Given that money remains tight for many, maximizing your holiday budget is crucial for a stress-free break. Martyn James, a leading consumer rights campaigner, offers a comprehensive guide on how to make your cash go further and what pitfalls to avoid.
Start by Making a Holiday List
Just as we overspend when shopping hungry, we tend to spend more without a plan. James recommends creating a detailed holiday list divided into categories: clothes, footwear, swimwear, evening outfits, electronics, chargers, adaptors, medicines, currency, and key documents. This prompts you to pack essentials like flip-flops or a beach bag you might otherwise forget.
To save cash, consider buying second-hand items you won't use often, and remember that toiletries add weight—buy basics abroad or at the airport. A reliable suitcase weight measurer is essential, as airlines are cracking down on weight limits and overstuffed bag fees can be exorbitant.
Pre-Book Your Excursions
Spontaneous fun is great, but popular tours and attractions often book up quickly. James advises checking online for offers and comparing prices with hotel or holiday company deals. Do not assume you'll get the best rate from them—research standard charges beforehand.
Factor in travel time to distant excursions and remember sun protection for outdoor venues like theme parks. If you plan risky adventures, ensure your insurance covers adventure sports.
Share Your Suitcase to Save on Baggage Fees
Low-cost airlines have clamped down on cabin bags, with costs approaching £50 for advance bookings and over £75 on the day. Cabin bag dimensions vary by airline, and some are weighing bags. James suggests sharing a hold bag between two people: a 23kg bag booked a few weeks in advance may cost £30–£40, which is often cheaper than two cabin bags.
Spend Smart on Your Cards
Using a traditional debit card abroad can incur hefty fees. James notes that a family of four spending on a debit card for a week could face around £200 in charges and poor exchange rates. Newer online banks often offer better rates and no transaction fees. Free travel debit cards provide daily exchange rates with no fees, and some credit cards have excellent rates—but pay off the balance immediately.
He warns against withdrawing cash from ATMs abroad, as combined charges can exceed £10, and never withdraw cash on a credit card, as it signals financial distress to lenders.
Don't Buy Cash at the Airport
Airport exchange rates are among the worst. James advises avoiding high street or bank exchanges and instead using money comparison sites like MoneySavingExpert.com to find the best rates. Online currency firms will post cash to you, but ensure you're home to sign for delivery.
Factor in Airport Costs
Airport parking can be expensive. Consider taking the train, but check check-in times and avoid late flights that may leave you stranded. Always pre-book airport transfers and cabs at your destination to control costs and have recourse if overcharged. Airline shuttles and hotel shuttles can save money, though they may be crowded.
Slip Away from Tourist Traps
Restaurants in tourist areas can charge two to three times more for mediocre food. James suggests exploring side streets where locals eat for better quality and significant savings.
Watch Out for Car Hire Rip-Offs
Car hire companies often overcharge. James recommends photographing or videoing the vehicle from every angle before driving off to avoid damage claims. They may try to sell insurance policies costing up to £200 or more, but comparable policies bought online after reserving a car cost around £30. Refuse car upgrades unless the insurance is provided free, and confirm the booked model in advance.
By following these tips, you can stretch your holiday budget and avoid common financial pitfalls.
