There are two other major factors which impact our travel costs, and which can be addressed without taking too much of your time.

TRAVEL REWARDS CREDIT CARDS

Yes we use these ourselves, one for a specific airline company, and another for general travel awards points – which we usually seem to end up transferring to the airline anyway.

If you choose this kind of credit card you will be charged a higher than average annual fee and higher interest rates on balances.  However, the fee is considerably less than an airline ticket (for example), and if you keep a low balance or pay it off every month, there is no known downside to using your credit card purchases to reduce the cost of your travel.  There are other pitfalls, of course, as you need to be earning awards you can actually use.

Figuring out which airline has the most flights out of the hub city closest to where you live, and how many partner airlines they work with, is generally a good place to start the process of choosing a travel rewards credit card.  Use it for as many purchases as possible.

TIMESHARES

Yes, we own one, and no, we don’t recommend them for everyone.  Books have no doubt been written, so we’ll stick to the broad concepts.

If you want to travel to the same place at the same time each year, and there is a reasonably priced “fixed week” timeshare facility there, definitely check into owning a timeshare.  However, if that’s how you like to travel, you probably aren’t on this website.

If you have an extremely flexible schedule, OR have an interest in traveling just about anywhere OR preferably both, there are advantages to owning a timeshare for exchange purposes.  (We’ll assume you know the basics – you make the week you own available to a timeshare exchange company and then choose from their inventory of available weeks “deposited” by other owners.)  However, if there is a limited window in which you can travel each year, for example Christmas week, timeshare exchanges will cause you far more consternation than they are worth, and you will rarely get the exchange you want.  The fewer limitations you have in terms of timing and destination preferences, the more likely you’ll enjoy owning a timeshare.

Not all timeshares have equal exchange value, so you can’t buy a fixed week timeshare in May at a North American ski area and expect to be able to exchange it for a week on the beaches of Puerto Vallarta in February.  If you aren’t willing to learn all the subtleties of the exchange process, you won’t know the value of whatever you’re thinking about buying.  This is a good time to mention that some resorts work on a points system, rather than by the week, and the permutations of that system multiply quickly.

You must pay your maintenance fees every year, even if you don’t make a trip.  Miss a year or two, and any price advantage over simply renting a very nice hotel room will be lost.  On the plus side, you have to pay your maintenance fees every year.  Consequently, the temptation to procrastinate (maybe we should wait until next year to go there) is out the window.  If you have to use it, or lose the value of it, chances are good you’ll use it.  If you really can’t use it yourself, a timeshare week makes an exceptional and greatly appreciated gift – assuming the recipient has the flexibility necessary to use it.

Having alluded to a price advantage over a nice hotel room, we should stress that there isn’t any price advantage after you factor in the loss you’ll take if you ever resell your timeshare.  Generally speaking, never consider a timeshare as a cost saving measure (except possibly if you’re buying a resale directly from an owner, which has its own set of perils).  If you can’t pay cash for a timeshare, finance charges will tip the balance further away from a financial advantage.

You will typically be in more spacious accommodations, and usually have a kitchen, when staying in a timeshare.  If you are likely to stay in and cook for at least a portion of your trip, that is a legitimate cost savings worth considering.

Another plus – there are so many timeshares in so many places, the timeshare exchange companies have become an excellent resource for seeking out new places to visit that you might otherwise never discover.

Ladies and Gentlemen, start your planning.

Travel Plan – Page 1

Page 2 – More Basics

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