#1 Book ahead
Prices for hotel and car rental normally go up the closer you get to the date you are traveling, especially if it is holiday season. I have seen hotel and car rental prices more than double two months before my travel date, so you can save A LOT if you secure your hotel and car rental bookings way in advance (4 months or more). Sometimes, prices can fall as you approach the date of your stay, probably due to poor hotel occupancy rate (e.g. Booking.com sometimes has a 10% discount nearer to your date of stay), in which case you can cancel your original booking and book again (I normally avoid doing non-refundable bookings). So DON’T just book and forget but check often to see if prices have been adjusted. Car rentals are also usually cancellable without any penalty, so there’s no harm booking ahead and cancelling later if you find a better deal.
Flight fares are more likely to go up than down especially for peak travel period, so i personally think it’s better to book in advance. In any case, without having a firm date for your flights, you can’t book your hotel stays and car rentals, so you’ll likely lose out much more if you waited. The good-value accommodation in popular destinations do sell out very quickly.
While I’m least stingy when it comes to spending on food when travelling, I do want good value food too. I check TripAdvisor to get an idea on how much the meals will cost, and I mostly avoid the super expensive fine dining establishments. In the past when I didn’t do prior research on meals, I had a terrible experience eating at a place just outside the Vatican City. It was a place that served pre-cooked food, like a canteen. The meal which consisted of a chicken main course, some pasta and some veg came up to more than 50 Euros. It was clearly a tourist trap. Since I started planning ahead the meals for trips, i can say that I was seldom disappointed, and i’m quite certain I saved money too.
Other than car rentals, you may also have other transport needs, like airport transfers, or public transportation within the city when it is not feasible to drive. It pays to find out ahead exactly which option will save you money (e.g. day pass vs single trip tickets). When i was in Stockholm, i found out before hand that the metro/bus pass actually covered the ride to the airport (though it requires you to transfer from train to bus). I suspect many people don’t know this and they take the easy but very expensive option of the airport express train.
#2 Choose the right hotel and hotel booking website
Individual personal preference for hotels is a very subjective matter. You usually have to decide between price vs location and comfort. I’m more inclined to get a cheaper place that satisfies the basic criteria of having a private bathroom and a review rating of at least 6.5/10. The cost for accommodation is usually the biggest chunk of your trip expense, so if you do spend enough effort in searching, you will save money. Check out my strategy for hotel search.
#3 Use the right credit card
You may save on exchange rates and transaction fees if you bring cash, but i think nobody brings a huge amount of cash for practical and safety reasons. Credit cards are indispensable for a trip. If you’re renting a car, it is a prerequisite to have a credit card under your own name for the rental. Quick tip: remember to activate your credit card for overseas usage! Since you will be incurring a fair bit of spending on your credit card, make sure you get some cash rebate in return! Check out my post on the credit card i found to be best for overseas spending.
#4 Carry your passport with you when shopping
If you’re going to Europe or Japan, you can enjoy tax-free (8% for Japan and around 5-15% for Europe) shopping IF you have your passport with you at the point of sale.