Holiday travel in the festive season can be a joy. Or it can turn into an expensive nightmare.
Many of us sometimes overindulge financially as well as in other ways. Because travel typically involves major expenses, you can usually avoid at least a financial hangover if you estimate costs and add a margin of 10 per cent to set a spending limit on your trip.
Also, decide where this money will come from: existing savings, saving between now and your departure, or borrowing (either a loan or by carrying a balance on your credit card, which you should then consider paying off with a usually much cheaper line of credit or personal loan).
If you really want to control spending while you are away, put your budgeted amount into a separate account linked to the ATM so you can actually see the declining balance each time you make a withdrawal.
Because the upcoming holiday period is normally a peak travel and accommodation period, any time and effort you spend on money-saving tips could be richly rewarded.
Just type "how to save money on holiday travel" into your search engine to find dozens of ways to keep costs down, including early or sometimes last-minute booking, eating your big meal out at lunch, doing a home swap, or using local travel passes.
Personally, as well as financially, the true test of a well-planned trip, especially to a remote area, is what happens when something goes wrong, like a major or minor medical situation, loss of something important or a mid-trip itinerary change.
My travel companion and I experienced all those situations on an African safari: first a chipped front tooth and chipped eyeglass lens, then the loss of a camera charger and finally cancellation of a visit to Mozambique because of potential civil unrest.
"As long as the travellers have done their preparation properly (taken out travel insurance, filled out the pre-departure health form) then the travel agent and camps or other accommodation should be able to react immediately," said Monika Korn, of The Safari Source, who along with Troy Smith, of TrueAfrica, had arranged our trip.
"It's so important to deal with an agent who has on-the-ground experience, resources and local contacts."
Smith reacted quickly when the Mozambique government unexpectedly closed Gorongosa National Park just before we were due to fly to Kubatana Camp, which is located in the park. Together with Korn, Smith set up an alternative itinerary for us in and around Cape Town. I know we would have struggled to do all of this on our own. "When you plan a trip, always try to work with an agent or tour operator who has specialized knowledge in that area," said Smith. "If things go wrong, they have the most up-to-date information and can adapt itineraries, often on short notice."
As we discovered, that can make all the difference and ensure a holiday trip continues with as little disruption or additional expense as possible.
A final word about travel insurance: According to a survey by the Travel Health Insurance Association of Canada, 35 per cent of Canadian travellers don't buy coverage before they travel, and 21 per cent needed medical attention while away. Most common medical problems included gastrointestinal issues (22 per cent), infection (16 per cent) and fractures (11 per cent). Some 34 per cent said medical bills of more than $1,000 would represent a financial crisis, and 32 per cent said $5,000 or more would be a crisis for them. Only 29 per cent correctly identified the average cost of treating a fracture in the U.S. as $10,000. Check your choices for the best way to get coverage. For example, extended medical insurance at work, a rider on your home insurance, or a separate policy. Also look at cancellation coverage if you are paying a significant amount up front. Additional coverage can include perils like lost baggage, meals and accommodation due to trip delay, disability and death benefits. Bottom line: Make sure you have coverage for expenses you couldn't comfortably afford to pay yourself.
Mike Grenby has been giving North Shore News readers financial advice since 1973. (His regular column appears in the paper's Work section). He is also a travel writer and teaches journalism at Bond University on Australia's Gold Coast. Email: [email protected]
