How to Save Money on Holidays in the Cost-of-Living Crisis
As the cost-of-living crisis continues to bite, many of us are having to make tough decisions about how to allocate our hard-earned cash. One area where we’re having to make concessions is on our holidays. But what changes are we making to our travel plans to keep costs low?
Staying Close to Home
According to a recent survey, a third of travellers have cut back on the number of holidays they take as a result of the cost-of-living pressures. When they do take a holiday, more than half (57%) of Brits are choosing to stay in the UK instead of travelling abroad. Fewer are flying, and many are heading off outside of school holidays to save money. However, those considering this should be aware that from August, adults with children may face additional penalties as a new national framework is being implemented with fines of £160 for school absences.
Eating on a Budget
It’s eating habits, however, which are most impacted by our holiday cost-cutting. 63% of those quizzed said they eat out less when they go on holiday. Whilst many opt for cheaper restaurants, many more are choosing to make their own meals whilst away. 
Cooking on holiday can be a great way to save money
Accommodation Woes
The biggest financial worry for travellers is the cost of accommodation, with more than half (57%) saying it was their cost-saving priority. Hotels are still the preferred choice for most travellers, while only 15% chose Airbnb, which has recently experienced a rise in rental costs. The average daily rate rose 36% from 2019 to 2023.
Tips for Saving Money on Holidays
Alvaro Iturmendi, a travel expert, has some additional tips for travellers keen to save money when booking a holiday – both in the UK and abroad.
Book Well in Advance
“Since holiday prices constantly change,” he said, “booking early gives you more time to explore and compare options. It also lets you look for deals and discounts.” Expedia found that booking domestic flights at least a month early saves you up to 24% on average. Booking international flights at least 60 days early saves up to 10% on average.
Watch Out for Dynamic Pricing
Most holiday booking sites, including airlines, hotels, and Airbnb, use dynamic pricing algorithms. “This means different prices are shown to customers at different times. The prices are based on many factors, such as market demand and seasonality. They also depend on personal browsing behaviours (if cookies are enabled).”
“Use multiple browsers or devices. Also, disable on-site cookies when booking a holiday. This can help you dodge the algorithm and make sure you’re finding the best deal.” 
Be savvy when booking your holiday
Take Out Travel Insurance
Finally, Iturmendi said: “Booking travel insurance for your trip helps avoid medical expenses if things go wrong. These costs could otherwise be excessive. Some policies also cover unexpected cancellations. They also protect your things if luggage is lost or stolen.” 
Don’t forget to take out travel insurance
By following these tips, you can save money on your holiday and still have a great time. Remember to always plan ahead, be flexible, and do your research to get the best deals. Happy travels!
