Here's How You Can Maximise Your Holiday Budget In 2025!
As winter kicks in, you may well be thinking about summer holidays, after all as the New Year kicks in, we'll all be subjected to wall-to-wall holiday company adverts on the TV, so here are some of my top money-saving tips on being savvy and getting the best price on your holiday, finding holiday savings while you are away and finding affordable options. Hopefully, these simple tips will help you save on your holiday expenses and help you have a good time for less.
Compare prices: Travel comparison/price comparison websites and airline websites are good places to compare prices and find the best deal for your holiday budget. These travel-related comparison sites have huge resources and are an easy way to monitor live price changes and deals/cheapest flights, and can list some great offers, especially on cheap flights, so they are well worth checking, but always shop about. Set up price alerts for your chosen destinations so you can be alerted to changes in pricing. If you have found where you want to go and stay, do a search for the exact dates with the airlines/hotels direct to see if you can get a cheaper price by booking direct with them, rather than a comparison site, as that can sometimes be the case. It takes a little bit of planning, but the good news is that they can reduce your holiday and travel costs, leaving you extra cash for spending while away.
Google flights is an often underused resource to find cheap flights; it lists a large number advance or last minute flights with easy-to-understand flight prices. Last summer, I saw some unbeatable last-minute deals on the site, wioth the best prices I'd found , so I'll be checking them out for my 2025 holiday!
Pay by credit card! - Even if you have the money in your bank account and plan to pay by your debit card, use a credit card. If you pay for your holiday with a credit card, you have added protection under the Consumer Credit Act, which can help you recover your money if things go wrong, such as if the tour operator goes out of business.
Also, many credit cards offer rewards and points for purchases, which you can redeem for discounts, free flights or upgrades, and other benefits.
Also, paying for a holiday with a credit card can allow you to spread the cost over a longer period, which can be useful if you're not able to pay for the holiday upfront, but only if you have a decent interest-free period; there's no point paying interest on your payment if you have the money in the bank; leave it as long as possible before paying off the holiday with your debit card, to keep your money in your bank account, or ideally a savings account, longer, making much better use of your money.
Look at holidays that give you the option to secure without a deposit or with a low deposit, where you don't have to pay until close to the holiday times and/or long cancellation times without any fees, as these can be invaluable to keep your money in your bank account longer!
Be flexible: If you're flexible with your travel dates and destination, you can often find lower prices during a particular time of year. If you have kids, you'll know that going away during the school holidays will likely be much more expensive! If you travel when kids are at school, you will find far better offers, which isn't helpful if you want to take the kids off course, but sometimes the fine for taking the kids out of school during term time still makes the holiday cheaper than going at peak time, so long as the school play ball, of course!
It's worth remembering that other countries may have peak times different from those in the UK. As an example, British Wintertime is Australian Summertime, and so where you might think it's cheaper to head to Oz in January, you may find it to be far more expensive than you thought, as the schools are on Summer holiday from mid-December until late January and everyone is hitting the beach and tourist attractions, so hotel availability and prices may not be in your favour! The best way to check is by checking online resources to see when the school holidays are in the area you want to travel to.
Look at alternatives to typical British summer hotspots like Spain, Greece or Turkey; considering less popular or emerging destinations can offer much better value.
If you are looking to holiday in the UK, Plan your trip around Heritage Open Days in September for free attraction entry or explore the UK's 15 National Parks, which are free to enter. Look for destinations with plenty of free museums and galleries, as they can keep your expenses much lower than theme parks, etc.
Use Public Transportation
Book train tickets in advance for the best prices
Consider regional rail passes for unlimited travel within specific areas
Look into Rail & Sail offers that combine train and ferry journeys
Book package deals: Package holidays that include flights, hotels, and transportation can sometimes offer better value than booking each component separately.
It's always worth getting prices for package holidays and booking all the components of your holiday needs, such as flights, car hire and hotels, separately, as deals can vary massively. You often find free child places as part of package deals, which can be one of the best ways to lower the cost of a family holiday.
Factor in all-inclusive deals, as if all your meals are included in a package, this can make a big difference to your budget and the amount of spending money you will need, which is especially helpful as currency conversion rates aren't the highest they've ever been for travellers, so not having to spend money on food could save you a lot of cash, but make sure if you are going somewhere where meals are provided you:
1. Check other traveller reviews on the food; you don't want to eat somewhere with high levels of negative reviews! Social media is a good place to look for honest reviews!
2. You check out the menu before you book to ensure the food is suitable for your family. If you are taking children with you and they are the fish finger and chips kinda kids, but the restaurant is a squid and seafood or spicy curry type establishment, it's going to go down poorly! You don't want to have to fork out spending money on meals externally from the hotel you are staying at; that defeats the purpose of an all-inclusive holiday!
3. In addition to the above, see if the hotel has more than one restaurant; variety is the spice of life, and if you're staying at the same hotel for a couple of weeks and they have only one restaurant and a limited menu, you're family members are going to get bored of the same food every day, and so may end up spending more money than you intended going out and having to pay for food at other restaurants.
Use loyalty programs: Join loyalty programs and collect points to use towards your holiday. Popular loyalty schemes include, but aren't limited to:
Virgin Atlantic Flying Club: The Virgin Atlantic Flying Club allows you to earn miles when you fly with Virgin Atlantic or one of its partner airlines and then use those miles to redeem flights, upgrades, and other travel-related rewards.
Nectar: Nectar is a loyalty scheme that allows you to earn points when you shop with participating retailers, including travel companies, and then use those points to redeem rewards.
EasyJet Plus: EasyJet Plus is a membership scheme that allows you to earn points when you fly with EasyJet and then use those points to redeem flights, upgrades, and other travel-related rewards.
