For many people, the winter season evokes images of cozy fireplaces, snowcapped mountains, and a well-deserved break from everyday life. In reality, winter travel can be less of a wonderland than an avalanche of debt for those managing their finances carefully, especially retirees living on fixed incomes. With holiday airfares surging, peak-season resort prices, and general inflationary creep, funding a getaway is no easy feat.
The good news? Your long-term financial security does not have to be compromised for a successful winter trip.
As Americans navigate the chilly economic climate, WalletHub’s 2025 Winter Travel Survey provides essential insights and a guide to making fiscally wise travel decisions. It’s a roadmap for enjoying the season’s adventures on a budget, especially for those who are focused on saving and investing for retirement.
The 2025 Winter Travel Landscape: Key Financial Insights
According to WalletHub’s 2025 survey, economic caution is the dominant sentiment heading into the winter travel season. These key takeaways emphasize the importance of smart, debt-free strategies for a finance and retirement audience. Understanding these trends is your first step toward protecting your retirement funds.
The inflationary pinch is real.
In the survey, it was found that;
- Inflation will affect 54% of people’s winter travel plans.
- Compared to last year, only 25% of Americans expect their winter travel expenses to increase. It’s expected that most people will spend the same amount or less.
- Additionally, 51% of Americans believe a weaker dollar will affect their winter travel plans, suggesting international travel may be put on hold. As a result, domestic, high-value destinations become more appealing.
For retirees or near-retirees, these numbers confirm what you already know: your dollar has to work harder. In other words, it’s time to shift the focus from luxury to value. Whenever you spend, consider how it affects your long-term drawdown plan.
The debt dilemma: The ultimate retirement threat.
The persistence of travel debt is one of the most concerning findings for any financial planner. According to the survey, nearly one in four Americans still owes money from their travel last winter. Even more startling, 21% of respondents said that winter travel is worth going into debt for.
For anyone approaching retirement or in retirement, this mindset is dangerous. Credit card interest, particularly double-digit rates, does not compound in retirement portfolios. In any winter trip, avoiding post-vacation debt should be the top financial priority. Unless you have cash to pay for the trip, you cannot afford it. It’s that simple.
The rewards revolution is essential.
According to the survey, travelers are also getting more sophisticated about using financial tools to soften the cost burden:
- To help with their holiday spending, 55% of Americans plan to redeem credit card rewards.
- It’s estimated that 23% of consumers intend to apply for a new credit card specifically to save on travel this winter, often leveraging generous sign-up bonuses.
- For their next vacation, 1 in 3 people plan to use a budgeting app.
According to these statistics, points, miles, and budgeting tools are no longer just “nice-to-haves” — they’re essential for cost mitigation. It’s a smart, non-taxable way to fund travel for retirees without depleting investment capital.
A Financial Action Plan: Six Ways to Save Big
In light of the survey’s findings and general best practices for protecting your retirement funds, here’s a detailed action plan for creating a fun and affordable winter getaway.
Maximize credit card rewards and bonuses.
55% of travelers planning to use rewards are on the right track. Retirees with good credit and consistent spending habits should leverage credit card benefits strategically.
- Get the sign-up bonus. You should consider applying for a top-tier travel rewards card if you plan to purchase large amounts of travel (flights, accommodations). With this one-time infusion of points/miles, you can cover an entire flight or a few nights of lodging.
- Targeted redemption. Choose a credit card that offers the best return on travel spending or that is aligned with an airline/hotel chain that you already use. Your miles/points should be redeemed accordingly, since flights and hotels are the two most expensive components of any vacation.
- Avoid the interest trap. WalletHub’s debt finding is a strong warning. You should never carry a balance on a credit card just to earn points. As long as interest is paid, the reward value will always be negated. You should treat your card as a debit card and pay it off in full each month.
Embrace the “shoulder season” strategy.
In the winter, the most expensive time to travel is late December through early January. By simply changing your travel dates by a few weeks, you can save a great deal of money.
- The post-holiday lull. During January and February, you can expect lower airfare prices following the holiday travel rush, according to Expedia’s Winter Travel Outlook.
- Mid-week savings. Consider booking flights and hotels for Tuesday or Wednesday. Travelers can save hundreds of dollars by avoiding the weekend travel rush, making expensive week-long trips more affordable.
Choose high-value, off-peak destinations.
As a weaker dollar discourages international travel, take advantage of domestic hidden gems or “off-peak” locations.
- Warm weather bargains. Consider Southern U.S. destinations where winter is the shoulder season, rather than Caribbean destinations where peak-season prices are prevalent. For warm-weather lovers, consider Las Vegas, San Diego, Dallas, or Phoenix.
- Ski town alternatives. Avoid famous, overpriced ski resorts like Aspen. If you’re looking for comparable snow at lower lift ticket and lodging prices, look for smaller, community-run ski hills or resorts in Big Sky, Montana, Ketchum, Idaho, or Stowe, Vermont.
Leverage the sharing economy and extended stays.
Hotel costs can be the most expensive part of a trip. Airbnb and VRBO rentals often offer superior value and essential amenities, helping reduce overall trip costs for retirees.
- Kitchen power. For serious savings, you can’t go wrong with a rental that comes with a full kitchen. For a couple, eating only one meal out a day while preparing the others (breakfast, packed lunch, and simple dinner) can easily save $50–$100 per day. As a result, the most variable and least rewarding travel cost —restaurant meals— can be significantly reduced.
- Extended stay discounts. Many rental hosts offer significant weekly or monthly discounts. When you book an Airbnb for seven nights rather than one, you save 32% on the nightly rate. The discount increases to 46% if you sign up for 30 days.
Travel light and avoid ancillary fees.
The bulkiness of winter clothing makes checking bags an unnecessary expense on a fixed budget, costing up to $70 round-trip per person.
- Strategic packing. When traveling by plane, pack your bulkiest items, such as heavy boots and jackets, in your carry-on luggage. To fit more into a carry-on, use compression packing cubes. By avoiding checked bags entirely, you can save the equivalent of a nice dinner or an excursion.
- Card perk check. If you need to check a bag, ensure you have a travel credit card. The first checked bag is usually free with co-branded airline cards, a benefit that easily outweighs a moderate annual fee.
Prioritize protection with travel insurance.
Although it may seem counterintuitive to spend money on travel in advance, winter weather increases travel disruptions, such as delays and cancellations. As such, those with complex medical needs, such as retirees, should consider travel insurance to avoid catastrophic losses.
- Health and medical coverage. You should ensure your policy covers medical emergencies and evacuations, especially if you’re traveling internationally or in a remote area. To avoid hefty out-of-pocket expenses abroad, you should have a dedicated travel health policy in addition to your domestic Medicare or Supplemental plan.
- Cancellation-for-any-reason (CFAR). When booking non-refundable elements or an expensive trip, consider a CFAR policy. This is the ultimate way to protect yourself against last-minute cancellations or unpredictable winter conditions.
Final Word of Advice: Protect Your Future
WalletHub’s survey serves as a reminder that joy, even during the holidays, should never be financed by debt. The memories of a wonderful winter vacation will not last as long as the interest payments on a maxed-out credit card.
By traveling during shoulder season, cooking in the kitchen, and redeeming rewards, you can travel and save money within your budget. When you have to borrow money for a trip, it means the trip is simply too expensive for you at this time. Don’t adjust your debt tolerance, adjust the trip.
The best way to take advantage of winter is to know that you can finance your adventures responsibly in the winter months.
Image Credit: Madison Inouye; Pexels
