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Gone are the days of cheap pandemic-era flights. America is back to traveling, and the airlines know it. According to the U.S. Bureau of Labor Statistics’ Consumer Price Index, airfare prices rose a whopping 26.5% between February 2022 and February 2023.

Flying can be so expensive these days, you might hesitate to plan a vacation at all. But with a little research and consumer savvy, you can lock in a great airfare with a few clicks. Here are some tips for finding cheap airfares, including:

•   How to compare airfares

•   How to find the best airfares

•   How to book cheap airfares

•   How not to fall for airfare myths

Know the Average Flight Cost for Your Trip

To start your hunt for the best airfare, you’ll need a baseline. Whether you’re heading cross-country or to the other side of the planet, begin researching how much your flight costs on average.

To get an idea of airfare costs for your next adventure, consult an online travel agency (OTA). Booking sites such as Expedia, Kayak, and Google Flights provide metasearch travel engines to compare prices of various airlines. These scour the Internet to bring you the best deals.

To begin, type in your preferred departure airport and destination in the OTA search engine, and a target date for travel, if you have one. The results can give you an overall idea of what major airlines are charging, and how much you’ll have to dip into your sinking fund for airfare.

In addition to targeting your range of travel dates, you can get more granular and zero in on the number of stops you’re willing to make, the class of service you want to fly, and other details. This will give you more intel so you can start comparing airfares.

Recommended: A Guide to How Credit Card Travel Insurance Works

10 Tips for Booking the Lowest Airfare

How can a flight to Miami that costs $250 on a Tuesday jump up to $350 by Friday? Plane fare fluctuations can be maddening, especially when low airfares seem to rise for no discernable reason.

Whether you crave a lavish sojourn overseas or a minimalist camping trip a couple of states away, there are tricks to saving on airfare. Here are 10 ways to stop your getaway funds from flying out of your bank account.

1. Set Up Price Alerts

Some people don’t have the time or patience to hunt for discount airfares — constantly checking prices with multiple airlines, hoping they drop from one day to the next.

Luckily, there’s an app for that. Several of them.

Certain travel websites and apps, such as Hopper, Skyscanner, and Kiwi, offer to set up price alerts. You provide the destination and dates, and they will send you an alert whenever the airfare drops.

Many price alert services will allow you to set up searches for flexible dates or from multiple airports. Some can even advise how far in advance to book or on which days you should book in order to get the best deal.

There’s typically no obligation to buy, so you can decline any offer and wait for a different one. Price alerts can do the work for you, so you can get back to earning money for that all-inclusive resort.

2. Travel During Off-Peak Seasons

Airfares can vary due to supply and demand. Airlines know when most people travel and will raise their fares during peak travel seasons.

If possible, avoid booking flights during July and August, traveling instead in May to early June or late August through mid-October. You can typically avoid the high cost of summer travel that way. January and February tend to be slow travel months and traditionally yield good flight deals, too.

Airfares tend to skyrocket in December, especially around the holiday season and New Year’s. Also, be wary of traveling during certain weeks in March and April, when many K-12 schools and colleges go on break. If you aren’t bound by a school schedule, you will likely find better rates by varying your dates a bit.

3. Be Flexible with Dates

Speaking of dates: If you can be fluid with when you depart and return, that will usually give you some wiggle room to score the lowest airfares. With many OTA websites, you can choose an “I’m flexible” option when searching, which can reveal the price difference between flying back on a Tuesday versus a Sunday. Depending on how business and vacation travel demand fluctuates, you might find a sweet spot where you can snag a cheap airfare.

4. Reap the Rewards from a Travel Credit Card

There are many travel credit cards that offer airline reward points for every dollar you spend, so you can earn a free flight or upgrades in the future. Consider signing up for a credit card with an airline you use frequently or that has a hub near you.

Some airlines offer credit cards with large signing bonuses — up to 75,000 miles or more under certain conditions. But be careful: Those “free” points aren’t free if you can’t pay off your card balance every month and wind up spending your hard-earned bucks on interest charges.

5. Book on the Best Day for Your Route

Here’s a little calendar intelligence about nabbing the best airfare: Some days can offer lower prices than others:

•   Mondays and Wednesdays can be the cheapest days to fly domestically and internationally, ringing up at 12% to 20% less than weekend flights.

•   Sundays are often the most expensive day to leave for a trip.

•   The day you book a flight doesn’t matter very much. Research shows you only stand to save 1% or 2% on ticket prices that way.

6. Know How Far in Advance to Book

You probably know that last-minute travel can be dicey. And when it comes to air travel, not only do you risk high prices, but you could be shut out entirely.

