How to Save Money on Your Holiday Without Missing Out

Holidays are one of those purchases where the first price you see can bear surprisingly little resemblance to what you eventually spend. A flight looks cheap until you add bags and seats, a hotel looks affordable until parking and resort fees appear, and a bargain package can become expensive once you start buying things that weren't included.

That is why I no longer look for the cheapest holiday in isolation. I look for the most cost-effective way to have the holiday I actually want, including the journey, accommodation, food, insurance, transport, spending money, and the extras that tend to pop up afterwards.

There are also far more ways to save money on your holiday than simply waiting for a sale. Comparing different booking routes, earning cashback, choosing how you pay and avoiding unnecessary fees can make a meaningful difference without turning your holiday into an exercise in going without.

What should you compare before booking a holiday?

Start with the total cost rather than the website with the biggest discount banner. Two identical-looking holidays can end up hundreds of pounds apart once baggage, transfers, parking, meals and cancellation terms are included.

For flights, Google Flights is one of the tools I use because it lets you compare dates, alternative airports, and airlines in one place. You can also track a particular route and receive notifications when prices change significantly, including tracking flexible dates if you haven't decided exactly when to go.

Once you find a price you like, check the airline, hotel or travel company directly as well. Comparison sites can win, direct booking can win, and cashback can change the answer again, so I would never assume one particular booking route is always cheapest.

Compare the actual total, not the cheapest search result

When comparing two holidays, make sure you know exactly how comparable the holidays are. A £900 package, including 23kg bags and airport transfers, may be cheaper than an £800 DIY trip that would require an extra £180 in baggage fees and £100 in transport at the other end.

The same applies to hotels. One hotel may include breakfast, parking and Wi-Fi while a slightly cheaper property charges separately for all three, so comparing room rates alone can give you the wrong result.

I go into far more detail about this in my guide to saving money on hotels, including checking parking, resort fees, cancellation terms, and cashback before deciding which room is actually cheaper. On one recent booking, a hotel site initially appeared to be the cheapest, but another booking route, combined with cashback, worked out better after comparing the final cost.

Can flexible travel dates really save money?

They can, but flexibility works best when you use it across several parts of the booking. Changing your flight by one day, using a nearby airport or staying nine nights instead of seven can occasionally produce a surprisingly different price.

Google Flights has a date grid and price graph specifically for this purpose, which can show how fares move around your planned dates. It can also highlight cheaper alternative airports, which is useful if you live somewhere with several realistic departure options.

Don't forget the cost of reaching that alternative airport. Saving £70 each on four flights sounds excellent until you add a hotel, fuel, and £120 in airport parking you wouldn't otherwise need.

If work dates are your main restriction, my guide to maximising annual leave around UK bank holidays can help you create longer breaks without using as many booked leave days. That gives you more flexibility over the length of the trip, although bank holiday travel itself can be more expensive.

Should you book a package holiday or arrange everything separately?

Always price both. A package holiday can sometimes be cheaper because the organiser buys flights and hotel rooms in bulk. At the same time, DIY booking can win when you find a particularly cheap flight or accommodation deal.

There is also consumer protection to consider. UK package travel rules give package organisers responsibilities for the services included in the booking, while qualifying flight-inclusive packages should have ATOL protection against the failure of the travel company.

If you're buying a flight-inclusive package, check the company's ATOL details with the Civil Aviation Authority. Flights bought directly from an airline aren't automatically ATOL protected simply because you are going on holiday, so don't assume every travel purchase carrying an ATOL logo somewhere on the website covers your particular booking.

The right comparison is therefore price, protection, and flexibility. Saving £30 by splitting everything into five separate bookings may not feel worthwhile if a cancelled flight leaves you trying to rearrange the hotel, car hire and transfers independently.

Check cancellation terms before chasing the lowest price

I place a high value on free cancellation, particularly for accommodation. If two rooms are only a few pounds apart and one can be cancelled until shortly before arrival, that flexibility gives you the chance to keep checking the price after booking.

Hotel prices do move, and I have cancelled and rebooked the same accommodation when the rate fell. My last-minute hotel deals guide also covers when waiting can sometimes work, particularly if your dates and destination aren't fixed.

Don't assume that booking early or booking late is universally cheaper. Fixed school-holiday dates and popular events can reward early booking, while unsold accommodation can drop closer to arrival, so the best strategy depends on how much flexibility you have.

