Hidden holiday costs from card charges while abroad, to extra luggage and seat reservation fees, are making it harder to find cheap deals and budget while abroad. Here, Georgie Frost from ‘The Times’ newspaper, explains the most sneaky costs and how you can avoid them.

The average price of an all-inclusive package holiday to some of the most popular Mediterranean destinations has increased by almost 25% in a year, according to TravelSupermarket.

With costs rising, you don’t want to be paying more than you need to on holiday. So if you want to soak up some sun this year without getting financially burnt, here are some of the top hidden holiday costs and how to avoid them.

1. Book in advance…or last-minute

If you know where and when you want to travel, then booking in advance is almost always going to be cheapest.

It’s best to book about six months ahead if you will be travelling during the school holiday peak – otherwise, three months is optimum, according to Skyscanner. If you can, though, steer clear of school holiday dates and bank holidays when demand, and therefore prices, tend to be high.

When it comes to booking your flights, the first four months of the year are best, with January being the cheapest month, says Skyscanner.

The consumer group Which? found that it is best to avoid flying on Fridays and Saturdays, which are the most popular days to travel, while Tuesday is typically the cheapest day to fly.

However, if you are flexible on dates and even location, then keeping an eye out for any last-minute deals might pay off. Sign up for the relevant newsletters and set up travel alerts on your phone.

Buying your package holiday through a travel agent could cost hundreds of pounds more than doing it online, according to an investigation by Which?

The consumer group discovered that two weeks in the Dominican Republic was £162 more on average for a couple if they went via the likes of Co-Op Travel*, Hays*, Kuoni*and Tui* than online.

A week’s holiday in Spain was £252 more on average. Although in the most extreme case, Which? found that seven nights in Spain was a whopping £887 more expensive with Kuoni than going online.

Booking a holiday by phone can also add to your costs.

Remember to check when your passport runs out, too. We have more on passport renewal times and costs*.

3. Pay with a credit card

Paying with a credit card* won’t cut down on hidden costs now, but it might in the future if something goes wrong.

One of the biggest holiday scams* is booking accommodation that doesn’t exist.

If you made your purchase using your credit card and it was over £100 and under £30,000*, your credit card provider is jointly responsible with the retailer for any issues that may arise, meaning you should get your money back.

Remember it’s best to pay off your credit card in full at the end of each month to ensure you are not hit with high interest fees.

4. Get travel insurance as soon as you book

Good travel insurance is worth its weight in gold, but it doesn’t have to cost an arm and a leg.

Check to see if you already have travel insurance through your bank account*. Your home insurance* may also cover you for theft, loss or accidental damage while away, so you might not need to pay for expensive add-ons. But, again, check your policy details carefully.

A valid European Health Insurance Card (EHIC) or its post-Brexit replacement, the UK Global Health Insurance Card (GHIC), is a must when travelling in Europe. Best of all, they are free!

But these cards are not replacements for good-quality travel insurance* – they will only cover you for emergency or necessary medical care for the same cost as a resident in the country you’re visiting.

You can’t always use them, and they certainly won’t help with other problems, such as lost or stolen luggage, or delays and cancellations.

Make sure, too, that you have travel insurance in place from the moment you buy your trip. Research from Just Travel Cover* found that holidaymakers, especially young people, are leaving it to the last minute.

This leaves you vulnerable should something happen between the time that you bought your holiday and when you get covered, such as cancellation or illness.

Check out our best travel insurance providers*.

5. Watch out for the tourist tax

Check before you travel on how much you can expect to pay in tourist tax at your destination, so you can work that into your budget. The tax will usually be incorporated into the cost of your flight or be payable with your accommodation.

Amsterdam charges tourists a €3 (£2.50) per-person, per-night fee, in addition to a 7% charge on holiday rooms and camping sites. Those staying in Airbnb or other self-catering accommodation are charged at an increased rate of 10% per night.

In Venice, you can expect to pay from €1 to €5 per person, per night (for the first five nights of your stay), and this must be paid directly at your hotel or B&B.

