The essential money-saving guide for your 2018 holiday
Flights and accommodation
Knowing whether you should book in advance or last minute can be an exact science depending on where you want to travel.
According to Kayak, patience can be a virtue as waiting can save travellers as much as 54% for tickets to the popular destinations of Arrecife and 51% for Palma de Mallorca, while potential savings for Malaga, Alicante and Faro are all at least 35%.
It added that for cheaper flight tickets, holidaymakers should book to travel on a weekday, ideally Monday to Wednesday, instead of the busy weekend period. Kayak said this hack could save you a third off the ticket price.
For accommodation, again waiting can pay dividends. Kayak found that Brits can save an average of 26% on accommodation worldwide by booking hotels one to three months in advance.
We all know holidaying in the peak summer holiday period comes with a hefty price tag, but TravelSupermarket has uncovered an airport loophole which could save families hundreds of pounds.
In fact, families in some parts of England and Scotland can save as much as £1,260 or 66% on a week’s overseas holiday this summer, it found.
This is because schools across the country break up for the summer holidays at different times, and you can use this information to your advantage.
By travelling to an airport in an area where kids are still at their desks (or returned to school at the end of summer), this means demand for flights and holidays is lower, and ultimately, so is the price.
See The airport trick that could save you £100s on your family holiday for more information.
Travel insurance and the EHIC
Buy travel insurance as soon as you’ve booked your flight or holiday to ensure you’re protected in case you can’t go due to illness or redundancy.
You should always disclose previous medical conditions or you could invalidate your policy. As a general rule, standard policies don’t offer cover for pre-existing medical conditions but some insurers may agree to cover certain conditions if you pay extra on your premium so it’s worth seeking quotes from specialist providers. But the regulator, the Financial Conduct Authority announced it is looking to create a new service for travellers with long-term illnesses.
For the more active traveller planning to undertake banana boating, sky-diving, shark diving or swimming with dolphins, these activities may be considered high risk by many insurers, but they may include an option to cover additional sports as standard. Read your policy carefully in case you need to tell your insurer about such activities.
Worried about your gadgets while overseas? You could consider stand-alone gadget insurance, but make sure you check your home insurance policy first.
When it comes to the European Health Insurance Card (EHIC), it would be a big mistake to assume this is a substitute for travel insurance. Think of it more as a complement to travel insurance.
EHICs ensure you receive the same level of state medical care abroad as you would get at home. Medical treatment may be provided for free or at a reduced cost in all European Economic Area (EEA) countries including Switzerland, all 27 members of the European Union (EU) plus Iceland, Norway and Liechtenstein.
They are valid for up to five years and you can apply for one via the government site – if you’re asked to pay for it, it’s a bogus site.
Currency and cards
Foreign currency and how you’ll be making payments overseas shouldn’t be an afterthought. It’s a sensible idea to buy currency in advance of your trip to get the best exchange rate, but you may want to put your credit card away for the transaction. This is because the majority of credit card providers treat these transactions in the same way as withdrawing cash from an ATM or for gambling. As such the transaction attracts interest and the rate of exchange.
But using your everyday credit or debit card for overseas spending can also cost you big. Research by Moneyfacts revealed a typical debit card can charge £11.88 for a £250 cash withdrawal abroad while for credit cards, the same transaction could set you back £14.95.
It lists the following credit cards as the best for withdrawing cash abroad: Creation Everyday Credit Card Mastercard, Santander Zero Credit Card Mastercard and Halifax Clarity Credit Card Mastercard.
And for debit cards, these are the top picks: Starling Bank Current Account (worldwide), Nationwide FlexPlus (worldwide) and Metro Bank Current Account (in Europe).
Another option to consider is prepaid currency cards. Some of the biggest benefits are that they can be topped up in a similar way to topping up a mobile phone and they’re great for budgeting as you can’t spend more than what you have loaded on them. Moneyfacts adds that for those with no or a poor credit history, these cards may be a good choice.
Here are the top three prepaid cards for euro spending, according to Moneyfacts: Caxton Currency Card Mastercard, Seasons Travel Card Visa and ICE Travellers Cashcard Mastercard.
