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I Wish I Knew This Cheaper Plane Ticket Trick Earlier

I Wish I Knew This Cheaper Plane Ticket Trick Earlier

Scoring the best airfare prices goes well beyond booking nearly a year in advance. If you use a “fake location” to buy your ticket, you could potentially get a much lower price. In Erica Ho’s article “Use A “Fake” Location to Get Cheaper Plane Tickets,” she let’s us in on this impressive airfare reduction strategy!

Use Point-of-Sale For Your Advantage

As it turns out, the same ticket that costs maybe $300 if you buy it from New York, costs $30 dollars if you buy it in Bangkok. Same ticket, but the only difference is the location you are purchasing it from or, a fancy way to say it, its “point-of-sale.” Ho managed to pay only $371 for a flight from New York to Colombia that was originally costing her more than $500.

Using the Trick for a Flight from Cartagena to Bogotá (Domestic Flight In Colombia)

Using travel search engines like Kayak, Skyscanner and Google ITA, Ho compared the prices of flights from large airlines LAN Airlines and Avianca. All travel search engines take a US-centric approach and displayed the cheapest LAN flight as $116 and the cheapest Avianca flight as $137. This is when Ho changed her point-of-sale.

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How to use Google ITA’s “Matrix Airfare Search” to change the point-of-sale:

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    Changing Point-of-Sale on Google ITS (image courtesy of maphappy.org)

    In this case, changing the point-of-sale can only be done using Google ITA. Ho changed her point-of-sale from New York City to Colombia, because she wanted her airfare to be in Colombian pesos, but you can change your point-of-sale to any place in the world (depending on whether you can get a cheaper rate from there).
    Remember, the departure and arrival location is fixed regardless of what your point-of-sale is.

    Here’s the price after changing the sale city to one in Colombia:

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    posgoogleitacop-mh
      Colombian Peso price (image courtesy maphappy.org)

      Now the cheapest flight from LAN is 173,820 COP ($91.96) and the cheapest flight from Avianca is 116,280 COP ($61.59). Just by changing the point-of-sale, you can save $74.41 on the Avianca flight and $22.04 on the LAN flight.

      How to buy the tickets on the airline’s website:

      posaviancachange-mh
        Where To Change Your Point-of-Sale on the Avianca Site (image courtesy maphappy.org)

        This price comparison proves that you can potentially buy a cheaper ticket from Colombia than you can from the US. But you can’t buy this cheaper ticket directly from a travel search engine like Google ITA. You’re going to have to buy it from the airline’s website.

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        One of the ways to change your point-of-sale on the airline website is to change your site location to Colombia but keep the site language English. Sometimes the website changes the language automatically, so you’ll probably have to either improve language comprehension or load Google Translate. You can also use a VPN approach – by changing your IP address to trick the website into believing you are purchasing from a computer within the country.

        posaviancaairfare-mh
          Avianca website prices in Colombian pesso (image courtesy of maphappy.org)

          You may not get the exact price you saw on Google ITA, but Ho assures that she almost always saves some money when she changes the point-of-sale. To save a maximum amount of money, it’s important that you use a credit card that doesn’t charge foreign currency conversion fees when purchasing your ticket.

          Even if you use a credit card that does charge currency conversion fees, though, the standard foreign transaction fee usually sums up to be around 3% surcharge, which in this case would only cost an extra $2.16. Not a bad price to pay for the overall savings!

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          Tips & Things to Keep In Mind:

          1. The best point-of-sales are the country the airline is based in and the country of destination (especially in the case of international flights).

          2. Sometimes airline websites may revert prices back to those of your original point-of-sale when you use your credit card. This differs from website to website.

          3. Sometimes airline tickets purchased from your home country also charge you the required visa and entry/exit fees, which may not be included in the ticket you purchase as a “resident.”

          4. There are some airlines that charge the same for local and foreign residents, so be on the lookout for those!

          Using this trick, you can save as little as $7 to more than $100! It doesn’t hurt to try changing your point-of-sale next time you’re buying airline tickets. And with that $7 saved, you could go ahead and buy an extra snack at your destination.

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          Published on November 20, 2018

          The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

          The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

          The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

          Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

          In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

          Why Your Past Prevents You from Saving Money

          Are you constantly thinking about your financial mistakes?

          If so, these thoughts are holding you back from saving.

          I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

          It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

          For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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          How to Effortlessly Track Your Spending

          Stop manually tracking your spending.

          Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

          When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

          Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

          The Truth on Why You Keep Failing

          Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

          Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

          Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

          If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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          Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

          Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

          1. Save more than 50% of your available money (after expenses)
          2. Only buy nice things after saving
          3. Automate your savings with automatic bank transfers

          These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

          How to Foolproof Yourself out of Debt

          Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

          So how can you separate yourself from the 60%?

          By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

          This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

          For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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          Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

          A Proven Formula to Skyrocket Your Savings

          Having proven systems in place to help you save more is important, but they’re not the best way to save money.

          You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

          What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

          Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

          Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

          During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

          Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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          Transform Yourself into a Saving Money Machine

          Saving money isn’t complicated but it’s one of the hardest things you’ll do.

          By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

          The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

          Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

          Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

          What are you waiting for? Go and start saving money, the sky is your limit.

          Featured photo credit: rawpixel via unsplash.com

          Reference

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