How to keep the cost of a holiday down this summer

The prospect of travel disruption and higher air fares is putting many people off taking a holiday abroad this summer.

The US-Israel war with Iran has sent oil prices surging, and that could lead to the cost of flying overseas soaring as well.

So consumers are already reconsidering their holiday plans and looking at taking a break in the UK instead.

Cost-conscious people aren’t giving up on holidays

New figures from Barclays show that travel spending fell by 3.3% last month.

That’s the first drop since March 2021 - when Covid travel restrictions were still in place - and it’s largely because of money worries.

Seven in ten (70%) people surveyed said they’re worried about travel costs, while almost six in ten (57%) said they’re concerned about disruption.

But instead of giving up on a trip away, many are choosing to stay closer to home, as spending on UK hotels, resorts and accommodations actually went up in March.

Karen Johnson, head of retail at Barclays, said: “Many are once again carefully managing their money while finding ways to prioritise the things that matter the most to them - an ongoing balancing act.”

What can I do to save money on a UK holiday?

If you’re thinking of taking a break in the UK rather than overseas, there are lots of ways to keep costs down.

Search for great deals in top UK destinations

You don’t have to travel far or spend lots of money to have a holiday packed with fun, adventure and relaxation.

From rugged coastal escapes to buzzing city breaks, there’s something for everyone in every corner of the country, even if you’re on a tight budget, such as the Peak District, Norfolk, Northumberland and Cardiff.

Check out our recommendations for 10 cheap places to holiday in the UK.

Plan budget-friendly activities

Keeping children entertained over the summer can be expensive.

In fact, a study by Hodge last year suggested that it could cost families up to £1,000 over the six-week break.

That’s for a typical family of four, with two children between the ages of two and 15.

But a fantastic summer doesn’t have to cost lots of money.

Instead of paying over the odds, look for cheap or free local events, such as community fairs, outdoor theatre, live music and sports days.

And in between, plan movie nights at home, stock up on arts and crafts supplies and budget-friendly outings like a trip to the beach, a woodland walk or a bike ride around the local park.

Click here for more ideas on how parents can cut the cost of the summer holidays.

Use loyalty points to pay for days out

Supermarket loyalty schemes don’t just bring the price down at the checkout.

Tesco Clubcard points, for example, can be exchanged for up to three times their value at UK attractions including theme parks, aquariums and English Heritage sites. 

Nectar points can be used at Vue cinemas or towards groceries, which is ideal if you’re self-catering.

Swapping just £20 worth of points could get you up to £60 in vouchers. 

That’s a family day out covered, using points you’ve already earned. 

Just make sure to check in advance if vouchers need to be ordered before you travel.

Be flexible with your travel dates

If you don’t have kids, you could save money by travelling during off-peak periods or shoulder seasons, which are typically cheaper than peak summer months. 

For example, booking your holiday for late May or early June, or in September after the school holidays, can often result in lower prices.

Try alternative accommodation

You don’t have to book a five-star hotel if you’re worried about money.

There are plenty of other options, such as camping, glamping or self-catering rentals.

And if you’re a solo traveller, why not book yourself into a hostel?

Go off the beaten path

Swap major tourist hotspots for smaller towns or lesser-known destinations, as they’re often cheaper and less crowded.

You might discover a hidden gem that quickly becomes a favourite.

Take your own food and drink

If there’s one thing you’re guaranteed to spend lots of money on during a holiday, it’s food and drink.

A few café breakfasts, snacks and takeaway lunches can easily add up to a few hundred pounds over a few days for a family of four.

So pack essentials like cereal, teabags, snacks and squash to help keep costs down, and use a cool bag to store picnic lunches or leftovers for the next day.

Look for cheaper train tickets

You could save money by leaving the car at home and getting a cheap train ticket instead.

Of course, some journeys can be expensive, but there are ways to find better deals, such as booking early and checking sites like TrainSplit or Split Your Ticket.

Check our tips to how to save money on train tickets.

Budget for your holiday

Budgeting doesn’t just mean making sure you have enough money to pay your bills.

Yes, that’s really important, but it can also include ensuring you have money for treats, luxuries and experiences that enhance your life.

So if having a summer holiday really matters to you, factor it into your financial planning.

That means you can decide how much you want to spend and work towards this goal, without losing sight of how you’ll pay for essentials along the way.

Get started by checking out our guide to how to create a budget, so you can see how much money you have coming in each month and where it goes.

And give our budget planner a try - it’s free and easy to use.