How to avoid hidden holiday costs | Smart travel savings tips

Why do holidays always cost more than you think they will? The answer is hidden holiday costs. To save your cash, here are our smartest money-saving travel tips.

With the excitement of going on holiday, it's easy to miss the hidden costs that can creep up on you. According to research by Admiral Insurance, unexpected costs like paying for airline seats, checked luggage, and ticket mistakes could add over £1,600 to the price of a summer break.

You may not think an extra £30 here and there is much, but added up, it can turn a budget break into a luxury one. Take a look at our worst-case scenario example for a family of four:

*Prices above are based on a budget airline for a family of four travelling for a two-week summer break in Europe. Fees and charges differ by airline and holiday company.

It doesn't help that economic turmoil has also led to price surges for certain goods this year. Coffee, chocolate, bread, and meat are more expensive, so expect these costs to be reflected in restaurant and shopping bills, adding more extras to your holiday budget. 

The Post Office Holiday Money Report 2025 shows that where you head in 2025 will significantly impact your daily budget. For example, takeaway coffee costs £1.27 in Portugal and £2.13 in Prague. A beer costs just £2.40 in Spain but £4.48 in Turkey. Sun cream costs £5.08 in Portugal and a whopping £13.54 in Spain.

The good news is you can battle hidden costs by:

1. Paying attention to details—it's often the small things that cost you money, such as having an out-of-date passport or forgetting you need a visa.
2. Reviewing the fine print for your holiday – check baggage, cancellations, and tax terms.
3. Comparing total prices for your flight, use tools like Google Flights (with a "bags" filter) or hotel comparison sites.
4. Pre-booking essentials in advance: trains, attraction tickets, and transfers.
5. Using fee-free cards – get a travel credit card with no foreign transaction fees.
6. Asking upfront about resort fees, taxes, and what's included in your "all-inclusive" package.
7. Factoring in tips and service charges.
8. Knowing what the exclusions are in the price of your holiday.

Here's what else you need to know:

Air travel hidden costs:

One of the biggest travel gripes for most people is air travel extras, from hidden luggage charges to cheap fares that suddenly become expensive once you add seat bookings and cabin bags. 

1. Checked luggage

All airlines charge different fees for checked and cabin baggage, so what looks like a cheap fare can suddenly become expensive. 

For example:

British Airways allows one cabin and one hand bag at no extra charge. There are additional charges to pay to bring checked luggage. Prices can vary, but generally, you'll pay between £20 and £40 per bag online and £40 to £60 at the airport. Overweight bags are charged £65 per bag.

Ryanair is known for its very low fares and charges for any extra services related to the flight. To bring a larger cabin bag (55x40x20cm, 10kg max), you must purchase Priority & 2 Cabin Bags, which cost between £6 and £36 online, and potentially more at the airport or if added later. Checked baggage (10kg or 20kg) costs between £9.49 and £59.99 online and more at the airport. 

Easyjet has a costly luggage policy. A large cabin bag (56x45x25 cm) costs £5.99 online or is free for EasyJet Plus members (£249 a year) or those with Inclusive Plus fares. Checked-in luggage (15kg) costs £6.99 per flight online, and hold luggage (23kg) costs £10 per flight online. Excess weight fees are £12 per kg at the airport and up to £15 per 3kg online for pre-booked hold luggage up to 32kg. 

Don't assume luggage is included in package holidays. For example, if you've booked a package holiday with TUI Holidays, the hold baggage allowance will depend on the package type you have booked. The allowances range from 15 kg to 25 kg, with additional allowances offered on certain holiday types.

Your baggage allowance will be marked on your booking confirmation or e-ticket.

Money-saving tip: To save money, always check your bag size and weight to avoid extra charges when boarding. Different airlines have differing sizes and weights. Next, always pay for extra luggage in advance, never at the airport. Finally, don't be fooled by a cheap fare or what happened on your flight last time. Always check the airline's luggage allowances before you leave home.

2. Seat selection 

For most airlines, seat selection is free when you check in 24 hours before a flight. However, as we all know, this risks several things. Firstly, you may not get the choice of seat you want, such as a window or an aisle seat, and more importantly, if you are travelling with children, you may not be seated together.

While many airlines will attempt to seat families together, even if you don't pay for specific seat assignments, this may not be possible if it's a busy flight and many passengers have booked their seats in advance.

British Airways, Tui, and Virgin Atlantic guarantee that children under 12 will be seated with at least one adult from their booking.

Jet2 and Easyjet will seat children close to their booking group (this can mean a row away) if they can't seat you together. Ryanair says if you're travelling with children under 12, one adult in the group must pay for a seat reservation. You can then reserve seats for free for up to four children.

What's more, you must pay for seat allocation if you want to be seated in the exit aisle, need extra legroom, or even be near the front of the cabin to disembark first.

Money-saving tip: Most airlines will automatically assign seats during the online check-in process if you don't pre-book them, and if you have booked your tickets together, they will do their best to seat you together. Some airlines, like British Airways and Easyjet Plus, will also offer free seat selection with loyalty programs (though check to see if this is a cost-efficient way for you to avoid seat allocation costs). 

