How to save on a holiday

Knowing how to save on a holiday means you can enjoy a memorable trip while going easy on your wallet. But how do you find a deal that works for you?

Summer getaway costs have soared in recent months, with package holidays up to 11.5% more expensive, according to Which?. This means that a couple booking a week-long summer holiday would have to spend £238 more on average as compared to last year.

Despite rising travel prices, there are ways to keep costs down – whether you’re exploring one of the world’s most popular cities, booking a cruise, or going on a cheap, last-minute holiday.

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Do holiday prices go up the more you search?

Luckily, no. It’s a popular myth that holiday costs go up the more you search for them online. What actually happens is that the cost of flights and hotels increases as they become more booked up. Think of it this way — rail tickets are cheaper if you book in advance, and that applies to nearly every other type of travel booking.

However, you may also be seeing dynamic pricing at work, when costs fluctuate based on demand. Sometimes that can work in your favour – meaning you get a lower price if demand is slow.

How to save on a holiday 

Here are our top ten tips for how to make your money go further when booking a holiday.

1. Find the best time to book your flights 

You generally need to book your flights well in advance to benefit from the best prices and seats. For instance, a trip to the US might cost you nearly £550 if booked three months before travel. But if you book just 15 days ahead, it could set you back over £700.

Airlines will likely hike prices based on demand and supply, so do your homework before booking your tickets. Read our in-depth guide on the best time to book flights.

2. Opt for all-inclusive packages

All-inclusive packages are worth considering if you want to avoid unexpected costs during your trip and are happy to eat most of your meals in the resort.

Claire Bentley, managing director of British Airways Holidays, says: “All-inclusive holidays are a great option for those looking to manage their holiday budget. Many of our customers want to travel with ease and enjoy their hard-earned rest, particularly in the cocoon of a luxury resort, and an all-inclusive package is often the answer.”

Traditional package holidays tend to offer a financial safety net for travellers in case their trip gets cancelled or they face travel delays. This is because they are protected under the ATOL (Air Travel Organisers' Licensing) scheme or via ABTA, the travel association. You’re also legally covered if you don’t get the holiday you promised – for instance, if any facilities are missing at your hotel.

The same thing can’t be said about DIY packages, where you buy different elements of your trip from the same website. While you’ll receive financial protection, you won’t have any legal coverage. Other DIY packages, where you book different elements of your holiday with different providers, won’t cover you for either.

It’s worth shopping around for the best deals on websites that offer package holidays, like Kayak, TravelSupermarket, Expedia, British Airways, TUI, and Opodo.

3. Take advantage of points and reward programmes 

With loyalty rewards, you can exchange your points for experiences or discounts. Here are some ways you can benefit from your reward programmes and points:

• Loyalty rewards: Utilise elite hotel chain loyalty rewards for free nights, room upgrades, welcome drinks and free breakfast. Participating chains include Marriott, Hilton, Radisson and IHG. For example, with Hilton Honors, you can get points towards free nights, continental breakfast, premium WiFi, a fifth night free and all-inclusive spa discounts.
• Credit card rewards: Holidays can be a great time to spend any credit card reward points that you’ve collected and convert them into vouchers for hotels, airline points, restaurants, cinema tickets and much more. For example, with an Amex Preferred Rewards Gold Credit Card, you could exchange points you’ve accrued for gift cards and get four free visits to airport lounges each year. You can also transfer points to Amex loyalty partner programmes like British Airways Executive Club or Emirates Skywards.
• Collect Avios: How much you save with Avios points depends on your balance. With British Airways, you can pay as low as £1 and 18,500 Avios for flights to Europe, or £100 and 50,000 points for longer distances.
• Supermarket vouchers: You could exchange Tesco Clubcard vouchers for discounts at P&O Cruises, easyJet flights, hotels.com, LeShuttle or the Virgin Atlantic Flying Club. For example, £5 in Clubcard vouchers will get you £10 to use with P&O Cruises, and £1.50 will be worth 300 Virgin points.

4. Buy travel money in advance

Travel money may not be at the top of your list while organising your holiday, but don’t leave it to the last minute, or you could get stung by high exchange rates at the airport or at your destination.

The golden rule for exchanging money at the airport is don’t do it. A 2025 study by eurochange revealed Brits lost out on £274 for exchanging €1,000 at Gatwick airport, and more than £100 at Heathrow.

Laura Evans-Fisk, head of digital and engagement at eurochange, said: “Changing money at the airport is absolutely the least cost-effective way of picking up your holiday money, as rates can be up to 13% higher than they are on the high-street or online. As it’s often a last-minute necessity, customers are forced to convert their cash at whatever rate is offered to them in the airport, whereas on the high street, they have more options.”

It’s worth shopping around for the best travel money deals. One way is by signing up for supermarket loyalty programmes.

For example, if you shop at Sainsbury’s, you can get a Euro exchange rate of €1.1611 for £1. As a Nectar card member, that rate improves to €1.1634, giving you slightly more in your pocket instead.

