Travelers in the United States — including residents and international visitors — spend an average of $2.7 billion every single day, according to the U.S. Travel Association.
Traveling is a big business, especially around the holidays. Data from Orbitz shows that 72 percent of Americans indicated they took at least one trip in the previous year between Thanksgiving and New Year’s.
Traveling costs can add to your holiday debt balance, so if you’re one of those millions of travelers, you may worry concerned about the impact of traveling on your budget. Fortunately, there are sharing economy services you can use to lower the costs of travel and keep your expenditures down.
Here are a few sharing economy services you can take advantage of if you want to take a holiday trip without overspending.
Saving on accommodations for your holiday trip
Accommodations are among the biggest expenses for holiday travel. Using Diamond Ratings — the scoring system AAA uses to rate 28,000 hotels throughout the United States (a higher rating is considered to offer better amenities and services for travelers) — Travel Weekly found that Three Diamond hotels increased prices around 14 percent on average to $176 per night. Even Two Diamond hotels are $117 per night on average, which means a seven-day trip would still cost more than $700.
Since prices are rising, budget-minded travelers may be interested in finding ways to save on accommodations for their holiday trip. Fortunately, there are many options for saving on accommodations using sharing economy services including the following.
Vacation rental services
Services such as HomeAway and Airbnb allow homeowners to rent out their houses. An analysis of more than 220,000 Airbnb listings worldwide conducted by Busbud, a service that helps travelers book bus tickets, revealed Airbnb prices beat out hotels in seven of 12 cities examined. While prices varied, savings were often substantial. In Seattle, for example, the average hotel price was $50 more per night than the average Airbnb price.
These services can also have other perks. “I think I saved a couple hundred dollars by booking with HomeAway,” said Elisabeth McKnight. “But really, it allowed us to stay in a smaller town without big hotels, close to the rock climbing and beaches.”
McKnight said she’d advise other travelers to take advantage of renting from a local. She added her favorite part of using HomeAway was getting all the insider tips and tricks from locals.
House-sitting services such as TrustedHousesitters and LuxuryHousesitting connect travelers with homeowners who want someone to watch their homes and pets. Although these sites charge would-be house sitters a small annual membership fee (sitters pay $119 annually at TrustedHousesitters, for example), not having to pay anything for accommodations can save more than $100 per night.
“House-sitting has saved my husband and me well over $20,000 in rent, utilities, gym memberships, and dining out,” Bianca Rappaport of Housesit Hustle said. These savings come from being able to stay for free in homes that she was house-sitting. “We’ve landed back-to-back sits throughout the U.S., Thailand, Malaysia, Portugal, Cyprus, the U.K, and Greece.”
“Couchsurfing helped me save even more money because you don’t pay anything for your accommodation,” said Fernanda Kiehl, a Brazilian travel blogger from MondayFeelings. “I used it in Indonesia for three nights and in Thailand for four nights.”
Services for campers
The average cost of a private RV park in the U.S. is $38.50 a night, according to Wandrly Magazine. But, you may be able to find a cheaper place to park your camper by using sharing economy services.
“We usually rent a campervan to drive across the U.S. and Australia, or across other countries in Europe, Asia, and South America,” said Alice Johnson, a writer for Backpacker Jobs Australia. “Finding a parking spot for our camper van can be difficult, especially in remote areas, or in big cities where parking is scarce and very expensive. We’ve been using online parking marketplaces that connect drivers with parking space owners to book a driveway or garage whenever and wherever we need one.”
Johnson recommended Spothero within the U.S., YourParkingSpace in the U.K., and Parkhound in Australia. BoonDockers also provides RV parking, while Harvest Hosts connects campers with parking spaces in tourism sites, farms, and vineyards.
For your next holiday trip, this option could allow you to spend far less than you would if you stayed in a $100+ per night hotel.
