1. Shop around online
There was a time when booking a holiday meant traipsing around the high street in search of an affordable deal - but not any more. There are huge savings to be made by searching for flights and hotels online where most operators offer their cheapest deals due to lower overheads: travelsupermarket.com enables you to search for deals on flights, hotels, package holidays and even car hire in one place.
2. Look beyond the headline price
Seemingly low-cost flights often end up costing a lot more than the advertised price because of hidden extras. When comparing flight deals there are a number of things to consider including: are there additional airport taxes to pay? Will you have to pay more if you check-in at the airport, not online? What about luggage - is there an extra charge if you want to check a bag into the hold? You may also be charged more for specific items such as musical instruments, sports equipment and children's travel cots or booster seats (although buggies can usually be taken on-board free of charge). Budget airlines that don't allocate seats will charge if you want priority boarding, yet this can be essential for families who want to ensure that they can all sit together.
You should also check the baggage allowance. While many airlines give passengers a weight allowance of 20Kg for baggage going into the hold, some are less generous.
Ryanair, for example, allows each passenger just 15kg. If your bag is over the weight limit, you could be charged an extra £12 per kilo.
If you're not careful, these factors can significantly bump up your travelling costs. The flight comparison tool on travelsupermarket.com includes all costs in the 'top booking tips section' of each search result.
3. Don't be stung by overseas credit or debit card fees
Credit and debit cards are a convenient and secure way of paying for things when you're on holiday, but if you're not careful they can also be expensive. Most providers levy fees when you make a transaction - a currency conversion fee of between 2.5% and 3% is often applied - and if you withdraw cash from an ATM you can incur an additional fee. For more information view our latest videoblog, Holiday credit card tips.
Not all cards charge foreign usage fees, however. The best credit cards to take away with you are the Post Office Travel Money Card, Nationwide's Gold Card or Abbey's Zero Card. On May 15, a €100 purchase would have cost you £79.51 with any of these cards, but you would have paid £82.24 if you had used an American Express Nectar card which levies a 2.73% currency conversion fee. It's best to apply for these cards now so you can ensure they're with you for your holiday.
If you've run out of time to apply for a credit card before your holiday, a prepaid card could be the solution - although you have to watch for hidden fees. The CaxtonFX Euro Card is a good deal as there are no fees for purchases, although you will be charged €2 if you use it to make a cash withdrawal. Alternatively, the FairFX Euro Currency Card only charges €1.50 for withdrawals but there is a £9.95 application fee which applies when less than £500 is loaded on to the card.
4. Steer clear of using a credit card for cash withdrawals
Credit cards should be avoided if you're making a withdrawal from an ATM because even if you do not incur a transaction charge, you will start accruing interest from the day you make the withdrawal. A debit card is therefore a better option if you want to take cash out and Nationwide offers the best deal for overseas' usage.
If you'd withdrawn €100 on May 15 from an ATM, it would have cost you £84.50 with a Lloyds TSB debit card but just £79.51 with a Nationwide card.
5. Avoid buying travel money at the airport
If you leave it until you get to the airport or ferry port to buy your foreign currency you will not get the best rate of exchange: research from FairFX found that it could cost you up to 11% more than buying it in advance.
A number of providers now offer online services which enable you to order your currency over the internet and have it delivered to your home - so there is no need to leave it until the last minute. OnlineFX offers a home delivery service for £4.95 and commission-free buy-back. Alternatively, Ice offers free home delivery although there is a £4.95 charge for orders under £300.
6. Always pay in sterling on the plane
Watch out for airlines that want to cash in on your last minute purchases by converting your remaining euros to pounds. The airlines charge a currency exchange fee, which is not usually published in their in-flight magazines. Instead, they simply advertise the cost of items in sterling and create a mark-up price in euros - for example, an item costing £3.60 could be charged at €6 - a £1.70 increase on the original price. The airline makes money for doing nothing - while dressing this up as a service for your convenience.
7. Be careful with your travel insurance
Don't buy insurance through a travel agent as you will almost certainly be able to get it cheaper elsewhere. Our comparison tool provides an easy way to shop around so you can make sure you get value for money.
If you go away more than twice a year, annual multi trip insurance may be a more cost-effective option than single trip policies. However, while price is an important consideration when comparing insurance, you also need to ensure that you have an adequate level of cover. You need to be particularly careful if you have an existing medical condition or you plan to take part in any dangerous activities such as skiing and adventure sports
When travelling in most European countries you can pick up state covered medical care with a European Health Insurance Card (EHIC), but this shouldn't be seen as an alternative to travel insurance as it only covers medical treatment. Having said this it is still worth taking with you because if you do need to make an insurance claim for anything medical, you may be able to get the excess waived.
For further information, check out our travel insurance money saving tips section.
8. Don't pay the price for calls home
Using your mobile on holiday can be expensive, so be warned. While prices have come down in recent years, the costs of calls and texts remain high. For example, Orange, T-Mobile, Vodafone and Virgin charge 38p per minute if you make calls from Europe. 3 is the cheapest provider charging 25p per minute.
Texting is also expensive - T-Mobile charges 40p per text, while Orange customers pay 30p.
And it is not just making calls and sending texts that costs you when you're overseas - you will also be charged for receiving calls and the cost can be up to 19p per minute in Europe. If you're holidaying in the States the charges are even higher - Vodafone charges 99p per minute to receive a call from the UK.
There are special tariffs, such as Vodafone Passport, which help reduce the costs so if you know you'll need to use your phone on holiday, contact your provider before you go and ask what the most cost-efficient options are.
If you travel a lot and regularly use your phone overseas, it may be worth buying a global Sim card. For more information on this, visit our international roaming section.
9. Make sure you are covered for overseas driving
Millions of families will be taking their car when they go abroad this summer, yet many will not be aware that their motor insurance doesn't offer the same level of cover that they benefit from in the UK. Many car insurance providers including Direct Line, esure, Swiftcover and Barclays automatically reduce the level of cover to third-party only when driving across the continent. It is therefore crucial to check what protection you have before you go - and don't forget breakdown cover.
If you're hiring a car, book in advance to avoid inflated costs at the airport, and make sure you read all the documentation carefully to ensure that it offers adequate insurance and that you won't be caught out by any hidden charges when you return the car at the end of your holiday
10. Book airport parking in advance
Long stay gate prices can be as high as £200 a week at the major airports. However, if you book before you go, you can cut the cost of parking significantly. For example, you can get a week's parking at Heathrow for £42 with Simply Parking or FHR.
Have your say: Can you pass on some additional money-saving advice or travel tips? Share your experiences, help others or ask a question of your own in our forum.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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