Retirees have a lot of challenges to face these days. After years of being unable to travel due to the COVID-19 pandemic, travel-ready retirees today now face higher costs, thanks to elevated inflation and interest rates at multi-decade highs. This has left less cash available for the travel goals many of us plan for in retirement - though it hasn't stopped seniors completely.
In June 2023, a study by Bankrate found that of Americans aged between 59 and 77, 50% had already spent (or planned to spend) at least $1,000 on travel and leisure in 2023, while 17% were targeting $5,000. This was the biggest travel budget of any other generation, showing that travel spending remains a priority for those in retirement.
While the survey above stated the spending discrepancy likely comes down to older Americans having more time to save, that certainly doesn't mean retirees want to blow all their savings on travel. That's why today, we're going to look at five ways retirees can keep costs down, while still achieving their retirement travel goals.
1. Plan early, and beat the rush
One of the easiest ways retirees can save on travel costs is by planning early, and also by planning to travel during off-peak times. With no job to tie them down, retirees should take the opportunity to travel while the rest of the world is working. This can provide more choices when it comes to traveling to high-demand locations that remain on your bucket list, as lower costs will crop up once tourist season slows down.
To provide you with an example, let's say you're looking to travel from Austin, Texas to Paris, France. According to Google (GOOG) (GOOGL) flights at the time of writing, traveling during the first two weeks of September 2023 - around the U.S. Labor Day holiday - would cost at least $1,400 round trip per adult. Yet if you were to travel two months later, during the first two weeks of November, those prices are sliced almost in half to $799 per adult.
The ideal early booking window can range from a few months in advance for domestic travel to up to six months for international trips, so be sure to research your specific destination. And of course, mid-week flights tend to be less expensive than their weekend counterparts.
All told, combining the methods of booking ahead with traveling during off-peak times can certainly save hundreds, if not thousands, for retirees.
2. Choose your destination wisely
In the example above, we looked at Paris, France as a destination. And if that's a place where retirees wish to travel, by all means, they should plan for it! Yet for those looking to travel frequently in retirement, it's worth seeking out destinations that offer more vacation value per dollar.
For example, check out a map to see which countries and destinations offer lower air fare and accommodations, yet are still reasonably close to your original destination - or offer comparable perks. A flight to Italy is likely to cost more than a trip to Croatia, even though Croatia also boasts a coastline along the Adriatic Sea.
From there, choose the accommodations at your destination wisely, as well. While the upfront cost of accommodations in the city center may be higher, for example, it might enable retirees to save elsewhere in terms of transportation costs. Consider staying in a location that is walking distance from tourist destinations, or at least easily accessible via public transportation, to avoid the need for a taxi or rental car to get around.
3. Find the right deals
Of course, discounts on travel should also be on the radar of retirees looking to get away. Luckily, there are many sites that offer comparison pricing to easily weigh the options. Furthermore, there are many discount airlines - such as Southwest (LUV) and Ryanair (RYAAY) - which provide no-frills travel. However, beyond these well-known ways of finding cheap flights, there are other methods of saving some money on trips.
Credit card reward programs are often one of the best ways for retirees to get a deal on flights. Banks may partner with airlines, providing airfare deals that retirees can pay for through points - thereby lowering the overall costs for travel. Similar offers are often available through many major hotel companies.
If you're a retiree looking for a bit more in savings, then consider vacation rental companies such as Airbnb (ABNB). These short-term rentals can help lower costs on trips while still providing the comforts of home. Additionally, Airbnb and other rental companies will often provide discounts on extended bookings. So if you're looking to book a longer stay and perhaps make your own meals, then renting a home through these companies might be a better option than posting up at a more expensive hotel.
Another method of finding deals is by using applications such as Gametime and Groupon (GRPN) to plan visits to local attractions and events. Gametime focuses on local entertainment, such as sporting events and theater performances. You can purchase these tickets last minute or in advance, and often receive a large discount. Groupon, meanwhile, provides discounts and coupons on everything from local attractions to meals.
4. Take advantage of free attractions!
If you're a retiree looking to stay in a location for longer than a few days, attending paid attractions on a daily basis can certainly add up. This is why it's important to research ahead of time what your destination has available for free!
Simply searching for free attractions before you leave should yield quite a few results. However, be aware that many cities offer free or discounted entrance for seniors at destinations like museums on designated days. Plus, be on the lookout for free outdoor concerts and theater productions, as well.
And don't forget to explore the outdoors! Parks, historic sites, trails, and even zoos might offer free or discounted entrance on certain days of the week.
5. Don't forget medical care
Retirees may overlook one key element when traveling, and that's the potential for unexpected medical costs. Medical plans, in most cases, do not provide coverage overseas - so it's important to look over any restrictions before traveling abroad. In many cases, travel insurance will be a smart purchase, and should be planned as part of your travel budget. Granted, it's true that travel insurance qualifies as an upfront addition to the overall cost of your trip. However, should you need it during a health emergency, the money saved by having access to this coverage could potentially total in the thousands - making this a worthy trade-off for many seniors.
Should medical issues arise during a trip away from home, retirees will want to find the right coverage based on their health conditions, as well as the location. Traditional coverage will usually provide the ability to be sent to the nearest hospital at your destination. However, if you prefer to be sent back to the U.S. for a more serious case or rehabilitation, then make sure this is included in your coverage. These can change depending on health conditions as Americans age, so be sure to review all coverage before leaving on any trip.
On the date of publication, Amy Legate-Wolfe did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
