How To Budget A Holiday

How to budget a holiday

Even though there are currently travel restrictions due to COVID, many people are already planning their next holiday. Whether you are looking for a staycation or an overseas holiday, it is essential to learn how to budget so you can make the most of your break. It is unclear whether the travel companies will offer cheap holiday packages to encourage customers or increase prices to make up for lost business. What we do know is there will be significant competition amongst travel companies.

In this article, we will look at how to budget your next holiday so you can enjoy the break.

Take time to choose your destination

While holiday trends change regularly, people from New Zealand have long-held specific locations close to their hearts. The Skyscanner website has a list of the top 10 popular destinations for New Zealand holidaymakers:-

1. London, UK
2. Sydney, Australia
3. Melbourne, Australia
4. Bali, Indonesia
5. Brisbane, Australia
6. Gold Coast, Australia
7. New Delhi, India
8. Bangkok, Thailand
9. Nadi, Fiji
10. Seoul, South Korea

Take time to choose your destination, and don’t necessarily feel that you have to follow the crowd. The Internet offers information on both popular tourist destinations and those a little off the beaten track. Maybe after the COVID pandemic, it is time to be a little more adventurous?

Choosing the right destination

Avoid popular tourist traps

If you are planning a holiday, but you have a relatively tight budget, it may be an idea to avoid the more popular tourist traps. We are not suggesting you shouldn’t visit any of the top 10 destinations but when you are there, maybe shop around. You will quickly learn that shops and restaurants on the “main strip” tend to be significantly more expensive than those slightly off the beaten track.

It is easy to get dragged into the more popular tourist traps, the flashing lights and the appetising menus. Whether you are staying at a hotel or renting a holiday home, ask the locals where you should visit, where you will get better value for money. They may tell you a very different story to the reps!

avoid tourist traps for a more affordable holiday

Don’t forget travel insurance

There are two trains of thought when it comes to any insurance. It is either a “waste of money”, or it is a “necessity”. When experiencing different cultures, visiting other parts of the world and getting in the holiday mood, there is probably an increased risk of injury. When you consider the cost of travel insurance, a very competitive market, it is perhaps a false economy to scrimp on this expenditure. It might come back to bite you on the backside!

It is also worth remembering that it can be challenging to find the necessary treatment in countries such as the US without insurance. However, on the flip side of the coin, there is a reciprocal arrangement between New Zealand with certain services publicly funded in the UK. It is still sensible to arrange comprehensive medical insurance, adapting the level of cover depending on the country you are visiting.

Book in advance

Those who wait until the last minute to book their holidays are the Holy Grail for holiday companies. The earlier you book your holiday, the greater chance of a discount, the later you leave it the higher the price. There will be some cheap holidays available at extremely short notice, but this is not convenient for everybody. So, by booking in advance, you should be able to secure a significant discount, leaving more holiday spending money.

Many websites will allow you to pick various aspects of a holiday, travel, accommodation, trips, etc. and create your own holiday jigsaw. However, it is difficult to understand why many people leave it so late to book their holidays. After all, the likelihood is that we will know our preferred destination months in advance.

Book your holiday in advance for more chance of a discount

Search for cheap flights

It is understandable why so many people are drawn towards the expensive heavily promoted commercial direct flights when considering their next holiday. While there are options, many of us are a little lazy.

When booking flights for your holiday, specifically those further afield, you will likely find that direct flights are the most expensive. While it will depend upon your destination, you may see significant cost savings when looking at indirect flights with numerous stop-offs. Perhaps not the perfect solution, this may allow you the opportunity to spend a night or two in these stop-off destinations?

On the downside, if the cost of a flight looks too good to be true, then it probably is. Stick with the well-funded, well-known airlines as they tend to be more financially secure than some of the smaller niche players. If you are unsure about a cheap flight deal, ask for advice.

Search for cheap flights

Consider sharing accommodation

If you are planning a vacation with your family, then the subject of shared accommodations may not be appropriate. However, if you are taking a break with your partner, friend, or yourself, it can be an exciting option.

When we talk of shared accommodation, this tends to be a dorm in a hostel. The term “hostel” has been around for years, and many people seem to have the wrong impression. Modern-day vacation hostels offer good quality accommodation at rock bottom prices. The issue of safety is something about which you should be acutely aware. Thankfully, this is also important to the hostel companies with an array of guidance given and procedures in place.

If you’re looking at how to budget for your next holiday, shared accommodation may well be an option.

Should you use finance to fund your vacation?

Here at Crester Credit, we offer a range of finance, including travel loans to fund a trip or holiday. So whether you are looking to finance the cost of flights, accommodation, car rental and a degree of spending money, we can offer you competitive rates. Why would you consider using finance to fund your vacation?

Saving money for a holiday can be difficult, and even if you are successful, it may take some time. Therefore, the opportunity to secure a short, medium or long term loan with flexible repayment terms will allow you to enjoy that dream holiday. The enjoyment factor between a basic holiday and one with a few luxury add-ons can be huge. However, in the current environment, the difference in cost may not be as significant as you might assume.

Finance can help fund your holiday

Research local transport options

Many cheap holiday packages tend to offer very basic services, which may not necessarily include transport options. Understandably, some people feel uneasy using public transport in a foreign country and often use relatively expensive taxi services. However, there are several options available today, including carpooling and transport services such as Uber.

The Internet will be awash with an array of transport options wherever you are spending your holiday. Safety is paramount, and you should do your research before deciding on which service to use. The more you can save on transport without compromising your safety, the greater your spending money. You also tend to find that these alternative transport options are more flexible than public transport – increasing the number of venues you could potentially visit.

Check online reviews

Historically, cheap holiday packages have attracted more than their fair share of criticism and negativity. However, the situation is very different today with the Internet allowing an array of reviews to be left and advice furnished. Unfortunately, several fake review schemes have been exposed in recent years, somewhat reducing the value of online reviews.

That said, if you visit reputable online review websites, even with a few fake reviews, you can still get a general impression of specific destinations and service providers. Forums, word-of-mouth, and other online and offline communication methods can also help give you more in-depth information. It is dangerous to decide where to go and who to book using a review in isolation. Look at different websites, different reviews, then make your mind up.

check reviews before booking your holiday

Not all tourist destinations are expensive

Our suggestion that “not all tourist destinations are expensive” may look at odds with our earlier comments regarding popular tourist traps. When looking at holiday packages taking in popular tourist venues, it may be worth considering an out of season vacation. While there may be some limitations on the number of tourist attractions open out of season, there can be substantial cost savings.

You tend to find that the tour operators and accommodation providers make the bulk of their money in the high season. Many may be open to negotiations regarding the cost of an out of season package. Filling hotels, bars and other facilities, even at lower rates, will maintain an income stream, and this “busy look” can attract other holidaymakers.


The level of flexibility on holiday dates and potential cost savings will depend upon your circumstances. There may be the chance to secure significant savings on family holidays, but you may be limited to peak times of the year. Those travelling with a partner, friend or by themselves might be able to make significant savings on shared accommodation and alternative local transport options. It does depend on what you are looking for, where you are looking to go and when.

Here at Crester Credit, we can help you make that dream holiday become a reality. We offer competitive rates on travel loans which can take in flights, accommodation, transport and even spending money. Online applications are considered within 60 minutes, with successful applicants receiving funds within 24 hours.


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