13 ways to get more out of your holiday budget

Despite financial pressures on households, holidays aren’t taking a backseat – we’re just looking for more value for money.

That’s according to a recent ABTA report, which revealed that two thirds of Brits say that a holiday is the most important time of the year.

Whether it’s considering a new destination – perhaps where the cost of living is low – or booking a package holiday after comparing your options side-by-side, there are plenty of ways to give your holiday budget a boost this year.

Here are 13 ways to make your money go further in 2026.

1. Consider a destination where the cost of living is low

The Algarve in Portugal was Europe’s best value-for-money destination in 2025 according to the Post Office’s Holiday Money Report, which compares on-the-ground prices for meals, drinks and other holiday essentials.

The report, and other cost of living databases like numbeo.com, can give you a rough idea of how much you may spend while you’re away.

In the Algarve, for example, a local beer will cost you around £2.60, while a three-course meal at a mid-range restaurant can cost as little as £17.25 per person.*

Regions in Spain such as the Costa del Sol and resorts in Bulgaria such as Sunny Beach, where a beer costs around £2.46 and £2.47 respectively, also ranked well for affordability.

For a city break, swap the likes of Paris or Rome for a visit to an Eastern European city, such as Prague, Warsaw or Budapest. If you’d like a spot of luxury for less, our latest research showed that Lisbon was the cheapest option for a five-star city break.

A quick comparison between Paris and Budapest shows just how much cheaper it is to eat and drink in the east. In the Hungarian capital, you’re looking at £48 for a three-course meal for two people; in the City of Light, it’s more than £60.*

2. Look for cheap eats before you go

Before you go anywhere, whether it’s Paris or Prague, dedicate a bit of time to researching your destination. Read reviews and articles (national newspaper travel sections and Time Out are good bets) on recommended cheap eats and good-value restaurants.

When you’re there, talk to locals about where they eat – it can be as simple as asking a hotel staff member about their favourite restaurant – and avoid eating near the main tourist attractions or busy squares. Go back a few streets and you’ll find that prices tend to drop considerably.

Eating your main meal of the day at lunchtime, when many restaurants offer excellent value set menus, can also help you save, as can sites such as TheFork, Time Out and Groupon, which offer big discounts on dining in some of the world's best cities.

3. Take advantage of free kids’ places and low deposits

Keep an eye out for free kids’ places when researching your holiday. As the name implies, a free kid’s place entitles one child per two full-paying adults to the exact same holiday as their adults. We’re talking the same board and transfers as well as flights and accommodation.

Holiday operators have plenty of places available this year, whether you’re restricted to travelling in the school holidays or have younger kids and can travel outside these dates. The further you can plan ahead, the more choice there will be.

It’s a similar story for low deposit offers: the further in advance you book your holiday, the more chances you have to spread the cost of your getaway with pay-monthly schemes.

Jet2holidays offers £60pp deposits on pay-monthly package holidays, while TUI has deposits as low as £0 if you’re booking at least six months in advance.

4. Go all-inclusive and lock in food and drink costs

While it’s not for everyone, an all-inclusive holiday allows you to lock in your food and drink costs by paying up front. It means you won’t have to budget for all the little things that can add up on holiday, like those spontaneous ice-cream stops or snacks for the little ones.

Entertainment is generally included too – think kids’ clubs and live music. Pick a resort with a waterpark on site and you won’t have to factor in the cost of a day out.

Head outside of the eurozone and it’s possible to find some great deals to Morocco, Tunisia and Bulgaria. Within it, the Costa Brava, Majorca and Corfu remain popular with Brits.

5. Travel outside of peak season (if you can)

Travel in the shoulder season and you’ll be able to slash the price of your holiday. Late September, for example, is one of the cheaper months to travel while still having a great chance of sunny weather.

Consider October and November or January to March for city breaks. Yes, it might be a little colder in some European cities, but with better prices and fewer crowds, the compromise is more than worth it. For example, you can get two nights in Rome for around £120pp* if you travel in late October.

To save money on your family break, look to the very last week of the school summer holidays, where prices tend to be best. Prices also tend to be more reasonable for October half term or at Easter, but the weather may not be as consistent.

Higher demand during school holiday periods usually means higher prices, so it’s a good idea to book your holiday as early as possible. For example, there are currently five-night Costa Brava holidays for late in the summer holidays going for less than £300pp.*

6. Fly early, late or during the week

Flying midweek is often cheaper than travelling at the weekend, and you can usually find better deals at ‘unsociable’ hours (ie very early or late each day).

The best thing to do is compare prices across a range of different departure dates – you might be surprised how much you can save on one day versus another. For example, depart on a Tuesday (5 May) for two nights in Krakow and you’ll get prices starting at £101pp.* Fly on Friday (8 May) and the price jumps up to £164pp.*.*

7. Consider different local airports

It’s also worth pricing up holiday options from the airports closest to you as you may spot a saving.

For example, if you live in the northwest, you might want to look at Liverpool, Manchester and Leeds Bradford. If you’re in the Midlands, compare Birmingham and East Midlands.

