How to save money on your summer holiday

REad You may be looking forward to a break from Brexit if you’re going abroad this summer. But even before our EU divorce is finalised, the referendum’s impact is increasing the cost of going abroad, especially to Europe.

Frustratingly, it’s likely to remain the same for a while yet because the pound’s value is so low. Put simply, you now get a lot less for your money than you used to, so what you can you do to stretch your holiday budget?

Go where the pound is strong

If you don’t mind far-flung travel head to Mexico and south-east Asia where the pound is strong. Alternatively, eastern Europe and outer-edge Eurozone countries like Poland and the Czech Republic which don’t use the Euro are better value than central Europe. If sun’s essential, avoid Spain where economic difficulties mean prices are set to skyrocket, and go to cheaper Croatia instead. Book an all-inclusive deal to lock in costs.

Where to buy currency

When buying currency, don’t assume your bank will give you the best deal. Go online and get travel money posted to you. Supermarkets Tesco, Sainsbury's and Asda offer competitive rates and a free postal service if you order £500 worth or more. Download free currency conversion app XE for latest currency rates. Don’t change money at the airport - you’ll pay an extra 10%.

The best credit cards to take abroad

The cheapest travel credit cards are Creation Everyday (0371 376 9214) and Halifax Clarity (0345 944 4555) with no additional charges for buying or withdrawing cash abroad. Beware, standard credit cards which typically add 3% to transactions plus £2-£3 per £100 withdrawn at the cashpoint. For holiday budgeting, prepaid currency cards revolut and weswap (0203 053 6610) offer good exchange rates and low charges.

Where to buy travel insurance

Buy travel insurance when you book your holiday. Get a quote from the Yours Travel Club partner, Holiday Extras on 0800 781 4083, quoting YOU81. If you’re holidaying in Europe get or renew in good time your free European Health Insurance Card (0845 606 2030) to receive state-provided care. An EHIC complements rather than replaces travel cover. Read our guide to buying the best travel insurance.

The effect of Brexit on your holiday abroad

Post Brexit we may say goodbye to the EHIC, potentially pushing up the cost of European travel insurance. We could also see flights to the EU cost more; fewer rights if we’re delayed and higher mobile-roaming charges in Europe. Passports should remain valid after we exit The EU with new designs phased in as existing passports expire.

However, this is all uncertain until negotiations are finalised. For now the smart thing to do is work out your travel budget and find the destination and deal that gives you the best holiday and makes your money stretch as far as possible. Read how Brexit will affect your pensions, savings, house price and investments.

5 quick ways to save on holiday

  1. Don’t pay for airline checked luggage, take a smaller bag on board to save £15-plus per person.
  2. Save on car rentals by comparing bottom-line prices rather than headline prices and read hirers’ reviews. Read our 10 car hire tricks to watch out for
  3. EU data-roaming costs have fallen, but ditch high charges in non-EU countries including Turkey, by turning off data roaming and connecting to Wi-Fi. Read more on using your mobile in EU countries.
  4. Eat at restaurants and cafés away from the sights to halve bills
  5. Some resorts charge a ‘resort fee’ on top of the room rate - check the small print.

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Written by Sarah Jagger, Yours money editor