Top Ways to Save Money on a Holiday: A UK Guide
Published 14th of January 2017·Updated 7 April 2026
Reviewed by: Reviewed for accuracy April 2026
The most reliable way to save money on a holiday is to book early, be flexible on dates, and use a fee-free travel credit card for purchases abroad. Families who plan three to six months in advance can save 20 to 40 per cent on flights and accommodation compared to last-minute prices, according to data from Skyscanner and booking.com.
Short Summary
Booking flights midweek and travelling on Tuesdays or Wednesdays rather than Fridays or Sundays typically saves 10 to 20 per cent on the same route. Google Flights and Skyscanner both have flexible date search tools that show the cheapest days to fly across an entire month.
Using a dedicated travel credit card for holiday spending eliminates foreign transaction fees, which can add 2.99 per cent to every purchase abroad. Cards from Halifax, Barclaycard and Starling Bank (current account) charge no foreign transaction fees and offer competitive exchange rates.
Many travel companies allow you to reserve your holiday for a low deposit and pay the balance in instalments closer to your departure date. This spreads the cost without putting the full amount on a credit card at once.
Packing light and travelling with cabin baggage only can save £50 to £200 per person on low-cost carriers such as Ryanair and easyJet, where hold baggage fees are charged separately from the headline ticket price.
How Much Can You Save by Booking Early?
Early booking discounts are most significant for flights and package holidays during school holidays, when demand is highest. As a general guide:
| Booking window | Typical saving vs last minute |
|---|---|
| 6+ months before travel | 20-40% on flights; 15-25% on hotels |
| 3-6 months before travel | 10-20% on flights; 10-15% on hotels |
| 4-8 weeks before travel | Variable; some last-minute deals exist |
| Under 2 weeks before travel | Usually most expensive for peak periods |
For beach package holidays booked through operators such as TUI and Jet2holidays, booking before the end of January for summer travel typically secures the best price and the widest choice of accommodation grades.
Which Websites Give the Best Holiday Deals?
No single website is consistently cheapest for every destination and date. Using two or three comparison tools gives a more complete picture:
- Skyscanner and Google Flights for finding the cheapest flight dates and routes
- Kayak for comparing hotels, flights and car hire in one search
- Booking.com and Hotels.com for accommodation, with price match guarantees
- Holiday Pirates for curated deal alerts sent by email or app notification
- Quidco and TopCashback for cashback on bookings made through their links
Always check the direct hotel or airline website after finding a price on a comparison site. Hotels in particular sometimes offer their best rate to direct bookers to avoid paying commission to comparison platforms.
Should You Use a Credit Card for Holiday Spending?
Using a credit card abroad can work out cheaper than cash or a standard debit card, provided you choose the right card. Most UK debit cards and standard credit cards charge a foreign transaction fee of 2.99 per cent on every overseas purchase, which adds up quickly.
A dedicated travel credit card with no foreign transaction fees converts at the Mastercard or Visa rate, which is close to the mid-market exchange rate. The Halifax Clarity card and Barclaycard Rewards card are both well-regarded options with no overseas fees and no annual charge.
One important rule: never accept the option to pay in pounds when paying by card abroad. Merchants will offer "dynamic currency conversion", which uses their own exchange rate rather than your card provider's. Always pay in the local currency and let your bank convert it.
How to Avoid Baggage Fees on Low-Cost Airlines
Baggage fees are one of the biggest hidden costs of budget travel. easyJet and Ryanair both charge significant fees for hold luggage, and prices rise the closer you get to the departure date.
Practical steps to reduce baggage costs:
- Book any hold luggage you need at the time of initial booking, when fees are lowest
- Weigh your bag before leaving home using bathroom scales; overweight fees at the airport are significantly more expensive than the standard luggage fee
- Use a case with expandable zips or wear bulkier items on the flight to stay within the weight limit
- Check whether your travel credit card or travel insurance includes free checked baggage on certain airlines
What Is the Cheapest Way to Book a Family Holiday?
For families travelling with children during school holidays, package holidays often work out cheaper than booking flights and hotels separately once you account for child discounts, room upgrade fees and transfers.
TUI, Jet2holidays and easyJet Holidays all offer family packages with children's discounts and the added protection of ATOL cover, which means your money is protected if the travel company collapses. According to the Civil Aviation Authority, all ATOL-protected package holidays guarantee a full refund or repatriation if the operator goes under.
Booking as a package also gives you protection under the Package Travel Regulations 2018, which requires the operator to assist you if flights are cancelled or accommodation is changed significantly.
Frequently Asked Questions
What is the cheapest day to book a holiday?
Flights are often cheapest when booked on a Tuesday or Wednesday, as airlines frequently release sale fares at the start of the week and increase prices towards the weekend. However, this is not a universal rule; use flexible date searches on Skyscanner or Google Flights to find the cheapest specific dates for your route.
Is travel insurance worth buying for a UK holiday?
For UK breaks, standard travel insurance is less critical than for overseas trips, but it can still cover cancellation costs, medical emergencies (the NHS treats you free, but private treatment costs can be high) and lost luggage. If you have a premium bank account, travel insurance may already be included; check before buying a separate policy.
What is the best way to take money abroad?
A combination of a no-fee travel credit card for larger purchases and a small amount of local currency cash for smaller transactions works well. Withdraw cash from a local ATM abroad using a fee-free card (such as a Starling or Monzo account) rather than exchanging at an airport bureau de change, which consistently offers the worst exchange rates.
Does booking directly with the hotel save money?
Sometimes. Hotels often offer perks to direct bookers including free breakfast, room upgrades or late checkout, even if the room rate is the same as on a comparison site. Always check both the comparison site price and the hotel's direct booking page before confirming.
How do rewards credit cards help with holiday costs?
Rewards credit cards accumulate points or cashback on everyday spending, which can be redeemed against flights or hotel stays. American Express cards are particularly well-regarded for travel rewards, with Membership Rewards points transferable to airline frequent flyer programmes including British Airways Executive Club and Avios. Using a rewards card for everyday spending and paying the balance in full each month builds up free travel over time.
Are holiday loans a good idea?
Borrowing to fund a holiday should be a last resort. If you cannot afford to save for a holiday in advance, a 0% purchase credit card paid off within the interest-free period is cheaper than a personal loan. Taking a personal loan for a holiday at 10 to 20 per cent APR means you will still be repaying the cost of the trip long after you return. Saving a regular monthly amount into an easy-access savings account is the financially sound approach.