Steve Willey, Tuesday May 20, 2008
More than two million families are set to make the most of half-term and this weekend's Bank Holiday by escaping to sunnier climes. Yet with the Pound sinking against the Euro, your week-long break could cost more than you think. Make your budget stretch further with our five money-saving tips
Some 19 million cars are set to hit Britain's roads this weekend for the great Bank Holiday getaway - but increasing numbers of us are opting to escape traffic jams and dreary weather at home in favour of sunnier European climes. The Association of British Travel Agents (ABTA) estimates that some two million families will head to the continent this week.
Yet the cost of a week away has risen over the past year due to the Pound's slide against the Euro - but careful budgeting can help you cope. We've compiled a list of 10 tips to help you minimise the cost of your summer break.
1: Book 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.
2: Look beyond the headline price
Low-cost flights can often cost 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, rather than online?
Think about luggage too - is there an extra charge if you want to check a bag into the hold? Check your baggage allowance as well. 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 you are over your weight limit you could be charged an extra £12 per kilo.
3: Don't get 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 it can also be prohibitively expensive. Most banks impose hefty fees when you make a transaction overseas - 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.
There are cards available that don't impose fees - good credit cards to take away with you include the Post Office Travel Money Card, Nationwide's Gold Card or Abbey's Zero card. Another option is to load sufficient funds on a pre-paid card - but again, look out for any additional fees.
4: Steer clear of using a credit card for cash withdrawals
Avoid using credit cards to make cash withdrawals overseas - even if you don't incur a transaction charge, you'll 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.
5: Shop around for travel insurance
Don't buy insurance through a travel agent as you will almost certainly be able to get it cheaper elsewhere. 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 an EHIC card, 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.
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