Holidays

When money is tight, a holiday may seem like a luxury too far. But with a bit of thought and extra effort, getting away from it all need not cost as much as you think. A cost breakdown of a typical trip will help you to see where your money is going – and where you could make savings. Start with this checklist:

• Transport to and from the airport, or airport parking
• Flights, coach or train tickets or petrol and parking costs
• Accommodation
• Meals, including wine or other drinks
• Exchanging currency
• Car hire
• Entertainments
• Snacks and drinks
• Holiday shopping – before and during the trip
• Everyday essentials, such suntan lotion, lounger hire and bottled water
• Taxis
• Tips
• Travel insurance

Here, you will find some ideas for keeping costs down when you are Staying at home, factors to consider when you are Choosing a destination abroad, how to put together your own package and Do it yourself and how to Be cash savvy – plus some suggestions that could save you the price of a meal when you Look after the little things.

Staying at home

• 2009 saw countless people learn the virtues of the staycation, with many people staying at home or swapping with friends and family in the UK to save money.
• Look out for money-off offers in newspapers and magazines and search the Internet for discount vouchers.
• Check loyalty schemes to see whether you can exchange points for entry to attractions.
• Book trains or coaches well in advance to get the best prices.
• It is cheaper to self-cater, especially if you have kids.
• Buy a cold bag, make sandwiches and stock up on lollies and drinks that you can take with you on outings.
• Go glamping – glamorous camping is the height of fashion. If you do not have your own tent, you can often hire one ready-erected. Caravan sites also offer good value and many have pools and entertainment, too.

Choosing a destination

• Try looking beyond the usual European sunspots to destinations such as Egypt, Gambia, Mexico and Turkey. You will get a good exchange rate and the cost of living is low, so your money will go further.
• Spain still offers great value, especially in the glut of self-catering apartments and villas. So does America, where the downturn means bargains.
• For winter sports, consider Eastern European countries such as Bulgaria, Romania and Slovakia instead of France, Austria and Italy.
• Pick a destination that can be reached by charter flights – they often sell seats independently – or budget airlines and public transport, instead of flying scheduled and taking a taxi or hiring a car.
• More expensive destinations may be affordable out of the peak months. Try where possible, to travel in shoulder seasons rather than during the peak months – but do not take the kids out of school without clearing your trip with the head teacher.
• Check websites, travel agents and newspaper supplements for last minute deals – you could scoop a dream holiday at half price or less if you do not book until a few days before you leave.

Do it yourself

• Package holidays can be a good option, especially if you go full-board – but you may be able to do better if you arrange everything yourself.
• Use a price comparison site to find the cheapest flights – the earlier you book, the lower the likely cost. Be wary of hidden extras, such as hold luggage charges, food and drink, card-payment fees, priority boarding and fuel surcharges, which may turn your bargain into a dud.
• A hotel is not the only place to stay. The 100-year-old Youth Hostel Association (YHA) is open to everyone and provides a huge variety of accommodation at extremely low prices – even lower if you become a member. There are more than 4,000 Youth Hostels in 60 countries – find out more at www.yha.org.uk.
• Look for websites that arrange for you to stay in a host’s spare room or on their sofa. You will get a real insight into local life as well as saving a small fortune.
• If it is home-from-home you are after, join the growing band of home-swappers – and be prepared to share your pets and car as well as your house. Leave a clear set of rules, lock away valuables and personal possessions and check references carefully.
• Try local companies for sight-seeing, accommodation, cars and outings – they are often cheaper and you benefit from on-the-ground knowledge.

Be cash savvy

• Your debit card is safer and more convenient than cash, offers a competitive exchange rate and is often the cheapest way to pay in shops, restaurants, cafés and for tours when you’re abroad.
• Using your card on holiday helps you to keep an eye on spending. Every transaction is itemised on your statement, with any charges or fees listed separately – it is a good idea to ask your bank about these in advance. And you will not end up with a pile of unused currency to change back into sterling at poor rates – or forget in a drawer.
• You are protected if you buy anything with your card while you are away and it is not delivered or available – from a ticket with an airline that goes bankrupt to a rug that fails to arrive back home. You are also covered if you become the victim of a fraud and will not be held responsible for a criminal misusing your card, providing you’ve behaved responsibly.
• Check if your card comes with travel insurance – it is more commonly offered with a credit card but some debit cards also carry this type of benefit.
• Of course, everyone needs some cash. The most convenient way to get local currency is to use your debit card at a cash machine. Costs and currency exchange rates may be lower in some foreign banks than others, so ask your bank for advice in advance and check what fees it may charge as well.
• Another good way to buy foreign currency is to pre-order it via the Internet – you can even pick it up at the airport if you want to. You can pay with your debit card.
• Do not be fooled by commission-free offers, wherever you are. They usually mean that charges have been added somewhere else, often in the form of a poor exchange rate. Likewise, avoid changing money at your hotel. It may be convenient but you are likely to pay for the privilege in increased charges.
• Some retailers abroad offer the option of paying in pounds rather than local currency when you use your card. In most cases, this will offer you a worse exchange rate than if you select local currency. The best advice, unless you are very familiar with the current exchange rate, is to choose local currency.
• If you have a very strict budget, get a prepaid Visa card and load it with the precise amount you want to spend. Pack your debit card too, in case of an emergency.

Look after the little things

• Persuade a friend or family member to take you to and from the airport – return the favour when they are going away. Otherwise, take public transport or pre-book airport parking – it can halve the cost.
• Plan your itinerary before you go and either book excursions in advance or book direct with local companies at your destination. You will avoid the commission charged by hotels and tour operators.
• Check prices for travel insurance online instead of accepting the deal offered by the holiday company. If you go abroad regularly, you will save more by taking out annual cover.
• When travelling abroad it could be cheaper to book your accommodation just two or three days ahead, to take advantage of last minute deals. You will need to be flexible about where you stay because there is a risk that you will not be able to book the place you wanted.

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