Avoiding the hidden costs of budget holidays

Today's fast-paced travel industry has never been more competitive, and with many carriers offering year-round sales it's tempting to buy into the hype about holidaying for pennies. Before you signed on the dotted line, though, there's a raft of hidden expenses that you need to watch out for.

The worst offenders for slipping in extra charges are none other than the airlines themselves. We've all been bowled over by fares advertising 1p flights, but by the time you get to the booking stage things often seem less rosy. Check-in desks, extra baggage allowances, in-flight meals and even pillows: they all come at a price when you're flying with a low-cost carrier.

Decide beforehand how many frills you can really do without, therefore, and ignore any fares that omit the crucial phrase "all taxes and surcharges included". Some extra fees – such as credit card booking charges – are simply unavoidable, so make sure you factor them into your budget. And don't for a second think that only the airlines are up to it.

Travel agents often reserve the right to jack up their prices at the last minute, typically when the value of the Pound falls. This is because holiday firms usually pay for services in local currencies, and when they get less bang for their buck they're naturally inclined to pass on the expense to you (cases of agents lowering prices when the Pound strengthens are, curiously, harder to come by).

Savvy credit card holders will already be aware of the need to pay off balances promptly, but when spending money overseas a host of new charges come into play. Most credit and debit card companies will levy a fee of between two and three per cent when you spend money abroad, so either shop around for the best rates or just ditch your plastic for traveller's cheques. Watch out also for poor-value Bureau de Changes, particularly in airports and city centres.

Another oft-overlooked area is the cost of using your phone. Thankfully there's some good news on this front, as new EU legislation will soon require phone companies to curb the cost of sending SMS text messages and making calls while abroad. International data roaming charges on smart phones remain expensive, however, so take a look at Cheapflights' very own iPhone travel tip for some helpful pointers on keeping costs down without disconnecting altogether.

And when it's not an airline, travel agent, credit card company or phone provider putting the squeeze on your finances, look no further than yourself. Holidays are supposed to be fun, but even the thriftiest of us can get carried away when swept up in the excitement of visiting somewhere new. Ditching private taxis for public transport is just one way of tightening your purse strings, with the added bonus that it will provide a more authentic experience of your destination.

Finally, the quickest way to throw your money down the drain is selecting a travel company that goes bust. Always ensure you book with a reputable, ATOL-bonded firm, as this will guarantee you financial protection against any such doomsday scenario.

 

© Cheapflights Ltd, Martin Rivers