It’s usually best to book travel between one and five months in advance to secure the seats you want at the best price. If you are going really far afield (Australia, anyone?), it can be wise to start hunting a full nine or even 10 months in advance.

7. Save on Last-Minute Fares

Here’s an exception to the above rule: If you are a person who’s super spontaneous (you might even say you fly by the seat of your pants), you might be able to fly cheaply too. When there are empty seats on a plane, airlines may promote last minute deals to fill them.

Betting on last-minute airfares is risky though — prices can soar with demand or tickets can sell out. If you’re the Best Man in a destination wedding, best to book your flight in advance, even if you are trying to cut the costs of being in a wedding. But if you happen to have a slow work week ahead and unused vacay days, the stars might align in your favor.

8. Book Through the Airline

Travel search engines like Expedia can be a great way to find cheap airfares, but when it comes to booking, sometimes it’s worth double-checking prices directly at the airline’s website.

Booking directly through an airline may save you time and hassle if a flight gets delayed or canceled. If you book through a third party and there’s a problem with a reservation, an airline will often pass you back to whichever OTA processed the purchase.

Worth noting: Some airlines, like Southwest, don’t allow OTAs to list or sell fares.

9. Shop for Nearby Airports or Cities

You may be able to save on airfares by broadening your airport search. If you’re willing to drive a bit more, sometimes flying in or out of a smaller, out-of-the-way airport or from a nearby city can save you money. As you search for cheap airfares, allow the results to show additional airports within a certain radius of your destination to see if that alters pricing.

10. Save on Fees

Airlines can tack on a lot of fees for extra perks — checked baggage, reserving your seat in advance, and in-flight amenities. You can save on fees by:

•   Becoming a frequent flyer. Enrolling in an airline’s frequent flyer plan or signing up for an airline credit card can award you free checked bags, free advanced seat selection, upgrades, and other benefits.

•   Packing light. To avoid checked-bag fees, invest in the biggest, airline-approved luggage piece that can fit in the overhead compartment. You may need to scour the airline’s website to get the dimensions that are accepted. Then, for your “personal item,” choose a roomy but squashable bag or backpack that can fit under the seat.

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3 Myths About Booking Flights

There are several myths surrounding ways to find the best airfares. Don’t fall for them. Here are examples:

1.    Buy your tickets on a Tuesday. According to Google Flights, when comparing fares bought on a Tuesday, Wednesday, or Thursday to those bought on a weekend day, “prices have only been 1.9% cheaper on average.” In short, good deals are not reserved for a specific day of the week.

2.    Shop incognito. There is no evidence to suggest that your searches are being tracked and that the intel gathered is being used to raise your airfare. Clearing your cookies and your cart or shopping in incognito mode will not unlock access to lower airfares.

3.    Save with a Saturday stopover. In the past, when business travelers with expense accounts filled airline seats, airlines would offer deals if you stayed over on Saturday instead of flying home Friday night for the weekend. But with so many discount airlines and non-business travelers, this no longer necessarily holds true.

The Takeaway

No one wants to blow most of their travel fund just getting to and returning from their destination. By comparing airline ticket prices, setting up price alerts, and being flexible with your travel plans, you can likely land the best flight deal. You’ll spend less of your time in the skies and leave more for sightseeing, shopping, and fun activities, which after all is the whole point of traveling.

SoFi Travel is a new service offered exclusively to SoFi members. Earn 2x rewards when booking with your SoFi Mastercard or debit card. Then apply those rewards to your next trip when you book through our travel portal. SoFi makes planning a getaway fast, easy, and convenient — perfect for people on the move.

Photo credit: iStock/Mikhail Davidovich

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

If you need wheels for an upcoming vacay, chances are you’re searching for rental options and trying to understand why prices can fluctuate so much. Typically, car rental rates vary based on supply and demand, just like airline tickets and hotel rooms. Lower availability generally means higher rental car rates.

There are some obvious times when demand will be high, such as spring break in Florida. Much of the time, though, there’s no way to know when a car rental company has a surplus or not, so car rental rates can seem to vary with no rhyme or reason.

But there is a method to the madness. With a little shopper savvy, you can snag the cheapest rental car rates for your next getaway. Learn more here, including:

•   What factors impact car rental rates?

•   How can you get the best car rental rates?

•   What are some alternatives to renting a car?

Why Are Car Rental Rates So High?

During the COVID-19 pandemic, people scrambled for car rentals to escape the doldrums of lockdown. As a result of demand, car rental rates shot up, reaching record highs in July 2021. While weekly rental car rates have dipped since the summer of 2021, they’ve remained consistently higher than before the pandemic.

With more Americans traveling lately, the demand for rental cars has remained high. Plenty of people who fly to LAX, Orlando, or elsewhere are in search of wheels to get around.

