The Salary Calculator

Financial prepping for summer holidays

by Madaline Dunn

As the sun finally begins to emerge from behind the clouds, summer is on its way. So, it’s likely that you’ll be thinking ahead to possible getaways, whether that’s relaxing by the beach, cocktail in hand, exploring ancient city ruins, or hiking up a mountain.

Financial prepping is key for ensuring you have enough saved up to really enjoy wherever you’re visiting, and get the most out of your holiday.

This week, at The Salary Calculator, we’ll run through:

• Helpful budgeting tips to get you ready for your break
• Weighing up holidaying at home or abroad
• Holiday homes, hotel rooms and camping
• Finding free and discounted activities

Helpful budgeting tips

While inflation is currently at a high point (10.1 per cent) and causing continued financial concern for many, predictions are that it’s due to fall below double digits. Likewise, energy prices are also predicted to drop by July. Considering those in the UK have been hammered with high prices as of late, the gradual ease could leave you with more in your pocket than expected, which could go toward your holiday budget.

According to research, over 70% of the UK’s adult population currently do not have a budget plan, regardless of whether for a holiday or more long-term goals. However, budgeting can help you figure out how much you spend each month, areas you can cut back, and, crucially, help you can realistically save.

There are plenty of apps that can do the hard work for you, too. As outlined in our previous article, apps like Money Dashboard can help you pinpoint overspending and categorise spending, while Hyperjar provides you with specific jars for different savings purposes.

To put that into real terms, the former, in collaboration with the University of Edinburgh and Harvard Business School, found that new Money Dashboard users typically saved 14% of their discretionary spend in the first month.

Once you’ve identified key areas where perhaps you’re overspending and you’re looking to increase your holiday savings further, some of the below tips could help you cut back in ways you hadn’t thought of:

• Meal prep: planning your weekly meals ahead of time means that not only do you shop with purpose and better consider brand prices, but you’re also less likely to be tempted by takeaways and eating food out.
• Invite friends and family over to your home rather than going out for drinks. Research shows that it’s far cheaper to drink in rather than out; in fact, statistics from the Office of National Statistics show that alcohol is three times cheaper in supermarkets, so there are lots of savings to be made.
• Switch supermarkets: There is a huge range of supermarkets in the UK and plenty of fantastic budget choices. Aldi and Asda have both stolen the crown for the top-budget supermarket multiple times.
• See whether or not you can pay less on bills and subscriptions. With regard to bills, price comparison sites are your friend, and once equipped with the figures, advocate for yourself by negotiating with your supplier.

More and more people are employing this approach, too. A 2022 report by GlobalData, for example, found that 40% of UK adults planned to cut back on shopping in order to go on holiday this summer.

Holidaying at home or abroad?

A key decision that will hugely impact your financial preparation for your summer holiday is whether or not you’ll stay at home or travel abroad.

If holidaying abroad and travelling to Europe via the Eurotunnel can save you a big chunk of money, it’s also far more environmentally friendly. Eurostar, for example, estimates that taking the train from London to Paris saves more than 90% of the carbon emissions per economy-class passenger produced by flying. By travelling via the Eurotunnel, you also don’t need to worry about paying extra for luggage – so there are even more savings to be had there.

If flying is the only option, it’s likely you’ll be feeling a little concerned about the price of flights; after all, a number of factors have sent them skyrocketing, including high demand following the pandemic, as well as high inflation and fuel prices.

When you are looking for flights, though, make sure you clear your cookies. Many airline sites use cookies to monitor what kind of flights you’re searching for and then, through dynamic pricing, hike the prices up. Clearing your cookies means that they don’t have this data to inflate flight prices.

It’s also worth looking at what apps are active in the area you’re visiting. BlaBlaCar, for example, allows you to book into a carpool, which can be great for solo travel from a social aspect and can help with savings too. The same goes for EatWith, through which you can eat with locals as part of groups and can help with saving on eating out.

Holiday homes, hotel rooms and camping

Another factor bound to impact your holiday financial prepping and planning is where you plan on staying, whether a holiday home booked through a site like Airbnb, a hotel or a campsite.

Research from TripAdvisor shows that holiday rental properties can be up to 64% cheaper for a one-week stay when compared with hotels. This is especially true if you’re travelling in a group. One of the most popular sites to access such properties is Airbnb, for which there are also discounts and promo codes.

With regard to the price of hotels, data from Hopper shows that prices in the US averaged $212 per night in January 2023, 54% higher than the previous year, and summer is likely only to push prices further. While prices will vary widely depending on where you visit, globally, inflation and supply chain problems mean that hotels are, across the board, more expensive. So, it’s something worth bearing in mind when financially planning for your summer holiday.

While so-called ‘staycations’ have typically been the cheaper holiday option, in recent years, they have increased in price. According to Travelodge, shorter multi-location trips can help make things more affordable.

Camping is another option for those who want a stripped-back low-cost holiday in nature. ‘Glamping’ alternatively can offer the same, albeit with a few more frills.

Making the most of free and discounted activities

According to research by Staysure, UK holidaymakers in 2022 budgeted for £420 per person to spend while on a one-week holiday, which included money for activities. In the current climate, that’s quite a bit to save, and while it’s likely that you’ll want to spend some money on activities, doing your research ahead of time can mean that you unlock a whole range of free and discounted activities.

Festivals, museums, craft fairs and outdoor concerts are all great options that often cost little or no money. Likewise, make sure to utilise your concession status if you have one. There are also plenty of apps that can help you along the way, including:

• Roadtrippers,
• Fatsoma,
• Meetup.

Tags: abroad, holiday, holiday money, holiday travel, savings