Holidays can be expensive. Even before you step foot in the airport, you've likely shelled out a small fortune, and it can be hard to keep costs down once at your destination too. With living costs rising, budgeting has become essential to many. So we’ve put together some handy tips to make sure you’re always on top of your budget while travelling.

Don’t book the first flights you see: use comparison websites such as Kayak, Momondo and Skyscanner to figure out the cheapest times to fly and the best operator to book with. Hopper is another great tool that can help you decide whether to buy flights now or wait. You can also sign up to free emails from Jack’s Flight Club or Scott's Cheap Flights to hear about mistake fares and bargain flights if you’re flexible about your dates and destination. 

We've got tips on getting the best deal on flights here 

You can grab some great deals if you consider a package holiday. The whole lot, including flights, transport and hotel, can sometimes be even cheaper than just the flight, especially to a far-flung destination. These are typically good value if you book far in advance or if you wait until a few weeks (or even days) before departure to bag a last-minute deal. There are a number of websites you can use, such as Travelzoo, Holiday Pirates and Secret Escapes. 

Don’t wait until the week before your trip to organise travel insurance. Sort it as soon as your holiday is booked, so you’ll be protected if you need to cancel due to unforeseen circumstances.

Whether you’re booking a whole holiday, flights or even just stocking up on toiletries, you can make a quick saving when planning your travels with cashback sites such as TopCashback and Quidco. 

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Whichever airport you’re going to, do your research to get there as cheaply as possible. Of course, this will depend on where you’re coming from, but in most cases, planning ahead can save you a lot of money. For example, take the tube to London Heathrow instead of hopping on the Heathrow Express and opt for a Southern train rather than the pricier Gatwick Express. National Express buses to airports like Stansted and Luton can also be good value if booked in advance.

Most airlines now charge for food on board and prices can be hugely inflated in the airport. If you’re staying in a hotel, items in the minibar will likely be overpriced too. Prepare in advance by stocking up on snacks, preparing a packed lunch for the plane (make sure it's something that's allowed through security) and visiting a supermarket upon arrival.

If you’ve booked a hotel room with a free cancellation policy, keep monitoring the price. If rooms are cheaper closer to the date of travel, cancel and rebook to save yourself some cash. You can use this tactic with airlines too: for example, with easyJet, if the price of your flight goes down after you book it, you can contact them to get a voucher towards your next flight.

Here's how to ensure you get a good night's sleep at a hotel

While speedy boarding and seat selection are lovely additions to a trip, if you’re on a budget, they’re unnecessary and can even double the price of a cheap flight. Make sure you’ve also read all the rules around your luggage allowance, have carefully weighed your suitcase and aren’t carrying an extra bag. Excess charges at the airport are much more expensive than paying for the extra weight in advance.

Packing sensibly isn’t just about avoiding excess luggage charges. It's also about avoiding the need to buy expensive items in the airport or at your destination. For example, for a short weekend trip, buy small refillable toiletry bottles for your carry-on suitcase and fill them with at home. Not only will the security line be a breeze, but you won’t need to splash out on overpriced items before dashing to the gate.

Find more packing tips here

It goes without saying that if you can avoid peak travel dates such as bank holidays and school breaks, you’ve won half the battle when it comes to budgeting. If you have kids and can’t take any other weeks off, then holding on until the end of the summer holidays can get you a decent discount too. As many parents may be reluctant to go away just before the children return to school, there are some great hotel room rates to be found.

Hotels are rarely the cheapest option – consider other accommodation types for a more budget-friendly stay. Hostels, Airbnb, serviced apartments or even couchsurfing are great options and they're often much more sociable too. If you like animals, you can lodge in fantastic properties around the world for free by housesitting, as long as you’re happy to take care of the pets as well. Visit TrustedHousesitters.com to apply.

As a general rule, if you’re paying by debit or credit card and are offered the choice of paying in your home currency or in the local currency, you should always opt for the latter. If you choose your home currency, you’ll be subject to extra charges of up to 10%, which can really add up by the end of your holiday.

It might not sound fun, but making a budget and sticking to it can save you a fortune while you’re away. You can use budgeting apps, make a spreadsheet or simply note down how much you’ve spent on your phone. If you’re travelling with friends, download a bill-splitting app like Splitwise so you can all track how much you’re spending and easily work out if you owe, or indeed are owed, any money.

Upgrades really do happen, both in hotels and on planes. There are a few steps you can take to increase your chances of a swankier trip without spending any extra money. The easiest, although most embarrassing way, is simply to ask – always be smiley and polite and don’t be shy to mention if it’s a special occasion such as a birthday or anniversary. Of course, if you're travelling off-peak, your chances of being bumped up are much higher.