Combine those forces with the effect of inflation, and your weekly car rental can cost more than a plane ticket.

Factors That Influence Rental Car Rates

Beyond supply and demand there are other factors that play into the prices of weekly or monthly car rental rates. It’s important to be aware of them when budgeting for your next family vacation.

Factors that can affect car rental rates include:

•   Age of the driver. Car companies may have a surcharge for renters under 25.

•   Type of car. Luxury brands and larger cars can push prices higher.

•   Pickup location. Prices can vary between airport vs. in-town branches.

•   Day of the week. Your pickup and drop-off days can influence cost.

•   Length of the rental. Deals can be found for short- and long-term rentals if you know the rules of the (rental) road.

•   Extra fees and add-ons, including insurance, additional drivers, and perks like satellite radio.

11 Ways to Get the Best Car Rental Rates

Wondering how to get the best car rental rates? Whether you’re planning a quick weekend getaway or an epic cross-country road trip, here are some tips for scoring the lowest price.

1. Book Early

Booking in advance can help you snag a low price, which can be an incentive for planning ahead. Reserving your rental car three to six months in advance can be the ideal time frame for finding the lowest prices. So if you know, say, you are going to be doing some summer travel and are making hotel reservations, don’t forget to book your car too. Bonus: You’ll likely have your pick of vehicles, with compact sedans, minivans, and SUVs available.

Waiting till the last minute can definitely be risky: What if every car is already booked? But if you do have late-breaking travel plans (maybe you want to visit your college roomie who just had a baby), you might luck out. One recent report revealed you can save around 15% when you book the same rental only a week in advance, provided a vehicle is available.

2. Shop Around Online

Online searching can help unlock travel deals. The same holds true for car rentals. There are a lot of online travel agencies (OTAs), such as Kayak and Expedia, that can do the comparison shopping for you. They review all kinds of sites to find you the lowest car rental rates, so you don’t have to click through to each individual company.

But remember, these are third-party vendors. If you need to change or cancel your reservation, it can be easier to do so directly through a car rental agency.

3. Check for Membership Discounts

Most rental car companies offer loyalty programs that are typically free to join. In the same way you earn credit card points for swiping your plastic, you can earn points for each booking that can be applied toward a free rental or vehicle upgrade in the future.

There are also warehouse club memberships, such as Costco, that provide discounts at major car rental companies, such as Avis, Alamo, Budget, and Enterprise. AAA works with Hertz, Dollar Car Rental, and Thrifty to bring down costs for members.

Many travel credit cards can help you earn points to spend on whatever you’d like — including car rentals.

Recommended: ​​A Guide to How Credit Card Travel Insurance Works

4. Use Your Own Insurance

Your personal car insurance typically covers a rental car with the same limits and deductibles — as long as your trip is for personal travel. If you’re on a business trip, you might need commercial coverage or your company might have a commercial auto policy that can cover the rental.

Most rental companies prefer for you to pay with a credit card for your car rental reservation. But what most people don’t know is that many travel credit cards will cover basic collision insurance on rentals, saving you up to $30 a day. Check with your credit card provider to fully understand the terms and conditions.

5. Rent for the Weekend

If your schedule and plans allow, time your trip for the weekend, when you can nab the lowest rental car rates for a getaway. Rental car companies cater to business travelers who tend to need cars Monday through Friday, making rates per day higher during the week.

6. Rent by the Week

What if you have a longer adventure in mind? Rental companies can offer deals if you rent a car for the whole week versus just a few days. (And if you are planning a major road trip or renting a car all summer for beach getaways, check with rental companies and see if monthly car rental rates are available at a discount.)

If you are planning on covering considerable ground, be sure and ask about weekly car rental rates with unlimited mileage. That way, you can take to the open road without worrying about the odometer.

7. Avoid Airport Pickup

Picking up your rental car at the airport is convenient when a flight is part of your travel plan, but doing so can come with a higher price tag. Airport rental locations may charge a “Customer Facility Charge,” which can add up to several dollars a day.

Plus, demand can be high at the airport, leading to higher prices or lack of available cars. Renting from a local branch in town can save you money. Just be sure to factor in the cost of the transportation from the airport.

8. Don’t Add Additional Drivers

Most rental car agreements charge extra to add an additional driver — between $12 to $15 a day, depending on the location. Some companies will waive the additional driver fee for a spouse, as long as you have the same address on your driver’s licenses.

9. Refuel Yourself

Rental car companies typically require you to return your vehicle with the same fuel level you left with. If you leave with a full tank and come back half full, they’ll charge you a fueling fee. This can trigger an additional “ka-ching” to your bill.

