Article Smart travel hacks for a budget-friendly holiday

As the warmer months approach, you might be looking forward to a well-deserved summer holiday – whether that’s a sun-soaked beach escape or fun-filled city break. While the cost of holidays can add up, planning and savvy spending could help your money go further. Here are some practical tips to help you holiday on a budget

Prices are accurate as of April 2024.

Consider value-for-money destinations

When planning your getaway, look for destinations with a favourable exchange rate. For example, your money is likely to go  further in Turkey and Hungary, as the British pound has strengthened against their local currencies in recent years. On the other hand, your pound won’t go quite as far in places like the United States.

Other destinations offer great value for money thanks to their low cost of living. In the Algarve, Portugal, a beer costs an average of £2.20. And in Malta, you can enjoy a three-course evening meal for two (inclusive of wine) for less than £63 – a similar meal would cost around £100 in Barbados.¹

You could also consider staycations. There’s so much to discover on UK soil, from quaint seaside towns like Deal and Whitstable to colourful cities such as Manchester and Glasgow. However, while staycations allow you to save on flight costs, they’re not necessarily cheaper, so make sure you research your destination beforehand.

Look for ways to keep travel costs down

If you’re flying, there are some strategies you can explore to save money. For example, Tuesday is typically the cheapest day to fly and Saturday is the most expensive. You can also set up price alerts to find out when airfares drop. Packing light can also help you save. If you’re able to use a laundry service for a low price at your destination, you could consider taking hand luggage only and avoid the cost of an expensive checked bag. Of course, this depends on how long you’re travelling for.

Besides being an eco-friendlier option, taking the train can help you save on baggage costs, as you usually won’t have to pay extra for your luggage. You might want to buy a UK railcard if you intend to go on regular staycations, as this can help you save up to one-third off rail fares. There are different railcards available depending on your circumstances.

While at your destination, consider getting around on two wheels, especially as bike rentals are easy on the wallet. For instance, public bike rentals in Madrid cost just €2 for the first hour.² It’s a great way to soak up the sights while enjoying some fresh air. Otherwise, taking public transportation helps you get the lay of the land and a sense of local culture.

Savvy saving on accommodation

Before booking a hotel, be sure to compare prices across sites like Booking.com and Expedia. Many of these platforms also offer loyalty programmes, which give you access to the best deals. You can also consider booking directly with the hotel, especially if you have loyalty status. Many hotels offer a discount to loyalty members who book through their own channels.

In addition, cashback portals – which may be offered by your employer – are a great way to save on accommodation, especially for pricier stays. With these portals, you might get an upfront discount, or earn back a percentage of your total spending on eligible booking platforms.

Home swapping – where you trade residences with someone else for an agreed time – could also save you money. This is because you’ll only need to pay the home exchange site’s membership fees. For example, membership to HomeExchange costs $220 for a year (about £175) for as many swaps as you’re able to organise.³ That’s less than the price of a week at a self-catering cottage. Be sure to check local council rules in case any special licensing requirements apply.

Spend smart at your destination

Before you leave, buy your travel money, as doing so at the airport is often more expensive. If you run out of cash overseas, some multi-currency debit cards offer good foreign exchange rates. Many also offer the ability to withdraw cash abroad without incurring a fee. Whenever you use your card abroad, always choose to pay in the local currency to avoid unfavourable dynamic currency conversion rates.

You should also familiarise yourself with the local currency to avoid overspending by mistake. Keep a cheat sheet of currency conversions on your phone or in your wallet for easy reference – you can use a currency converter to help you do this.

When sightseeing, you can save money by purchasing a tourist pass, which gives you access to many popular sites for a single price. In Edinburgh for example, a return ticket from the airport to the city centre (usually £9.50), a visit to the Holyrood Distillery (usually £22), a Harry Potter walking tour (usually £15) and a boat tour of the Three Bridges (usually £20) would set you back £66.50 – more than the cost of a one-day Edinburgh City Pass (£55).⁴

Tickets to some museums and landmarks could cost less on certain days of the week or month, too. For example, the Whitney Museum of American Art in New York City offers free entry on the second Sunday of every month.

For meals, venture outside of the tourist areas and instead, ask the locals for their favourite spots. Neighbourhood restaurants and street food markets usually serve less expensive – and arguably more delicious – food. Finally, if you need to stay connected while on the go, purchase a local SIM card to reduce roaming charges, which can add up quickly.

Enjoy the summer

Going on a trip doesn’t mean you have to break the bank. With some forward planning and smart travel hacks, you can keep costs down, stretch your money and enjoy your much-deserved holiday with peace of mind.