap hotels, I'd like to give you concrete examples of how you can save money in different ways at different destinations, just so you get an idea of how to look into all aspects of cost reduction for a specific location. I'll take three destinations - Honolulu, New York and Anaheim as examples, or guinea pigs, or whatever you want to call them.

You know, everyone wants to go to Hawaii for a vacation. In fact, according to the latest statistics, the number of visitors going to Hawaii actually increased in the first quarter of 2008, as compared to steep declines in tourism at other states. Problem is, the rest of the country doesn't really know much about the Hawaii Islands. All you know is that there's a volcano and some great beaches. Photo by gadgetdude via Flickr.

Hotels there are actually cheaper at specific periods, like right now. That's because April and May are relatively slow periods for the hotels, a kind a lull in between spring break and before the summer madness starts. June, July and August are bedlam in Hawaii, and a good economical tourist should stay away during these months. So, if you wanted to go to Hawaii, no time like the present. Or you can wait until after the summer holiday crush is over. Point is, and this applies for any destination, you need to avoid peak periods. During off-season, the destinations you get are exactly the same, only cheaper and less crowded. Plus, you'll likely qualify at most hotels for special deals like 1 night free with a 3 day booking. What's not to like about that?

I'm not considering airfare and food costs here because I'll be explaining them when we look at Anaheim and New York, respectively. Which also means you have to read the full piece. Sneaky, huh?

Anyway, another piece of Hawaii specific information is about the beaches. Waikiki is the most popular of the beaches, and the Hilton Hawaaian Village is the big boss there. They have everything a tourist is going to possibly need, the location is fantastic and there's always a lot of stuff, like parties and events, going on at the beachfront in front of the Hilton Village. Only problem is, not everyone can afford to stay there. What I'm trying to say here is that you need to book a decent hotel a few blocks from the beach, well within walking distance, but far enough so you can avail of a significant discount. Then you get up in the morning, and head for the Hilton Village and enjoy the scene there, roam their shops, stop by at parties, learn snorkeling from the instructers, whatever.... All beaches in Hawaii are public, and they can't stop you from joining in on the fun. So you get the Hilton experience without having to pay for it.

Everybody knows about bulk discounts. And Disney knows more than a thing or two about getting discounts for their visitors. If you check out their website, you'll find package deals which offer heavy discounts on individual items when you book an all-inclusive package. They have tie-ups with Alaska Air for free air tickets for kids, under the 'kids fly free' scheme. What you're getting, in essence, is to take one of your kids on a free trip to Disney theme parks. Photo by palmsrick via Flickr.

Airfare is free, hotel room rates are based on multiple occupancy so you pay for it regardless of whether or not you have kids, and your child eats free when you order a meal. Meaning that if you pay for your own vacation, Disney chips in with a free vacation for your kid. If you're a couple with two children, then you pay for the two of you, and Disney arranges everything for your two kids. You can find more details about this package either on the Disney website or on the AlaskaAir website.

The same concept applies for most other major theme parks, like a Legoland vacation package. Poke around on their website until you bump into package deals. Point here being to reduce costs on hotel stay, admission tickets, local transport, etc.

If the theme park package does not include airfare, you need to follow two things. One, lock in airfare rates by booking when rates are down, and secondly, use a cheap airfare finder like http://www.farechase.com/, so you know for sure you're getting the best deal possible. It also doesn't hurt to compare the best online rate you get with those from a local travel agent, because travel agents get deep discounts, which can reduce your fare even below those you get from online deals.

New York, ostensibly is a very costly city for visitors. In fact, according to a recent AAA 2008 survey, it's the second costliest city in the U.S. for tourists. For all of that, you can drastically cut down on costs by knowing a little about how the Big Apple ticks.

For starters, NYCvisit.com, the website of NYC & Company, the official marketing and tourism organization for New York City, offers you a super deal, with free Sunday stays at major hotels, reduced room rated from 20-30% combined with room upgrades, discounted room service and restaurant dining, complimentary breakfast and more. Plus, there are other deals which help you skip the lines and offer reduced admission prices at major tourist attractions like the Statue of Liberty. Make note here that when you're researching a destination, first thing you do is head for the official tourism website of the city.

Now let's talk about the food. Other than airfare and hotel stays, food is the third most expensive part of a vacation. And if you don't know the right places to eat, you're likely to end up at tourist trap restaurants, which naturally are situated around and near major tourist attractions. Now there's not much point me listing out decent restaurants in NYC, but if you don't think you have the time or energy to hunt down these good eateries, maybe you might want to consider booking in at a good Bed & Breakfast, instead of a hotel. Consider the advantages - First, B&B's are usually cheaper than hotels. Second, you get a free breakfast. Third, most B&B's offer use of a kitchenette, so you can prepare at least one additional meal and coffee/tea on the cheap. In this way, you can reduce your food costs by a whopping 60% or more.

If you have any misconceptions about B&B's being on a lower class level than hotels, perish the thought. There are good B&B's and there are dumps, just like there are good hotels and bad ones. The good B&B's are usually much more luxurious and spacious, offering all the usual amenities, like free internet and local calls, hairdryers, iron & ironing board, refrigirators and anything else you might need while on vacation.

And lastly, as far as NYC is concerned, you can save a heck of a lot on local transport, if you learn how to use the subway. You can start saving right from the minute you land at JFK or Newark, and take shuttle services like the New York Airport Service express bus, instead of paying exhorbitant cab fares.

In fact, if you're going from Boston or Washington DC to New York, you can make it even cheaper by opting for a Bolt Bus, which offers rates from $1 onwards (rates vary as per demand and availability). Overall, if you follow all these tips, you'll be surprised at how much you can shave off the cost of an NYC vacation. Again, point being that you remember that this was just an example, and do your own reserach for your destination of choice.

Now I haven't really gone into generic ways of saving money on vacations, because I figure you people are smart enough to know how to reduce unnecessary expenses of a general nature. But there are a couple of points worth discussing. Namely, how you can combine group travel with vacation homes or timeshares, and save a big bundle on hotel costs. I don't want to go into specifics, because this is a huge topic by itself. Let's just say that if you can hook up with others who are traveling to the same destination, like friends, or members of online travel communities, and then book a vacation home together, you can live in much more comfort and splendor, while at the same time paying less than 50% of what you would as an individual for a hotel room.