You can opt for a prepay fuel option, but rental car companies tend to charge a lot more for their gas than the going rate. So if you’re not rushing to an early-morning flight, it’s worth making a pit stop at a gas station. (Hint: If you have a gas credit card, use it to help boost your rewards and savings.)

10. Skip the Extras

Opting out of the extras offered by car rental agencies can save you some cash. Make a playlist instead of paying for satellite radio, bring your kid’s car seat if possible, or utilize your phone’s map apps vs. renting a GPS with the car to help navigate.

11. Opt for a Modest Car

This may sound obvious, but the larger and fancier the vehicle, the bigger the price. Selecting an economy vehicle can save you hundreds on a weekly rental, and you’ll spend less on gas.

How to Get the Most Out of Your Car Rental Rewards Program

A car rental rewards program can help you earn points toward free rentals, allow you expedited check-ins, free car upgrades, and more. Familiarize yourself with the benefits of your tier status, so you can take full advantage of the perks. Also be sure to stay on top of any reward point expiration dates.

Recommended: Guide to Choosing a Rewards Credit Card

Alternatives to Car Rentals

Another way to save money on car rentals is to not rent a car! Hey, when money is tight, it’s worth exploring all your options.

•   If you’re visiting a city, explore local mass transit and taxi/rideshares. Book a conveniently located hotel where you can walk or bike to everything.

•   Investigate the cost of rideshare services. Could you take an Uber to the resort you’re staying at and then use shuttles to get around?

•   Consider car-sharing services like Getaround and Turo that can allow you to use a car just when you need it. If you have a vacation planned and need wheels for only one or two excursions, that might save you money and keep you from blowing your entire travel fund.

The Takeaway

If you need a car when traveling, you can find good deals on car rentals by doing some comparison shopping, being flexible with your travel schedule, and maximizing any rewards programs. Doing so can help you put your money toward what makes a vacation the most fun and memorable vs. watching it fly out the window.

SoFi Travel is a new service offered exclusively to SoFi members. Earn 2x rewards when booking with your SoFi Mastercard or debit card. Then apply those rewards to your next trip when you book through our travel portal. SoFi makes planning a getaway fast, easy, and convenient — perfect for people on the move.

Photo credit: iStock/GoodLifeStudio

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Travel, as you may have heard, is big business. The tourism sector accounted for 10.4% of the world’s GDP before the pandemic, and it’s on the rise again. But who really benefits from our vacation mindsets and liberal spending? Thinking about that, and making decisions based on the answers, is the first step toward becoming a responsible tourist.

The way you travel the world — from where you stay to where you shop — matters. Below we introduce the tenets of “responsible tourism.”

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What Is Responsible Tourism?

The responsible tourism movement aims to minimize and even reverse the negative effects of travel, from overcrowding and pollution to the erosion of cultural identity. A responsible tourist will make choices based on what’s best for the long-term success of the community they’re visiting.

Conscientious travelers will want to keep the following goals in mind:

•   Minimize negative economic, social, and environmental impacts

•   Generate economic benefit for local people while supporting improved working conditions

•   Honor natural and local heritage

•   Make connections with local people that foster a deeper understanding of the culture

•   Take into account people with disabilities

•   Be culturally sensitive overall

Responsible tourism was first defined by U.K. professor Harold Goodwin as part of the 2002 World Summit on Sustainable Development. It differs from sustainable tourism, which focuses more on conserving natural heritage and biodiversity. Both movements offer blueprints not only for tourists, but for business operators, governments, and local residents.

And remember: The negative effects of tourism, while more pronounced in poor countries, are also felt in many American communities.

Benefits of Supporting Local Economies

What travelers spend in local communities ideally benefits both locals and travelers. Most travelers are eager to help out the places they visit. And if tourists play their cards right, they’ll experience fewer crowds and a more authentic experience.

Before the pandemic, the travel sector employed 1 in 10 people around the globe. As the World Travel & Tourism Council reminds us, “[B]ehind every job in travel and tourism, there is a face, a story, a family and sometimes a whole community’s livelihood.”

Jobs in tourism offer chances at economic success to all sorts of people, including women and young people. In fact, women are employed in tourism at almost twice the rate of other sectors. And in some areas, wildlife tourism can help protect that wildlife through preservation programs and the creation of conservation jobs.

8 Ways to Support Local Economies

So how can you know if the money you spend is benefiting locals? You can start by avoiding chains of all sorts. Read on for more ideas.

1. Book Locally Owned Accommodations

Chain hotels and Airbnbs run by property managers mainly benefit their global headquarters. Plus they can damage the local culture by driving gentrification.