Pay at least part of an eligible holiday by credit card

Credit cards can provide stronger purchase protection than debit cards, but the rules need to be explained properly. Under Section 75 of the Consumer Credit Act, a qualifying purchase costing more than £100 and no more than £30,000 can make your card provider jointly liable with the supplier if the supplier breaches the contract or misrepresents what you bought.

You don't necessarily need to put the whole holiday on the credit card. MoneyHelper confirms that paying even a deposit by credit card can be enough for Section 75 to cover the full qualifying purchase, provided the normal Section 75 conditions are met.

There are exceptions, particularly when an intermediary or third-party payment service disrupts the necessary relationship among you, the card company, and the supplier. If Section 75 protection is important to you, check how the payment is being processed before assuming that simply seeing a Visa or Mastercard logo at checkout guarantees it.

I also wouldn't use a credit card as an excuse to buy a holiday you cannot afford. If you aren't on an interest-free offer and don't repay the balance, the interest can rapidly cancel out whatever savings you found on the trip.

What protection do you get if you pay by debit card?

Debit cards don't get Section 75 protection, but that doesn't mean you have no route to recover money. Visa, Mastercard and American Express operate the chargeback scheme, which can allow your bank to try to reverse a card transaction when a supplier hasn't provided what you paid for.

Chargeback isn't the same as a legal right under Section 75. Time limits also apply, commonly 120 days from the transaction or, for a future event, from the date the service should have been provided.

For a large holiday purchase, I would therefore consider the payment method's protection and any card rewards. A few points or miles aren't much consolation if you unintentionally give up stronger protection on a much larger purchase.

Buy travel insurance when you book, not just before you fly

Travel insurance isn't only for problems that happen once you arrive overseas. Cancellation cover can protect you during the weeks or months between booking and travelling, which is why MoneyHelper recommends buying travel insurance as soon as you book your trip.

Waiting until the day before departure can leave a long gap when you have already paid thousands of pounds but don't yet have cancellation cover in place. The exact circumstances covered vary by policy, so check cancellation limits, excesses, medical cover, baggage and any activities you intend to do.

Also check whether you already have travel insurance through your bank account, employer or another membership before buying another policy. Existing cover only saves you money if it is suitable for your destination, travellers and medical circumstances.

Check your travel documents before you spend thousands on a trip

One of the least interesting parts of planning a holiday can also be one of the most expensive to get wrong. Before booking anything non-refundable, check the current entry requirements for your destination, including how long your passport needs to be valid, whether you need a visa or travel authorisation and whether children need any extra documents.

I always use the official GOV.UK foreign travel advice rather than relying on something I read on social media or an old travel forum, because entry rules can change. The Government's travel checklist also covers things such as driving documents, medicines and health requirements.

If you're travelling somewhere where a UK GHIC or existing valid EHIC can be used, check that everyone travelling has one and that it hasn't expired. They're free, and they can give you access to medically necessary state healthcare on the same basis as residents. Still, they don't replace proper travel insurance or cover things such as medical repatriation.

Don't automatically assume all-inclusive costs more

An all-inclusive holiday can look more expensive at booking, but it may reduce the amount you spend once you arrive. This can be particularly useful for families who would otherwise be buying breakfast, lunch, dinner, drinks, snacks and ice creams every day.

Price it at what you would realistically spend elsewhere, rather than treating the all-inclusive supplement as one big extra. If it costs another £500 for a family but you would otherwise spend £100 a day eating and drinking, the calculation looks rather different.

I would still check recent food reviews before booking. Look at whether there are enough restaurants, whether children will actually eat the food, which drinks are included and whether snacks or à la carte restaurants carry extra charges.

Look beyond traditional hotels

Hotels aren't always the cheapest accommodation, particularly for families or groups. Apartments and holiday rentals may include kitchens and washing machines, hostels can work well for shorter trips, while camping and caravan sites can reduce accommodation costs substantially.

Self-catering can save money beyond the room price because you aren't forced to eat out for every meal. Even making breakfast and keeping drinks in the fridge can save a surprising amount on daily holiday spending.

Don't assume Airbnb or another holiday rental will always beat a hotel, though. Cleaning charges, service fees and local taxes can narrow the difference, so compare the final amount payable rather than the nightly rate.

