Savvy Summer Holidays

Q - We want a family summer holiday but the recession means a tighter budget this year. How can we enjoy the beach without denting our bank account?

A - You're not alone – the poor pound means less euros and dollars for your money so your summer holiday could cost you a third more than last year. And one in five of us will be swapping our sun lounger for the sofa and enjoying a 'staycation' this year, which means enjoying days out closer to home rather than a two week break abroad. But whatever your holiday plans there's lots of ways to make your money go further...

Look beyond the euro zone countries and check out destinations like Egypt, Bulgaria, Turkey and Tunisia as they're tipped to be cheaper. And when comparing holidays, don't just look at the brochure price; add in what you'll spend once you're there. That includes all those meals out, bottled water and your hire car bill. Even unexpected costs can put a hole in your pocket; a spare bottle of sun cream costs £6 in Turkey but a whopping £15 in Greece. And an ice cream will set you back less than a pound in Tunisia but £1.60 in the Algarve.

Booking your holiday
Protect your holiday. Over twenty airlines went bust last year, along with big holiday companies like XL, so always look for ATOL bonding when booking. This means you'll get your money back or get flown home free if your tour company goes bust. And booking through an ABTA member, (the Travel Association) gives you extra protection too.

Booking flights on airline websites doesn't offer the same level of protection so pay by credit card if the cost is over £100. Under consumer law this makes your credit card company liable if the airline goes to the wall so you're guaranteed a refund.

Free child places sound a great deal but look at the overall 'family' price when comparing holidays. And when booking hire cars check if you'll pay more for child car seats as some companies charge for this whereas with others it's included in the price.

Travel insurance
Don't buy a policy from travel agent; shop around to save up to 30%. If you take more than one break a year it's often better value buying an annual policy which covers UK breaks as well as abroad. Look at the payout not the policy price - minimum medical cover of £2 million is recommended for European holidays by the insurance industry. And worth taking an EHIC, (European health insurance card) too, as this gets you free medical treatment across Europe. It's free – get a form from the Post Office to apply.

Get more currency for your pound
Don't buy at the airport; exchange rates are usually lower than the high street. Get your currency commission free from the Post Office or M&S. And make sure you take a credit card that doesn't charge 'loading' fees, (that's commission), on purchases abroad. Many charge around 3%; that's £3 on every £100 which all adds up. Once abroad, don't fall into the trap of converting local prices back to sterling. Shops offer this option but it's a poor exchange rate and can boost the bill by 5%. Exchange rates are often set by the retailers and you'll get a lower rate than the one used by your credit card company which means those holiday souvenirs will cost you more.

And limit cash withdrawals on your credit card as you'll be charged around £3 every time.

Take a 'staycation'
Children may prefer this option as they won't spend hours in airports, cars or on planes so go for family days out. Look in the papers and on websites for discount vouchers for theme parks or get four times more for your money cashing in Tesco clubcard vouchers.

Go self catering for flexible holidays; no fixed meal times and save money ordering your food shopping online before you go if you are holidaying in the UK. This way it's delivered to your holiday home which saves a tiring shopping trip when you arrive and the kids want to hit the beach!

Free or low cost days out in UK
Consider camping - you can save money buying a tent and any equipment on eBay and the kids will love the excitement of a holiday under canvas. And there's lots of free museums across the UK - have a look on the internet or check your local paper for details of activities for kids during the summer holidays.

Swap your home
There's lots of house exchange websites where you sign up and offer to 'swap' properties. You'll save money as you won't be paying a hotel bill and as you won't be staying in the tourist areas you won't pay rip off prices for food, drink and souvenirs. There's usually an annual fee to register your property and you can swap in both the UK and abroad and it's often a way for kids to learn more about the local culture.

Sources
19% of us opting for staycation – figs from Legal & General's Changing Face of British Home release (April 4th 2009)
Sun cream costs from Thomas Cook 'Holiday Cost of Living'