This Hotel Booking Strategy Has Saved Me Hundreds This Year

Since travel is a big passion of mine, I regularly set aside money in my savings account to pay for future trips. While I prepare financially for my upcoming travels, that doesn't mean I don't love a good deal. I'm always looking for ways to save money on travel to stretch my vacation budget further and experience more once I arrive at my destination.

Accommodation costs are one of the most pricey expenses to budget for when traveling. There's one strategy that I've been following for the last few years that has allowed me to avoid overpaying for hotel stays. This year alone, it's saved me hundreds of dollars. Here's what I do to get the best hotel deal -- and you can try it, too.

Book refundable stays and monitor prices

I rarely book a hotel stay without continuing to monitor prices afterward. Even if you book a hotel room weeks or months in advance, rates may lower as your check-in date approaches.

If a hotel struggles to reach capacity, it may discount the nightly rate to incentivize more travelers to make reservations. For this reason, monitoring prices after you make your initial reservation is beneficial. Otherwise, you could miss out on savings opportunities.

I initially make a refundable booking to ensure I don't pay more than necessary for my stay. Before making the reservation, I review the booking terms to ensure I can cancel up to a particular time. For example, when booking directly, many hotels allow travelers to make a refundable booking that can be canceled up to 48 hours before check-in for a full refund.

After booking, I'll check prices several times each week leading up to my check-in date. Usually, I find I can cancel and rebook my stay for a better price sometime before my vacation begins. It only takes a few minutes and helps me keep more money in my checking account. I've been planning a weekend getaway this month, and this strategy saved me over $200 on an upcoming two-night hotel stay.

The next time you book a hotel, consider making refundable and cancellable reservations. The nightly rate will typically be slightly higher than the non-refundable reservation option. But doing this will allow you to cancel and rebook if prices decrease later. Your diligent price-checking may pay off and the savings could make it easier to stay on track with your personal finance goals.

It pays to book directly with a hotel

Before making your travel plans for an upcoming trip, you should consider booking directly instead of using a third-party website or mobile app. There are a few benefits of doing this.

For starters, many hotels offer room rate discounts to members of their loyalty program. You could score a better price as a member when you book a room through the hotel's website. Many hotels also advertise promotions and discounts for direct bookings, providing yet another way to save money on travel costs.

Another reason to book directly with a hotel is because it can easily eliminate a customer service nightmare. When you book with the hotel, you can communicate directly with a hotel staff member if you have questions or concerns.

Additionally, there is less risk of being without a place to stay due to an accidental overbooking. There is some risk when you book hotels through a third-party platform. If you make a third-party booking, it's best to call and confirm your reservation before you arrive.

No matter when or how you book a hotel reservation, consider using a rewards credit card to pay for your stay. You can earn rewards and later redeem them for free or discounted travel. Check out our list of the best travel rewards credit cards to find one that meets your needs.