Could a villa actually work out cheaper than a hotel?

I’m a big fan of booking a villa when I go away, and I’ve stayed in villas in Spain and America on several occasions. At first glance, a private villa can look more expensive than booking a hotel room or apartment, particularly if you’re comparing nothing more than the nightly accommodation price. Once I start adding up what I’m actually getting for the money, though, that price difference often becomes much smaller.

Renting a villa can give you so much more space and a wider range of facilities, as well as a more luxurious feel to the holiday.

The biggest benefit for me is the extra space and facilities. A villa can give you several bedrooms, separate living areas, a private swimming pool, proper laundry facilities and, importantly, a fully operational kitchen, as being able to cook breakfast, lunch or dinner at home instead of relying on restaurants every day can take a sizeable amount off the holiday spending budget, especially when travelling as a family.

Having your own private swimming pool can really make the holiday so special.

Laundry is another small cost that can add up surprisingly quickly over a longer trip. Having your own washing machine means you can pack less, wash clothes as you go and avoid hotel laundry charges or trips to a launderette.

You may also have room to store supermarket shopping properly rather than trying to make do with the small fridge and limited cooking facilities found in some hotel rooms and apartments.

Parking can make an equally big difference. On a recent trip, I was charged $49 to park at a hotel for a single night, even though we were only there for about 14 hours. At the villa we stayed in, I could park several vehicles on the property without paying anything extra, so that was another cost I didn’t have to factor into each day.

Privately rented villas can sometimes come with useful extras too. I’ve stayed in properties where the garage held items such as fishing rods, beach equipment, and bicycles that guests could use, and one even had a golf cart. These aren’t things I would expect every villa to provide, but when they are included, they can save you from hiring or buying equipment once you arrive.

A villa with lots of unexpected extras, such as bikes, beach umbrellas, and chairs, really adds to the holiday vibe and can also help keep costs down.

That is why I always compare the full cost rather than dismissing a villa because the accommodation price is initially higher. Once I factor in meals I can prepare myself, free parking, laundry, extra space, private facilities and any equipment included with the property, I’ve often found that a villa works out better value overall. I’ve also booked villa stays through cashback sites, so checking available cashback offers before booking has further reduced the cost.

For me, the financial side is only part of it. Having a proper house, your own swimming pool and somewhere quieter to come back to at the end of the day can make the holiday much more enjoyable as well.

I’ve stayed in villas in peaceful residential areas with lovely views, including ocean views. Once everything was added up, the apparent extra cost at the start was often well worth it, assuming there was an extra cost at all, as once you factored in all the other costs of not staying in a villa (especially food!), it very often worked out cheaper in the long run.

Use cashback, but compare the price before the cashback is applied

Travel purchases are among my favourite cashback transactions because the amounts involved are large. A fairly ordinary percentage on a £2,000 booking can be worth far more than chasing the same rate on everyday purchases.

Before booking, I check the main UK cashback sites and apps to see whether the airline, travel agent, hotel platform, or car hire company is listed. Rates vary frequently, and exclusions matter, so never assume yesterday's rate is still available.

I've also used Complete Savings for travel bookings because its rates can be strong. On a recent summer holiday, the cashback I earned across travel bookings was enough to cover my car hire and the first night's hotel accommodation, which is exactly why I now check the cashback-adjusted cost rather than simply picking the cheapest-looking booking website.

Remember that travel cashback often remains pending until after you have completed the trip. Read the conditions before counting cashback as money you definitely have available for the holiday itself.

Don't forget airline and hotel loyalty schemes

If an airline, hotel chain, or booking platform offers a free loyalty scheme, it is usually worth checking before paying. Points, member rates, free Wi-Fi, late checkout, seat benefits or future discounts can all alter the value of a booking.

I wouldn't pay more to collect points unless I knew the value justified it. Loyalty schemes work best when they reward bookings you would have made anyway, rather than persuading you to stay loyal to a company that is £150 more expensive.

Also check whether existing household spending can produce travel rewards. Avios, Nectar partnerships and airline schemes can all be useful, but the value depends on where you shop and how you redeem the points.

Check every hidden cost before you press pay

Some of the biggest holiday budget surprises are boring rather than glamorous. They are parking, luggage, tourist taxes and transport costs that weren't included in the attractive figure that made you click in the first place.

