Holiday Chocolate - and other ways to waste money

Millions of pounds of holidays were being booked this weekend in what is expected to be a record year for travel. Travel companies even have a name for last weekend’s rush. It’s called “Sunshine Saturday as thousands of people look to plan their summer getaways. Travel companies expect passenger demand to have risen 5%.

So how to bag a bargain?

There is always the tips on how to look for the best deals – but let’s start with a favourite subject – holiday chocolate and treat. Heathrow makes £772 million a year from us because rather than just passing through the airport, we use it as a shopping opportunity. And yet shopping at the airport can be a very expensive way to buy things.

Q: How much more expensive is it to buy stuff at the airport than at your local shop?

According to research by MoneySupermarket.com. One of the worst deals at airports are sharing bags of chocolate, with a share size bag of M&M’s costing 50% more at the airport than in a supermarket. And it’s not just treats - everyday essentials like bottled water were 60% more expensive which can quickly add up, especially for families.

Other comparisons they made were

·      A bottle of Coke Zero which cost £2.20 in the shops and  £4.19 at airports.

·      A Cadbury Milk Bar was £2.75 at the shops and £4.19 at airports.

·      In their research weirdly they found Pringles to be the same cost at £2.99 in the shops and at the airport.

However, you can save money on Duty Free.

Research by Which? Showed that a litre bottle of Jack Daniel's whiskey was £20 from both easyJet and Jet2 but the average supermarket price was £32 in August 2023.

World Duty Free stores at the airport can also be much cheaper than the High Street. A bottle of Clarins Double Serum skin cream cost 16% less in a World Duty Free store than Boots – a saving of £14.

However, if you're planning to buy on your flight or at the airport then do your research first. You can check the prices before you travel as airlines publish their inflight shopping brochures online. 

Q: Where’s the best place to exchange your money?

Changing your money at the airport can be one of the worst places to get your foreign currency.

According to an investigation by Eurochange, the airport that offers the worst exchange rate for euros is Gatwick. Travellers changing 500 euros there would have spent an extra £118 unnecessarily, they claim.

Q: What is the best way to pay for stuff when abroad?

You will probably get a better rate if you spend it on one of the best credit or debit cards. But some are bad – so check them, out first. In fact, holidaymakers are estimated to be losing up to £845 million every year when using their card abroad, because they are not using the right cards, according to the Post Office.

Holidaymakers are charged an average of £21.79 in fees over the year when spending using their bank card on trips away, according to research by the Post Office.

There are two costs to watch out for: foreign conversion fees and other so called transaction fees.

Withdrawing cash usually attracts fees and unavoidable interest on credit cards. Some banks may charge between £1-£5 per withdrawal. Even if you use a card that doesn’t charge you a fee for withdrawing money, the ATM provider might.

If you are looking for some cards which offer good deals abroad, some to investigate according to Moneysavingexpert.com are: the Halifax Clarity, Barclaycard Rewards and the Lloyds Ultra Visa credit card.

If you are using debt cards rather than credit cards, the app bank Monzo says: You can pay anywhere in any currency using your Monzo card, fee-free. We pass Mastercard’s exchange rate directly onto you, without sneaky fees or extra charges. You can also make fee-free cash withdrawals up to a certain limit.

The debit card from the other app bank Starling, says you can: Pay on card or withdraw cash abroad, with no fees from us. We’ll give you Mastercard’s real exchange rate, and won’t add anything on top.

Q: Any advice on travel insurance?

Get it when you book your holiday. If you book the holiday and then nearer the time you then get the insurance policy, you lay yourself open to some big losses. If you can’t fly for some reason, an illness of family emergency – then you could lose your whole holiday. But if you get your insurance at the same time as the holiday, you are more likely to be covered if anything happens between the time you book the holiday and the time you leave.

If you are renting car, you will find it much cheaper to get annual car rental excess policy whilst still in the UK and which covers you for the whole year, rather than buying it each time you rent a car and buy the insurance from the car rental.

Q: When is the best time to book

Generally, you should book your holiday as far in advance as possible. Expedia's 2024 Travel Hacks report says you should book a holiday:

• At least a month in advance for domestic flights. This can save up to 24%, on average.

• At least 60 days in advance for international flights. This can save up to 10%, on average.

Research by Which also found that booking early could lead to some seriously good savings. For instance, a week in Portugal was £176 cheaper when holidaymakers booked it 8 months in advance compared to just a 2 weeks before departure.

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