If at all possible, avoid airport bureaux at all costs as you’ll get a far poorer rate here.
Car hire and driving overseas
Around £475m is spent by Brits covering additional costs of car hire, highlighted at the rental desk when holidaymakers collect the vehicle.
According to TravelSupermarket, the most common extra charges relate to fuel policies, excess mileage and cleaning the vehicle after use.
But there are a number of ways you can avoid extra charges before you go away, on arrival and when returning your car.
Top tips include avoiding the ‘full to empty’ fuel policy, taking your own child seat and satnav, paying in the local currency and thoroughly inspecting the car.
See Car hire: how to avoid aggressive and costly sales tactics for the full rundown of top tips.
Changes to European mobile roaming introduced last year mean holidaymakers can use their minutes, texts and data across the EU as if you’re at home. Monthly allowances remain the same so as long as you don’t go over, you won’t pay a penny more.
But, Ernest Doku, mobiles expert at uSwitch.com, says it’s crucial to keep on top of how much you’re using your phone while away.
“It might be worth resisting the urge to share hundreds of holiday photos to save yourself from going over your data limit. The moment you go over your quota, the costs can really start racking up.
“It’s a different story outside the EU with charges varying by both the network and the country you’re in so it’s definitely worth checking with your network before you jet off. For example, an O2 customer on holiday in Russia pays £2 per minute to make or receive calls and £7.20 per MB of data. However, a Vodafone customer can use Roam Further for £6 a day to utilise their normal home allowance.”
Doku says that where you need to download something sizeable while abroad, such as a new movie or music, see if you can connect to WiFi to avoid incurring additional charges.
Rewards for your holiday
Once you’ve found a deal, check out cashback sites to see if you can get some money back on hotels, car rental, travel insurance and airport parking, for instance.
You could also consider signing up to rewards schemes such as on hotel stays, or to gain frequent flyer miles such as Avios when taking out a new credit card.
New current account switchers to First Direct can choose between varying welcome gifts, one of which includes a £150 Expedia e-voucher. This credit gives customers the option to pay for flights, car hire, trains, or a range of different accommodation types.
It also offers ‘split payment functionality’ so customers can pay using the e-voucher and their own funds if they wish.
While it takes time for the switch, to get an activation code and a confirmation email, First Direct confirms any customer switching to it this week should be able to book using the voucher towards the end of August.
Top destinations for summer 2018
There are still last minute summer deals to be snapped up by savvy travellers, according to Shahab Siddiqui of Cheapflightsfinder. Holidaymakers should use flexible calendars to find the cheapest flying dates and make sure to compare them.
But the site lists these top five summer destinations for 2018 which still show a majority of direct and affordable flights (as at 9 July):
- London to Ibiza – 12 to 23 August – £79
- London to Menorca – 31 July to 10 August – £82
- London to Palma – 10 to 18 August – £90
- Glasgow to Barcelona – 15 to 22 August – £62
- Edinburgh to Barcelona – 16 to 25 August – £70
- London to Pula – 9 to 16 August – £139
- London to Split – 7 to 14 August – £173
- London to Dubrovnik – 14 to 23 August – £166
- Liverpool to Pula – 15 to 22 August – £118
- Edinburgh to Pula – 15 to 22 August – £109
- London to Pisa – 14 to 23 August – £70
- London to Venice – 10 to 17 august – £83
- London to Milan – 12 to 22 August – £79
- Edinburgh to Venice – 6 to 15 August – £80
- Nottingham to Naples – 2 to 9 August – £86
- London to Cephalonia – 9 to 16 August – £128
- London to Zakynthos – 8 to 13 August – £157
- London to Crete – 1 to 9 August – £195
- Birmingham to Crete – 6 to 13 August – £108
- Newcastle to Thessaloniki – 2 to 9 August – £72
5) United States
- London to New York – 21 to 26 August – £293
- London to San Francisco – 20 to 29 August – £363
- London to Miami – 21 to 28 August – £345
- Belfast to New York – 25 to 31 August- £273
- Manchester to New York – 23 to 27 August – £322.