Cost to check	Why it matters
Checked and cabin baggage	Low-cost flight fares can rise sharply once bags are added
Seat selection	Families may want to factor this into the real flight cost
Airport parking	Can add a sizeable amount to a week or two away
Transfers	A cheap flight to a distant airport can create an expensive onward journey
Resort or destination fees	Some hotels charge these separately
Tourist taxes	Often payable locally rather than in the advertised room rate
Breakfast and meals	A slightly dearer room may include enough food to reduce spending
Car parking at the hotel	City and resort parking can cost almost as much as a budget room
Car hire extras	Child seats, extra drivers, fuel rules and insurance can change the total
Mobile data	Check roaming charges before travelling outside your normal allowance

On a recent hotel search, I found parking alone could have cost hundreds of pounds over a week; looking for a secure nearby alternative changed the economics of the hotel considerably, which is why I now treat parking as part of the room price rather than an afterthought.

Use public transport where it makes sense

Hiring a car can be useful, but don't assume you need one for the entire trip. If you are spending four days in a city before heading into the countryside, renting only for the second part could save rental fees and city-centre parking.

Check local transport passes, airport trains, and family tickets before travelling. Booking UK rail journeys in advance can also be cheaper than turning up and buying an Anytime fare on the day.

Walking can be part of the saving too. A centrally located hotel costing £20 more a night may actually be cheaper than staying on the outskirts and paying for four people to travel into the city every day.

How can you save money once you're already on holiday?

A supermarket visit near the start of the trip is one of the easiest ways I’ve found to reduce everyday holiday spending. Bottled water, drinks, fruit, snacks, breakfast foods and even things such as sun cream can cost considerably more when you buy them individually from hotel shops, attractions or convenience stores in busy tourist areas.

If we’re staying somewhere with a fridge or kitchen, I’ll normally stock up fairly early in the trip. Even if I’m not planning to cook proper meals every day, having breakfast at the accommodation, making sandwiches for a day out or keeping cold drinks and snacks handy means we aren’t automatically spending money every time somebody says they’re hungry or thirsty.

This is another reason I like villas and self-catering accommodation. Having a proper fridge, freezer and kitchen gives you far more scope to buy food locally and prepare some of your own meals. You don’t need to spend the holiday cooking, but replacing even a few restaurant breakfasts or lunches with supermarket food can make a big difference over a week or two.

It’s also worth looking beyond the supermarket closest to the hotel or resort. Shops in the most tourist-heavy areas can charge noticeably more, so if you have a car or good local transport, check where residents are actually doing their shopping. Local supermarkets and markets can sometimes give you better prices as well as food you wouldn’t necessarily find at home.

Eating out doesn’t have to be all or nothing either. Check restaurants for lunch menus, fixed-price menus, early-evening deals and children's offers rather than automatically booking the most expensive meal of the day. We’re quite happy to have a cheaper lunch out and then eat something simple back at the accommodation later, particularly if we’ve already had a busy day.

The same thinking applies to drinks. Buying a multipack of water or soft drinks from a supermarket can cost far less than repeatedly paying attraction, hotel or beach-bar prices. If the local tap water is safe to drink, using refillable bottles can reduce that cost further, but check reliable local advice first rather than assuming tap water is suitable everywhere.

Day trips are another place where a little planning can help. Take drinks and snacks with you where venues allow it, check parking before setting off and see whether attractions offer cheaper online tickets, family passes or discounts at particular times. A supposedly cheap day out can become expensive once you add parking, four drinks, lunch and several impulse purchases.

I also try not to buy things at the destination that we could easily have brought from home. Chargers, travel adaptors, swimming goggles, beach towels, sun cream and basic toiletries tend to be much more annoying to buy when you need them immediately and have very little choice over where to shop.

The aim isn’t to spend the whole holiday worrying about every pound. I’d rather save money on bottles of water, breakfast and things we don’t particularly care about, then have more of the budget available for a restaurant we really want to visit, a day trip, an attraction or something else that actually makes the holiday memorable.

Check attraction prices and the cost of getting there

If there are specific attractions you know you want to visit, check the price before travelling rather than automatically buying tickets at the entrance. Some attractions offer cheaper advance tickets, family deals, multi-attraction passes or reduced prices at particular times of day, and buying ahead can also help you budget for the expensive days of your trip.

