How to save on holidays as cost of going abroad and staycations rocket: Sarah Coles

Meanwhile, you only have to look at the chaos of cancelled flights and airport delays last year to see it has been more difficult for airlines to get back to capacity. Glasgow was particularly striking – where 2.5 per cent of flights were cancelled last year. Those who let staff go during the pandemic need to recruit again, and when it comes to highly skilled roles, including pilots, they can’t just turn a tap on. The process of recruitment hasn’t been made any easier by the impact of Brexit on the workforce either. It means this year airlines have been careful to control availability to ensure there’s not another rerun of the chaos.

When we realised the cost of flights was making the trip ruinously expensive, we looked into taking a ferry. The inflation figures show the cost of this has risen too - up 10 per cent in a year. However, it’s far more affordable. Unfortunately, we would have to add overnight stops to the price. Then of course came the realisation that it meant four days in a car with teenagers who can’t bear our company for more than five minutes at a time.

A holiday closer to home is out of the question too. The cost of UK hotels was actually one of the sectors driving inflation higher in February, with the price of hotels up 17 per cent in a year. Holiday camps and camping are up less, at 9 per cent. It’s also less expensive to begin with. However, many years of experience has taught us that being in a tent in UK weather tends to end up ruinously expensive, as you gravitate to expensive indoor entertainment and food – especially given that the price of eating in restaurants and cafes is up 11 per cent.

The travel agents encouraged us to consider package holidays as a more affordable option. They assured us that if we opted for an all-inclusive break, it would be easier to budget for while we were away – so there would be no hidden costs. Of course, once we saw the price we realised why: all the costs are bundled into one completely unaffordable bill up-front. The inflation figures show that the cost of these is up 12 per cent.

This isn’t just a flight capacity issue. Currency movements are working against us too. Again Brexit hasn’t helped, but economic woes in the years since have played a part as well. In February, the pound sunk to 1.11 euros, and while it has since picked up slightly to 1.13 euros, it’s a far cry from last august when it was at 1.2 euros - or 2015 when it went above 1.4. This doesn’t just feed into the cost of hotels, but of everything we spend while we’re away.

It shouldn’t come as an enormous shock. We know the cost of energy and fuel has soared around the world, and that food prices are on the up. We also know that everyone will be raising staff pay to help them cope with the cost of living, which will be passed on in higher prices. It’s just that while the ever-increasing price of sausages is something we see rising incrementally each week, we only look at holidays once or twice a year, so price rises feel far more startling.

If you’re yet to book a break, there are a few things you can consider. One is the destination. Looking beyond popular places like Spain, France and Croatia can save you a decent chunk of money. Less common options like Slovenia, Estonia, Bulgaria and Albania offer much better value. You can either track down an independent deal off the beaten track, or ask your estate agent to find you something.

Alternatively, you can go through the process of compromise. Substituting the flight and car hire for a ferry is one huge saving. Meanwhile, subtracting rooms will always cut your costs, and if you prefer self-catering, then switching a villa for an apartment without a pool can be far cheaper.

You can also hunt for discounts. One really useful option is about to get much less attractive, so is worth knowing about. Tesco Clubcard points can be spent with their ‘partners’ – including everything from holiday accommodation websites to airport parking. Right now when you exchange points for vouchers for these companies, you’ll get up to three times the value. From June 14, you’ll only get twice the value. And while it’s still better than a poke in the eye with a sharp stick, it’s well worth exchanging your points for vouchers before this point – and making sure you use those vouchers before they expire too.

There’s also the question of timing. By now you will have missed the early bird deals, but there are still two options to consider. If you’re looking for flights to popular package holiday destinations, talk to a travel agent. Years ago, when we went to Florida, our agent logged on at midnight on the date she knew package holidays would release unsold flights back to the airlines, and snapped up a bargain.

The other option is a last-minute deal. We’ve just seen the cost of Easter breaks plummet with some package holiday operators, so a few days before you travel there could be some exceptional deals around. Of course, you run the risk of these being a bit thin on the ground in a year with too much demand and not enough supply, but you could get lucky by leaving a booking later.

If you pick this option, you need to be comfortable with whatever you choose as plan B. For us, the year it backfired and we spent two weeks on a rainy campsite was the last year I’ll ever try for a last-minute bargain. Instead, we’re going for a city break in an apartment, and membership of a gym around the corner with a roof-top pool. It’s less than half the price of the villa holidays we started with – without forcing warring teenagers into an enclosed space for prolonged periods of time – which would frankly be worse than staying home.

Food inflation hits 18 per cent

The cost of holidays isn’t the only horrible price rise in the most recent set of figures. Food inflation is also on the march – up an incredible 18 per cent in a year. Shortages of salad vegetables haven’t helped here, as bad weather hit supplies from further afield, and higher energy prices put growers off heating their hothouses further north, severely limiting the options for supermarket buyers. Those tomatoes, cucumbers and peppers that made it to the shelves did so at a much higher price, which has made healthy eating an increasingly expensive business.

Sarah Coles is Head of Personal Finance at Hargreaves Lansdown and Podcast Host for Switch Your Money On