7 money-saving travel tips to beat the cost of living on holidays

By Jack Dona · · 4 min read
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A group of 4 friends jump off a boat into cool, aqua water.

Most Australians say they will prioritise travel this year, despite inflation and rising interest rates affecting the cost of living. 

So, with almost everything becoming more expensive, keeping the cost of holidays down (without limiting the experience of travel) is key to scratching that travel itch for many. 

According to a survey from BNPL company, Zip, four in five (83%) Australians say 2023 is their year to travel. But in order to keep costs down, 42% say they plan to book domestic trips. 

Data from Zip reports the average Australian is forecasted to spend $3,145 on holidays in 2023, which is more than double the average Australian weekly paycheck ($1,377). 

This estimated figure suggests Australians will spend less on holidays than in previous years, with average holiday spending in 2020 at $4,750. 

While people are expected to reduce their holiday expenditure significantly this year, that doesn’t necessarily mean the quality of your trip has to go down too. 

From seeking out free events to getting travel insurance, there are plenty of ways to enjoy your holiday without breaking the bank.

1. Book your flights and accommodation as early as you can

An airplane passenger looks through the window during a flight at sunset

Starting with the part most people organise first, flights and accommodation are usually the most expensive parts of any holiday. Fortunately, the early bird gets a good price on worms when they book well in advance. 

Hosts on accommodation sites, like booking.com and Airbnb for example, often offer early birds discounted rates as an incentive to lock in their stay ahead of time. 

In a similar vein, airline tickets often get more expensive for last-minute bookers. So, ensuring you book a few weeks in advance for flights, along with using sites like Google Flights and Skyscanner to get price alerts, is a good way to help you save money on your holiday. 

RELATED: Planes, trains or automobiles: the cheapest way to get around Europe in 2023

2. Swap out your overseas trip for a roam in your own backyard

A hiker and her dog stop to take in a breathtaking view on a waterfall in Cairns. In the distance is a tall, green mountain that pokes at the fluffy clouds floating across big, blue sky.

The distance from Sydney to Perth is almost 800km longer than the distance of London to Moscow. So, when you think about it, travelling between Australian states (especially from East to West) is sort of like visiting another country… 

In any case, this country is huge, making it prime for exploration and discovery – even if you’re a local.  

Domestic flights typically don’t cost as much as international flights, with budget airlines taking the cake for some of the cheaper ticket options. 

Plus, with the wealth of natural beauty on offer in Australia, there are plenty of free things to do out and about, like walking in a national park or going for a swim at one of Australia’s (numerous) primo beaches. 

That brings us to our next tip:

3. Find free things to do

A tour guide shows a couple Big Ben on the banks of the river

It seems obvious, but finding free (or discounted) experiences is one of the best ways to enjoy your holiday without spending too much. 

Some examples of free activities and events could be: 

  • Museums and art galleries 
  • Bushwalks or hikes 
  • Street festivals 
  • Walking tours 
  • Sightsee 
  • Window-shop at a local market 
  • People watching. 

Side note: free walking tours are a great way to meet other travellers. 

Of course, there will always be things you want to do that end up costing money. But, offsetting the days when you spend by taking advantage of free things every so often can still help you make the most of your trip and stretch your budget. 

To find free events in the places you’re visiting, use sites and apps like: 

  • Your destination’s official websites  
  • TimeOut
  • Resident Advisor 
  • Fever up 
  • TripAdvisor 
  • Eventbrite 
  • Facebook Events
  • A city’s Reddit page. 

4. Book accommodation in the ‘burbs

A patio with two chairs pointed towards a seaside vista

This tip works best in cities with dependable public transport. 

Booking your accommodation in the heart of the city you’re travelling to will usually end up costing you more than if you book one a short commute away. 

Of course, you won’t be in the thick of a city (which has its pros and cons). So, you’ll need to decide if you’d rather save some cash by staying on the peripheries, or would prefer to be amongst it at all times. 

5. Consider budget accommodation, like hostels

A few young travellers hop into their hostel bunk beds

Hostels typically have a pretty dirty stigma, evoking imagery of sun-drunk Poms, bedbugs, and the room light turning on at two in the morning.  