Sharing economy services for holiday travel transportation
According to Travel Weekly, rental car averages are up 34 percent, and the average cost of a rental car is now $70 a day. You can save on the costs of renting a car by taking advantage of different sharing economy services that reduce holiday travel transportation costs. Options include:
- Carpooling and car-sharing services such as BlaBla Car and GetAround. “BlaBla Car saved me around 15 euros ($17.87) per journey,” Kiehl said. “I used it in Brazil and in Germany a few times.”
- Scooter sharing services such as Scoot and Coup. “Coup is a great service that offers electric scooters,” said Anne Steinbach, founder of annewhere.com, a blog documenting trips taken worldwide. “Imagine yourself riding through Berlin on a scooter — sounds cool, right? I did it with my boyfriend and we saved our ticket for the public transport. One 30-minute ride with Coup is 3 euros ($3.57), whereas one ticket with the public transport is 2.70 euros ($3.22) for two hours, but it will only take you in one direction. Even though this may sound cheaper, it is not. Especially if it’s two people on the scooter, you do save money and it’s way more fun!”
- Bike sharing services such as Bikesharing and Next Bike. “For shorter trips, I use Next Bike, which is now available in Berlin and Cologne. It’s a great bike app,” Steinbach said. “For only 1 euro ($1.19) you can cycle for 15 minutes, a perfect way of getting from A to B quickly — without having the hassle of hopping on and off trains.”
By taking advantage of sharing economy services to save on holiday travel, you can start the new year off with more money left in your pocket. This extra cash should come in handy for accomplishing your financial goals in 2018.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.97% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
APR stands for “Annual Percentage Rate.” Rates listed include a 0.25% EFT discount, for automatic payments made from a checking or savings account. Interest rates as of 11/8/2018. Rates subject to change.
Variable rate options consist of a range from 3.27% per year to 6.09% per year for a 5-year term, 4.64% per year to 6.14% per year for a 7-year term, 4.69% per year to 6.19% per year for a 10-year term, 4.94% per year to 6.44% per year for a 15-year term, or 5.19% per year to 6.69% per year for a 20-year term, with no origination fees. APR is subject to increase after consummation. The variable interest rate will change on the first day of every month (“Change Date”) if the Current Index changes. The variable interest rates are based on a Current Index, which is the 1-month London Interbank Offered Rate (LIBOR) (currency in US dollars), as published on The Wall Street Journal’s website. The variable interest rates and Annual Percentage Rate (APR) will increase or decrease when the 1-month LIBOR index changes. The variable interest rates are calculated by adding a margin ranging from 0.98% to 3.80% for the 5-year term loan, 2.35% to 3.85% for the 7-year term loan, 2.40% to 3.90% for the 10-year term loan, 2.65% to 4.15% for the 15-year term loan, and 2.90% to 4.40% for the 20-year term loan, respectively, to the 1-month LIBOR index published on the 25th day of each month immediately preceding each “Change Date,” as defined above, rounded to two decimal places, with no origination fees. If the 25th day of the month is not a business day or is a US federal holiday, the reference date will be the most recent date preceding the 25th day of the month that is a business day. The monthly payment for a sample $10,000 loan at a range of 3.27% per year to 6.09% per year for a 5-year term would be from $180.89 to $193.75. The monthly payment for a sample $10,000 loan at a range of 4.64% per year to 6.14% per year for a 7-year term would be from $139.65 to $146.76. The monthly payment for a sample $10,000 loan at a range of 4.69% per year to 6.19% per year for a 10-year term would be from $104.56 to $111.98. The monthly payment for a sample $10,000 loan at a range of 4.94% per year to 6.44% per year for a 15-year term would be from $78.77 to $86.78. The monthly payment for a sample $10,000 loan at a range of 5.19% per year to 6.69% per year for a 20-year term would be from $67.05 to $75.68.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown.
All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.28% effective October 10, 2018.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate|
|2.46% – 6.97%1||Undergrad & Graduate|
|2.57% – 8.44%4||Undergrad & Graduate|
|3.02% – 6.44%2||Undergrad & Graduate|
|2.50% – 7.24%5||Undergrad & Graduate|
|2.79% – 8.39%6||Undergrad & Graduate|