How to save on a holiday
Discover our top tips for how to save on a holiday, whether you’re planning a weekend getaway or the trip of a lifetime.
No matter where you are, it’s hard not to dream about lounging on a sunny beach in foreign climes. And nothing makes your holiday better than knowing you found a great deal – whether it’s airport parking, lounge access or foreign currency – anything to make your holiday money go further.
Summer getaway costs have soared in recent months, with package holidays up nearly 30% since 2023, according to Which?. Hotels and flights are also pricier – Ryanair’s Michael O’Leary predicts a 10% rise in air travel this summer.
Whether you’re planning an exciting cruise, exploring one of the world’s cheapest countries or splurging on one of the most expensive cities in the world, it’s worth knowing the tips and tricks that will help you save money. This includes finding the best time to book a flight, choosing the right debit or credit cards for travelling and making sure you have travel insurance that suits your needs.
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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, it’s worth noting that 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 10 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 in advance. But if you book just 15 days in advance, it could set you back over £700. And that’s money that can be better spent on activities, events or a special dinner.
Airlines will likely hike prices based on demand and supply, so do your homework before booking your tickets. Read our in-depth guide when is the best time to book flights? to discover more tips.
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.”
And although it often seems as though a DIY holiday would be the cheapest option, the lowest-priced all-inclusive package for a week at a four-star hotel in Mallorca would be £276 cheaper per person than a DIY deal, according to research by Which?. For a family of four, this could mean total savings of up to £1,100, depending on the package you select.
It’s worth shopping around for the best deals on websites that offer package holidays, like British Airways, TUI, Audley Travel and Opodo.
3. Take advantage of points and reward programmes
Loyalty rewards can add a luxury touch to your holiday as 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 instance, with Amex Rewards, you can get a £100 Amazon gift card with 20,000 Points. Double the points, and you can bag a return flight ticket to Dubai with Virgin Atlantic Economy.
- Collect Avios: Recently, BA introduced a flexible Avios spending scheme that lets customers reduce the cost of any BA flights to just £1. How much you save depends on your Avios balance. So, if a flight to New York was £500, you could shave off up to £499 by increasing your Avios contribution to cover the booking.
- Supermarket vouchers: Exchange Tesco Clubcard vouchers for discounts at P&O Cruises, 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 – just don’t do it. Last year, travel money experts eurochange revealed that holidaymakers were out of pocket by a whopping £176 when buying €1,000 at Gatwick, Birmingham and Heathrow airports, compared to high-street branches.You’ll have a limited number of currency exchange options at the airport, so you’ll get worse rates and less spending money for your trip.
Instead, hunt 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 €1.1662 for £1. But as a Nectar member, that rate improves to €1.1685, 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.
Frequent flyers might consider annual memberships to airport lounges like Priority Pass, which costs around £200-400 a year and gives you access to over 1,500 lounges worldwide. Amex Gold credit card holders can get up to four free lounge passes annually.
Even better, some airports have access to free executive lounges. For example, there’s a real bonus for travellers departing from airports that have executive lounges by Swissport. These are free and open to all travellers, regardless of the class you’re flying in, and offer free food and drinks, charging points and seating areas. Find out more and book in advance at Executive Lounges by Swissport.
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, shares why: “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 4.75% for withdrawing cash at ATMs abroad. Travel debit card Currensea found that these ‘hidden charges’ could cost a family as much as £212 for a week’s holiday in France. Overall, holidaymakers are spending £2.7 billion in unnecessary foreign exchange fees every year.
So, it’s wise to use credit cards for payments to avoid being stung by foreign exchange fees. Plus, you could also 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 if you pay in full. Plus, you get added protection on purchases over £100.
Check out our guide Best debit and credit cards to use while travelling abroad to learn more.
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. But where should you start your search?
Which? has done the legwork. In February, the consumer champion 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.
The winners? 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 6 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.
Have a play around with them and see what best suits your needs.
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 pay £54.99 for a four-day stay in October. Booking on the day would cost you £248.
- 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. It’s open 24/7 with prices starting from as little £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, a week-long airport parking package with Clayton Hotels in Manchester for November costs £126. It includes free cancellation, a 24-hour shuttle service, free WiFi, gym access and dining offers. Paying on the day would cost you around £400. That’s a lot of poolside cocktails…
A well-planned holiday can save you money and improve your overall travel experience. Last but not least, don’t forget the suntan lotion!
Disclaimer
All prices and rates are correct at time of publishing.
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Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Oojal has a background in consumer journalism and is interested in helping people make the most of their money.Oojal has an MA in international journalism from Cardiff University, and before joining MoneyWeek, she worked for Look After My Bills, a personal finance website, where she covered guides on household bills and money-saving deals.Her bylines can be found on Newsquest, Voice Wales, DIVA and Sony Music, and she has explored subjects ranging from politics and LGBTQIA+ issues to food and entertainment.Outside of work, Oojal enjoys travelling, going to the movies and learning Spanish with a little green owl.
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