Making Your Holiday Pound Go Further

Last summer, the pound bought you nearly €1.50, today you'll be lucky if it snaps up €1.24. SARAH WOODS tell you how to make up the difference - and more - on holiday.

Eat like a local

Avoiding high-priced restaurant chains and eating like the locals can save a packet.

In Spain a three-course menu del dia costs around €8 per person - including wine.

In France, the prix-fixe lunch menu rarely exceeds €8, while a table piled high with Greek meze dishes is enough to feed four - all for 25 Euros.

Generally speaking, going out to eat and drink is still cheaper in the Euro zone than the UK, especially when you stick to home-spun liquor.

→ Next Page: Avoid the Charges

Careful with money

Obtaining cash abroad can also seriously damage a holiday budget as ATM withdrawals often come at a price.

Banks rake in around £500m in extra charges from customers using ATMs abroad and packing the wrong card can easily add £100 to a trip on credit card rates at about 2.75 per cent.

Debit cards offer a reasonable rate (around 1.5%) although beware of credit card withdrawals as these incur extra cash-advance fees.

A new idea that's catching on is pre-paid credit cards, which can be pre-loaded with euros or US dollars before you go.

These carry the VISA or Mastercard symbol and can be used anywhere normal credit cards can, making it a great way to set a limit your spending money.

→ Next Page: Save Before You Leave

Pay up-front

Indeed, pre-paying for as much as possible in sterling before you leave (such as car hire and excursions) ensures no nasty surprises due to fluctuating rates of exchange.

It also pays to buy currency in advance at home rather than rely on a tourist bureau de change abroad where commission can top 15 per cent.

Of course, nothing makes on-holiday budgeting easier than an all-inclusive break.

Packages vary, but most include all food and drinks - some with snacks and entertainment.

Full payment is required in advance, but this stress-free option is ideal for those keen not to deal with hassle of cash abroad.

→ Next Page: A Cheaper Currency

Escaping the Euro

Heading outside of the Euro-zone opens up some the cheapest deals around with Bulgaria, Turkey, Egypt, Tunisia, Thailand, South Africa and Morocco leading the pack.

At around two to the pound, the US dollar continues to represent good value, especially when teamed with Orlando's ultra-competitive deals.

Book early to grab the keenest prices (agents say about 11 months in advance is ideal).

The magnificent Blue Mosque in Istanbul

→ Next Page: More money saving tips

Thrifty check list

Here are a few additional tips to stretch that holiday pound

Flying non-direct and travelling at unsociable times on a ferry or train can help keep costs down - as can sharing a car with others.
A villa that sleeps 10 people can be the same price as a chalet that sleeps four or six - so holidaying with friends or family can really stretch a budget.
Consider camping as a group, booking a barge holiday or renting a large static caravan - and never be afraid to haggle.
Using spare space in our suitcase to pack sweets and treats can help save pennies in a resort town, where inflated tourist prices can hold parents to ransom.
If you're flying no-frills, take home-made snacks, sandwiches and drinks on board or your airline meal may be more expensive than your ticket.
Pre-booking a tariff "package" will reduce mobile phone costs - charges abroad can top £1.49 per minute.

Escape the Euro: Cheap Holiday Alternatives

The rising cost of the Euro got you worried? Then avoid it completely.

All Inclusive Holidays
All inclusive holidays offer great value for money.

Sky Travel Destination Guide
See the most popular holiday hotspots in detail, including videos, photos, attractions, great deals and TripAdvisor reviews about the hotels

Getting There

Beach holidays, including all inclusive breaks, to both European and non-European destinations can be booked with Sky Travel in association with Cosmos Holidays.

→ Book a beach holiday

Villa holidays, wherein you can save by sharing with friends can also be booked on the Sky Travel Cosmos Holidays web site

→ Book a Villa Holiday