Don't stop at the ticket price, though. I’ve found out to my cost in the past that parking at major attractions can add a sizeable amount to the day, particularly if you're visiting several times during the same holiday.

Walt Disney World in Florida is a good example. Standard parking at its theme parks currently costs $35 a day for a car or motorcycle, while oversized vehicles such as RVs and camper trailers cost $40.

Preferred parking, which puts you closer to the park entrances, currently costs between $50 and $60 a day depending on the date. One parking payment does cover all four Disney theme parks for that day if you're moving between them.

Over several park days that soon adds up. Five days of standard parking would be another $175 on top of your tickets, food and everything else you spend in the parks, while five days of preferred parking could cost as much as $300.

There are ways around it. Registered guests staying at Disney Resort hotels currently get standard theme-park parking included, as do eligible Annual Passholders. If you're staying elsewhere, check whether your hotel has a free or low-cost shuttle to the parks, because that could be worth considerably more than a small saving on the room price.

Depending on how far away you're staying and how many people are travelling, a taxi, Uber or Lyft may even work out cheaper than driving and paying to park. Compare the return journey cost before deciding, particularly if your hotel offers a shuttle for one direction or on selected days.

If you have a disability parking permit, Disney also has designated disability parking areas close to the entrances of all four theme parks, although the normal standard parking charge still applies.

The same principle applies well beyond theme parks. Before choosing an attraction, add up the ticket price, parking, tolls, fuel or public transport, then compare that with alternative ways of getting there.

A £10 saving on admission isn't much of a saving if you then spend £30 more getting through the gate.

I also compare the cost of attraction passes against what we'll genuinely use. A £150 city pass isn't saving you money if you only wanted to visit two of the included attractions in the first place. At the same time, it can be excellent value if most of your planned itinerary is already covered.

Check for free attractions as part of the planning rather than only searching after you arrive. For UK breaks, Heritage Open Days, Free National Trust passes & events such as the Open House Festival can give free access to buildings and attractions that aren't normally open to the public, while the UK's National Parks are free to enter. However, parking and individual attractions can still cost money.

A day built around a free museum, park or beach also creates room in the budget for something you genuinely want to pay for later. Saving money on your holiday doesn't have to mean skimping on every activity.

What is the cheapest way to spend money abroad?

Before travelling, check what your normal bank charges for non-sterling purchases and cash withdrawals. Plenty of everyday UK cards still add a percentage to foreign-currency transactions, while specialist travel cards and some app-based bank accounts charge no separate foreign transaction fee.

For example, Halifax currently charges no foreign-currency purchase fee on its Clarity credit card, although interest can apply differently to cash withdrawals.

The Post Office Travel Credit Card also currently has no foreign transaction fee on purchases but charges for some cash transactions, which shows why “fee-free abroad” doesn't necessarily mean every use of a card is free.

I would check the current terms immediately before applying, as card fees and offers can change. Avoid applying for several cards solely for a single holiday, particularly if you expect to need additional credit soon afterwards.

Should you pay in pounds or the local currency?

If a card machine or ATM abroad asks whether you want to pay in pounds or the local currency, local currency is usually the better choice. Choosing pounds allows the retailer or ATM provider to perform the conversion using its own exchange rate, which can be less favourable.

This is known as dynamic currency conversion, and it catches people because paying in pounds can feel safer when you immediately recognise the figure. Your card provider cannot apply its normal exchange process if you have already accepted somebody else's sterling conversion.

Check the screen before pressing the final button, particularly at ATMs. A machine may make the sterling option look easier or more familiar without it being cheaper.

You don't necessarily need to avoid ATMs abroad

The old version of this guide advised avoiding overseas ATMs because they are expensive, but that is too broad. Whether withdrawing cash costs you money depends on your card's rules and whether the ATM operator charges a separate fee.

For example, some debit cards offer a fee-free allowance for overseas cash withdrawals. Monzo currently charges no foreign transaction fee for card purchases and has different ATM allowances depending on account type, while the ATM owner can still impose its own fee.

I already have a detailed Monzo review covering how I use the account and its wider features. For travel, the lesson is to check your own allowance, choose the local currency and read the ATM screen before accepting a withdrawal.

Should you take cash on holiday?

