9 ways to save money during your holiday abroad

Going on holiday has always been a great way to relax and reset, but without a clear budget it can come with some financial stress. 

You might save money by finding cheap flights and accommodation, but what happens when you arrive at your destination? 

The cost of living has risen in many countries, so it’s important to do your research beforehand. This will help you to work out how much money you might need for a daily budget. You could then put this money into a savings account so it’s ready for your holiday - and earn a little interest in the meantime. 

Here, we look at some of the ways to save money without compromising on your holiday experience. 

1. Use local currency 

When using a card abroad, you might be asked whether you want to pay in pounds or the local currency. It’s a good idea to select the local currency as this means your card will do the conversion rather than the retailer or bank overseas. The conversion rate is normally weaker if you let the shop do it, so stick with your card’s conversion. This means you won’t end up spending more money than you need to. 

Plus, before leaving the UK, remember to check if the card is free to use abroad or whether there are fees for spending overseas. 

2. Try local transport 

It’s always tempting to jump in a taxi when you land at the airport, but this can be expensive. Instead do your research to see whether there is local transport available. A bus or train from the airport will be considerably cheaper and it’ll mean you get stuck into life abroad quickly. 

3. Look out for discounts 

Speaking of transport, it’s always worth asking the bus or train companies if there is a discounted pass for unlimited travel during a specific timeframe. For example, it might be cheaper to get a 24-hour pass rather than paying for each journey separately. 

Knowledge is always power when trying to save money, so never be afraid to ask about discounts. Restaurants or shops might have special discounts that only locals would know about, so ask politely and see how much you could save.

4. Experience free activities 

Expenses on holiday can quickly add up, so look out for free things to do. For example, many cities offer free walking tours for tourists. This is a great way to become immersed in a city’s culture and discover the main attractions. 

The walking tour guide might also have more free activity recommendations, or they can direct you to places that are popular with locals to avoid the inflated-prices in tourist areas. 

5. Remember roaming charges

Our phones are a powerful tool for travelling. However, it can also be expensive as you may face roaming fees. This will vary depending on the provider, but if you aren’t sure of the costs abroad, then turn your phone off or use aeroplane mode. You can also look out for free Wi-Fi hotspots in restaurants or hotels to help you get online overseas. 

This handy guide on the best SIM card and networks for roaming explores this subject in more detail. Plus, eSIMS are handy for travelling abroad as they allow you to change your data plan without needing to replace the physical SIM.

6. Download apps 

There are also some apps that can help with your holiday expenses. These can be downloaded before your holiday or via some free Wi-Fi when you’re abroad. Groupon has deals for activities or try The Fork which offers discounts on your food bill at restaurants. Citymapper can also help you to plan a day of sightseeing with public transport so you avoid expensive taxis. 

7. Manage your money daily 

During your holiday, it’s important to regularly check your budget to make sure you aren’t overspending. Try to set spending limits and then monitor your expenses on a daily basis to ensure you are staying on track. This will prevent any unexpected surprises when checking your balance at home. 

8. Get a VAT refund for shopping

UK shoppers can get a VAT refund on their shopping abroad, including in the EU. Tax-free shopping can really add up, so remember to ask the sales assistant for a VAT form when you make your purchase. They will normally ask for proof that you’re eligible, so you’ll need your passport details. Customs will then need to review the form at the airport before you fly home, and you’ll get the refund once approved. 

9. Don’t forget insurance

Finally, don’t forget about insurance as this can give some protection if something goes wrong. If you already have insurance, remember to take the policy with you, as then you can check the terms and conditions for claiming. 

This guide explores more about travel insurance and how to make a hassle-free claim.