Beware the holiday rip-offs

That fortnight in the sun may seem a great bargain, but it could end up costing paid for insurance, car hire, baggage allowance, and ever increasing airport charges. With some airports now even charging £1 for a clear plastic toiletries bag, it pays to keep your wits about you and do your research, says Rochelle Turner, head of research at Which? Holiday. ‘The travel industry is cleverly coming up with new ways to charge us extra,’ she warns.

Act now

You’ll never get the best deal if you leave it until the last minute – this applies to everything from flights to car hire and buying your foreign currency, which should never be bought at the airport. Make sure you buy your travel insurance as soon as you’ve paid for your holiday. Otherwise, if you have to cancel – perhaps due to bereavement or illness – you won’t be covered and could lose everything you’ve already paid.

Be realistic

‘Booking “room only” may look cheap, but if you then add on all your meals it could be less expensive to opt for an all-inclusive deal,’ says Rochelle. ‘But if you choose this option be careful,’ warns Frank Brehany from the consumer group. www.holidaytravelwatch.net. ‘People complain that “all-inclusive” isn’t what it used to be and you may still have to buy drinks and snacks, so make sure you know exactly what’s included.’

Car hire

Deals vary hugely and can be very complex, so use comparison websites, such as www.travelsupermarket.com, and be very careful about insurance. Make sure you know precisely what you are – and aren’t – covered for. Some policies, for example, don’t include tyres and windscreens. Also, check how much excess you’d be liable to pay if the car is damaged or stolen – sometimes it’s as much as £4000. If you’re worried, you could take out extra insurance to ensure you pay nothing in this instance (this is called ‘excess insurance’), but it can put the price up by as much as £200. Take a photograph of the car before you drive it away – and again when you drop it off. This will protect you from accusations that you’ve scratched or damaged it – an increasingly common scam. ‘If you feel you’ve been wrongly charged for anything related to your car hire, always complain when you get home,’ says Frank. Talking to a UK-based customer service team is usually far more productive, and many people find they eventually get their money back. If you feel you’ve been the victim of unscrupulous or aggressive sales tactics and have no luck getting your money back, report the company to your local Trading Standards office (www.tradingstandards.gov.uk).

Using your phone

■ Text, don’t call. Texts will always be cheaper – around 11p to send from Europe and between 25p and 45p further afield.
■ If you do want to make calls and will be using your phone a lot, buy an international sim card with pre-paid airtime (from around £30). Try www.gosim.com.

Parking your car

Book parking early and you could get a great deal – saving as much as 50 per cent. To get the best price, visit www.airport-parking.co.uk, www.parking4less.co.uk or www.airparks.co.uk. Remember, private car parks near the airport often offer the cheapest deals (and will usually drive you to the airport terminal and pick you up). If you’ve left it late, even booking your parking space the day before will be cheaper than buying on the day itself. Some airports charge drop-off fees, even if you come by cab, and a few of the smaller airports, such as Blackpool and Exeter, charge Airport Development Fees, between £5 to £10 per adult over 16 – check airport websites for details.

Buying and spending: 5 golden rules

Buying your currency online will usually get you the best deal (although watch out for handling and delivering charges). Try www.travelex.co.uk or www.postoffice.co.uk. Order online from the Post Office and you can pick your money up without charge.

Use your debit card cautiously abroad as fees vary. Most banks charge fees of up to three per cent per purchase, and if you’re buying goods, many also charge a fixed fee of around £1 per transaction.

Don’t use a credit card to withdraw cash abroad as there are usually steep charges and you’ll also pay interest on the amount you withdraw (which can be as much as 25 per cent). But, if you’re buying something that costs more than £100, use your credit card in case anything goes wrong with it – the credit-card company and retailer are then jointly liable to refund you.

Pounds or local currency? If you’re given a choice of how to pay, always choose local currency, otherwise you may be given a poor exchange rate without realising.

Consider a pre-paid travel card – the most cost-effective way to spend abroad. The best value cards are Travelex or Caxton FX (www.caxtonfx.com), which you can buy online. They’re free to load and use abroad (some cards charge for this).