5 ways to save money on your holiday after Brexit

It’s still easy to save on your holiday cash

Both the euro and sterling have fallen since the referendum result was announced on Friday (Getty)

The rising cost of foreign holidays may not be the most important outcome of the Brexit vote but it will be one of the first to have a direct effect on British families.

Sliding sterling means that everything from hotels to an ice-cream in a sunny square will cost more. In fact, research from comparethemarket.com shows that more than 10 per cent of Brits say they are now less likely to book a last-minute break in Europe this year as a direct result of the weakening pound.

But there are still ways travellers can cut the cost of their holiday spending and enjoy a good value break. So if the idea of a ‘staycation’ makes you shiver and the prospect of long-haul is exhausting, here are five ways to beat the Brexit holiday bill this summer.

1. Choose a good value destination

There are some countries where the pound will still go much further, so if you haven’t yet booked then it’s worth looking at how far your money will go.

Travel money specialist FairFX analysed long-term exchange rates and found that Argentina is currently the world’s best value destination for Brits, with the pound still going 149 per cent further than it did three years ago. That’s the equivalent to an extra £300-worth of Argentine Pesos for every £500 exchanged.

Russia and Zambia are both more than 70 per cent better value while, closer to home, Turkey offers 30 per cent more for the pound today than it did three years ago.

2. Shop around for your spending money

If you pick up your currency at the airport the day you fly, you could end up paying far more and compounding the problem of a weak pound. Research from Travelsupermarket in the spring showed that buying €2,500 at the airport would cost £130 more than buying it online from the cheapest exchange.

Even if you forget travel money until the night before, you can still pre-order it for collection at the airport and get a much better rate. Moneysavingexpert has a good comparison tool to help you find the best rates for travel money.

3. Ditch the hotel and get swapping

Services such as AirBNB already make it possible for travellers to avoid hotels by simply staying in a spare room or renting someone’s home during their trip, and that is one way to cut the cost of European travel.

However, another possibility is a home swap with someone who wants to visit the UK and pay almost nothing for accommodation at all. Debbie Wosskow, CEO of home-swap matchmaker Love Home Swap, says: “We’ve seen a sharp increase in interest in home swapping, as people explore different travel options for this summer. Recent research shows that 28 per cent of millennials in the UK have holidayed in a house or apartment in the past year, with around one in four over-35s opting for alternative accommodation options such as home swapping or holiday rentals.”

The company’s data shows that the average family home swaps for 15 nights per trip, saving an average of £2,750 on accommodation costs, and 40 per cent of Love Home Swap members swap cars too, saving money on a rental.

4. Go all-inclusive

If you book an all-inclusive break then you won’t have to worry about the cost of spending on food and drink when you’re abroad, which means you won’t end up paying far more than you budgeted for if the pound takes a dive just before you travel.

However, if you can book an all-inclusive break for next year’s holiday now then you will avoid any price hikes between now and your trip.

5. Get your EHIC

We’re still in the EU and that means that the European Health Insurance Card is still valid, entitling British travellers to receive free or state-subsidised medical care just like residents of the country that you’re visiting.

It’s still vital to have travel insurance in place too to avoid a large bill, but most insurers require that you have a valid EHIC card, so don’t assume you no longer need one or you risk invalidating your policy. If you fall ill abroad that could be one of the most expensive mistakes you make.

Watch this space.

While the next few months could see the price of European holidays rise for Brits, it looks as though travel could become even pricier once the UK leaves the European Union.

The EU’s single aviation area allows airlines to fly across Europe without paying extra charges, which is how the budget airlines have grown so fast in recent years – if the UK can’t agree to retain access to the flight area then cheap flights could be a thing of the past.

Currently travel insurers know that their customers can get free or state-subsidised healthcare in any EU state by applying for an EHIC. When the UK exits the union it will probably struggle to renegotiate this shared healthcare agreement, meaning travellers will face higher travel insurance premiums.