I wouldn’t rely entirely on cash, but I also wouldn’t rely entirely on one card, or even several cards, without carrying some local currency as a backup. Having at least two different ways to pay gives you options if a card is blocked, lost, damaged, or isn’t accepted somewhere.

Cash can still be important depending on where you’re travelling. If you’re going somewhere where tipping is common, you may want small notes on hand for hotel staff, taxi drivers, or other tips. You can also come across smaller shops, cafés, market stalls or other businesses that either don’t accept cards or have a minimum card spend, so having some local currency can save a lot of hassle for smaller purchases.

At the same time, I wouldn’t take my entire holiday spending budget in cash. If you lose cash or have it stolen, there is usually very little you can do to recover it, and carrying a large amount around creates an unnecessary security risk.

Some countries also have rules requiring travellers to declare cash above certain limits, so if you do intend to travel with a substantial amount, check the official entry and customs rules for your destination first.

I also spread our backup money around rather than keeping everything in one wallet or bag. I’ll normally have some cash; my wife will have some, and another family member may carry a little as well.

The same principle applies to cards. If the bag containing every card and every bit of cash disappears, you have a much bigger problem than if your backup payment method is somewhere else.

Compare the real cost of car hire too

Car hire is another area where the cheapest headline price can end up being misleading. Before booking, check the insurance excess, deposit, fuel policy, mileage allowance, additional-driver charges and the cost of extras such as child seats, rather than comparing the rental price alone. A car that looks £50 cheaper at first can easily become the more expensive option once all those extras are added.

I’ve also learnt to check exactly what the included insurance covers before arriving at the rental desk. Collision Damage Waiver can still leave you responsible for a sizeable excess and may exclude things such as tyres, wheels, glass or the underside of the vehicle, while extra cover sold when you collect the car can be expensive.

It can therefore be worth comparing independent car-hire excess insurance before travelling. These policies can sometimes cost less than reducing the excess through the rental company, although you may still have to leave the full deposit with the hire company and reclaim any eligible costs from the insurer afterwards. Check the policy carefully so you know what is and isn’t covered before relying on it.

Fuel policies are worth looking at as well. I prefer knowing in advance whether the car needs to be returned full, whether I’m paying for a tank upfront and what happens if it comes back with less fuel than required. The cheapest rental rate isn’t much use if you end up paying inflated fuel charges at the end.

If you need a child seat, additional driver or any other extras, price those before booking too.

Sometimes taking your own equipment or choosing a rental that includes something you need can work out cheaper than paying a daily charge for a week or two.

Leave enough room on a credit card for deposits

One cost that is very easy to overlook is the deposit or pre-authorisation required by car-hire companies, hotels and other travel businesses. This isn’t necessarily money they are charging you permanently, but while the hold is on your card it can reduce the amount of credit you have available to spend during the holiday.

When I hired a car in America, around $1,000 was held against my credit card as the deposit. I knew it was coming and had enough available credit, but if I hadn’t planned for it, a large chunk of my spending capacity could have disappeared just as the holiday started.

Before travelling, check how much the hire company intends to hold and make sure the card you plan to use has enough available credit above that amount. It’s also worth checking whether the deposit has to be placed on a credit card rather than a debit card and whether the card must be in the main driver’s name, because rental companies can have quite strict rules.

Remember that the money or credit may not become available again immediately after you return the vehicle either. The rental company may release the hold quickly, but your card provider can take longer to show the available balance again, so don’t rely on that money being accessible the moment you hand the keys back.

This is another reason I prefer travelling with more than one card. I don’t want the card I planned to use for meals, fuel and everyday spending tied up by a large car-hire or hotel deposit, particularly if I’m away for more than a few days.

For me, the deposit is now part of the car-hire calculation before I book. I want to know the rental price, the insurance excess and the amount of credit that will temporarily be unavailable, because all three can affect whether a supposedly cheap hire car actually works for my holiday budget.

Keep your main holiday money separate if card security worries you

If you’re concerned about card security while travelling, another option is to keep most of your holiday money in a separate account and transfer only what you need into the account attached to the card you’re carrying.

I sometimes use this sort of approach with an account such as Monzo. Rather than leaving a large balance readily available on the card I use throughout the day, I can keep a smaller amount there and transfer more money through the app when I need it.

It doesn’t prevent card fraud, and standard bank security protections still matter, but it can limit how much money is in the account linked to the card you regularly use. With modern banking apps, moving money between your own accounts while abroad is usually quick, provided you have internet access.