Thailand recently imposed a tourist fee of 300 Thai baht (£6.70), which is added to the cost of airline tickets.

6. Make use of comparison sites…

When looking for the cheapest flights, hotels or package deals, comparison sites such as TripAdvisor*, Skyscanner*, Trivago*orTravelSuperMarket*are a good place to start. They will scour the market to find the best prices.

It’s worth comparing direct prices with as many comparison sites as you can – this will help make sure you’re paying the lowest price possible.

You can also find reviews on these sites, so you can read what other customers have to say before you book.

We have more on what you need to know before booking your next holiday*.

7. …but don’t be rushed into booking

While searching for your perfect holiday, you might have noticed phrases such as “only one room left at this price”, “87% of accommodation on your dates is unavailable” or “booked two hours ago”.

Despite a crackdown by the Competition and Markets Authority watchdog in 2019, holiday websites are still using these pressure-selling tactics.

The idea is to make you feel that if you don’t act now, you could lose out on a great deal. People can be rushed into making a decision as a result, and it could end up costing them more.

Don’t feel pressured by these marketing gimmicks; don’t part with your money until you’re ready to book.

Before you fly

8. Get travel money before you head to the airport

It is best to organise your travel money in advance. The high exchange rates at airports mean that they are often the most expensive places to get your cash.

If you are ordering currency online, do so in good time and check for delivery fees, which can often be high.

Eurochange*, for example, charges £5.00 for delivery if you order less than £500. John Lewis Finance* charges £5.50 for orders under £500.

If you can, head instead to a reputable currency exchange centre or the Post Office*, which usually means you have to pick up the money yourself, but that avoids delivery fees. But of course, check if the rates are worthwhile before you do.

9. Check-in early

If you don’t check in online in the right way and at the right time, you could face a hefty fee.

Ryanair passengers must check in online before they get to the airport and more than two hours before they are due to fly – otherwise, it could set them back an extra £55, or £30 for flights from Spain.

A family of four flying via Wizz Air* from a European destination can expect to pay €52 if they wait to check in at the airport.

10. Choosing your seats

Airlines also bank on some people, especially couples and families, wanting to travel together – and so they charge extra for seat bookings in advance.

A family of four could spend up to £180 extra to guarantee they are seated next to each other on return flights with Ryanair, for example. If you want extra legroom on an easyJet flight, it would set you back £39.99 in the front row on a longer trip.

The aviation regulator, the Civil Aviation Authority, says airlines should “aim to seat parents close to children, but this is not a guarantee.

However, as long as you check in early and seats are available, most airlines should enable you to sit together when you book your tickets together.

11. Print or download your boarding cards at home

Don’t just rely on the travel details sent to your email inbox on your mobile phone. Printing out your boarding pass at home could save you money and even your holiday should the battery on your smartphone die or the airport wi-fi not be working.

If, for whatever reason, you turn up at the airport unable to show a boarding pass, your airline could make you pay for the privilege of printing it for you.

Ryanair* charges a £20 boarding pass reissue fee if you arrive at the airport without one.

12. Travel light

Think about how much luggage you really need to take with you as the cost of booking a suitcase into the hold could end up costing more than the flight itself.

If you are flying with easyJet*, you can buy checked baggage in three sizes: 15kg, 23kg and 32kg.

Prices differ if you book online or pay at the airport, and depending on the route you are taking and the travel times.

Prices for 23kg of hold luggage on easyJet, for example, start at £9.49 online but cost £48 if bought at the bag drop desk.

13. Keep within the luggage allowance and weigh it at home

Going over their luggage allowance is one of the most common ways in which travellers get stung at the airport.

Weighing your baggage before you leave the house could save you up to £70 – and the embarrassment of opening your luggage at the check-in desk.

Jet2* and easyjet charge £12 per extra kilogram over the limit. Tui’s* excess baggage charges are between £12 and £18 per kilogram, depending on the length of the flight.

If you are tempted to weigh down your hand luggage instead, watch out, as some airlines could refuse to carry this on the floor at your feet. Ryanair, for example, will charge a fee of £69.99 to store it in the hold.