Instead, opt for a locally run or family-owned inn, B&B, or small hotel. You’ll be contributing directly to the local economy, as you learn more about the place and its idiosyncrasies.

2. Eat in Local Restaurants

After enduring a long flight and arriving in an unfamiliar place grumpy and hungry, you may be tempted to pop into a familiar coffee or food establishment that you know from home. But buying food from global chain restaurants doesn’t support the local economy — nor does it expand your palate, which is one of the great benefits of travel.

Recommended: Apply for a Rewards Credit Card

3. Consider an Off-Season Visit

Travelers tend to overrun popular destinations during peak season. And in a tourism-dependent economy, their absence during low season can cause places to all but shut down. Instead of contributing to the tourist crush, try booking for a less coveted time.

Instead of summer travel to a northeastern U.S. beach town, try holding off till the fall, when it’s still balmy but emptying out.

4. Hire Local Cars and Drivers

Who knows the place you’re visiting better than a born-and-bred local? Rather than renting a car (likely from a global chain), hire a knowledgeable local driver to help you get around. You’ll learn the lay of the land and enjoy lots of insider tips and anecdotes for good measure. And you’ll put money directly into a local family’s pocket.

5. Take Trains Over Planes

Flying is one of the least sustainable parts of travel. In fact, it’s one of the least sustainable human activities, period, contributing to 2.5% of the world’s carbon emissions. Sure, when you globetrot, you need to fly to get somewhere. But why make it worse by then taking a bunch of small, enticingly cheap flights within your host country? Instead, set your sights on trains and buses, which have a much lower impact than even the shortest flights.

6. Buy Local Souvenirs

You want to go shopping, and locals have stuff to sell. What could be easier? The challenge comes in avoiding massive commercial shops and purchasing items from local artisans in craft markets and tiny, proprietor-run boutiques.

It’s also important to be aware of illegal souvenirs and avoid them at all costs. These include anything made of protected animals or trees, such as souvenirs made from poached ivory, animal skins and furs, rosewood, seashells, and hummingbirds, for just a few examples.

7. Volunteer With or Donate to Local Causes

Before heading to your destination, do a search for what donated materials might be needed by local charities. Then reserve some space in your luggage (which you can then refill with your locally purchased handicrafts). For some guidance on what to bring where, check out the destinations guide from the nonprofit Pack for a Purpose .

8. Share Your Experiences on Social Media

Once you’ve experienced responsible travel for yourself, spread the word! Using the popular #responsibletravel hashtag, share pics and details of the local establishments where you stay, eat, and shop — you may inspire others to do the same. This way, you can go on changing the world through others.

Tips for Being a Responsible Tourist

Read up on responsible tourism ahead of your trip. The fresh mindset you’ll be left with can help you get more out of your travels. Then make a few reservations in advance at local haunts.

Once you arrive, every time you open your wallet, think: Am I benefiting the local economy? Am I contributing in a positive or negative way? Keep it positive, and your destination will thank you.

The Takeaway

Enjoy your time away from home by keeping in mind the basic tenets of responsible travel: Respect local culture, minimize your waste, shop locally, and try to keep your footprint small. The whole world will benefit in the end.

SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.

Photo credit: iStock/FilippoBacci

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Booking a hotel can feel like spinning the roulette wheel — you’re never quite sure where you’ll land pricewise. You can find different hotel rates listed from one travel site to another, as well as on individual hotel websites. The result: Confused and frustrated travelers.

Understanding how hotel pricing works and why rates range so widely is a good first step in demystifying the hotel booking process. Here we’ll explain why hotels do what they do, then offer advice on how you can use that knowledge to find the best rate for your next out-of-town stay.

What Factors Influence Hotel Rates?

Many factors determine the price you pay for your hotel stay, from the destination you’re seeking to the time of year you’re traveling. Other influences are less predictable. Let’s take a closer look.

Location

It’s no secret that sought-after hotels in large cities or popular resorts will cost quite a bit more than a modest motel on a country road. But did you know pricing also varies widely within a location? Hotels near city attractions such as sports arenas, convention centers, downtown, or revitalized neighborhoods will likely charge significantly more than the same type of property located on the outskirts of town or in the suburbs.

Star Ratings

A variety of different groups — such as guidebook publishers, consumer associations and travel websites — award hotels between one and five stars. The more stars awarded, the more the hotel will charge.

But star ratings are not standardized. The same hotel may have three different ratings, depending on where you’re looking. And each star-giving organization has its own methodology (although you can usually find an explanation on the website). The bottom line: Rates among hotels in the same location with the same star rating can still vary significantly.

In general terms, here’s what star ratings usually mean:

•   1 star. Often independently owned, these hotels/motels provide the bare minimum.

