10 tips to cut the cost of your holiday

The school holidays are about to begin. Normally this would be the cue for an exodus to foreign climes. But as the cost of food, fuel and mortgages soars many have left it until the last minute to decide what to do.

Last week a Times survey reported that a third of the public are switching their plans from a holiday abroad to a holiday in Britain. Gordon Brown himself announced that he will be spending this summer in Southwold, Suffolk.

As the economic gloom deepens it appears that many have scaled back their plans and are opting for what Americans are calling a "staycation" rather than a vacation. Unless the weather improves substantially it looks like its going to be one of the most miserable summers for years.

But don't despair. Before you give up on Barbados in favour of Bognor take a look at our 10 tips which, taken together, could save you hundreds of pounds on your next trip.

1 Knock off hidden extras online

If you are booking a package holiday, using the internet will usually save you money compared with going to a travel agent, and also gives you the chance to get rid of hidden extras.

For example, if you go for a one-week self-catering holiday for a family of four to Cyprus flying from Gatwick with First Choice on July 20, the price is £1,419.18 if you book it as standard through its website.

If you exclude flight meals, cut the baggage allowance from 20kg to15kg per person and get your own transport to and from the airport you save £130.

Also, if you remove your "world care fund" contribution, which is essentially the optional carbon-offset charge, you knock off another £4.50 - saving £134.50 and taking the total cost to £1,284.68. This "carbon footprint offsetting" is one to watch on many flight and holiday websites as it may be included automatically, but you can usually remove it if you wish.

2 Plan your parking

If you fail to book at all and go to the long-stay car park at Gatwick, you would pay £9 a day - or a total of £63 for a one-week holiday. If you go to the short-stay car park, you will pay a whopping £20.90 a day, according to BAA Advance, which deals with car park pre-booking for Gatwick - £146.30 for a one-week break.

Sites such as Holidayextras and Simplyparking offer a range of options. For example, through Holiday Extras, you can park at Gatwick for £59.80 in the first week of August. It’s only a saving of £3 but every little helps.

3 Don't get currency at the airport

If you leave your currency purchase until you reach the airport, you will get about 10 per cent less than if you buy it elsewhere. You should also make sure you are not taken in by "no commission" deals as they often have a worse exchange rate.

Marks & Spencer and the Post Office are consistently competitive on the high street, and a recent survey by Which?, the consumer group, found that Chequepoint, Saga and Travelex were among the cheapest places to buy foreign currency.

The most expensive place, besides airports, are travel agents. Thomson, Going Places and First Choice were among the most expensive, according to the Which? survey.

4 Chop the cost of flights

Air travellers can pay hundreds of pounds more than other passengers on the same flight, for seats booked at the same time, depending on whether they bought their ticket through the airline or a partner.

The difference arises due to a practice called codesharing, where an airline sells tickets on a flight operated by another. Most airlines are part of a wider network and can offer their partners seats on their flights, which they can then sell at their own prices.

The best way to ensure you are not paying over the odds is to use a website such as Skyscanner, Flightchecker or Kayak. These send your trip details to scores of airlines and flight-broker websites for a range of quotes, listing the cheapest first.

5 Ask to pay in local currency

Hotels, restaurants and retailers have found a way to fleece holidaymakers using cards abroad with a scam known as dynamic currency conversion. When you pay by card, you should be given the option of paying a bill in the local currency or in pounds.

The hotel, shop or restaurant should inform the cardholder verbally of the payment choice before the transaction. However, many do not, converting your bill automatically into sterling at their own uncompetitive conversion rate, plus commission of up to 4 per cent.

Always ask to be charged in the local currency to avoid the fee.

6 Use the right card

Debit and credit cards typically charge a foreign-loading fee of 2.75 per cent plus 2 per cent to 3 per cent on withdrawals.

The Abbey Zero credit card, however, does not charge a fee, will not charge you for foreign usage, and will enable you to withdraw up to £300 a day.

If you are making purchases abroad, you will also not be charged a foreign usage fee by Nationwide or the Post Office Classic Mastercard, but you would be charged for withdrawing cash from an ATM at 2.5 per cent and 2 per cent respectively.

You should always avoid using a credit card for cash withdrawals from an ATM at home or abroad. Not only are you likely to be charged a withdrawal fee, you will also start accruing interest on the amount you withdraw.

7 Get the best cover

If you travel abroad more than once a year, you would probably benefit from taking out annual rather than single-trip cover.

Data from Travelsupermarket shows that for a couple on a multi-trip policy covering Europe, the annual premium is £40 with Top Dog Insurance, which covers you for £10m medical expenses, £2m personal liability cover, £1,250 cancellation cover, and £500 for baggage cover.

Insurance sold alongside a holiday by travel agents, tour operators and airlines is best avoided. It is unregulated and often ridded with exclusions. The Financial Services Authority (FSA), the City watchdog, is stepping in to regulate these sales but not until January.

8 Bundle your calls

Charges for making and receiving calls in the European Union have been capped at 38p and 19p since last summer.

Most networks now offer "travel bundles", which are worth buying if you will make a lot of calls or send numerous texts.

Orange, for example, offers 75 texts to be used in Europe within 30 days for £15. Call customer services from your mobile phone to see if your provider can offer any deals, or refer to its website.

9 Cut car hire costs

Those who leave it to the last minute to pick up a rental at their destination generally will find that the cheaper cars are not available. So book online in advance to get the best deals.

