For summer travel deals, stay off the beaten path

Volatile oil prices could also impact summer travel costs. The price of kerosene-type jet fuel hit its highest level in March, compared to when it was priced marginally at its low point in May 2020, regulatory data showed.

With so many factors pushing travel prices upward, where are the deals? And what destinations should budget-conscious travellers avoid altogether?

Zig while others zag

The rise of inflation has reminded consumers of a simple economic truth: When everybody wants something and there isn't enough of it, prices go up. This is true for real estate and airfare.

So when planning a trip for this summer, it's helpful to know where demand remains high.

“Destination resort areas are up 40 per cent over 2019, when comparing vacation rental occupancy rates,” said Lane. “Demand has nearly doubled over 2019.”

Instead, Lane suggested targeting destinations that rely heavily on foreign visitors and have been slower to recover tourists.

“Places like Croatia, Italy and Greece have been very slow to recover and are down anywhere from 40 per cent to 60 per cent in demand. They haven't seen the price increases that we've seen elsewhere.”

Flight bookings to Europe dropped since the start of March, according to data from Hopper, an international travel booking app, suggesting that travel to the continent could remain sluggish through the summer. That means deals could (and should) follow.

“A last-minute booking in Croatia? You're going to find a great deal,” Lane added.

Book (some things) late

The pandemic has reshaped how many travellers make plans. Instead of cementing dates months in advance, many began booking trips mere weeks away. And despite much conventional travel wisdom, this approach is actually a good way to secure deals.

“Generally, if you book far in advance, you're going to pay more,” said Lane, pointing to how the pricing algorithm of short-term rental applications drop prices at the last minute to fill remaining availability. “As you get closer to the stay date, if it's not booked, you're going to get a discount.”

The same is true of hotels, which are often cheaper to book within a few weeks or days of your stay rather than a few months. Similarly, deals on rental cars are generally easier to find at the last minute.

This advice comes with two big caveats. First, if demand does outstrip supply at a particular destination, prices could actually go up in the few weeks before a trip rather than down. Worse, availability could dry up altogether, leaving few cars or vacation rentals available.

Second, last-minute airfare is usually costlier. This is not an ironclad rule – last-minute deals can pop up, but they're more common a month or more out.

Stay flexible

As a traveller, flexibility is a must for finding deals. Rather than making a firm plan to visit a particular destination, follow the deals.

See what airfare and accommodation deals are available on target dates, and build a trip around them. Flexibility has always been important for budget travel. Now it's necessary.

Make sure to only book travel that can be easily changed or cancelled. A great deal on airfare with a low-cost airline could carry high change and cancellation fees. The same goes for basic economy fares, which usually can't be changed or cancelled at all.