While international vacations are typically planned in much detail, months in advance, there are some easy ways to reduce expenses on these international trips.
The vacation season is here. The newspapers are full of one-page advertisements on tours. Despite the global tensions, vacation travel is still on. While international vacations are typically planned in much detail, months in advance, there are some easy ways to reduce expenses on these international trips.
The Basics
Firstly, set a budget and then build the trip around it. After all travel memories should last longer than the bills that follow! There is a tendency these days to use credit cards and convert expenses to EMIs, which means paying high interest rates, which basically translates to paying almost 1.5X of the actual expenses.
To budget for the vacation, consider keeping aside an amount every month into a vacation fund. Even if you are not planning a trip in the near future, keep allocating to this fund, to eventually build a good corpus. This fund can be invested in an ultra-short/low duration debt fund.
The Specifics
One can also consider using credit card reward points for hotels/ airline bookings. Credit card reward points can be redeemed for various things like shopping vouchers, statement credit as well as transfer to hotel/airline partners.
While statement credit may be the easiest to do, it gives the worst value as compared to the other options. While voucher redemptions offer better rates, airlines/hotel transfer give almost double the value. However, the airline/hotel transfer can be...
Choosing a card with a tie- up with a global hotel chain/airline would be the best way to use credit card points and save on the vacation expenses.
Another effective way to manage these expenses is by opting for cards that offer low or zero foreign exchange markup. In most cases, banks levy a 3–5% fee on international transactions to facilitate currency conversion, which can significantly increase the overall spend. There are a variety of preloaded travel cards available and one must check all the charges like currency markup to load the card, ATM withdrawal fees and other restrictions.
The Must Have
Travel insurance is an absolute must in any international vacation, where costs and complexity can escalate quickly.
Travel insurance offers comprehensive coverage across a wide range of unforeseen situations, including medical emergencies, baggage loss, flight disruptions and even fatal accidents.
Travellers should choose insurance that covers medical emergencies, hospitalisation, evacuation, trip cancellation/interruption and loss of baggage/passport.
While travel insurance premiums tend to be very low, one needs to check the coverage limits, claim process in the policy and how quickly assistance is available.
Do note that pre-existing conditions, adventure sports, substance abuse and war are excluded. Not disclosing all facts properly can lead to claim rejection.
Thus, utmost care must be taken to disclose all material facts to avoid being saddled with huge medical bills. A simple hospitalization can run into thousands of dollars. High covers are a must. A family of 4 should take at least $2,50,000 cover.
Financially well-planned trips ensure that the only thing one brings back is memories, not money worries.
The author is a Financial Educator & Founder Director of Finsafe India Pvt Ltd
Published 04 May 2026, 02:41 IST (Deccan Herald)