3. Airport check-in fees & flight changes

Several airlines charge fees for airport check-in, especially if passengers haven't checked in online beforehand. Some airlines, like Ryanair, WizzAir, and TUI, charge substantial fees (around £50), while others have minimal fees but may still charge you for printing your boarding pass.

Also, remember that deciding to check your baggage at the airport will add a significant cost to your holiday, sometimes three times as much as doing it online.

A good money-saving tip is to do it via the airline app or online on the way to the airport, rather than when you get to the desk.

Airlines are not legally required to offer refunds for flights cancelled by you, so it's crucial to understand your ticket's specific terms and conditions before making a purchase. 

For example, if you cancel within 24 hours of booking with EasyJet, you will receive a full refund minus the Cancellation Fee (as listed in Fees and Charges). If you cancel more than 24 hours after booking, they will not refund any of your fare. 

With package holidays, if a member of your travel party cannot go, always notify the holiday company ASAP. You may need to cancel their part of the booking, which could incur fees depending on the operator's terms. The holiday cost might also change based on the number of remaining travellers.

Money-saving tip: Buy travel insurance when you book your flight and holiday. Most people buy it just before they go, but travel insurance is the most cost-effective way to cover you for flight changes that don't suit you, cancellations, and holiday companies collapsing before you go.

4. Name changes on tickets

Misspellings or using the wrong name on your booking can cost you up to £100 per ticket with some airlines. For example, using a nickname instead of your full passport name or booking under a married surname when your passport is still in your maiden name can cause significant issues at check-in. 

For this reason, airlines charge hefty fees for name corrections or may even require you to rebook your ticket entirely. For example, you're looking at £100 per ticket with Ryanair.

British Airways permits changes of up to three letters in a name and passport/marriage changes via the call centres for a fee. Name changes up to 3 letters: The administration fee is £45, and £50 for passport/marriage name changes; anything more requires buying a new ticket. 

Money-saving tip: As soon as you book your holiday and flight, check your confirmation email, including names and DOB, and ensure they match your passports. Name changes on tickets are free if they are made within 24 hours of booking.

Accommodation surprise costs:

1. Resort fees & all-inclusive extra fees

While these are more common in the U.S., some European hotels now add resort fees to hotel deals.

Resort fees are charges separate from the room rate that hotels and resorts add when you use amenities and services. These fees can include access to swimming pools, pool towels, fitness centres, and Wi-Fi. They are typically a daily charge and are often mandatory, meaning you are charged even if you don't use them.

With all-inclusive holiday deals, premium drinks, à la carte restaurants, or room service may cost extra, so watch out for this too.

Also, watch out for airport transfers with all-inclusive deals (see below). Always check the small print before you book to avoid these.

Money-saving tip: Some resorts and hotels may offer packages that include the resort fee, so it's worth comparing different booking options to see if you can save money when you book. Once you get to the hotel, it's very hard to avoid the fees.

2. Tourist and city tax 

Popular holiday destinations across Europe and beyond have introduced tourist taxes to clamp down on over-tourism and protect places of interest. Recently, city taxes have been implemented in destinations such as Venice, Barcelona, Madrid, and other holiday hotspots. This tax is not included in the room rate and is usually paid at check-out.

The amount depends on the accommodation type, location, and season but is often charged per person per day in the city/country. For example, if you are holidaying in the Algarve or Albufeira, the tourist tax applies to adults (over 12 years old): €2 per night for a maximum of 7 nights per person. Children (12 years and under): €1 per night. 

Amsterdam has a 12.5% city tax, and it isn't always included in the booking quotes, so many hotels charge it immediately on the spot.

Money-saving tip: Children below 12 do not have to pay a city or tourist tax. Outside of that, there's no way to avoid this tax, and if you feel disgruntled about it, it's worth knowing that UK cities like Manchester, Bournemouth, Christchurch and Poole now also have city taxes for tourists.

3. Tips and service charges

Countries have different service and tip rules, which can make budgeting for your holiday confusing. For instance, in the US, tips are common practice, as that's how many servers make their money. It used to be around 15%, but 20% has become more common.

However, tipping is not expected in other countries like Japan, Germany, and Sweden, but it is appreciated in Portugal, Italy, and Spain.

This means the cost can soon add up. Depending on their spending habits, a tip total for a family of four on a 14-day holiday could range from £150 to £400. 

Some all-inclusive resorts include gratuities in their price, so check when you arrive. Overall, tipping is appreciated and often expected if you dine in the à la Carte restaurants or use extra services like the Spa.

Money-saving tip: Always leave a tip in cash so the person you are tipping gets the money. It pays to always have a range of small bills and keep a tip section in your bag so you always have cash on you. This prevents overtipping, which tends to occur when you're paying by card or when servers don't have any change.