•   2 stars. Economy chains, such as Econo Lodge or Days Inn, offer the basics plus a few “extras” — like a television.

•   3 stars. Usually big chains, such as Marriott and DoubleTree, have stylish, comfortable rooms with true extras, such as a fitness room and restaurant.

•   4 stars. These are large, fully staffed, upscale hotels with lots of extras.

•   5 stars. Luxury hotels indulge customers with all imaginable amenities.

Keep in mind that one or two stars does not necessarily signify a lack of cleanliness or safety. They may be perfectly fine, just no frills. Best to check online reviews to make sure.

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Room Type

Whether you’ve chosen a no-frills two-star motel or a glamorous five-star resort, you’ll pay more for certain rooms within the same building. The view, proximity to a noisy elevator, square footage, and the number and size of beds are taken into account when pricing a specific room. Sometimes room upgrades are available using your credit card rewards.

Amenities and Additional Services

Special touches, like turn-down service and super fluffy towels, can add to your enjoyment during, but they’ll also add to the price. Hotels factor high-end bedding, luxurious towels, upscale bath products, complimentary dry cleaning and 24-hour room service into the price of each room.

Recommended: Traveling with Pets

Peak Season and Holidays

Hotels in prime destinations book up fast during busy travel seasons such as holidays, spring break, and summer vacation. Sometimes peak season really does follow the seasons, such as winter months in Florida and summer months in New England. Because the volume of travelers increases during peak season, hotels know they can charge higher prices and still book all or almost all of their rooms.

Peak times can even be determined by the day of the week. In most locations that cater to non-business travelers, you’ll likely pay more to stay on a weekend night than a weekday, no matter what time of the year you are traveling.

Supply and Demand

This may be the most significant factor in determining hotel rates. Hotels profit when they achieve maximum occupancy for as many nights as possible. As long as demand for rooms is strong, hotels know they can price rooms at higher rates and still get customers. Holidays, major events, and school breaks are all times when hotels can potentially achieve full or near full occupancy.

That said, hotels can’t afford to let rooms go empty, so when demand is slow, operators will drop rates, sometimes even at the last minute, hoping to lure available customers from the competition.

Tips to Getting the Best Rate on Your Hotel

Now that you’ve got the inside story on hotel pricing and availability, let’s see how you can use that information to get the best rates and stay within your travel budget.

1. Be Flexible

Off peak doesn’t have to mean the dead of winter or the middle of hurricane season. If you have the flexibility to move your vacation dates just a week or two, you can often save a bundle on hotel rates. Traveling the week after Easter, for instance, or just after Labor Day can make a world of difference.

2. Book in Advance for Peak Season Travel

Sometimes peak season travel can’t be avoided. If you must travel for a holiday, big event, or during a popular vacation time, book as far ahead as possible so you’ll be first in line. As rooms book up, pricing for remaining rooms can increase even more — a situation you want to avoid.

Recommended: Where to Find Book Now Pay Later Vacations

3. Off Peak, Consider Waiting Until the Last Minute

During less busy travel times, hotels have been known to drop rates at the last minute in an effort to fill rooms. Or they may offload empty rooms to an online travel agent. (More on these sites below.) If you use the wait-and-see approach, you may need to search among several locations, so flexibility is key.

4. Off the Beaten Path

As mentioned above, hotels in the most central, desirable locations charge the most. Consider a property that may be just as nice but a little bit out of the way — say a bus ride to downtown or a relaxing walk to the beach. If you’re willing to be a bit of an explorer, you can save on hotel rates and perhaps discover a charming area you wouldn’t have otherwise.

5. Compare Travel Websites

Online travel agents and travel websites like Priceline, Expedia, Kayak, and Orbitz offer hotel bookings at major chains and independent inns and resorts. Some of these sites specialize in last-minute bookings.

Often these sites will feature rates below those offered on the hotel website. But rates vary among the different sites, so you’ll want to do a thorough search to find the best deal.

And always check back with the hotel, calling the location you are interested in to see if you can negotiate a lower price for the same room than what you’re finding online. In some cases, hotels may offer you the same rate, but will upgrade your room or throw in other extras.

Last-minute bookings at some online travel agents such as Hotel Tonight and Hotwire are opaque — a travel industry term that means you agree to book without knowing the name of the hotel until you pay for it. Instead, you’ll see the location, star rating, and price to help you make a decision.

6. Consider Nonrefundable Reservations

Many hotels and travel websites offer cheaper rates for nonrefundable bookings. The savings can be significant, but the risk of losing your money is substantial too.

There are ways around this. If you have a cancel-for-any-reason travel insurance policy for your trip, your hotel costs will be partially refunded.

In addition, check if your credit card offers travel insurance that will cover cancellations for any reason.