But if you’re looking to cut down on the cost of finding a bed, hostels can be a significantly cheaper option than hotels and Airbnbs – with the caveat of a little less privacy. You can, of course, book a private room for you and your mates, but that does tend to raise the price a little. 

They typically attract a younger crowd and can double as a place to meet fellow travellers.

Some hostels even offer guests a range of discounts on events and experiences, and even help facilitate social activities. 

6. If you’re travelling around, look for a rail pass

Tokyo metro subway and Yamanote line commuter train running through the city

Rail passes are a vital way to save money on transportation around a city, country, or continent. 

Rather than purchasing a series of individual tickets, a rail pass can be used across multiple days for a set period of time and a set fee. 

Rail passes in various countries and regions include: 

  • USA Railpass (United States) 
  • California Railpass (California) 
  • Canrailpass (Canada) 
  • Corridorpass (Quebec City to Windsor corridor)
  • Japan Rail Pass (Japan)
  • Indrail Pass (India)
  • Eurail Pass (Europe)
  • Discovery Pass (NSW to Brisbane and Melbourne) 
  • Queensland Explorer Pass (Queensland)
  • Queensland Coastal Pass (Brisbane to Cairns). 

7. Find a travel insurance policy that fits your needs and budget

A woman packer her suitcase and makes a note of what she needs on a notepad

While flights and accommodation are some of the heftier expenses of going on holidays, the effects of having to cancel your trip due to medical reasons, losing all your luggage, or spending a few days in an overseas hospital can also cost you money.

So make sure you compare travel insurance before you go, as it might be able to help you out financially if you find yourself in a pickle on holiday.

If you’ve never packed a policy before, make sure you do some research on what travel insurance covers to decide between medical-only coverage, comprehensive travel insurance, or something in-between. 

We’ve done a bit of the legwork for you, when it comes to choosing between the best travel insurance in Australia, in the 2023 Mozo Experts Choice Travel Insurance Awards. Or, you can check out a few of the featured policies below.

Travel insurance comparisons on Mozo

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Last updated 15 December 2024 Important disclosures
  • International Travel Insurance
    covid medical cover
    Yes
    covid cancellation cover
    Yes
    overseas hospital
    Unlimited
    cancellation cover
    $5,000 limit per policy with option to increase limit

    Get protection in a few simple steps with Freely travel insurance all in the palm of your hand. Freely Travel offers 24/7 emergency and medical support, 24/7 customer service. Plus, you can tailor your policy so you only pay for what you need, and adapt your cover in near real time. Add-ons such as car rental excess, snow sports or other activities also available. Receive 10% off your travel insurance policy with promo code: MOZO10. T&Cs apply, go to site for full detail.

    Go to site
    Details
  • Comprehensive
    covid medical cover
    Yes
    covid cancellation cover
    No
    overseas hospital
    Unlimited
    cancellation cover
    Unlimited

    Enjoy unlimited medical cover and 24/7 emergency assistance services when you travel. Get unlimited cover for cancellation fees and prepaid travel expenses. Cover for luggage and travel documents. $5,000,000 personal liability cover.

    Go to site
    Details
  • International Comprehensive Single
    covid medical cover
    Yes
    covid cancellation cover
    Yes
    overseas hospital
    Unlimited
    cancellation cover
    Choose $2,500 to Unlimited

    Enjoy the security of single trip cover on your next holiday with Southern Cross Travel Insurance. Get 24 hour emergency assistance, cover for cancelling or changing your journey before you leave, protection for lost, stolen or damaged goods as well as cover to replace lost or stolen cash, banks or travel documents.

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    Details
  • Top
    covid medical cover
    Yes
    covid cancellation cover
    Yes
    overseas hospital
    Unlimited
    cancellation cover
    Unlimited

    Be covered for international overseas and medical expenses. Emergency medical assistance 24 hours/365 days a year. Cover for cancellation fees and lost deposits. Cover for luggage and personal money. Dependents covered free of charge (conditions apply). Limited COVID cover available. Cancellation cover for COVID claims limited to $3,500.

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  • Standard
    covid medical cover
    Yes
    covid cancellation cover
    No
    overseas hospital
    Unlimited
    cancellation cover
    $25,000

    Get the security of unlimited medical cover and 24/7 emergency assistance services when you travel. Get cover for cancellation fees and prepaid travel expenses. Cover for luggage and travel documents. $2,500,000 personal liability cover.