For me, the best approach is a mix: some local cash, more than one card, backup money kept separately, and enough available credit to cover deposits or emergencies. That way, losing one wallet or having one card declined is an inconvenience rather than something that can derail the whole holiday.

Make free cancellation work for you

If your hotel allows free cancellation, don't treat the booking as finished the moment the confirmation email arrives. Keep an occasional eye on the same room because rates can change as availability shifts.

If the price drops and the terms allow it, you may be able to cancel and rebook at the lower rate. Check that the replacement reservation is confirmed before cancelling the original, particularly when availability is tight.

This also works for some car hire bookings. Flexible bookings give you a useful option to take advantage of lower prices later without gambling on waiting until the final week.

Check your phone roaming charges before you leave

Don't assume your normal mobile allowance follows you abroad. Roaming rules and charges vary by network and destination, so check your provider's current terms before travelling rather than discovering the cost when your bill arrives.

If your normal plan is expensive abroad, consider roaming passes, local SIM cards, or an eSIM. I also download maps, films, music and anything else data-heavy over Wi-Fi before travelling, particularly for the kids' devices, because background data and streaming can use far more than you realise.

Be particularly careful on cruises and ferries. Ofcom warns that phones can connect to a ship's satellite network when they lose the normal land-based signal, and that those charges can be much higher than ordinary roaming charges.

Don't let a cheap holiday cost more than you planned

The best holiday deal isn't necessarily the lowest number on a comparison screen. It is the one that gives you what you need at the lowest realistic total cost, with enough protection to prevent a problem from becoming an even larger expense.

To save money on your holiday, I would start by comparing flight, package, and accommodation options, then add up every extra before deciding which one wins. After that, look at cashback, loyalty benefits and payment methods as ways to reduce an already competitive price rather than using them to justify an expensive one.

The same thinking applies once you're away. Avoid unnecessary card fees, check local transport, use free attractions where they suit you and spend the money you save on the parts of the trip that actually matter to you.

Frequently asked questions

Is it cheaper to book a package holiday or book separately?

Either can be cheaper, depending on the destination and dates. Compare the package price with the total DIY cost, including baggage, transfers, accommodation and other extras. Qualifying package holidays may also include consumer protections that separate bookings do not provide.

When should I buy travel insurance?

Buy suitable travel insurance as soon as you book your holiday. This means cancellation cover can potentially protect you during the period before departure rather than only once the holiday begins.

Is it better to pay for a holiday by credit card?

For an eligible purchase costing more than £100 and up to £30,000, paying at least part by credit card can give you Section 75 protection. There are exceptions, so check how the booking and payment are structured rather than assuming every credit-card travel purchase qualifies.

Can a villa work out cheaper than a hotel?

It can. A villa may initially have a higher accommodation price, but facilities such as a full kitchen, washing machine, free parking, several bedrooms and a private pool can reduce spending elsewhere. Compare the total cost of the holiday rather than the nightly accommodation rate alone.

Should I take cash or use cards on holiday?

I prefer a mixture. Some local cash is useful for tips, smaller purchases and places that do not accept cards, while more than one card gives you a backup if one is lost, blocked or declined. Keep backup cash and cards separately rather than carrying everything in the same wallet or bag.

Should I pay in pounds or the local currency when abroad?

Usually choose the local currency. Paying in pounds can allow the retailer or ATM operator to perform the currency conversion using its own exchange rate, which may be less favourable than the rate offered by your card provider.

How much credit do I need available when hiring a car?

Check the rental company's deposit before travelling because it can be substantial. A deposit or pre-authorisation temporarily reduces your available credit, and some hire companies require the card to be in the main driver's name. I have previously had around $1,000 held against my card for a car-hire deposit.

What hidden holiday costs should I check before booking?

Look beyond the headline price and check baggage, seat selection, airport parking, transfers, tourist taxes, hotel parking, resort fees, meals, mobile roaming, car-hire extras and attraction parking. Small charges across several parts of a holiday can add hundreds of pounds to the final cost.

How can I save money on flights?

Compare nearby dates and airports, check the total fare after bags and seats, and use price-tracking tools such as Google Flights. Once you find a suitable flight, compare the airline's direct price with reputable booking sites and any cashback available before paying.