Join the Economy Jet Set

Each year, holidaymakers are needlessly overspending before, during and sometimes after their holidays as a result of rushed decisions and 'convenient' packages offered by travel agents. However, with the right advice and some careful planning, going away needn't be an unnecessary expense.

Firstly, decide on your budget and stick to it. Then, it's important to choose the right type of holiday for you and your fellow travellers. All-inclusive can be a cost-effective option, especially for families with children, but if you enjoy sampling the local cuisine and varying where you dine out, you could end up paying twice for all your meals.

How to save money when booking your holiday:

  Allocation on Arrival - many holiday companies will offer discounted rates if you're prepared to wait for the name of your hotel until you get to your chosen destination.

  DIY - many package holidays contain a built in cost for the convenience of booking via a 'one-stop-shop' format.

  Bookings - Book directly with the hotels and airlines and you could save some serious cash.

  Last Minute Deals - if you're prepared to be flexible on your destination and exact date of travel, a last minute holiday deal can provide a five star break at three star prices.

  House Swaps - save on accommodation costs by joining a home exchange club. This type of holiday is more popular than ever since Cameron Diaz and Jude Law found romance in last year's blockbuster movie, The Holiday. You can register your home for free on www.homexchangevacation.com

Take time to compare holidays on the internet. Costs between operators can vary greatly for the same holiday and you can often take advantage of price match schemes.

Spending Money

Despite most countries now accepting mainstream credit and debit cards, including Maestro, Visa and Mastercard, it can pay to carry some cash when visiting an unfamiliar place. Do shop around when it comes to exchanging your money - your own country is often more cost-effective than hotels and exchange bureaux abroad. Money search engine lists commission rates on currency exchange at UK banks, building societies and travel agents and www.XE.com has the very latest currency exchange rates across the globe.

Better Safe Than Sorry

There is no such thing as a risk-free holiday. Thousands of people every year lose their luggage, have belongings stolen or sustain injuries that require medical treatment abroad - without travel insurance this could be a very expensive holiday.

Following the excitement of booking the holiday itself, travel insurance is quite often an afterthought - and some holiday goers who buy insurance only do so because the travel agent reminds them, which means that people are paying more than necessary for only satisfactory products from travel retailers.

When choosing a policy, it's essential to buy the right type for your holiday: If you're planning to indulge in riding banana boats and parasailing or tackle steep-sided mountains you'll need to ensure you're covered for sports.

It's also worth taking out a multi-trip option if you're planning on more than one holiday in a twelve month period - this is not only more economical, but ensures you'll be insured for last-minute weekend breaks too.

One holidaymaker's bag goes missing every two hours, according to travel insurance company InsureandGo. Claiming compensation may seem time consuming, but it is worth it. The average amount claimed for lost luggage is around £200. For any claim you are making you will need to report missing luggage to the airline before you leave the airport. You will need your luggage receipt, usually stuck to your passport at the time of check-in, and you will also need to complete a Property Irregularity Report (PIR) at the same time.

Hidden Extras

Other ways to minimise holiday spending are:

  Bargain Breaks - Don't assume that 'bargain break' adverts in travel agent windows are the final price; sometimes these don't include taxes, in-flight meals and transfers between the airport and your accommodation.

  Luggage Weight Allowances - do not exceed the limit allocated by the airline you are travelling with as some airlines charge extra for the privilege.

  Phoning when Abroad - while it may be more convenient to use your mobile telephone overseas. Check out public pay phone rates locally first as these may be a more affordable option.

  Excursions - travel reps earn commission on the trips and car hire they sell in 'welcome meetings'. Shop around locally before buying to ensure you get the best deals.

Visit Expedia, Ebookers, Opodo, Travelocity, Lastminute.com, Teletext and bargainholidays.com to shop around for a good deal.

Bon Voyage!