21 tips for a low budget holiday

Holidays aren’t cheap but families could be forking out around £1,000 more than they need to due to hidden fees and costs.

From being stung with card charges while abroad to luggage costs and seat reservation fees, sneaky extras can rack up and easily blow your budget, according to travel insurer Admiral.

So if you are wanting to soak up some sun this year without getting financially burnt, here are some of the top hidden holiday costs and how to avoid them.

In this article, we cover:

Read more: What is travel insurance and is it worth it?

Booking your trip

1. Book in advance…or last-minute

If you know where and when you want to travel then booking in advance is almost always going to be cheapest. 

It’s best to book around six months ahead if you are travelling during the school holiday peak, otherwise three months is optimum, according to bookings website Skyscanner. If you can though, steer clear of school holiday dates and bank holidays when demand, and therefore prices, tend to be high.

When it comes to booking your flights, the first four months of the year are best, with January being the cheapest month according to Skyscanner. 

Consumer group Which? found that it is best to avoid flying on Fridays and Saturdays, which are the most popular days to travel, while Tuesday is typically the cheapest day to fly.

However, if you’re flexible on dates and even location, then keeping an eye out for any last-minute deals might pay off. Sign up for the relevant newsletters and set up travel alerts to your phone. 

2. Buy online

Buying your package holiday through a travel agent could cost hundreds of pounds more than booking online, according to an investigation by Which?

The consumer group discovered that two weeks in the Dominican Republic was £162 more on average for a couple if they went via the likes of Co-Op Travel*, Hays*, Kuoni* and Tui* than online.

A week’s holiday in Spain was £252 more on average. Although in the most extreme case, Which? found that seven nights in Spain was a whopping £887 more expensive with Kuoni than going online.

Booking a holiday by phone can also add to your costs.

3. Pay with a credit card

Paying with a credit card won’t cut down on hidden costs now but it might in the future if something goes wrong. 

One of the biggest holiday scams is booking accommodation that doesn’t exist.

If you made your purchase using your credit card and it was over £100 and under £30,000, your credit card provider is jointly responsible with the retailer for any issues that may arise, meaning you should get your money back.

Remember it’s best to pay off your credit card in full at the end of each month to ensure you are not hit with high interest fees.

4. Get travel insurance as soon as you book

Good travel insurance is worth its weight in gold, but it doesn’t have to cost an arm and a leg.

Check to see if you already have travel insurance through your bank account. Your home insurance may also cover you for theft, loss or accidental damage while away so you might not need to pay for expensive add-ons. But, again, check your policy details carefully.

A valid European Health Insurance Card (EHIC) or its post-Brexit replacement, the UK Global Health Insurance Card (GHIC), is a must when travelling in Europe. Best of all, they are free! But these cards are not replacements for good quality travel insurance. 

These cards will only cover you for emergency or necessary medical care for the same cost as a resident in the country you’re visiting. You can’t use them outside of Europe and they certainly won’t help with other problems such as lost or stolen luggage, or delays and cancellations!

Check out our best travel insurance providers.

5. Watch out for the tourist tax

Check before you travel how much you can expect to pay in tourist tax at your destination, so you can work it into your budget. The tax will usually be incorporated into the cost of your flight or payable with your accommodation.

Amsterdam charges tourists €3 (£2.50) per person, per night fee in addition to a 7% charge on holiday rooms and camping sites. Those staying in Airbnbs or other self-catering accommodation are charged at an increased rate of 10% per night. 

In Venice you can expect to pay between €1 to €5 (£4) per person per night (for the first five nights of your stay) and must be paid directly at your Hotel or B&B.

Thailand recently imposed a tourist fee of 300 Thai Baht (£6.70) which is added to the cost of airline tickets.

6. Make use of comparison sites…

When looking for the cheapest flights, hotels or package deals, comparison sites such as TripAdvisor*, Skyscanner*, Trivago* or TravelSuperMarket* are a good place to start. They will scour the market to find the best prices.

It’s worth comparing direct prices with as many comparison sites as you can – this will help make sure you’re paying the lowest price possible.

You can also find reviews on these sites, so you can read what other customers have to say before you book.

We have more on what you need to know before booking your next holiday.

7. …but don’t be rushed into booking

While searching for your perfect holiday, you might have noticed ‘only one room left at this price’, ‘87% of accommodation on your dates is unavailable’ or ‘booked two hours ago’.

Despite a crackdown by the Competition and Markets Authority watchdog in 2019, holiday websites are still using these pressure selling tactics.

The idea is to make you feel that if you don’t act now, you could lose out on a great deal. These trick people into making a rushed decision, which could end up costing you more.

Don’t feel pressured by these marketing gimmicks, don’t part with your money until you’re ready to book.

Before you fly

8. Get travel money before you head to the airport

It is best to organise your travel money in advance. The high exchange rates at airports mean that they are often the most expensive places to get your cash.

If you are ordering currency online, order in good time and check for delivery fees which can often be high. 

Eurochange* for example charges £5.00 for delivery if you order less than £500. John Lewis Finance* charges £5.50 for orders under £500. 

If you can, head instead to a reputable currency exchange centre or the Post Office* which tends and pick up the money yourself to avoid delivery fees. But of course, check the rates are worthwhile before you do.

9. Check-in early

If you don’t check-in online in the right way and at the right time, you could face a hefty fee.

Ryanair passengers must check-in online before they get to the airport and more than two hours before they are due to fly, otherwise it could set you back an extra £55, or £30 for flights from Spain.

A family of four flying via Wizz Air* from a European destination can expect to pay €52 if they wait to check in at the airport.

Airlines also bank on the fact that some people, especially couples and families, want to travel together and so they charge extra for seat bookings in advance.

