EFFECT OF TARIFFS ON TRAVEL: BEST 9 WAYS TO REDUCE COSTS!
EFFECT OF TARIFFS ON TRAVEL: BEST 9 WAYS TO REDUCE COSTS!
INTRODUCTION: EFFECT OF TARIFFS ON TRAVEL – HOW YOU CAN REDUCE YOUR COSTS!

Now that the United States 25% tariffs are official (and retaliatory tariffs being imposed by Canada and Mexico), we are all going to find out what the effect of tariffs on travel are going to be over the next weeks and months ahead (Spoiler Alert: they are going to go up!). The tariffs will result in price increases on goods and services in all three countries and will be a challenge facing travelers in 2025. The impact won’t stop there. Increased prices will have a spillover effect across all three economies and will affect travel to other areas such as Europe and Asia, places that are not even involved in the tariff war.
The impact is real, with airline tickets, accommodations, and even daily expenses seeing notable price jumps, which have already started. What does this mean for you? Despite the added costs, there are still efficient ways to plan your travel without overspending. Regardless of your destination, a little creativity and planning can go a long way. Let’s uncover effective ways to save money and make your trips more affordable.
As someone who has lived on the Mediterranean for over a decade and traveled for decades, I’m happy to share my inside tips and knowledge to help you make the most of your travels, especially now during these uncertain times brought on by recent events.
(To find out more about budget travel options in the Mediterranean see our related posts, “Budget Mediterranean Destinations“ and “Seasonal Travel Mediterranean“)

What Are The 9 Best Ways To Reduce Costs Due to Tariffs?
Impact of Tariffs On Travel
First thing to do here is to try to understand what the impact of tariffs will be. A 25% tariff increase on goods and services directly influences travel expenses.
Airline Costs Will Go Up
-an increase in fuel costs will cause airlines to raise their prices regardless of where you are traveling. Even airlines from countries that have nothing to do with the tariffs will need to refuel when landing in North America. And if fuel is more expensive, ticket costs will be more expensive too. This will impact flights to and from Europe, Asia, Australia, etc… You get the picture.
Food Costs Will Increase
Tariffs on food will lead to higher food and beverage prices which means higher dining costs. Groceries will also be more expensive.
Local Transportation Costs Will Go Up
Transportation (bus, rail, taxis, ride-sharing, etc..) will be more expensive as tariffs affect fuel and vehicle-related imports.
Miscellaneous Costs Will Go Up
Unfortunately, the above costs wont be the only ones to go up. As tariffs work their way through the system, prices on many other things will go up. Only time will tell how big the impact will be, but experts seem to agree that it wont be good.

Plan Your Trip in Advance
If you have a destination and dates already in mind, you may want to book your flight and rooms, sooner than later. Prices have already started to rise, but they will definitely go higher. Consider using fare-tracking apps that can give you notifications when flight prices decrease. If you are flexible on when you can vacation, consider traveling off-season which usually means lower prices for flights and accommodations due to reduced competition. The main thing here is to act soon before the full effects of the tariffs come in.

Leverage Loyalty Programs and Travel Rewards
One strategy you can use to reduce some of the expenses is to use your credit card rewards and points to help reduce flight costs and room costs. You can redeem your saved-up points to offset your travel expenses. If you are not yet signed up for one of these programs, you may want to join now and use your next trip to contribute to future savings.
“Stay-cation” or Go Local
You may want to reconsider any vacation plans that involve leaving your home country and just travel locally or postpone your trip for the time being. Do some research and see if there are domestic options that are comparable and more affordable. I usually recommend going to lesser-known places that are not overrun by hoards of tourists. These destinations usually mean lower costs for rooms and activities compared to popular tourist spots.

Opt for Budget Airlines and Economical Travel Methods
If you haven’t yet embraced the idea of traveling on low-cost airlines, now might be the time to consider it. Alternatively, and depending on the destination, bus and rail travel might be good options to consider as well, especially for shorter trips. Bus and rail typically have lower fares and fewer additional fees compared to air travel. A combination of budget flights coupled with bus and rail connections might be a way to reduce costs as well but will involve some good planning on your part.
Choose Affordable Destinations and Stay Options
Budget-friendly accommodations, such as hostels, Airbnb, and couchsurfing, provide cost-effective lodging options. This will free up more money for other activities and experiences. Off-the-beaten-path locations offer unique opportunities while avoiding the higher costs of popular tourist destinations.
Budget Effectively During Your Trip
My main advice here (you’ll probably notice the pattern here) is to avoid the tourist traps. Traveling to the tourist hotspots will almost certainly mean inflated costs of food, drinks, and activities. If you are not sure where these are, do some online research and check reviews of your intended destination.
You can reduce entertainment costs by seeking out free events or exploring public spaces.
Consider getting accommodations with a kitchen where you can cook for yourself on your vacation. This tip alone can save you a lot of money. Use local transport or ride-share apps to get around and set a daily spending limit for your trip to help you manage your costs.

Flex Your Planned Dates and Routes
If you can be flexible on your departure dates, consider mid-week flights and less popular departure times for cheaper tickets. Being flexible also puts you in a position to take advantage of last-minute deals when they come up. As mentioned above, consider off-season travel when flights and rooms are usually cheaper. It might be time to consider alternate destinations that are not party to the increased tariffs, such as the Caribbean or South America for example.
These areas may offer similar experiences to popular destinations but at a lower price. Being open to changes in routes or schedules can lead to unexpected savings on accommodations, activities, or transportation and help you stay within budget.

Use Technology to Your Advantage
Travel apps provide real-time cost comparisons, last-minute deals, and fare alerts that can help you find the best prices. These apps can help you track and book affordable options for flights, accommodations, and transport. Online platforms offer access to discounted tours, activities, and packages, so these are still worth checking out during your planning stage. Check out user reviews and travel forums that can connect you with insider deals and local recommendations. Using technology in these ways can help you save money and plan efficiently.
FINAL THOUGHTS: EFFECT OF TARIFFS ON TRAVEL – BEST 9 WAYS TO REDUCE COSTS!
Conclusion
Traveling in the next few months might be pricier due to the 25% tariff increase, but strategic planning can help you minimize costs. From leveraging rewards points to exploring alternative destinations, small efforts can lead to substantial savings. Don’t let the negative effect of tariffs on travel dampen your vacation dreams—start implementing these cost-saving tips today. With the right approach, your next adventure could be even more rewarding than imagined!
How about experiencing the Mediterranean firsthand? Use the map below to inspire you and plan your next Mediterranean vacation right now!
Reg Auge
Reg holds an MBA, is a former Captain in the Canadian military and has worked as a consultant in industry for over 20 years. From his home in Spain, he has spent the last 10 years traveling throughout the Mediterranean, exploring the various countries and regions. He also regularly runs, windsurfs, and kite surfs, maintaining a healthy and active way of life. Captivated by this Mediterranean lifestyle, he began a Blog last year to inspire like-minded souls to learn about and discover this unique region for themselves.