How to enjoy more holiday for your pound
- Wed, 20 Apr 2011
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Booking a holiday on a budget? From finding locations that offer great value to getting the best exchange rate, here's how to make your holiday pound go further.
Choosing where to go
Although the pound has traditionally been strong against other currencies, recently its value has fluctuated quite a lot. So it's more important than ever that you check the latest exchange rates to find out which destinations offer the best value for money and book travel insurance at a competitive rate.
And to make your travel pound go further, Sam Marrs Head of Sainsbury's Travel Money advises that you look for 'a competitive exchange rate and don't pay commission' when buying foreign currency.
Getting a good deal
For finding holidays at bargain prices, Money Saving Expert's Martin Lewis advises that you do need to be flexible. He says: "Booking late is the cheapest way to get a package: later means no more than 8-10 weeks before departure". He explains: "The reason is simple: the tour operators have chartered the planes and reserved the rooms, if they don't sell them, they lose money. So they're likely to drop prices the closer it gets to the dates you want to travel."
Or you need to book early. By booking nine months or more in advance, you could get early booking discounts, extra days free and other promotions which can save you money.
According to Martin Lewis, "location and timing are crucial" when it comes to getting the best deal, so you might like to avoid "hotspot" destinations in favour of less popular, cheaper countries.
He also recommends haggling with travel agencies to get the lowest possible prices on holidays. Find out his tips on making big holiday savings here: www.moneysavingexpert.com
How to manage your travel money
Be organised. Try not to leave arranging your travel money until the last minute. Be aware that using your credit card abroad could incur hidden charges, such as an additional fee on the exchange rate, cash withdrawal fees, interest charges or even a penalty each time you spend. Always check the terms and conditions of your credit cards before using them abroad. And if you do use them, use them to pay with rather than to withdraw cash, or withdraw larger sums rather than lots of small ones.
For travel money, Sam Marrs suggests "People should definitely not leave organising their travel money until they get to the airport, as it can be up to 10% more expensive." Foreign currency is available to buy from a number of places, such as banks, bureau de change, the Post Office and online. You could even pick up travel money and traveller's cheques at your supermarket when you're doing your weekly shop.
Why are prepaid cards becoming so popular?
Quite simply, they're easy to use and make managing your holiday money a breeze. You just load money onto it and then use it in shops and restaurants just like a debit or credit card. Available in euros or dollars, most of them are accepted by retailers who accept the Maestro network both in the UK and abroad. And if you lose your card, most providers will replace it for a fee of around £10 complete with all your funds. So it's safer than carrying around cash. There are fees and charges across them all, so make sure you find the right one for you. Most prepaid cards can be bought online but they're also available to buy from the Post Office and in store from some supermarkets.
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