Holiday hacks: Save big on holidays this December

Booking early is the most effective way to secure lower hotel rates.

As the peak holiday season kicks off in December, travelers across India are gearing up for vacations amid soaring demand and prices. With airfares up 20-30 percent and hotel rates climbing in the year-end, smart planning is essential to keep holidays affordable.

Let's’s look at actionable strategies to trim costs without skimping on joy from Gen Z's value-driven budgets to flexible financing tools.

Gen Z prioritizing experiences over extravagance

Younger travelers, particularly Gen Z, are redefining holiday budgeting with a laser focus on intentional spending. According to Escape Plan, over 60 percent prefer allocating funds to immersive activities like food trails and excursions rather than luxury lodgings, opting for comfortable stays in the Rs 3,000 to Rs 6,000 range.

Vikash Jalan, CEO of Paytm Travel, said, "There is a 15 percent rise in pre-bookings over two weeks ahead travel plans among 18 to 30-year-olds, who use fare filters and flexi perks like free cancellations to dodge spikes. They're also embracing micro-budgeting, channeling savings into local events and adventures."

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Hacking short breaks: Shoulder days and scenic detours

For quick getaways, timing and location tweaks yield massive savings. Shifting trips by 24–48 hours to shoulder dates, Tuesday through Thursday, can slash flight costs by 10-35%, turning a Rs 12,000 Goa flight cost to Rs 7,500. Road trips within 200-300 km cut expenses by 40-60% versus flying, offering spontaneity for groups.

Abhinav Pathak, CEO & Co-founder of Escape Plan said, “Staying just outside hotspots, like one metro stop from the center, trims accommodation by 30-45% without sacrificing ease. Direct flights to spots like Bali or Colombo via IndiGo maximize time, condensing 4-5 day plans into 2.5-3 days.” Cross-category deals on platforms further amplify value, blending tickets and stays seamlessly.

Hotel booking nastery: Beat the algorithm rush

Booking early is the most effective way to secure lower hotel rates. The holiday rush amplifies dynamic pricing, with rates jumping 25-40 percent once occupancy crosses 60 percent. "Travellers can also save 20-35 percent by choosing stays 1-3 km outside the main tourist belt,” said Jalan. Additionally, checking for hotels with free cancellation, and noting the cancellation window helps avoid last-minute charges while keeping plans flexible.

Business districts are cheaper in December. Corporate travel dips by 40–60 percent, so many business hotels drop rates significantly.

Direct bookings with the hotel often bundle perks like upgrades or breakfast, saving 5-12 percent, Jalan said.

Dodging hidden traps: Clarity over convenience

Peak travel's pitfalls like currency markups, baggage fees, and pre-ticked add-ons can inflate bills by Rs 1,000 to Rs 3,000 per person. Combat this by scrutinizing inclusions, skipping non-essential upgrades, and double-checking terms. Platforms with zero convenience fees ensure transparency, letting you pay exactly what's quoted.

Also read | Club ITC's Days of Joy: Up to 50% off on stays, should you apply for ITC Hotels loyalty program?

Prefer apartments, homestays for space and savings

Family travellers are increasingly moving away from traditional hotels. “For groups of four or more staying three nights or longer, serviced apartments and homestays can offer 30-40 percent savings,” said Jalan. They provide more space at a lower cost - two bedrooms, a living area, and a kitchen often work out cheaper than booking multiple hotel rooms. Kitchens slash daily food costs by Rs 1,500 to Rs 3,000, laundry by Rs 500 to Rs 1,000, and eliminate extra-room charges.

The added convenience of kitchens, laundry, and common areas makes them especially suitable for children and elderly travellers.

Perks using cards, loyalty, and flexible financing

Hotel loyalty ecosystems quietly reclaim 1-5 percent via points, miles, and upgrades, free nights, late check-outs, or lounge access. Sticking to 1-2 hotel loyalty programs maximizes yields.

Ravindra Rai, MD & CEO of BOBCARD Limited said, “A well-structured travel card can help you offset a significant portion of your costs through reward points, partner discounts, cashback on bookings, or annual fee waivers.” Features like complimentary travel insurance and lounge access add both comfort and financial value, especially during long journeys or peak seasons.

There are banks are partnering with travel platforms like MakeMyTrip, PayTm Travel, EaseMyTrip and so on, which saves 10-20 percent, up to Rs 5,000 on international travel while booking from their platform using the partnered bank credit or debit cards.

When selecting a credit card, customers should look closely at the benefits that match their travel style. "For frequent flyers, co-branded cards with leading airlines or hotel chains help earn miles faster, redeem points more easily, and unlock exclusive offers, upgrades, and even generous welcome bonuses that often cover a good portion of your first trip," said Rai. For international travellers, a zero-FX card is almost essential as it eliminates foreign exchange mark-ups, making your spending abroad far more affordable.

Young tech-savvy travellers like to plan spontaneous trips, workcations, and weekend getaways. With limited incomes, they struggle to fund their trips. Credit on UPI and EMI on UPI help them book travel in easy installments via mobile. They can pay Rs. 70,000 travel expense in six easy monthly installments via UPI app, plus earn rewards.

Anup Agarwal, Co-founder, Kiwi, said, "42 percent of travel spending comes from this age group, showing their preference for flexible, mobile credit options." Agarwal added, "Credit-on-UPI and EMI-on-UPI are powerful if used wisely," warning users to align with income to avoid debt.