Travelling to see loved ones during the Christmas season is one of life’s great joys — but it can also become one of the biggest budget stretchers of the year. Between booking flights at peak prices, organising accommodation, buying gifts, and eating out while away from home, the costs add up quickly. For many families, especially those juggling other year-end expenses, planning early and budgeting smartly can make the difference between a relaxing holiday and a stressful one.
This guide breaks down the key costs you’ll need to plan for, offers practical budgeting tips, and highlights ways to keep spending under control while still enjoying quality time with family.
Booking Travel Early: Timing Is Everything
If there’s one rule for Christmas travel, it’s this — the earlier you book, the better. Last year, airline ticket prices typically begin to rise sharply by late October of 2024 as demand increases, with the Australian Competition and Consumer Commission (ACCC) noting that domestic flight prices tend to peak in December. Airlines like Qantas and Virgin Australia often release discounted Christmas fares mid-year, meaning those who plan early can save hundreds on return tickets.
Airlines often release their best Christmas fares months in advance. To secure flights for the whole family before the prices triple, some people use small loans in Australia to lock in the booking and spread the cost.
When booking, consider flexible travel dates. Flying on Christmas Eve or Boxing Day is usually more expensive than flying a few days earlier or later. Similarly, early morning or late-night flights can be cheaper. If you’re travelling with children, look out for family or group discounts offered by major carriers and budget airlines like Jetstar.
Accommodation and Transport: Planning for the Big Expenses
Once you’ve sorted your flights, the next major cost is accommodation. Prices for hotels, motels, and short-term rentals surge in December, especially in popular coastal areas and cities like Sydney or Melbourne. If you’re staying with family, you’re already saving significantly. But even then, you might still need to budget for transport — whether it’s hiring a car, paying for fuel, or using ride-sharing apps like Uber and DiDi.
For car hire, booking early is crucial. Car rental prices can more than double during the holiday rush, with many vehicles unavailable if you wait until December. Companies such as Hertz, Europcar, and Budget Australia often offer early-bird discounts if you reserve weeks in advance.
If you’re driving interstate, factor in fuel costs using the FuelCheck app to find the cheapest stations along your route. Long drives also mean extra spending on snacks, tolls, and rest stops — small costs that quickly add up.
Budgeting for Gifts and Festive Spending
Christmas wouldn’t feel complete without gifts under the tree, but shopping for family and friends can easily blow out your budget if you’re not careful. According to Finder’s 2024 Christmas Spending Report, the average Australian plans to spend around $1,357 on gifts, food, and celebrations.
To keep this under control, set a clear spending limit for each person and stick to it. If your family is large, consider doing a Secret Santa exchange instead of buying individual presents. Retailers like Big W, Kmart, and Myer often have sales starting in November, so planning your shopping list early helps you take advantage of these discounts.
You can also save by shopping online during major sales like Black Friday and Cyber Monday. Sites like Catch and The Iconic offer significant markdowns on everything from toys to fashion, and free shipping deals can further stretch your budget.
Eating Out and Entertainment Away from Home
When you’re away from your usual routine, it’s easy to overspend on food and entertainment. Café breakfasts, takeaway dinners, and casual lunches with relatives quickly add up — especially if you’re staying in a city where prices are higher.
A simple fix is to plan a few home-cooked meals during your stay. Even if you’re at a relative’s place, offer to cook or bring groceries. Shopping at supermarkets like Coles, Woolworths, or ALDI instead of relying on restaurants for every meal can save you hundreds over a week.
If you’re planning outings, check local tourism websites for free or low-cost activities. Many councils host Christmas markets, carols, and outdoor movie screenings that don’t cost a cent. Apps like Groupon and Scoopon are also great for finding discounts on dining and experiences.
Managing Your Budget and Avoiding Holiday Debt
With so many expenses hitting at once, managing cash flow is key. Start by mapping out all expected costs — flights, accommodation, food, gifts, and extras — and build a savings plan around that total. A simple spreadsheet for budgeting apps like MoneyBrilliant or Pocketbook can help you track your spending in real time.
If you’re short on cash but need to make upfront payments, such as booking flights or paying deposits, a small personal loan can help spread the costs. Just make sure to compare lenders carefully using the comparison rate, which reflects the true cost of the loan, including fees. ASIC’s MoneySmart website is a good place to start for guidance on comparing rates and understanding repayment terms. But if you are looking for a quick loan match on the best rates suitable for your specific credit profile, websites like Friendly Finance are a good option to explore.
The key is to avoid impulse borrowing. Only take out a loan if you can comfortably afford the repayments and if it serves a practical purpose, such as securing early travel deals before prices rise.
Final Thoughts
Visiting family at Christmas should be about reconnecting and creating memories, not stressing over bills. With some careful planning, early booking, and disciplined budgeting, you can manage the financial side of the holidays without sacrificing comfort or joy. The earlier you prepare, the more control you have — and that means you can focus on what really matters: spending time with the people you love.
What say you?
Thoughts on this Budgeting Guide for Visiting Family?
Let’s hear it!
