With some holidaymakers set to spend big in 2025, it’s important to avoid any costly pitfalls that could scupper your plans.
More than a third (39 per cent) of shoppers are scouring for a bargain holiday during January, according to a survey by MyVoucherCodes, and more than half (59 per cent) of people have started planning international trips, according to research by American Express.
Younger adults in particular could be splashing the cash this year.
So with that in mind, here are the common pitfalls to avoid:
1. Not taking out cover as soon as you book
There are a range of reasons why holidaymakers may need to cancel or shorten their trip – and travel insurance can provide cover for an “unforeseen” event such as illness, bereavement, jury duty, redundancy, significant home damage, or a burglary.
There are also optional add-ons to choose from, such as travel disruption cover, which can provide extra protection against events such as natural disasters.
Insurer Aviva says data shows that the average cost of cancelling a holiday in Europe is £725.
Travellers often claim for unused flights, accommodation, car hire, excursions and other costs involved when booking a holiday.
According to its travel insurance claims data for 2024, within Europe, holidays to Greece generated the highest costs for cancelling on average, at £1,298.
With Spain being a popular holiday destination with UK holidaymakers, Aviva found that holidays to Spain were the most cancelled in its data.
And it’s not just overseas trips that can be scuppered. Staycations are also common for cancellations, with the UK being the second-most cancelled destination.
2. Not declaring pre-existing medical conditions
Failing to declare any existing medical conditions or ongoing medical investigations when a policy is taken out could lead to a claim being rejected.
Directories are available to help people with medical conditions, and people in other circumstances, such as older holidaymakers, to find cover, such as the British Insurance Brokers’ Association’s Find Insurance Service.
3. Falling for a scam
Scammers know that now is a particularly busy time for holiday bookings.
They may create fake websites or offer deals via social media. They may also copy photos from legitimate websites, so it may be worth doing an image search to see if the photo has been taken from another website.
The Take Five to Stop Fraud campaign, which is run by UK Finance, suggests double checking website links, searching accommodation on other websites and researching the holiday destination advertised to make sure it actually exists.
Found a last minute holiday bargain?
— Take Five (@TakeFive) July 2, 2024
- Do your research and read online reviews from reputable sources to check offers are genuine.
- Always use secure payment methods.
If it’s too good to be true, it usually is!#TakeFive pic.twitter.com/tLy32weTmF
4. Forgetting to take vital contact details with you
As well as having contacts for your destination when you travel, make sure you also have your insurer’s details, so you can easily contact them if needed during your trip. Your payment card provider’s number could be another handy contact to have, in case it is lost or stolen while you’re away.
Take Five also suggests only taking the payment cards with you that you intend to use.
It could also be worth making sure you know how to freeze your card within your banking app.
5. Not checking a firm’s membership details
Check whether the tour operator or travel company is a member of a recognised trade association such as ABTA or ATOL.
ABTA is a trade association for UK travel agents, tour operators and the wider travel industry, with over 4,300 travel brands in membership.
The ATOL scheme, run by the Civil Aviation Authority, offers financial protection when you book a package trip that includes a flight.
ATOL has a tool on its website that enables people check whether companies they are looking to book with are ATOL holders.
6. Waiting until the airport to change money
James Lynn, co-founder of travel debit card Currensea, says its research indicates that busy parents are particularly likely to leave getting their cash until the airport, rather than shopping around for alternatives that may be more cost-effective.
7. Not paying in the local currency
Lynn says: “Our previous research showed that 60% of people are still unaware that choosing to pay in sterling when overseas can result in a much worse rate.
“But it works just as well when paying for flights and accommodation before you travel, as you can slash costs when paying for a hotel or Airbnb in Paris, or flights to Spain in euros rather than pounds.”
He says that, if you combine this with currencies which the pound is doing well against “then your savings can really take off”.
8. Overlooking overseas ATM charges
Lynn says that when using cash, beware the high fees charged by some overseas ATMs, which “can quickly add up and eat into your family’s budget”.
