Simon Calder’s top tips for budget holidays – like paying in local currency

Travel journalist Simon Calder has shared his top tips for holidaying on a budget, including tipping appropriately, paying in local currency – and avoiding renting a car from the airport.

The broadcaster, who has been presenting travel shows and segments for the BBC for over 40 years, also advised taking advantage of free public transport, such as the buses, trains, and trams in Luxembourg, or the free airport bus from Boston Airport in the USA.

And his number one tip is to not assume you are able to pay in cash – as many establishments are now contactless payment only.

His travel advice comes as Brits prepare to jet off in search of some autumn sunshine – with October and November set to be the most popular months for a getaway, to avoid high, peak-season prices.

The survey of 2,000 adults found that almost a third (32%) are searching for cheaper holidays abroad this year, as opposed to a holiday at home – with staycation trips having dropped by 21%, compared to last year.

And while last year's main holiday concern was finding the best value for money, this has now been replaced by chasing good weather for an autumn 2023 getaway.

The study was commissioned by HSBC UK, which has launched a new cash offer for new customers opening both a current account, and a Global Money account.

Simon Calder, said: “This surge shows the insatiable appetite for travel. The last few years have been very difficult for many reasons – but we are now seeing more people willing to invest in enriching experiences.

“Our appreciation of travel has intensified after the pandemic – as the saying goes, you don’t know what you’ve got till it’s gone.

“The desire to create lasting memories is prompting individuals and families to prioritise holidays – and specifically, to seek out activities, local cuisine, and culturally immersive tours.

“But while this is happening, costs are still on holidaymakers’ minds – as many are strategically ditching the summer months in favour of October and November.

“I will be travelling extensively in Europe over the next few weeks. In the southern Mediterranean, the sun is still shining and the sea is warm. The crowds have vanished, and the prices are dwindling too.

“By opting for travel during the autumn, you can enjoy the last of the summer sunshine in the south – and, in the poetry of John Keats, the “season of mists and mellow fruitfulness” in the north. And all without breaking the bank.”

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The HSBC UK research also found that holiday budgets have risen by 10% this year, with the average Brit willing to spend up to £1,015 on their 2023 trip, compared to £927 last year.

But 64% are still mindful of the economic climate, which is why one in four are looking to travel outside of peak season. However, even with many choosing cheaper getaways abroad, the bank warns about fees when spending overseas with debit cards.

Many mainstream debit cards charge a transaction fee of between 2.75% and 2.99% on spending abroad – meaning that, by spending €1,000, travellers could be charged up to £25 in fees.

And using a debit card to withdraw cash overseas also typically comes with a cash handling fee of around 2%, or a minimum of £3 – so using a cash machine five times while in Europe, withdrawing €200 a time, the fees would total around £42.

Pella Frost, head of everyday banking at HSBC UK, said: “We designed Global Money to make spending overseas simple, quick, and straightforward for our customers.

“It helps customers avoid unexpected costs, and makes it easy to plan and stick to a holiday budget. Customers can manage their spending easily through the app, so they can spend more time enjoying their holiday.”

SIMON CALDER’S TOP FIVE TIPS FOR BUDGET TRAVEL:

  1. Don't assume you can pay by cash – Contactless payment is now the norm with many enterprises.
  2. Tip appropriately – 20% is the norm in the US, but in many European nations service is included in menu prices.
  3. Pay in local currency – When using your credit or debit card abroad, choose to pay in local currency instead of GBP.
  4. Make the most of free public transport – All trains, buses, and trams in Luxembourg are free. At Boston airport you can hop on a free bus to the city centre; and each summer, buses are free in the Lake Annecy region of France.
  5. Renting a car? – Avoid airport surcharges by taking public transport into the city and picking up a vehicle there. If you are touching down after a long flight, it’s safer and less stressful to avoid an airport pick-up, too.

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