7. Track Your Refundable Hotel Reservations

There is also a way to save money on refundable hotel rates that allow you to cancel at any time. Go ahead and book the best deal you can find, then periodically check back to see if the rate has fallen. If it has, rebook at the new lower rate, then cancel your original reservation.

If you don’t have time to track the prices yourself, use a website or app like Rebookey that will monitor your reservation for you and notify you if the rate drops.

8. Use Your Rewards

If you belong to any hotel chain loyalty programs, always check for member discounts at properties in or near the destination you are headed. You may find a comparable or better deal than you can find elsewhere. And you’ll rack up more points.

Most airline credit cards and travel credit cards have affiliations with major hotel chains. You may be able to use your reward points to pay for your hotel room. Or if you have a cash-back credit card, you may have enough in the “bank” to cover your hotel costs.

Recommended: Choosing Between Cash Back and Travel Rewards

9. Always Ask for Specific Discounts

Many hotel chains offer discounts for members of AARP, AAA, and other organizations. Be sure to ask when you make your reservation. If you book with an online service that doesn’t ask for this information, check with the hotel receptionist when you register.

The Takeaway

Making sense of the puzzling way hotels set prices can help travelers become better shoppers. When you know how rates work, you can use several tools — last-minute bookings, price-tracking sites, discount memberships, and more — to save on your hotel bill. In addition, the more flexible you can be about when you travel and what hotel you stay at, the easier it will be to find the best deals.

Whether you want to travel more or get a better ROI for your travel dollar, SoFi can help. SoFi Travel is a new service exclusively for SoFi members that lets you budget, plan, and book your next trip in a convenient one-stop shop. SoFi takes the guessing game out of how much you can afford for that honeymoon, family vacation, or quick getaway — and we help you save too.

FAQ

Why does the price of hotels vary so much?

Many factors go into hotel pricing, including location, star ratings, type of room, amenities, peak or off-season, and supply and demand. Hotel rooms may be priced differently if they are sold through online travel agents and other travel websites versus purchasing from the hotel directly.

What is considered off season?

Traditionally, off-season travel has been defined by the seasons. For example, peak season in warmer climates like Florida, Arizona, or island resorts hits in the cold winter months — and hotel prices surge. But off-season can also mean big savings just a few days or weeks away from peak travel times.

What’s the best way to get a last-minute hotel discount?

Several travel websites specialize in last-minute bookings. In an effort to avoid rooms going empty, hotels will sell through these sites. You can get a good deal this way, but in most cases, you’ll pay for the room without knowing the name of the hotel — only the price, location, and star rating.

Can I negotiate hotel rates?

Sometimes. If you find a better rate on a travel website than the hotel is advertising on its own site, it can make sense to call the hotel directly and ask if they will beat the travel site price. The hotel may agree. Or it may match the discounted price but offer extras such as meal vouchers or a room upgrade.

Photo credit: iStock/structuresxx

**Terms, and conditions apply: The SoFi Travel Portal is operated by Expedia. To learn more about Expedia, click https://www.expediagroup.com/home/default.aspx.

When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of SoFi Member Rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.

Hiring a tax preparer can give you some peace of mind that your taxes are being filed correctly. But even a pro can sometimes make a mistake. Depending on the error, you could end up getting a refund you’re not entitled to or paying more in taxes than you actually owe.

The good news is, there are ways to get your tax return back on track if an error was made. Keep reading to learn what steps you can take when you realize your tax preparer made a mistake.

Who Are Tax Preparers?

There are different types of tax return preparers, but typically, they’re enrolled agents, attorneys, or certified public accountants (CPAs). There is no professional credential that qualifies someone to be a tax preparer. However, they do need to have an IRS Preparer Tax Identification Number (PTIN) in order to help clients file their tax returns.

Because a tax preparer is dealing with your sensitive financial information, it’s important to do your due diligence before hiring one. Research potential tax preparers’ backgrounds and references, and if possible, ask for referrals from trusted friends and family members.

It’s also a good idea to look for a tax preparer who specializes in the types of taxes you need help with, such as self-employed taxes.

Pros and Cons of Working With a Tax Preparer

Thinking about enlisting the help of a professional as you prepare for tax season? You may want to consider the advantages and disadvantages of working with a tax preparer.

Pros

•   Ample experience (if you hire the right professional)

•   Expert insight into potential tax credits and deductions

•   Peace of mind that your taxes are filed properly

Cons

•   May be more expensive than doing your own taxes

•   Mistakes can still happen

•   Less privacy

Recommended: How Much Do I Have to Make to File Taxes?

Are Tax Preparers Worth It?

