Shocking Stats: The Real Cost of Holiday Travel

I just got back from a long trip for Thanksgiving, so I'm sitting out Christmas travel this year and letting family come to me. But much of America will be on the move. According to an IPX1031 survey, 62% of Americans are expected to travel this holiday season.

With the holidays already in full swing, here are some surprising statistics on how much we're all spending to travel, how we're saving money (or at least trying to), and a few tips to reduce your travel expenses.

1. Americans' holiday travel budget is $2,005

Many people will spend serious cash this holiday season, as the average holiday travel budget will reach $2,005, according to IPX1031. What's interesting about this amount is that it's more than twice what Americans are expected to spend on gifts this year.

Some of that spending will come from shelling out additional cash for a direct flight to their destination -- with nearly 75% of travelers doing so.

2. Travel points will save an average of $515

Of those traveling, 45% of them will use credit card travel points to help offset the cost, saving them an average of $515.

Travel credit cards are a popular option for people who travel frequently and want to earn rewards they can use towards the price of airline tickets, hotels, and rental cars.

3. Christmas airfare prices are down 12% from last year

Data from the travel booking app Hopper showed a couple of months ago that Christmas airfare prices were down 12% from last year. But that doesn't mean prices are cheap -- they're still 29% more expensive than in 2019.

And prices are rising fast leading up to the holidays. According to Hopper, airfare ticket prices rose 9% from the week before, as of this writing, and are expected to increase even more between now and Christmas.

How to save on holiday travel costs

Holiday travel will likely dent your personal finances, but it doesn't have to break the bank. There are a few steps you can take to help keep your travel expenses in line:

• Book as early as you can: Admittedly, time is running out on this one. But booking your flight and hotel in advance, instead of waiting until the last minute, is one of the best ways to save travel costs. The closer you wait until the holidays to reserve a plane ticket or hotel room, the more likely you are to pay a higher price.
• Avoid extra fees: There's no getting around some fees when traveling. But some may be avoidable, like checked baggage fees. Before paying for your plane ticket, look at the airline's carry-on policy and how much it charges for a checked bag. You might save money by booking with an airline that charges less or forgo the checked bag by packing light.
• Eat out less: Pack some extra snacks to cut down on buying food while traveling. Also, consider buying some groceries to skip one or two meals out. My wife and I saved some money during our honeymoon with a trip to the local market and cooking a few dinners.

Traveling is expensive, but booking early and setting a vacation budget could help you reduce travel expenses this holiday season. And if you don't score any travel deals, you can always pack sandwiches to save a few bucks.