10 Beware travel surcharges

Potential fuel surcharges imposed by airlines and operators in reaction to rising fuel prices could add significantly to the cost of a holiday, particularly where families are involved. Your travel company could ask for a surcharge even after you have booked to cover the soaring cost of oil.

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Budget travel

Comments

[Anthony Price]

Why not come to Cornwall? We use the £ sterling and speak English (with a bit of an accent - ooh arrgh!)

[ipd]

Staggering..... the UK cannot afford to pay it's debts/ mortgages/ credit cards and you are talking about going on holiday. Are you living in never never land?

[mark greeening]

Thought this might be useful

[Nigel]

One of the cheapest and most convenient ways to get foreign currency is to purchase in advance from travelex.co.uk. You get a much better rate than over the counter and can collect (at no extra charge) from airports like Gatwick and Heathrow after you check-in.

You can get even better rates in some destinations than you'd get at home e.g. in Czech Republic or Turkey the walk up rates are better than any you'd get before you leave.

[Niall Douglas]

"If you are booking a package holiday, using the internet will usually save you money compared with going to a travel agent, and also gives you the chance to get rid of hidden extras."

Travel agents have had so much bad press and I agree that many are appalling and only out to get money out of you but there are some excellent ones out there too.

Agents can save you money, offer personal, tailored advice. AITO Specialist Agents are especially good and are there to help if things go wrong. You can always pick up the phone and speak to the MD - try that with one of the big companies or faceless internet giants.

Holidays are such an important part of people's year, why have they become so price and not quality driven. People are happy to pay for solicitor advice etc so why do people not recognise the expert advice some agents can offer - the good agents are out there - I recommend finding one - they can help and advise with all of the points covered in the article.

[Rebecca Sargent]

Camping is a cheap option in the UK or abroad and, as long as you take a car it can actually be relatively comfortable because you can fit a table and chairs, and airbed as well as just the tent!
Cornwall is a great place to spend a few days in the summer and campsites can be as cheap as £8 per tent per night. I also love the Gower in Swansea which is great for surfing and body boarding and slightly more central.
However, if you do fancy going abroad why not try camping in Brittany, France? Some of my dearest memories are of camping holidays in Brittany as a child there is plenty to see and do and it can work out cheap if you get the ferry.

[DN]

There is nothing improper about her.

[W Smith]

In West Philadelphia born and raised, on the playground is where I spent most of my days. Chillin' out, maxin', relaxin' all cool and all shooting some b-ball outside of the school, when a couple of guys who were up to no good, started makin' trouble in my neighborhood.
I got in one little fight and my mom got scared and said "You're moving with your Auntie and Uncle in Bel Air."

[Andrew Milner]

Quick appendix:
Don't keep buying "stuff" just because it's cheap. And that goes double for presents. Rule of thumb: If you can't wear it or put it in your pocket, forget it. It's not cheap if you have to buy more luggage, pay airline excess and/or Customs Duty. All trinkets you'll end up discarding.
What's that in your bag?
Shells.
Everybody down.

[Richard]

Nationwide's website states that they charge commission on neither foreign debit card usage nor withdrawing money from a foreign ATM. Not sure where 2.5 per cent on withdrawals comes from.

[BENSON]

>
> if you remove your "world care fund"
> contribution, which is essentially the
> optional carbon-offset charge, you knock
> off another £4.50
>
How mean can you get? Spending thousands of pounds on a holiday, and you suggest knocking off £4.50 carbon-offset charge (which seems remarkably low to me). Why not just stay at home - and give your thousands to charity.

[Andrew Milner]

Tip 1. Don't start from UK
2. Travel alone, travel light
3. Female companionship definitely on a one-off basis
4. Get into BKK or KL (unless India's on the radar) and then play it by ear with reference to Lonely Planet (or Rough Guide)
5. Don’t book hotels or indeed anything ahead. In third-world Asia, everyone’s your friend if you have money
6. Don’t go whoring. Save the money or spend on better hotel (Was that OK, Times?)
7. Hit the embassies, cut-rate air carriers, tailor's, optician’s on Day 1 (assume departing from arrival city)
8. Pick up DVD/computer software, OTC medication, leather luggage towards end of trip. Dentist as required
9. Get up country ASAP. Don’t wear new shoes
10. Avoid Brits straight out of UK like the pest
11. Get in with the “world traveler” crowd and solicit referrals/advice (backpack hostels)
12. Carry more than one card as Brit banks can cancel on you. Pay cash
13. Assume all taxi drivers are crooks
Don’t get up tight about corruption. See bribery as “going private"

[shefit]

I want to go on holiday with that girl...

[Jonathan]

You forgot the most obvious one - take an improbably skinny girlfriend (as shown in your photo) as she clearly won't eat much - what you save on just buying her a salad can go on a second helping of tiramisu

[Dawn]

Gas prices are up, but don't let that ruin your summer fun!

If you are going to "staycation" this summer - host a Destination Party and bring the vacation to your home.

Partybluprints.com has online electronic party plans that you download to your computer. Each "Eparty Plan" is a comprehensive guide with step by step instructions and click and buy links to order many of the party essentials.

Destination Parties include "The Keys To Paradise" Cocktail BBQ ( Key West, FLA), A Night in Venice Cocktail Party, "A Wine Country Crush" wine tasting and dinner party (Napa and Sonoma) and a Beijing BBQ just in time for the Summer Olympics! These parties feature, food, decor and music from the various cities.

Host a Destination Party this summer and go on vacation right in your own home!