In the era of budget airlines and package tourism, getting a holiday through a high street provider like Thomas Cook is cheaper than ever – even with the current financial crisis. However, it’s the additional bits and pieces that you pay when you’re out there which can turn even cheap holidays to Tenerife into an extremely expensive spell of lying on a beach.

The biggest cost is usually money exchange. A lot of people decide to get cash – but this isn’t the safest, or the cheapest way of ensuring that you have spending money abroad. Some people decide to fall back on their debit cards which is an absolutely terrible choice and can cost £100s is repeatedly used.

The best option is to get a specialist card, these are often UK based credit cards that are great when used abroad offering really good exchange rates (important) and no withdrawal fees from ATMs. However, most people don’t want to get a credit card just to use it abroad, so a good alternative is to get a pre-paid travel card, these often charge per transaction, so it’s best to go an ATM once a day (at most) and get your money out for the day, however, they are safe, easy to top up, and have great exchange rates.

Transport is often also another expense and not just when you get to your destination. Simply getting to the airport can cost you a packet, so a good idea is to use a specialist service (if you’re driving to the airport) or look for other deals. Most airports have nearby pubs which rent out their car parks and save you up to 50% of the car parking cost.

When you get to your destination, in Europe public transport is usually the best and cheapest option, but there are cheap car hires if you’re going somewhere like Tenerife where you might want to explore by yourself, here a comparison website is the best option. Bear in mind, if you’re going island hopping renting a car is an expensive way to get around.

Another must is travel insurance, and you can end up paying over the odds for it. If you’re going for a long period, it’s better to get annual trip as this will save you more (in fact, if you’re likely to go on holiday more than once during the year, annual trip is a good idea). Or, if you’re going in a family, getting a group insurance deal can also be a good way of cutting back costs. The most important thing with travel insurance is the value of the deal, if you’re going backpacking and don’t know what activities you’re going to get up to, make sure that your insurance covers everything, that way you’ll never find yourself in too much trouble (at least not with the insurance company).

Travel companies generally cover most eventualities, and most of the major costs, but you can still find yourself spending more money than you had planned if you don’t do a little bit of quick preparation beforehand.

This entry was posted on Saturday, January 28th, 2012 at 10:27 am and is filed under Travel General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.