Holiday bookings to Spain and its islands have surged ahead since travel restrictions were relaxed and there's a wide range of bargains on offer to suit every budget. While it’s easy to get caught up in the excitement of finding a cheap flight, consumers can sometimes forget the hidden costs, which can have a significant impact on the price of a holiday.
Independent financial broker Norton Finance has taken a look at some of the extra costs associated faced by visitors to the UK’s favourite tourist destination. From foreign exchange charges to tourist taxes, these levies can soon add up to create considerable extra expenditure.
Travel Insurance
An obvious cost for many, but 21 per cent of holidaymakers do not bother with travel insurance. If something does go wrong while you’re away then things can get very expensive, very quickly. For this reason, always make sure to take the cost of travel insurance into consideration when budgeting for a holiday.
Exchange and transaction fees
When travelling to Spain, it’s important to consider how you’ll be paying for any holiday purchases. If you’re planning to take euros with you, consider what exchange rate you’ll be getting. Otherwise, you might find that once your UK budget has been swapped for euros, you’re left with less than you expected.
Similarly, if you’re using your debit or credit card in Spain to withdraw money or pay for goods, you may have to fork out a transaction fee for doing so. This is generally just under three per cent, so not a significant amount on smaller purchases, but it can certainly add up.
One way to solve this is by looking into whether an overseas card or a prepaid currency card could work.
Tourist taxes
Travellers to the Balearic Islands and Catalonia will need to bear in mind that there are tourist taxes in place. These are charged per person for each night a tourist is in-resort. While the per night cost varies depending on standard of accommodation and length of duration, this is another cost that surprise if you’ve not budgeted.
It can amount to a sizeable extra cost for a family or large group of holidaymakers.
Car rental fees
If renting from the airport, there will be an additional tax to cover the concession fee the car hire company pays to the airport. While this fee is always charged, some companies won’t add it to the total payment. This means the original quoted price may be less than the final bill.
Rental car insurance is another common additional charge people often don’t factor in to the cost of their holiday. However, before paying this it’s worth doing some additional research to decide if you need more cover than the basic policy offers. If you’re paying with a credit card, consider whether it offers additional rental car cover.
Roaming charges
Between 2017 and 2020, holidaymakers didn’t have to pay mobile data roaming charges – which means anyone taking a holiday to the EU for the first time since Covid-19 hit could be in for a shock. Charges vary depending on your supplier and phone plan, but you could expect to pay £2 per day for data roaming in Spain.
Check with a provider before leaving to see if they offer any packages and use mobile data sparingly if you need to keep the cost down.
It’s important to make sure you consider all of the costs of going abroad and avoid simply getting caught up in the excitement of the Spanish sun. While most of these costs aren’t particularly sizeable on their own, they can quickly add up and make what should be a relaxing break a little more stressful.
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