After two years of pandemic-limited travel, many of us have planned a well-earned overseas holiday this summer. However, rising fuel, energy and food prices combined with a general increase in demand, mean that the price of a holiday in the sun has increased by as much as 20% compared to 2019 prices1. On top of this, prices for travelling to the airport or your resort, travel insurance and food and drink both from the supermarket and restaurants have all risen significantly.
This could well create a cost crunch for those of us lucky enough to be heading abroad this summer. However, with a bit of planning, there are some simple holiday hacks that could help you avoid unnecessary spending and keep costs manageable – plus if you’re a Sovereign customer there are some great discounts to be had!
Getting around
Airport parking and car hire prices have increased sharply, with the latter more than doubling from an average of £220 to almost £500 per week in the last two years2. To pay the minimum possible charge, shop around and book your airport parking, train journeys and car rental as soon as you’ve booked your holiday. The prices of these increase the closer to your departure date you get, so booking early will help keep cash in your pocket. If you’re a Sovereign Health Care customer, don’t forget to check out the discounts available on airport hotels and parking and car hire via Sovereign Perks. Simply log in to the secure customer area to access your savings.
At the airport
How many of us have been stung by the sky-high price of food and drink at the airport – often as much as three times the price paid elsewhere? Avoid overspending before you jet off, by bringing snacks and lunch with you – Moneysupermarket estimates that a family of four can save £28 on lunches by planning ahead in this way. For unavoidable costs such as water, shop around. Some shops will charge up to 40% less than others at the same airport, which delivers quite a saving when you’re buying enough for a whole family3.
Holiday cash
With a poor British Pound exchange rate meaning we’re getting less for our money in many destinations, it’s important to get the best possible rates and avoid unnecessary charges. According to Money Saving Expert, buying 1000 euros can cost you a whopping £120 less if you buy currency from the cheapest bureau compared to at the airport. Even better rates can be secured by signing up for a specialist travel credit or debit card (unlike your normal debit or credit card, these don’t charge overseas usage fees) – just make sure you pay off the balance in full each month to avoid paying high interest rates. Sovereign customers can make savings on the UK’s first Direct Debit travel card – log in to the customer area and head to Sovereign Perks for more information.
Holiday insurance
Delays, cancellations and other complications as a result of the pandemic have added an average of 50% to an annual travel insurance policy. However, by shopping around, you can often pay half the price of the more expensive options for the same level of cover.5 Don’t rush to accept a renewal quote for an annual policy before checking what else is out there and, remember, if you’re a Sovereign customer, visit Sovereign Perks to check and access travel insurance discounts.
Research your trips and treats
One way to keep your holiday spending in check is to research and book restaurants and trips in advance. Rather than ending up at high-priced ‘tourist traps’, restaurant review sites provide a useful steer on the best food for reasonable prices and booking day trips online is often cheaper than paying once you’re overseas.
We hope these tips will help your hard-earned cash go a little further, as you head off on your summer break.
1 https://www.thetimes.co.uk/article/time-to-get-creative-as-holiday-prices-soar-zpw26ch8n
2 https://www.bbc.co.uk/news/business-62121164
3 https://www.travelsupermarket.com/en-gb/blog/travel-advice/slash-costs-getting-airport/
4 https://www.moneysavingexpert.com/travel/cheap-travel-money/