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Top ten tips to beat the holiday credit crunch

Published: 28 October 2008 in Travel

Top ten tips to beat the holiday credit crunch

Cutting back on your holiday travel, doesn’t just mean downgrading from that lovely hotel to a self catering apartment. There are lots of things that you can do to knock hundreds of pounds of the total cost. Let JSTFinancial.co.uk look after your best interests by following our top tips.

1. Take out annual holiday insurance.

Annual premiums are very much worthwhile if you travel abroad more than once a year, and as a family. You often get discounted rates if you put the whole family on, and the policies are flexible to accommodate your needs should they change. Let JSTFinancial.co.uk search out that perfect policy for you.

2. Book early

It used to be that the best deals on holidays were ‘lates’ and ‘last minute’ deals. This has changed somewhat, and now the earlier that you book, the better deal you often get. Budget Airlines, often offer flights from 1p, should you book at least 12months in advance, so get organised, and get those flights booked. See http://www.jet2.com for those cheap European flights. For international travel try http://www.ba.com

3. Get a European Health Insurance Card

The free European Health Insurance Card (dh.gov.uk/travellers) entitles you to reduced-cost treatment within the state healthcare systems of Europe. While the card is no substitute for travel insurance, it can save you money, as you may avoid having to pay the excess on a medical claim. It is easy to apply online and the small discreet cards are credit card size so easy to carry round. They entitle you to the same treatment as if you were a citizen of that country so make sure you apply today!!

4. Use the right card to pay

On foreign currency transactions, almost all card providers impose hefty commission charges, adding from 2.75% to 5% to the bill or EVERY cash withdrawal. An exception is Nationwide (nationwide.co.uk/travel). It imposes no charges for overseas cash withdrawals from ATMs or purchases made with its debit card, and there are also no charges on overseas purchases made with its credit card. If you do have to use your card, make sure you withdraw the maximum allowable, as some providers charge per transaction so the more withdrawals you make, the more you will pay.

5. Book excess baggage in advance

Most budget airlines now charge to check in bags: a family of four with one checked-in bag each could pay as much as £128 extra on return flights with Ryanair. If you can't travel light, book excess baggage allowance when you book your flight, this will save a lot of money, as it can be up to an extra £6 per kilo at the airport. Remember those under 2 do not get an allowance at all, so if you are travelling with a baby book excess baggage allowance.

6. Pay in currency

A lot of cashpoints, along with hotels, bars and restaurants may offer to convert back into sterling for you. Don’t take this option as the rate is likely to be very poor. It is always better to pay in local currency.

7. Mobile Phone usage

Use your mobile phone as little as possible. You pay to receive calls whilst abroad, as well as make them. In Europe this summer, the rates have been capped at 18p per minute to receive and 37p to make calls, so although this is a better deal, it is still very expensive. It is often better to try to pre-arrange something with your phone provider. Likewise, texting is also much more expensive. On Orange's standard pay monthly plans, for example, it costs 40p to send a text in the USA against 12p in the UK. Again, try and pre-arrange a deal with your phone provider for the period you are away. It may cost in upfront fees, but will work out cheaper in the long run.

8. Pre order your currency, don’t buy it at the airport

Airport bureaux de change offers some of the worst deals. You're better off pre-ordering your currency and picking it up at an airport bureau. Based on rates earlier this week, Travelex at Gatwick Airport's South terminal was offering €346 for £300, compared with €372.54 if booked online. Alternatively use your local post office or travel agent which is commission free. Again, pay in cash for the currency as your credit card will be charged.

9. Pre book tickets

A family of four would pay £122 for tickets to Legoland with tickets bought at the gate. Buying at least three days ahead through lowers the cost to £82. Booking Alton Towers tickets ahead on their website would save a family of four £24.

10. Pack a picnic for your flight

On A Ryanair flight, a 500ml bottle of water will cost you £2.50 and a sandwich £4.20. Food and drink from airport shops should be much cheaper, so it’s best to stock up once you have passed through security.

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