14. Think about parking

Don’t leave your parking arrangements to the last minute if you are driving to the airport, as, again, it could end up costing you more than the actual flight.

Booking in advance could cut the cost by up to a third – though check that the reservation is flexible, should you need to change it.

Also, parking further away from the airport will cut down the price significantly.

A week’s short-stay parking (2-3 minute walk from the terminal) at Heathrow in July will set you back £197.80. If you don’t mind a 10-20 minute bus ride, long-stay parking will cost £127.80.

15. Bring your own food

It is a good idea to consider bringing your own snacks on board if meals aren’t included in the price of the air ticket.

You could bring something from home, but even buying at the airport is likely to be cheaper than on the flight. A Boots* meal deal, for example, costs £4.99 at Gatwick Airport and includes a sandwich, drink and a snack such as a bag of crisps.

While that is more than you would pay on the high street – and certainly by making it yourself – it is less than the £8.95 meal deal on board an easyJet flight and €10 on Ryanair. On Jet2, which doesn’t have a meal deal option, you can expect to pay £8.50 for the individual items.

At your destination

16. Check or pre-book your airport transfer 

Figure out in advance how you will get from the airport to your accommodation. It is likely that your transfer will be included if you are on a package holiday.

If not, the cheapest option might be to pre-book a taxi. Do your research and work out what are the best-value public transport routes are to take to your hotel, or whether Uber (or the equivalent at your destination) is possible and more cost-effective.

17. Be organised about car hire

One of the most common ways to get caught out abroad is when hiring a car.

Always research prices at home before committing to a specific company. Look out for excess fees and additional costs in other areas, and read the reviews.

It’s best not to leave sorting out a car until after you have arrived at your destination, as you are likely to be tired after your journey and not scrutinise the contract thoroughly.

We have much more about the car hire traps that could cost you hundreds on holiday*.

18. Keep mobile costs down

Since leaving the EU, UK mobile phone operators have been able to charge you for using your data in the EU*. A two-week holiday in Spain could cost an additional £28 if you want to access the internet.

If you signed a new contract or upgraded with Three from October 2021, you will be charged £2 a day in the EU and £5 a day for destinations outside the EU.

EE also charges £2 a day for customers using data roaming in the EU, although you can buy a 30-day Roam Abroad Pass for £10 as an add-on.

Download any music or movies before you leave the UK.

19. Use a travel card

Cash is not always king on holiday. If you lose your money while away, most travel insurance policies only cover you for a fraction of the loss.

However, card fees when abroad can add up. Buying a couple of drinks on the beach for £5 and putting it on your card could end up costing you over £1 extra in fees per transaction. These seemingly small charges all add up.

Every card provider will charge a different amount, so check the foreign purchase fee rates before you use your card or get a specialist travel credit or debit card before you travel. These can offer near-perfect exchange rates worldwide and help keep costs down.

Check out our guide to the best travel cards*.

20. Watch out at ATMs

In addition to thinking about the card you are using for your spending, consider whether you should be taking it to an ATM at your travel destination.

Some providers offer fee-free cash withdrawals of up to £500 per day.

Others might charge up to £5 or a percentage of the amount you withdraw which could be up to 5% plus an extra 2.99%, according to TotallyMoney. Some will even charge you both!

21. Pay in the local currency

When you’re at the cashpoint, restaurant or shop while on holiday, it will almost always be cheaper to pay in the local currency because you’ll get a better exchange rate.

While paying in sterling means that you know exactly how much something costs, shops and restaurants are allowed to set their own exchange rate. They are also able to add extra conversion fees on top.

Some retailers may automatically assume you want to pay in pounds, so always double-check before paying.

22. Stay an extra day

Most of us book holidays lasting seven or 10 days, and flights on those travel days can become more expensive as a result, according to the consumer group Which?.

If you opt instead for a flight the next day, you can make a saving – even if you have to pay for another night in the hotel.

Claire Irvin, head of travel at The Times, says the amount of money saved could be as high as £1,000 for a family on an 11-day holiday.

(Source: ‘The Times’ Money Mentor)

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