Travel Money Tips

Here are some ways to get discounts and avoid financial traps when planning your holidays

We take about 55 million holiday trips abroad each year and with the October half-term coming up, many people are about to book a short get away.

Enticed by glossy pictures of fun locations and adventures, it’s easy to forget how to make the most of your holiday money - so here is the Adam Shaw's Money Doctor guide top holidays and money.

Q: First things first - the fight. Is booking early the best thing to do?

Finding a Cheap Flight

It's usually cheaper to book flights in advance. But it's not as simple as the earlier you book it - the cheaper it is. It can be more complex than that and dynamic pricing means the flights can fluctuate in price.

To keep an eye on prices, you can set up a price alert through a flight comparison sight such as Skyscanner or Google Flights. That way, you'll receive an alert when the price drops.

Skyscanner also has a great tool that analyses when flights have been the cheapest over the past 18 months gives you the best data to make an informed guess. It's in no way a guarantee that this year's price pattern will be the same but it does offer some great

insight. For instance a flight to Malaga from London has been cheaper to book 5 weeks before departure and more expensive to book early - 10 weeks in advance.

You can try the Skyscanner tool here.

Q: What about sitting together and paying for luggage - any tips there?

Sitting Together

In recent years you may have seen extra charges which guarantee that you and your family/friends can sit together on the plane.

Ryanair seemed to be the worst for this, it seems from reports I have heard that most other airlines aren't as agressive. In fact my experience is that even Ryanair which used to always split us up if we didn't pay extra, now seem to often sit us together.

Baggage

Check the airlines own details but it can be a way to put some extra stuff in yourr hand luggage by putting bits and pieces in an airport retailer's shopping bag - which often seems to be allowed in addition to the hand baggage allowance.

Also on Ryanair this year, a friend saved money by adding the extra carry on bag at the end not at the beginning of the booking process. That's because at the start the bag came with priority boarding and at the end it was just the bag - saving money.

Flight Fillow - the flight pillow you can stuff

I've also seen travellers stuffing extra socks etc in a neck cushion, to carry on extra bits and pieces.

Q: What about booking to and from less popular airports?

Check your Airport

Flying to and and from different airports can substantially reduce the cost of the flight. But what people can forget to check is the cost of the airport transfer which can negate the cost saving you made by moving to a less popular airport.

For example a taxi to and from Heathrow from central London can cost £100 . A taxi to and from Gatwick can cost you £160. A train for a family of 4 costs £75. Where as a tube from the Times Radio studio for a family of 4 to and from London City airporty costs about £24.

So the cost of getting to and from the UK airpoirt in London ranges from £24-£160 and could be a lot more than the airfare. I once went from London to Birmingham to catch a flight - because all in all, it was much cheaper.

So don't forget to include transfers here and abroad in your cost calculation.

Q: Is it cheaper to go independently or go with a package?

Consider buying a package

If you need to book hotel accommodation as well, it's often cheaper to get a package holiday. For some reason - this can be a really cheap way of doing it and much cheaper than booking all the individual elements of the holiday separately. Also, that way, you'll have more legal rights if anything goes wrong.

Q: What about foreign currency  - what is the best way of getting that?

Changing Money

Credit cards seem to be the way increasing amounts of people pay for things and it is certainly convenient. But having some foreign cash in your pocket can be very useful especially if you are travelling to more exotic shores beyond Europe.

Don't leave changing money to the last moment. The money exchange at the airport rarely offer the best currency exchange rates as they know they are your last chance to change cash and therefore don't have to compete too much.

Try to avoid paying for your foreign currency by credit card. That is usually treated as a cash advance and will usually incur extra charges. If you pay with cash or a debit card, you can usually avoid these extra charges.

Using a Credit Card Abroad

Credit cards often charge a 'foreign transaction fee' on all purchases. These are typically 1% to 3% of the value of your purchase. That means for every £1,000 you spend abroad, you might increase your credit card balance by up to £30.

Many cards also charge fees of around 3% for cash withdrawals in a foreign currency and have a minimum charge of £1 to £3 per transaction.

Monzo, the Halifax Clarity, Barclaycard Rewards Visa credit card all have no foreign transaction or cash withdrawal fees, although there are plenty of others as well. Do check the latest before you travel as the rules do change

Should I Pay in Local Currency

You are usually asked if you want to pay in local currency or sterling. Of course paying in sterling means you have an immediate idea of what it costs you. But I have always thought that the best thing to do is to pay in the local currency.

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That's because the conversion rates used by the shop or restaurant are usually more expensive than if your bank or credit card provider converts the cost. Most UK banks use the exchange rate offered by Visa or Mastercard, which is as close to the best rate as you can get.

Q: Buying lunch on the plane or bring a picnic?

Buy Food Before You Go

One report compared retailers at Heath­­row Airport with their shops elsewhere. A Pret A Manger takeaway tuna, mayo and cucumber baguette was just £3.99 on the high street but £5.90 at Heath­­row, up 48%, and £4.50 at London’s Waterloo station.

My Italian mother-in-law once took the extended family on a Ryan Air Flight. We were all over the plane and she had brought a gourmet Italian buffet and asked passengers to pass plates of prosciutto and figs down the plane to her various family members. It went well but perhaps not something I would suggest.

Money Talks on Times Radio Thursday at 9:45am with Stig Abel and Kate McCann (and sometimes with me as well)

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Please remember everything on this site is journalist commentary and is not financial advice or guidance in anyway.

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