Whether or not a tax preparer is worth the money depends on a few different factors. These may include:

•   How much time it saves you. If you have complicated taxes or are concerned you might miss the tax filing deadline, you may find that an hour or so with a professional tax preparer is more efficient and therefore worth the cost.

•   The complexity of your taxes. People who only have one source of W-2 income, take the standard deduction, and have no investments may be able to easily file their taxes without the help of a tax preparer. However, a small business owner dealing with payroll or a freelancer with dozens of sources of income may find that hiring a tax preparer could save them a lot of headaches.

•   The tax preparer’s experience. An experienced, qualified tax preparer can ensure your returns are prepared correctly and perhaps even help you identify tax credits or deductions.

•   Cost. Some tax preparers charge the same or slightly more than the cost of purchasing tax preparation software, while others are on the more expensive side. Depending on your needs, hiring one may or may not be worth budgeting for.

Fixing Errors on Filed Returns

If you realize your tax preparer made an error on your filed tax return, all is not lost. You can amend it using Form 1040-X, Amended U.S. Individual Income Tax Return. Common errors include having the wrong information regarding income, credit, tax liability, filing status, or deductions.

It’s also possible to amend a return in order to claim an unused tax credit. Generally, mistakes on income tax return need to be amended within three years (this includes extensions).

Am I Responsible if My Tax Preparer Makes a Mistake?

While it may seem like the professional tax preparer would be on the hook for any mistakes made on income taxes they help file, it’s the taxpayer who’s held responsible. However, the tax preparer can help make any necessary corrections.

What Happens if a Tax Preparer Messed Up Your Return

If you realize your tax preparer made a mistake (or multiple) on your income tax return, you need to file an amended return with the IRS. Ideally, the tax preparer would help with this process, but they aren’t required to do so.

What to Do if a Tax Preparer Messed Up

Mistakes happen. Here are the steps you can take to get things back in order in the event your tax preparer makes an error on your income tax return.

Make Sure It’s the Preparer’s Fault

Before you start pointing fingers at the tax preparer, make sure they’re the one who made the mistake. Tax preparers require a lot of detailed information so they can file an income tax return on your behalf, and it’s easy to give them the wrong information by mistake. Do some digging to see who’s really at fault.

Recommended: What to Do If You’re Missing Tax Documents

Check Your Contract

Once you’re certain the tax preparer made a mistake, take a look at the contract you signed with them. It should outline whether the preparer will file an amendment for you at no extra charge and what their liabilities are.

Contact the Preparer

The next step would be to contact the tax preparer to alert them of the mistake and to provide them with any related correspondence from the IRS.

Notify the IRS and Professional Organizations

If the mistake is substantial — and not your fault — you’ll need to convince the IRS of the tax preparer’s negligence. You may also want to outline any damages you’ve suffered as a result of the error. The IRS is then responsible for investigating who is responsible and if the tax preparer is at fault, this can result in their tax identification number being rescinded.

It’s also possible to report the tax preparer to a professional organization they belong to, like the American Bar Association or the American Institute of Certified Public Accountants.

Tell It to the Judge

Ideally, the tax preparer will help you remedy the mistake, and everyone can go on their merry way. However, if the error caused a lot of issues for you, you may choose to sue for negligence. Taking the issue to a judge is a last resort, but it’s an option if you want to file a standard professional malpractice complaint with your state court.

Recommended: Free Credit Score Monitoring

The Takeaway

Even the most qualified tax preparers can sometimes make a mistake. If a tax pro made an error on your tax return, all is not lost. The IRS allows you to fix errors on an income tax return, and in most cases, your tax preparer should be willing to help out. If you suspect the preparer was negligent when filing your return, you can report them to the IRS. As a last resort, you can even sue them (though hopefully it would never come to that).

One way to make getting ready for tax season easier is to gain a holistic picture of your financial life. A money tracker app like SoFi’s can allow you to track spending, set financial goals, and view all bank account balances in one place. You can also monitor credit scores.

FAQ

Is a tax preparer liable for mistakes?

At the end of the day, even if the tax preparer is the one to make the mistake, the taxpayer is the one held liable by the IRS. That said, some contracts with tax payers do include taking responsibility for errors.

How much money will the IRS fine a tax preparer who has made a mistake filing a client’s taxes caused by lack of due diligence?

Simple mistakes are one thing, but if a professional tax preparer doesn’t follow tax rules, regulations, or laws, they can be penalized financially by the IRS. How much that fine is depends on different factors like how many violations occurred.

Can you report a tax preparer to the IRS?

Yes, it is possible to report a tax preparer to the IRS. It’s important to submit a detailed report to the IRS and to outline any damages suffered.

Photo credit: iStock/Rockaa

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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