A family of four could spend up to £180 extra to guarantee they are seated next to each other on return flights with Ryanair, for example. If you want extra leg-room on an easyjet flight, it would set you back £39.99 in the front row on a longer trip.

The aviation regulator, the CAA, says airlines should “aim to seat parents close to children” but this is not a guarantee. But as long as you check in early and seats are available, most airlines should enable you to sit together when you book your tickets together.

Remember to check when your passport runs out too. We have more on passport renewal times and costs.

11. Print or download your boarding cards at home

It sounds old fashioned but printing your boarding pass at home could save you money and even your holiday should the battery on your smart phone die or the airport wifi not work.

If you forget to bring your boarding card, your airline could make you pay for the privilege of printing it for you.

Ryanair* charges a £20 boarding pass reissue fee if you arrive at the airport without your printed boarding pass.

12. Travel light

Think about how much luggage you really need to take with you as the cost of booking a suitcase into the hold could end up costing more than the flight itself.

If you are flying with easyJet*, you can buy checked baggage in three sizes: 15kg, 23kg and 32kg. 

Prices differ if you book online or pay at the airport and depend on the route you are taking and the travel times. 

Prices for 23kg of hold luggage on easyJet, for example, start at £9.49 online but cost £48 if bought at the bag drop desk.

13. Keep within the luggage allowance and weigh it at home

Going over your luggage allowance is one of the most common ways that travellers get stung at the airport.

Weighing your baggage before you leave the house could save you up to £70 – and the embarrassment of opening your luggage at the check-in desk.

Jet2* and easyjet charge £12 per extra kilogram over the limit. Tui’s excess baggage charges are between £12 and £18 per kilogram depending on the length of the flight.

If you are tempted to weigh down your hand luggage instead, watch out, as some airlines could refuse to carry this. Ryanair, for example, will charge a fee of £69.99 to store it in the hold.

14. Plan your parking

Don’t leave parking to the last minute if you are driving to the airport as, again, it could end up costing you more than the actual flight. 

Booking in advance could cut the cost by up to a third though check that it is flexible, should you need to change it.

Also parking further away from the airport will cut down the price significantly.

A week’s short stay parking (2-3 minute walk from the terminal) at Heathrow in July will set you back £197.80. If you don’t mind a 10-20 minute bus ride, long stay parking will cost £127.80.

15. Bring your own food

It is a good idea to consider bringing your own snacks onboard if meals aren’t included.

You could bring something from home but even buying at the airport is likely to be cheaper than on the flight.

A Boots* meal deal costs £4.99 at Gatwick Airport and includes a sandwich, drink and a snack such as a bag of crisps. 

While that is more than you will pay on the high street, it is less than the £8.95 meal deal on board an easyJet flight and €10 on Ryanair. On Jet2, which doesn’t have a meal deal option, you can expect to pay £8.50 for the individual items.

At your destination

16. Check or pre-book your airport transfer 

Figure out in advance how you will get from the airport to your accommodation. It is likely that your transfer will be included if you are on a package holiday.

If not, then it might be cheaper to pre-book a taxi. Do your research and work out what are the best value public transport routes to take to your hotel or whether Uber (or the equivalent at your destination) is possible and more cost-effective.

17. Be organised about car hire

One of the most common ways to get caught out abroad is when hiring a car.

Always research prices at home before committing to a specific company. Look out for excess fees and additional costs in other areas, and read the reviews.

It’s best to not leave sorting out a car until after you have arrived at your destination as you are likely to be tired after your journey and not scrutinise the contract thoroughly. 

We have much more about the car hire traps that could cost you hundreds on holiday.

18. Keep mobile costs down

Since leaving the EU, UK mobile phone operators have been able to charge you for using your data in the EU. A two week holiday in Spain could cost an additional £28 if you want to access the internet.

If you signed a new contract or upgraded with Three from October 2021, you will be charged £2 a day in the EU and £5 a day for destinations outside the EU.

EE also charges £2-a-day for customers using data roaming in the EU, however you can buy a 30-day Roam Abroad Pass for £10 as an add-on.

Download any music or movies before you leave the UK.

19. Use a travel card

Cash is not always king on holiday. If you lose your money while away, most travel insurance policies only cover you for a fraction of the loss.

However card fees when abroad can add up. Buying a couple of drinks on the beach for £5 and putting it on your card, could end up costing you over £1 extra in fees per transaction. These seemingly small charges all add up.

Every card provider will charge a different amount, so check the foreign purchase fee rates before you use your card or get a specialist travel credit or debit card before you travel. These can offer near-perfect exchange rates worldwide and help keep costs down. 

Check out our guide to the best travel cards.

20. Watch out at ATMs

In addition to thinking about the card you’re spending on, consider how you’re using it. 

Some providers offer fee-free cash withdrawals of up to £500 per day. 

Others might charge up to £5 or a percentage of the amount you withdraw which could be up to 5% plus an extra 2.99%, according to TotallyMoney. Some will even charge you both!

21. Pay in the local currency

When you’re at the cashpoint, restaurant or shop while on holiday, it will almost always be cheaper to pay in the local currency because you’ll get a better exchange rate. 

While paying in sterling means that you know exactly how much something costs, shops and restaurants are allowed to set their own exchange rate. They are also able to add extra conversion fees on top.

Some retailers may automatically assume you want to pay in pounds, so always double check before paying.

Know your rights

Heathrow airport staff will be going on strike at the end of June but there are plenty of other disruptions that could cause chaos to your holiday.

If your dream break is suddenly off the agenda due to a flight cancellation, for example, it is important to know what your rights are and how you can claim compensation.

See our guide for more on what your flight and holiday refund rights are.

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