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Your Money > Travel Finances Articles > How much more...
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By Sarah Modlock
Holidays are supposed to be a break from day-to-day worries and hassles. This year may different for many as costs soar in every direction. So what do you need to watch out for and where can you make savings and avoid rip-offs? Plane travel Anyone who has been watching the news, owns a car or shops at a supermarket will already be well aware of the rise in fuel costs. These will also impact on the cost of your holiday, as an era of cheap travel comes to an end. If you're flying then you can expect a hefty fuel surcharge on top of the ticket price. BA and Virgin have already announced the extra costs, tour operators will add them to the price of packages and low-cost airlines have absorbed the fuel costs but bumped up charges and introduced new fees for luggage, food and drinks, leg room and even window seats. As costs continue to rise in the coming months, industry experts predict that big airlines will introduce similar charges. Even ferry companies have already announced that their passengers will be asked to pay a fuel surcharge for the first time and rail fares have seen their biggest shake-up in more than a decade. Although no one wants to pay more, BA has been praised for being up-front and transparent about its fuel surcharges. The cost of a BA flight to San Francisco will cost around £218 more as a result of the soaring fuel prices. Be prepared to pay more but shop around and plan ahead as far as you can - or leave it as late as possible if you dare - to save money. Train travel On the trains, prices are also rising so book carefully, particularly if you want to travel or arrive early. If you're quick you can take advantage of the special offer from Virgin Trains for £1 weekday singles between London Euston and Manchester Piccadilly - until the end of June - as part of a trial of online printable tickets. Avoid booking on Thetrainline website. It sells a fifth of the country's rail tickets but recently introduced a £1 charge to post tickets, a £2.50 fee to pay by credit card and 50p to pay by debit card. It has also introduced a 50p charge for tickets to be picked up from self-service machines or station ticket windows. To avoid the fees, use the train operating companies' own websites, most of which use a rebranded version of the same system. Theme park costs Families who count on saving money by avoiding flights and staying in the UK should be prepared for increasing costs of top family attractions which have risen by almost 10% in just a year. A Sunday Mirror survey found prices have rocketed at theme parks around the country. Why? They are more fun according to the owners. US company Merlin, which runs Legoland, Alton Towers, Thorpe Park and Chessington World of Adventures, says it has spent millions on building new rides and better visitor facilities. Legoland, near Windsor, Berks, has introduced one of the biggest increases - up from £31 to £34 for adults and from £24 to £26 for children. Drayton Manor theme park in Staffordshire has also put up prices, from £20.96 to £23 for adults and from £16.95 to £19 for children, while Chessington World of Adventures in Surrey has increased charges from £29 to £31 for adults and from £19 to £21 for children. "Theme park tickets for children are particularly unfair since, apart from Legoland, children over 12 have to pay the full adult entrance fee," says Lorna Cowan, of Holiday Which?. Currency costs The US is set to prove popular for those wanting to make the most of the weak dollar. In Europe, even traditionally cheap destinations have become up to twice as expensive this year as the Euro has risen against the pound. All-inclusive holidays are gaining further appeal as families work out the cost of extra food and drink. Don't forget you can save a small fortune by buying your currency cheaply. You will get commission-free currency from Marks & Spencer and the Post Office but check the exchange rate they are offering as this may not compare well with others. Travelex is tends to consistently top best buy tables providing you don't buy at the airport, which is always the most expensive option. Check out the internet rates it offers where you can buy your currency online and pick it up at the airport or have it delivered before your trip. Plastic costs When using your plastic, bear in mind that almost all credit cards add a 2.75% foreign loading fee to each purchase. Nationwide, the Post Office and Saga are among the few providers that do not. Just avoid using your credit card to make cash withdrawals as this will attract very high interest and an expensive set of additional fees. In many cases you will find it cheaper to pay for goods and services abroad with your credit card rather than your debit card. This is because of the extra costs applied to overseas debit card use. "If you have a Halifax debit card, say, you will be charged a 2.75% foreign usage fee, plus £1.50 for each cash withdrawal or purchase," says Andrew Hagger of Moneyfacts. "Lloyds TSB debit card holders will face a 2.99% foreign usage fee, plus a £1 fee for each purchase - and between £2 and £4 per cash withdrawal." Another plus for credit cards is that the Consumer Credit Act gives you the same protection abroad as you receive in the UK if goods prove to be faulty: you can claim your money back from the credit card firm as long as the goods cost between £100 and £25,000. Remember to take your card numbers with you in case your plastic is lost or stolen. You may also need to make a quick call if your card issuer blocks your account thinking your card has been used fraudulently. I have found that calling the card issuer in advance to notify them of your holiday does not make any difference to their protection systems but this varies between banks so if you are encouraged to give prior notice of a trip then it could save a lot of hassle whilst you're away. Finally, be extra careful with your cards in the US, Italy and Australia, where this is no chip and pin and fraud using UK plastic is rising rapidly. Don't let your card out of your sight. Mobile phone costs Although the EU has capped call charges at 38p per minute for mobile users travelling in the EU, you still face shocking bills if you use your mobile in non-EU countries and in other continents, even for making local calls or receiving calls from the UK. And crucially, the EU cap did not put a lid on texting costs and this is where the mobile phone companies are recouping their lost profits. You can expect to pay as much as four times your normal text rate while using you phone abroad this summer. Moneysupermarket figures show that calling the UK from the US will cost just 55p per minute for T Mobile customers but that this rises to 90p for those with O2 ITS, £1 for Virgin, £1.10 for Orange, £1.20 for 3, £1.25 for Vodafone, and £1.37 for O2. Sending a text from the US to the UK will cost 25p for customers of O2, O2 ITS, 3 and Virgin. It will cost 35p if you're with Vodafone and 40p for Orange and T Mobile. To save money, turn your voicemail off or record a message asking callers not to leave a message unless it is urgent. Before you go, check out the international packages offered by the UK mobile networks, such as Vodafone's Passport service. These arrangements must be put in place before you go away. A month's roaming tariff can be anything up to £3, but can be free depending on your network. If there is a monthly charge, you will have to actively cancel it when you get home otherwise you will continue to be charged. Useful links: |
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