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POLL: Are credit card travel packages good deals?

04/01/08

Posted under credit cards, vacations

This photo made me sigh. Calling Hachiko…how do those cherry blossoms look?

cherry blossoms

And this made me smile. Walking barefoot on grassy fields is a favorite pastime since I was a kid in Bicol. I used to let my heavy bags slide down after a long day at school and spend the good part of an hour quietly observing birds, trees and clouds and smelling the earth. I nurtured my inner introvert that way ☺

barefoot

Work and life balance is a big deal in personal finance. When it comes to a point where work sucks in all our energy, we are no good both at work, at home, at church or in the community. Imbalance kills the inner joy in us; it is an enemy of money-smart peeps like you.

But since vacations are expensive especially in a country with more than 7,000 beautiful islands, it is best to plan and prepare for them carefully. Our personal finance article today on “Travel now, pay later” gives some tips:

1. Book early. It’s mid-summer, and most people would like to head out of town, if they haven’t done so already. Pick a vacation spot you and your family will enjoy then book flights and hotel rooms as soon as possible. This will make sure you’ll still have a summer getaway in comfort. Find out too, if the airline and hotel you’re looking at will give added points for your credit card company’s rewards program. Extra points will mean extra rewards later on. Plus, paying with a credit card may entitle you to free travel insurance.

2. Compare costs. Not only should you compare hotel room rates and air fares; compare costs between destinations as well. For instance, there may not be much difference between traveling to Hong Kong or Macau and traveling to Palawan and Davao. The weak US dollar has made reasonable travel packages abroad possible.

3. Budget the monthly installments. The Travel Now, Pay Later scheme is an installment plan which you should treat in the same way you would treat an appliance purchase. Find out how much the monthly installments for your vacation would be, then calendar it in your budget and planner. This scheme is easy on the pocket, enabling you to enjoy a big-ticket item (your vacation) without taxing your bank account.

4. Don’t forget transfer arrangements. Transfers between airport to hotel and vice versa may be arranged beforehand; so do city guided tours. Take advantage of these offers as these will enhance your travel experience.

5. Charge only what you can afford to pay. Just because you can use your credit card for the Travel Now, Pay Later scheme doesn’t mean you should get the most expensive travel package offered. Take only what you can afford to pay in the next three or six months (depending on the terms of the scheme). Don’t be saddled with debt with the vacation of your dreams. That will come in later in life, when you can afford to do so.

There are credit card companies who offer travel packages that will allow you to “travel now, but pay later.” Perhaps you have already availed of them or are planning to. Do you think these are good deals?

Yes or No?

*Photos from Agence France Presse.





18 Feedbacks on "POLL: Are credit card travel packages good deals?"



jinoe

I think this scheme is good. But it’s also important to follow tip#5. I am thinking to avail of this package for our honeymoon getaway next year. :D

But I would prefer the backpacker’s way of traveling. I would probably just get the basic package on the airfare and accommodations, then have my own tour itinerary instead of getting the added guided tours.



backpacking philippines

I won’t avail of that if i were you. I book my own airfare and hotels and don’t join “free tours.” most guides will take you shopping where it’s expensive (and they get commissions). I toured HK last year on my own and covered much more with huge savings even with disney.

that sakura photo’s wonderful. I’m planning to visit Japan in the future where my my brother’s working

I’m a backpacker/independent traveler, btw



nina

Actually, with all financial stuff I’m learning, I am staying away from installment stuff. I save for my travel/vacation - it’s part of my monthly budget.

I like preparing my own travel plans - book my own ticket, find a decent budget hotel and arrange my own tours although they require a lot of research.

Sometimes I join group tour but it depends on where I’m going. For instance, if the place is safe and easy to navigate, I discover the place by myself. But if a particular activity/place I want to do/see is not accessible via public transport or would be safer to go in groups, I join group tours.



hachiko

cherry blossoms… so gorgeous, inday! :D as in, may hawak akong tangkay ngayon, hahaha! check my pix online.

credit card promos good deal when u already have one and use it regularly. gift cheques r d best i got out of mine. but not good enough reason to crave for a card. come on, it’s all paid for one way or another!



chac

Most of the packages tied up by travel agencies with the credit card companies summed up as expensive versus if you booked directly to the airline using the never-ending promos and scout the best deals for accomodation by comparing the cost of hotel accomodation. Better check also the freebies like free buffet breakfast, wi-fi use… If travelling like backpackers, better look of cheap and clean hotel accomodation since most of the time, you are out of the hotel and touring the place. :)



Salve

Jinoe, I also like tip number five :-)



Salve

hey backpacking philippines, tell us more tips on how to go backpacking in Europe!



Salve

nina, i like the fact that you make it a part of your monthly budget. good strategy!



Salve

hachiko, will check out your pictures. i love how they look from here. so, any travel tips for when we all go to Tokyo?



Salve

chac, P1 per seat, two seats per flight?? Really hard for a family of five :-(



Ria

I do the same as Nina’s. I save a certain amount from my monthly income to my travel fund. Never ever travel on credit. Of course you need credit cards to book for flights and stuff but always make sure you have something to pay it off and not taking away from funds allocated for other things.

I am also an independent traveller so I don’t buy into these tour packages.