    Go to site
    Details
  • Comprehensive
    covid medical cover
    Yes
    covid cancellation cover
    No
    overseas hospital
    Unlimited
    cancellation cover
    Choose $0 to Unlimited

    Australia Post International Comprehensive Travel Insurance covers overseas medical expenses, cancellation costs and more (T&Cs apply). Optional extras like cover for existing medical conditions and winter sports available. 24/7 emergency support. Get a quote in minutes. Reduce your premium with variable excess. Policies may not be available to all travellers. Australian Postal Corporation ABN 28 864 970 579 (AR No 338646) is the distributor of Australia Post Travel Insurance.

    Go to site
    Details
  • Comprehensive
    covid medical cover
    Yes
    covid cancellation cover
    Yes
    overseas hospital
    Unlimited
    cancellation cover
    Unlimited

    Know that you have some protection for your holidays with Fast Cover's worldwide 24-hour emergency assistance. Cover is available for emergency medical and hospital expenses, cancellation costs, lost luggage and more. 25-day money back guarantee when you buy a policy and provided that you have not started your trip, made a claim or used your policy to obtain a visa. Cancellation cover for COVID claims limited to $5,000.Please refer to Fast Cover’s PDS for more information on what their Comprehensive Travel Policy offers as well as terms, conditions, exclusions and limits that apply.

    Go to site
    Details
  • Medical Only
    covid medical cover
    Yes
    covid cancellation cover
    No
    overseas hospital
    Unlimited
    cancellation cover
    No

    Travel with peace of mind with unlimited medical cover and 24/7 emergency assistance services. Get cover for overseas emergency medical and hospital expenses. $2,500,000 personal liability cover.

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  • Basic
    covid medical cover
    Yes
    covid cancellation cover
    No
    overseas hospital
    Unlimited
    cancellation cover
    No

    Australia Post Basic International Travel Insurance can help protect you against expensive overseas medical or dental bills. Choose your excess. Choose between a single trip and an annual multi-trip coverage. Add optional extras cover for existing medical conditions (T&Cs apply). Enjoy 24/7 support. Get a quote in minutes.

    Go to site
    Details
  • Standard Saver
    covid medical cover
    Yes
    covid cancellation cover
    Yes
    overseas hospital
    Unlimited
    cancellation cover
    $25,000

    Know that you have some protection for your holidays with Fast Cover’s worldwide 24-hour emergency assistance. Cover is available for Emergency Medical and Hospital Expenses, Trip Cancellation, Lost Luggage and more. 25-day money back guarantee when you buy a policy and provided that you have not started your trip, made a claim or used your policy to obtain a visa. Cancellation cover for COVID claims limited to $3,000. Please refer to Fast Cover’s PDS for more information on what their Standard Saver Travel Policy offers, as well as terms, conditions, exclusions and limits that apply.

    Go to site
    Details
  • International Comprehensive Annual Multi Trip Single
    covid medical cover
    Yes
    covid cancellation cover
    Yes
    overseas hospital
    Unlimited
    cancellation cover
    Choose $2,500 to Unlimited

    Enjoy the security of annual trip cover on your next holiday with Southern Cross Travel Insurance. Get 24 hour emergency assistance, cover for cancelling or changing your journey before you leave, protection for lost, stolen or damaged goods as well as cover to replace lost or stolen cash, banks or travel documents.

    Go to site
    Details
  • Basics
    covid medical cover
    Yes
    covid cancellation cover
    No
    overseas hospital
    Unlimited
    cancellation cover
    No

    Know that you have some protection for your holidays with Fast Cover’s worldwide 24-hour emergency assistance. Cover is available for emergency medical and hospital expenses and more. Cover for luggage and personal effects is optional under the Basics policy, so if you wish to include cover under the luggage and personal effects benefit, you will need to choose it at policy purchase otherwise there will be no cover. 25-day money back guarantee when you buy a policy and provided that you have not started your trip, made a claim or used your policy to obtain a visa. Please refer to Fast Cover’s PDS for more information on what their Basics Travel Policy offers as well as terms, conditions, exclusions and limits that apply.

    Go to site
    Details

^See information about the Mozo Experts Choice Travel Insurance Awards

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