Plan ahead for the best holiday deals

With Christmas behind us and warm sunny days a little way into the future, it’s hardly surprising that many people’s thoughts are turning to holidays.

There’s nothing like the prospect of some sun on your back to get you through the first few weeks at work after the break.

For many though, budgets are strained this year and every penny needs to be stretched to breaking point, so Your Money has some ideas on how to make your pounds go further.

Firstly, always shop around. High street travel agents are just one of many places you can book a holiday. Work out where you want to go and then do your research online, on foot and over the phone. You should be able to get an idea of what constitutes a reasonable price for your chosen destination and then it’s simply a question of booking via the cheapest and most appropriate option.

Alongside shopping around comes asking for a discount. As a nation, we are extraordinarily bad at this (or haggling, as it’s more vulgarly known) but in these times you’d be crazy not to. It’s not exactly a secret that some travel agents are in trouble, and you can pretty much guarantee that the price on the card in the window has some leeway built into it.

Buy your currency at the right time. Once you’ve worked out where you’re going, see what currency you need and check the exchange rate. Buying at the best exchange rate can save you a good deal.

As an example, the pound is currently at its highest level for months against the Euro, so if you’re thinking about travelling to Europe later on this year, now might be a good time to load up your card.

Whatever you decide to do about your money, always buy it in advance. Airport rates are considerably less beneficial.

Buy the right travel insurance. Travel insurance needn’t be expensive, but it does need to be appropriate. Beach holidays obviously require different cover to winter sports breaks, but what ever type of holiday you’re taking, be sure the cover meets your needs.

Bear in mind that if you’re lying under a parasol and are consumed by the urge to go paragliding, you may well not be covered, so check the small print.

If you go abroad more than twice a year, an annual policy is a better bet than getting it on a trip by trip basis, but before you even contemplate buying insurance, check with your bank. Some paid for accounts have travel insurance as one of their benefits.

Be wary of any extras that the travel agencies offer you, such as parking or transport to UK airports. They’re not doing this out of the goodness of their heart and you’ll pay for the convenience. You’re much better off booking both online – there are several airport parking sites – and buying your train or bus ticket in advance will save money.

It’s a similar story with car hire. It’s more than likely you’ll get a better deal if you talk to the hire firm direct, but make sure you do it before you get there. Advanced rates are generally much better than on the day ones

Think about your mobile. Using it abroad can be horribly expensive, despite the best efforts of the EU, and the last thing you want to come back to is a massive bill. Check with your provider and see if you can find a better deal for while you’re away.

Finally, tell your bank when and where you’re going. Their fraud antennae are (fortunately) much more finely tuned than they used to be, but this does sometimes lead them to be slightly trigger happy when it comes to cancelling cards. And no-one needs that while they’re trying to relax.