Avios: This scheme allows you to earn points by flying with British Airways and other partner airlines and then use those points to redeem flights, upgrades, and other travel-related rewards.
Whichever airline you decide to fly with, make sure you check if they have a loyalty club/app, as you may be able to earn points to put towards a future flight, or grab discounts at the airport, or while onboard the aircraft, and maybe even score access to the airport lounges for a reduced price, or even free which is a good deal.
Consider alternative accommodations: Consider alternative accommodations such as vacation rentals, hostels, or camping to save money on lodging costs.
Camping: Camping is a budget-friendly option for those who enjoy the great outdoors. Various camping options are available, including wild camping, caravan parks, and glamping. Camping is a great way to explore the local area, local attractions, cultural landmarks, and historical sites and a good way to enjoy a family holiday, just so long as you don't mind living 'off grid' for a while and are happy to pack light.
Hostels: Hostels offer basic accommodation at a lower price than hotels and often have shared facilities such as kitchens and lounge areas.
Vacation Rentals: Vacation rentals, such as holiday cottages, apartments, or Airbnb properties, can offer more space and privacy than traditional hotels and can sometimes be cheaper, especially if you're travelling as a group. Look into self-catering options like holiday cottages or apartments, as having cooking facilities can dramatically lower your food costs.
B&Bs: Bed and breakfasts can offer a more personal and homely experience than hotels, and often at a lower price, although they don't often have evening meal options, so make sure there are local restaurants nearby.
House-sitting: If you're willing to take care of someone else's home while they're away, you can save money on accommodation by house-sitting. This way, yopu look after their house/pets for free, or for a low fee, and in return, you have use of the house and can use this as a base for exploring the local area!
Couchsurfing: Couchsurfing is a hospitality network that allows you to stay with locals for free, experience local culture, save money on accommodation costs, and not spend much money.
AirBNB - Although not always cheaper, during off-peak times, you can grab some great deals if you aren't too worried about where you go and when!
Book Early
Booking your holiday well in advance can lead to significant savings. Many tour operators and accommodation providers offer early booking discounts, especially for popular destinations and peak travel periods. Also booking early secures the best choice of flights, accommodations, and departure dates; the later yopu leave it, the less choice you may have!
Equally booking in advance and looking for 'Early Bird' offers could bring you some decent savings. plus could also mean you are less likely to be affected by fluctuations in currency rates, cost of living rises or fuel costs, which can be passed onto holiday prices and cost you extra money.
Cashback: If you are buying a holiday online, make good use of cashback sites to see if they are offering any special cashback offers. These are a great place to grab cashback of up to 12% on the cost of your holiday, plus even more on add-ons such as car hire, and travel insurance (which you should take out BEFORE you pay for your holiday as you will then be covered for any unexpected issues, which the insurance may cover, but the holiday company you book through doesn't. Holidays are often a large purchase, and there's nothing worse than something happening that ruins your plans).
The cashback is usually paid once you've been on your holiday, rather than before, so bear that in mind. The reason for this is that if they pay you cashback before you go, you may cancel your holiday and get a full refund, plus you will have made a cashback profit, which isn't good for their cash flow!
Read our cashback blog post to see the best cashback sites you should be using.
Your holiday spending money - Taking money with you on holiday is a must, but think carefully about in what form you take your holiday cash with you, and always have a credit card as your emergency fund in case of issues while you are away.
Use a specialist travel credit card: Consider using a specialist travel credit card that offers low or no foreign transaction fees and competitive exchange rates, and sometimes credit card points. Examples include:
Halifax Clarity: A credit card with no foreign transaction fees, no cash withdrawal fees, and no hidden charges when used abroad.
Barclaycard Rewards: Charges no fees or interest on spending AND overseas cash withdrawals, provided you repay in full.
Post Office Credit Card: A credit card with no foreign transaction fees, no cash withdrawal fees, and competitive exchange rates. I have this one and have had no issues with it!
118 118 Mastercard: No fees on spending or ATM withdrawals overseas or interest on cash withdrawals if paid In full. Higher APR than other cards, but the card is easier to obtain
Use a currency app/card such as Zing or MyGuava as they offer options for cheap currency conversion and digital/physical cards, which allow you to transfer money in your account to local currency, and real-time exchange rates, which reduces your exchange fees dramatically and may be a better option than using your credit/debit card to make international purchases.
Other cards with similar benefits exist, but these four are regarded as good options for travellers. Remember that the more cards you apply for, the higher the impact on your credit score.
Choose the right exchange rate: Check the exchange rate offered by different providers, including banks and currency exchange offices, to find the best exchange rates. Pre-order the currency if you can to lock in more competitive rates, and NEVER get your currency at the airport; you will get horrible rates and find it a more expensive way to grab your holiday spending money!
Avoid using ATMs abroad: Using ATMs abroad can be expensive, as you'll be charged both a foreign transaction fee and a cash advance fee.
Use a local currency: When shopping or eating out, pay in the local currency instead of sterling to avoid the conversion fees that your card issuer can add.
If you are taking a lot of money with you, remember most countries have limits on the amount of local currency that can be brought in or taken out. These limits are set by the country's central bank or government and are subject to change. The limits can vary from country to country and may depend on factors such as the purpose of the trip and the traveller's nationality. In general, it's best to research the local currency regulations for the country you're visiting and to declare any large amounts of currency when entering or leaving the country.
By implementing these strategies, travellers can enjoy a memorable summer holiday without breaking the bank. Remember to book early, be flexible with your plans, and take advantage of comparison tools and package deals to maximise your savings.