4. Apartment and villa fees

Again, when renting a villa or an Airbnb, read the small print to know the costs beyond the nightly rate, as these soon add up. With villas, there is often a charge for early entry and late departures, a cleaning fee, and a breakage fee.

Hidden villa fees can also include:

• Extra charges for electricity due to heated pools or air conditioning.
• Wi-Fi might seem like a standard amenity, but it's not always included; some villas may charge extra for Wi-Fi access.
• Early check-ins and late departures are always charged for with villas.

Bear in mind that companies like Airbnb also charge a service fee to guests, typically 14% to 16% of the booking subtotal, including the nightly price and any additional host fees. This fee covers platform services, including customer support and can be a big extra for a service you'll likely never use. Additional costs include cleaning, extra guests, pets, towels, and security deposits. 

Money-saving tip: Read the small print and total up fees and extras before booking. Again, £60 a night is rarely £60 once you factor in the above. Consider using a service different from Airbnb, such as Booking.com, as it offers more competitive pricing and a user-friendly interface than some rental sites.

Transport & transfer fees and costs:

1. Airport transfers 

The airport transfer is one of the heftiest extra holiday costs. While costs vary widely, one-way transfers range from £35 to £80. 

It can be more than this if you're:

• Booking the transfer on the site where you book your holiday
• Charged per person
• Charged for extra luggage
• If you're booking from the UK and paying in UK pounds
• Travelling at peak travel times (e.g., rush hour, holidays).
• Choosing a luxury or larger vehicle 

Research different options and compare their fares to avoid overpaying and potential scams. Public transport or ride-sharing services are also worth considering, as they can be more affordable and easier than booking a transfer.

At the same time, don't rely on Uber, as it isn't available in countries such as Albania, Bulgaria, Denmark, France, Germany, Hungary, Italy, Switzerland, and Turkey.

Money-saving tip: Do research and compare transfer prices for countries you visit on platforms like Welcome Pickups. Also, ask your hotel or villa company who they recommend, as they'll use cheaper local companies that you won't find online.

2. Car rental extras

Navigating car rental costs is a minefield on holiday. Hidden costs can also significantly inflate your holiday budget. These can include mileage limits, fuel policies and extra insurance for things you don't need. 

Always read the terms and conditions to check for extra costs before you book your car. For example, cleaning fees can apply even if you bring the car back clean. Young driver fees, extra driver fees, and an insurance upsell can also apply, even if you're already covered.

Remember that when you hire a car in Europe, you'll be offered excess car insurance, which covers you if the vehicle is damaged. If you don't have to buy it, you'll need to pay up to £2,500 for the repair costs, regardless of who's at fault if you're in an accident.

The excess can be substantial, so a way around it is to buy an Excess Reimbursement Insurance (ERI) policy before you go on holiday, which allows you to claim the excess back from your insurance provider.

Money-saving tip: Recently, it was found by Which? that the coverage offered by car hire companies costs up to £183 more per week than specialist insurance bought online. Check their recommendations for the best car hire excess insurance covering you for 14 days or more, which starts from as little as £16.

3. Parking fees

At airports or hotels, especially in cities, parking can be expensive. While costs vary widely depending on which airport you are at, the length of stay, and the distance from the airport, prices can add up (prices based on a 14-day stay in a long-stay car park):

• Manchester: £245
• Heathrow: £468
• Bristol: £219
• Gatwick - £358
• East Midlands - £64.49

Pre-booking can often significantly reduce costs compared to on-the-day prices, and signing up for parking sites can also save you 15% on your price. Finally, use CompareAirportParking.co.uk to help you find the cheapest deals for your parking needs.

Money-saving tip: Use Your Parking Space. This site allows you to connect with over 350,000 privately owned and commercially operated parking spaces across the UK and Ireland, available to book on a daily or monthly basis near airports. For example, this site can provide a parking space with a private car park 3 minutes from the terminal at Gatwick, for £100 for 14 days, saving you £258.

4. Getting around

Getting around during a holiday can cost anywhere from 20 euros a day in cheaper destinations to around 60 euros a day in more expensive places, and if there are more of you. Again, this is a considerable expense if you're going somewhere for 14 days and want to sightsee and travel to different beaches.

Using the public transport system or Uber is a good way to save money, as you can budget for your needs. However, if public transport is expensive or lacklustre in your area, you can always negotiate with local taxis and agree on a flat fare upfront. Ask your hotel or villa owner for fair rate estimates.

Before booking your holiday, it always pays to read reviews about the area and use Google Maps to see how near your location is to:

• Restaurants
• Shops
• Sightseeing spots
• Pharmacies
• Beaches
• Airport

Money-saving tip: Many countries and cities offer tourist travel cards, allowing unlimited public transport travel for a day or week. It's a cost-effective way of getting around and can save you hundreds on taxis. France, Spain, Italy, Paris, Florence and Rome all have travel cards for tourists.

If you found this post helpful and are looking for more ways to save money on your holidays and city breaks this year, check out our posts on Your guide to cheap destinations in 2025, How to save money on eating out holidays costs and The ultimate guide to cheap travel insurance.