Backpacking in Europe - some tips
1)They have budget airlines that really offer very good deals if you can catch it. That means months and months of research in advance sometimes. Also train travel can be more expensive.
2) Stay in hostels. Lesser cost for accommodation and good meeting place for like-minded travelers (this is helpful in exchanging info).
3) Avoid tourist peak season.
4) Go off the beaten path and if you have to go to popular tourist destinations, avoid the tourist traps (i.e. unnecessary tours)
5) Don’t snub those street/market food. They make tasty meals when funds are running low :)
6) Lastly, walk, walk and walk if you have to.



tserilu

nope. it’s not a good deal at all.

after you’ve chosen your destination, try to check online for,well, almost everything: room accommodation, must-see places, currency conversion, weather forecast, what to wear(yep, even this is a concern), answer quesetions like: is cheaper to travel by bus or subway…it’s all a click away…just like opening this page.

but aside from checking general info, the net is also a great way to ask questions by joining online forums (or reading a traveler’s blog), you can get a pretty good idea on how it’s like to be in that place.

but of course, just like any other online activities…be extra careful…it also helps if you make check and double check about your info through travel agencies (at no cost!-hehe)



tserilu

nope. it’s not a good deal at all.

after you’ve chosen your summer destination, try to check online for,well, almost everything: room accommodation, must-see places, currency conversion, weather forecast, what to wear(yep, even this is a concern), answer quesetions like: is cheaper to travel by bus or subway…it’s all a click away just like opening this page.

but aside from checking general info, the net is also a great way to ask questions by joining online forums (or reading a traveler’s blog). You can get a pretty good idea on how it’s like to be in that place.

but of course, just like any other online activities…be extra careful. It also helps if you check (and double check) your info through travel agencies (at no cost!-hehe)

btw, this is also another good use of credit cards: online purchases =) i should have posted this under the previous topic but i couldn’t seem to find it.

have a great summer getaway, everyone!

Thought Out Loud: i strictly suggest that every Pinoy, who wants to travel abroad, should try to visit at least 2 or 3 local destinations first. it’s a shame that foreigners know more about the pristine beaches and great wonders of our country than us–pinoys.

plus, the government should give discounts to local travellers since,heck, this is our country! We have the luxury of enjoying sunrise in Palawan, a buffet lunch in Loboc’s floating restaurant or spend the whole day in awe at Davao’s Pearl farm.

is that really too hard to ask from them? =)



TeeVee

Credit card packages?

Attractive?? Yes… Good?? it depends. That is, if you will get onto a package within your means. Otherwise, you will over indulge. Believe me, I have been taking trips overseas for the last 25 years!! But if you’re earning P100k per month at least, by all means, splurge on a vacation.

Piece of advise, when visiting another country, get to know the authentic culture - stay out of the cities and experience their rustic living. it’s where you’ll meet the real people and good food! You will be more enriched culturally and would have more stories to tell, I’d say unique stories to relate when you return to the Philippines.



hachiko

In traveling to a 1st world country, get a guide book and plan ahead of time - airfare, hotels, transport, sightseeing etc. It’s a spoiler paying full price for stuff simply because you’re not on the know. Taxi from airport to Tokyo is $350. Train is only $10.

And keep your “consumption basket” consistent with those of locals - you’ll be pleased! Japan is great for foodstuff and stuff to play in your Playstation or Nintendo. US for shopping in retail outlets. Europe? always expensive hehehe :D

In Japan, Engrish is always a problem! I don’t think Moneysmarts can help u with this one hehehe :D



nina

To add some tips in touring Europe:

-Travelling by train can be a cheaper alternative but you have to plan and compare the costs. You can purchase EURAIL - train tickets that you can use for unlimited rides in x countries for x days. Youth (below 25 yrs old) gets really huge discount and those travelling in groups (at least 2 or more). There are different types, you have to plan, compare and choose the one that suits your need. Visit http://www.eurail.com for details and http://www.ricksteves.com for tips.

-If you plan to visit museums, you can buy museum pass. This gives you the opputunity to visit unlimited museums for x days depending on the validity of pass you bought. But of course, you need to know which museums you want to vist and if they are included in the pass. Compare the entrance fees against the cost of the pass before you buy.

-Consider daily/weekly passes in buses and metro (subway or city train) if you plan to use them a lot. For instance, in 2006 we bought the weekly metro pass in Paris for 15 euros and this allowed us unlimited rides in the metro and the bus. Each ride is approximately 1 Euros so after 15 rides, you break even. But then again, you always need to compare if these passes will really save you money or not.

-Research, research and research… Be careful of the passes sold online. Not all of them are good. Read blogs and tips from travellers who have been there :)



nina

Another thing, one of the lessons I learned in booking flights is weekday flight (Tuesday, Wedneday and Thursday) is cheaper than weekend flight. So instead of flying on Friday, try Thursday or Wednesday - it can save you some bucks.



Line

Not on credit card.

alwys save for travels/holidays because the interest u pay is too much.when u travel,u will spend $$$thousands and interest will also be high.

the best thing to do is….plan.then save—say,in about two or 3 years (Europe?Fiji?) or less for local but equally breathtaking views in Mindanao?.this gives u ample time to sort out ur finances.

discipline ur money and budget wisely.at the same time,enjoy life.

If u can avoid credit cards,AVOID.Instead focus on saving and wise budgetting.



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