5. Use a lounge pass

Busy airports can be an assault on the senses. If you crave some quiet time, check if your credit card or travel insurance includes airport lounge access. That way, you can enjoy free food and drinks, charge your devices and start your trip in a more relaxed frame of mind.

Flyers might consider annual memberships to airport lounges like Priority Pass, which costs £69 (Standard), £229 (Standard Plus) or £419 (Prestige) depending on how frequently you travel. It gives you access to over 1,700 lounges worldwide.

As mentioned earlier, Amex Preferred Rewards Gold credit card holders can get up to four free lounge passes annually.

We look at how to get airport lounge access in another guide.

6. Weigh your baggage

If packing light isn’t an option, it’s better to pay for extra luggage in advance, rather than at the airport, as it’s likely to be cheaper.

For example, if you fly with BA from London to Greece, travelling with a second bag would be £10 cheaper if booked online (£65) versus at the airport (£75). With Virgin Atlantic, it costs £200 for oversized checked-in luggage, and £65 if it’s overweight.

Check with your airline to see their baggage limits and the charges for going over your allowance.

7. Pick the right travel insurance policy

It’s important to find a good travel insurance policy well ahead of your trip to cover unexpected situations.

Liz Hunter, Money Expert’s commercial director, says: “It’s understandable why many people may think travel insurance is just another unnecessary expense, particularly if you’ve bought a policy in the past and never needed to make a claim.

“However, the protection provided should be seen as reassurance that if you ever fell ill, had an accident or experienced theft or damage to your property when you’re away, you’d be covered from having to pay out of your own pocket… [It] makes travel insurance a no-brainer and should be part of everyone's travel checklist to avoid potentially huge medical bills, loss or damage to your possessions.”

A smart move is to book travel insurance as soon as you book your holiday, as it will cover you if you fall ill, your holiday gets cancelled, or if flights get delayed.

For extra reassurance, if you’re travelling to any EU country, make sure you have a Global Health Insurance Card or a valid European Health Insurance Card. With these, you pay the same cost as a local for any medical treatment you receive. It’s free to apply for one on the NHS website.

8. Pay in local currency with the right card

Some debit cards from high-street banks charge as much as 4.99% in fees for withdrawing cash at ATMs abroad, according to TotallyMoney.

So, it may be wise to pay with a card which offers fee-free spending to avoid being stung by foreign exchange fees. Plus, you could potentially rack up points, travel rewards and cashback.

For instance, with the Barclaycard Rewards Visa credit card, you get fee-free spending abroad, 0.25% cashback on purchases and no interest on cash withdrawals – but make sure you pay the statement off in full each month. Plus, you get added protection on purchases over £100 by using a credit card.

9. Use comparison sites

Price comparison sites are handy for booking holiday packages – they do all the heavy lifting for you, especially if you’re not too fussy about the hotel or flight you want.

Last year, Which? compared 30 hotel and flight comparison sites based on customer score, site functionality, relevance of search results, market coverage, flexible options, competitive rates and cost transparency.

Google Flights, Kayak, Trivago and Skyscanner scored the highest. While no flight comparison tool was a runaway favourite, Google Flights was the most popular, being used six out of 30 times.

Once you’ve set your sights on a hotel, do check the prices on its website as well. Sometimes hotel companies save the best prices for those who book with them directly. Signing up for the hotel’s loyalty rewards will also offer long-term benefits if it’s a chain you use regularly.

Remember, price comparison sites aren’t just for budget packages. You can get member discounts (like saving 15% on hotel bookings with Expedia or Booking.com, which are free to join) and filter search results by the features you want, such as hotels with complimentary breakfast, free parking or free airport shuttles.

10. Compare airport parking options

The last thing you want before your holiday is stress about parking at the airport. While flexibility is key when booking parking, don’t leave it right to the last minute, or you could be out of pocket by as much as £350. Here are a few ways you can save on airport parking:

• Check directly on the airport website: It’s traditional, but can be cost-effective. At London Stansted Airport, you can pre-book online and save up to 80% on parking costs.
• Make use of price comparison sites: Sites like FHR, Holiday Extras, Airparks and Airport Parking Shop can save you up to 60%.
• Opt for independent parking providers: With Maple Parking, you can sign up and save 13% on your first booking, or even rearrange your bookings penalty-free.
• Go local: Look for train station car parks near your airport, such as Richmond Station in London, which is close to Heathrow Airport. The car park there is open 24/7 with prices starting from as little as £3.95 a day (£2.95 if you book via the NCP app).
• Consider hotel packages: These are ideal if you don’t live close to the airport, have an early flight, or don’t want to hunt for a spot. For example, with TravelSupermarket, you will find that a week-long airport parking package at Hilton Gatwick costs around £260. It includes free cancellation, a 24-hour shuttle service, late cover, free WiFi, gym access and dining offers.