Tips for families heading abroad for summer holidays to save money
More than three-quarters (78%) of families are planning a trip abroad, according to a recent survey from Post Office Travel Money.
But research for its Holiday Spending Report, released earlier in June, also found that nearly three-quarters (74%) of them bust their budget on their last trip, by hundreds of pounds typically, spending an average of £323 more than the £766 they had allowed for resort costs including meals and drinks.
The Post Office used two surveys of more than 2,000 people, carried out in April and May, for its research.
To help families avoid overspending on their next trip abroad, Post Office Travel Money has made some suggestions:
– 1. Look for a resort where the cost of living is low.
The Post Office said holidaymakers surveyed in its research rated Spain and Turkey strongly for value. It may also be worth asking friends and family members for their recommendations.
– 2. Cut the cost of meals and drinks.
Busy beachside cafes and restaurants in tourist hotspots may be pricier than the places where local residents choose to eat. Local draught beers and carafe wine may also sometimes be less expensive than international brands.
– 3. Pick a destination where sterling is strong.
Laura Plunkett, head of travel money at the Post Office, said: 'Despite fluctuations and some uncertainty about sterling when it fell against key currencies earlier in the year, it has now bounced back from its January dip and currently looks stable. This is a reassuring trend for holidaymakers planning trips abroad this year.'
Some holidaymakers may have booked to travel to the United States following the strengthening of sterling against the US dollar. The Post Office suggested that holidaymakers may also consider locations where currencies are pegged to the value of the US dollar.
– 4. Consider self-catering or 'all inclusive' packages.
Self-catering breaks enable holidaymakers to set their own food and drink budgets.
Past Post Office research has indicated that the Balearic Islands offer good value shop prices, while supermarkets in the Algarve and the Costa del Sol have also been seen as offering good value.
The Post Office said going all inclusive can also be a good way to rein in costs but urged people to make sure they check what is included in the package price so they do not end up paying unexpectedly for extras.
– 5. Budget carefully.
The Post Office suggested setting a realistic budget to cover all costs as well as researching the best exchange rates before travelling and avoiding fees for topping up holiday money spending while abroad.
Some holidaymakers may want to consider a pre-paid currency card, or look at banks which do not charge foreign transaction fees.
Ms Plunkett said: 'Paying on a debit or credit card may seem like a convenient way to pay for things while abroad, but our research suggests that this can be a costly practice. Far too many holidaymakers told us that they paid significantly more than they anticipated because of transaction charges made for using credit and debit cards at an overseas ATM.'
– 6. Consider making a shorter trip.
The Post Office research found some holidaymakers are cutting their costs by making shorter trips, or booking cheaper accommodation to afford their trip abroad.
– 7. Sidestep 'pester power'.
Parents told the Post Office that on their last holiday they spent an average of more than £200 on children's beach items such as buckets and spades, swimming masks and snorkels, water rides, ice creams and visits to water parks.
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