Have you ever bought a vacation package? If not, you could be missing out.
According to the U.S. Travel Association, "Airline tickets, overnight lodging accommodations and car rentals are the dominant travel products and services purchased online by travel planners." And by bundling these items together, the price for the vacation package drops significantly versus purchasing them individually. (See also: Best Travel Reward Credit Cards)
But here's the thing…
While vacation packages can save you a lot of money, they aren't ideal for everyone. Here are six questions to ask yourself (and the providers) about vacation packages...
Before you can interrogate the vacation package provider, you have to interrogate yourself to find out your travel wants and needs. (See also: How to Book a Cheap Vacation Package)
1. What type of traveler am I?
Vacation packages work for a traveler who is:
Packages are ideal for families (Disneyland, anyone?), retirees, and anyone looking to sit poolside for days on end. It is a vacation after all.
However, if you want to immerse yourself in local culture, are adventurous, and prefer off-the-beaten-path destinations, vacation packages might not be for you.
2. Where should I go?
Destinations such as Mexico, the Caribbean, Hawaii, California, and Florida scream vacation package.
Why?
Because they're great travel destinations with a steady stream of visitors.
So to save big bucks on a vacation package, visit a destination that receives a lot of tourists versus more remote and unknown destinations.
3. What am I looking for?
There are two types of vacation packages: bundled and all-inclusive.
Tip: If you want more freedom with your meals and activities, book a bundled vacation package and plan those extra activities yourself. (See also: Budget Your Vacation With This Tool)
Now that you know where you want to go, ask the provider about key package details.
4. What's included with the vacation package?
To determine the real value of a vacation package, find out exactly what's included such as flights, hotels, transportation, meals, and activities.
The following chart is a real example of booking a bundled vacation package versus booking flight, hotel, and car rental separately AND is based on the following criteria:
In this situation, the bundled vacation package is $522.61 less expensive than booking the flight, hotel and car rental individually. That's an 11% savings. Not bad, right?
When factoring all-inclusive packages, don't forget to factor in those hidden costs such as taxes, fees, tips, and gratuity. (See also: Frequently Under-Budgeted Air Travel Costs)
5. What can I expect?
Most vacation packages are a good deal because they don't splurge on luxury. For example, the hotel might only be three-stars or meals served buffet-style.
Ask specific questions such as:
6. When is the high season?
The high season is when a destination receives the most visitors and rates are high. While you'll usually get the best weather, you'll have to share it with thousands of other tourists. Spring break in Cancun, anyone?
To avoid the crowds, plan your trip during the shoulder season — the time between high and low seasons — and research any holidays or festivals.
Have you booked a vacation package? Tell us about your experience in comments.
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