Costs To Consider When Planning A Holiday

When planning a holiday, one of the most important things to do is to create a budget. The point of a budget is to measure the costs associated with the holiday but what are these costs and how can you get the most for your money?

Important costs to calculate in advance include:

Airfare cost

Shop around for your airfare! The airline industry is a hugely competitive market. Shopping around for deals online will almost certainly save you some cash. There are heaps of sites that will compare different flight costs for you. The airfare is a large portion of the total cost of a holiday, so any savings made here will be hugely beneficial to your overall holiday budget.

Travel insurance

In the same way as an airfare, shopping around for your travel insurance can also provide substantial savings. Companies offer different premiums on travel insurance and different levels of cover. For travelling you can often select a single trip or an annual trip quote depending on your holiday circumstances. Standard policies cover:

Medical emergencies

Loss or damage to luggage

Theft of personal belongings

Flight cancellations and delays

Holiday transport

What are you doing once you arrive at your holiday destination and how are you getting to your next stop?

Transport costs are often overlooked when calculating the budget and can be quite expensive in certain parts of the world. Figuring out when transport is needed and what transport is available in specific locations will allow you to get the best deal.

If travelling in Europe for example, there are value deals for tourists, such as the Eurorail Global Flexi pass. This allows you to travel by train for a certain amount of days over a two month period. The countries you are able to visit using this pass are; Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland (Republic), Italy, Luxembourg , the Netherlands, Norway, Switzerland and Turkey. Paying for these trips across national borders individually is extremely costly so these rail passes are a must if travelling in these countries.


Those large hotel bills make up the other large chunk of your holiday budget. The best thing to do is shop around and take advantage of any deals that can be found. Hotels located in tourist hot spots are typically more expensive, so try and search for accommodation in different areas of the city, but near public transport for easy travel. Hotel prices also change seasonally, there is a peak season and an off-peak season. If possible, travellers can plan there holiday during the off-peak seasons or right at the end of the peak season to take advantage of the changes in accommodation pricing.

Food costs

Hotel deals often include meals. Be mindful and look out for these deals when purchasing your accommodation. Breakfast included is not only convenient, it can save holiday makers money as well. Adding this extra when searching for your accommodation overseas, will reward you by keeping more cash in your wallet.

Overseas phone call charges

Deciding what to do with your phone whilst overseas is an important thing to do before you start your trip. Overseas phone call charges can be hugely expensive. Options include, international roaming, which is very costly and you pay for incoming and outgoing calls, travellers can suspend their calls and just use SMS services which are much cheaper, or use free communication services like Skype or Voxer. Using Skype or Voxer is the cheapest option. These programs allow for video or voice calls to your loved ones or emergency contacts for free and do not cost money when inactive.

Extra emergency money

Being stuck in a foreign country without any money is a fear, we all share. Included as part of the holiday budget should be an emergency fund to be used if this fear comes to reality. It can also be used if you need medical supplies or care whilst overseas. Add as much to the emergency fund as you can before leaving and hope you do not have to use it!

These are important aspects of a holiday to research and will aid you in getting the most out of your holiday budget, while allowing you to experience all the excitement international travel has to offer. Happy travelling!

My shortlist

You can shortlist products here & email them later.

No products currently shortlisted.


What are you looking for?

What type of account?

more options > Search Plan

Special offers

Find a mortgage broker

Enter your location to find a professional near you.

home > moneybuddy blog > this article