Families could net the best savings here as flight prices can change according to the school holidays. For this approach to be worth it, be sure to factor in any additional transport costs you might incur by travelling to a different airport.

8. Get travel money right

Travel money can be fraught with rip-offs – unfair exchange rates and extortionate credit card fees can chip away at your holiday budget before you even realise it.

For cash before you fly, MoneySavingExpert’s Travel Money Max tool allows you to compare exchange rates from your nearby bureaux de change. You can usually get a very competitive rate by shopping around. Avoid leaving it to the absolute last minute as airports are notoriously terrible for money conversion. You will almost certainly get a bad rate here.

It’s likely you’ll also be served a bad rate if you choose pounds when paying by card in a shop or restaurant overseas. Paying in sterling will cost you more as the retailer will determine the exchange rate and it will not be in your favour. The same goes for ATM withdrawals, so always pay and withdraw in the local currency.

And as for paying on plastic, remember that most normal credit and debit cards are not designed to be used abroad. As a result, any purchase you make can have big fees slapped on top.

Dodge these unnecessary charges by getting a specialist credit card that you can use abroad – the best won't charge a transaction fee. The Barclaycard Rewards Visa is one of MoneySavingExpert’s top picks, and you’ll even get 0.25% cashback on most of your purchases.

9. Dodge baggage fees

Knowing your luggage allowances – and sticking to them – can keep your holiday budget in check. Each airline has their own restrictions (so remember to check) and going over your limit can be expensive. For example, Ryanair charges £13 per excess kilo at the desk.

If you can, be ruthless with your packing and travel with hand luggage only to avoid the cost of adding a checked bag to your airfare.

Can’t travel light? If you know you’ll need a checked bag, consider the cost of adding one to your booking when you compare flights. Some airlines may include hold luggage in the cost of your ticket, and it could work out cheaper than adding a bag.

Otherwise, add your bag at the time you book your flight – it’ll work out cheaper than adding one post-booking.

10. Compare the price of package holidays side-by-side

With value for money so important in 2026, ABTA’s research showed that package holidays remained the most popular type of holiday for Brits. Package holidays also come with added financial protection should anything go wrong before your trip or while you’re away.

To make sure you don’t pay a penny too much for a package, it’s wise to compare the price of your holiday from a number of companies. TravelSupermarket lets you compare package holidays from the UK’s top travel companies side-by-side without having hundreds of tabs open. The best bit? Our customers save an average of £350 per holiday by comparing deals on our site.

11. Mix and match airlines and airports for cheaper fares

Booking return flights with the same airline feels like the easiest option, but it’s often not the cheapest.

Splitting your flights between different airlines – or even flying into one airport and out of another – can unlock surprising savings, particularly on short-haul or budget routes.

Low-cost carriers often price one-way tickets aggressively, meaning you can snag a deal flying out with one airline and back with another for less than a standard return fare.

This approach works best if you’re already planning to use public transport to reach the airport, as it frees you from the need to collect your car on return.

By widening your search to include multiple departure and arrival airports – even if it means starting your journey a little further from home – you could land a significantly cheaper fare.

For example, flying out of Gatwick and back into Stansted might seem inconvenient but could shave hundreds off the total cost of a family holiday. Always weigh the savings against the extra travel time or costs, but for flexible travellers, the savings can be well worth the slight detour.

12. Pack snacks to avoid extra fees

Airline food isn’t just overpriced – it’s often underwhelming. A simple way to sidestep unnecessary costs (and disappointing sandwiches) is to bring your own snacks or pack a light meal for the flight.

Airport food courts usually offer better value and more variety, so grab something before boarding, or just fill up at home before you go.

Don’t overlook drinks, either. A bottle of water can easily cost £3 or more at the airport, but you can avoid this by bringing an empty reusable bottle through security.

Most airports are equipped with free water fountains and staff at bars or cafés are usually happy to fill it for you if asked politely. It’s a small saving that adds up, especially if you’re travelling as a family.

Plus, staying hydrated without spending extra means you’re less likely to splurge on expensive in-flight drinks.

13. Don’t forget your travel insurance

Hopefully you’ll never need to use your travel insurance but having a policy in place can be a good way of protecting your finances. Policies can start from as little as £2.45 – a small price to pay for peace of mind.

As always, compare your options to ensure you’re getting comprehensive cover. The cheapest policy may not always be best for your holiday.

Buy your travel insurance as soon as you book your holiday to get the most for your money. As well as protecting you while you’re away, it can also cover cancellation in the case of events such as illness or injury for you or a close family member, an involuntary redundancy, and jury duty that you could not postpone.

If you have an annual policy, double check you’ll be covered for all parts of your holiday before you go – winter sports and cruises are common exclusions.

Travelling to the EU? Remember to bring your Global Health Insurance Card (GHIC) too. The GHIC entitles you to necessary medical treatment in the EU either for free or a reduced cost. It’s free to get on the NHS website.

* All prices were accurate at the time of writing. Please note deal prices can fluctuate daily and may appear differently on provider site for this reason. Deals are subject to the partners' T&Cs. Beer and meal prices taken from the Post Office Holiday Money Report and Numbeo.