Here are our tips for getting a hotel upgrade

There are loads of rewards programmes that can help save you money on your travels. You can contribute to future trips by earning Avios points with a variety of credit cards. You’ll pick up points as you spend money day-to-day, even on small items like coffees or snacks. You can then redeem these points on flights and hotels, and also use them to upgrade your cabin class, saving hundreds or even thousands of pounds in the process.

Negotiating prices can actually be lots of fun. Don’t be afraid to ask for discounts, whether you’re snapping up souvenirs in a local market or even chatting with the travel agent (they may offer you a discount to get your business). Always remain friendly and well-mannered and you’ll be surprised by how much money you might be able to shave off the original price.

Read more: 7 secrets you need to know before booking with a travel agent

If you’re planning on splashing out on one meal per day, make it lunch rather than dinner – it can cost half the price. Look for business lunch deals that restaurants put on to attract local workers. You might be able to enjoy a three-course meal for the price of a main.

If you’re keen to cram as much sightseeing as possible into your trip, do your research in advance to avoid blowing the budget. Many cities have one day per month where entrance to museums is free, so if you’re an art aficionado, plan your trip around this. Other attractions are free all year: do some research before you go to find out which spots have cheap or even free entry.

Call your service provider before leaving the country, so you know exactly how much you’ll be charged for phone calls, texts and data use abroad. If you're a frequent traveller, consider switching to a network that offers free data roaming, calls and texts abroad or pre-purchase an add-on which will cost less than daily roaming charges. If you don’t have data roaming in your destination, keep your phone on flight mode and just use Wi-Fi to avoid huge charges.

You can bet good money that the closer you are to popular tourist attractions, the more expensive the hotels and restaurants will be. To enjoy a cheaper meal (and often a tastier one too), walk a while away from the main tourist areas. You’ll see more of the destination you’re visiting and potentially stumble across some local hot spots too.

If you’re staying in a hotel, breakfast can often be extremely pricey: as much as £20 ($24) per day on top of the room cost. If all you’re presented with is a bowl of cornflakes and a cup of tepid coffee, this is a monumental waste of money. Instead, enquire about the difference in price for a breakfast-free stay and pick up something in a local café for a fraction of the price.

Whether you’re trying to find a restaurant five minutes away or are looking to visit another city entirely, do a bit of research to avoid booking a pricey last-minute taxi. Omio is a handy website that lets you find and book trains, buses, flights and more across Europe, even offering you more innovative travel solutions like carpooling with BlaBlaCar. Download Citymapper for step-by-step public transport instructions in a number of destinations.

If you’re being extra careful with your money, it will feel painful if you find you're spending unnecessarily due to bank charges and unfavourable exchange rates. Don’t exchange money at the airport, as this is a surefire way to be out of pocket. Instead, get yourself a bank card which you can use in any currency for free. With these kind of cards there’s no risk of you being stranded with a blocked card either and their exchange rates are often much higher than on the high street. 

It’s always nice to come back from a trip with a few souvenirs, but don’t go crazy on the first day you hit that local market. Any extra space in your suitcase is precious, so make a note of the things you like when you initially see them and compare the price of similar products at different stalls or stores. If you’re still thinking about an item in a few days' time, come back and buy the cheapest one at the end of your holiday.

While we’d always recommend booking tickets to museums, attractions and shows in advance to save yourself money and queuing time, leave yourself some room for flexibility. Part of the fun is having spontaneous adventures so, rather than signing up for another tour you might regret paying for, leave yourself a day to wander around and explore on foot. It’s free and you might meet some friendly locals along the way.

Read our guide to travelling like a local

While there’s no denying that solo travel can be pricey, for example the single supplements at hotels, there are ways around it. You could book a trip with a tour operator specialising in solo travel. Otherwise, if you’re keen on flexibility — and want to avoid paying through the nose for a single room — consider sleeping in a hostel. You can choose a single bed for very reasonable prices and you'll meet like-minded travellers too.

Spend a small amount on a good water bottle before you leave and the investment will be worth it. While you can’t bring water through security, you can bring an empty bottle and refill it at a water fountain in the airport. This is a good money-saving tip once you arrive too, as long as you can drink the local tap water. It will stop you buying plastic bottles every time you’re thirsty, which is wasteful both for the environment and your bank account.

While it makes financial sense to stay in one city, if you’re keen to do a multi-stop break, try to plan your schedule strategically. If you can travel overnight on a bus or train, you’ll save on one night of accommodation and also have the whole day ahead of you once you arrive. 

Check out some of our favourite overnight trains in the world

No one wants to read more emails than they have to but, to get the best deals, sign up to newsletters and emails from your favourite airlines, hotels and travel agents. Spare a minute each day to read through them and you’ll be the first to know about sales, special deals, promotional codes and one-off offers. It’s also worth following brands on social media to hear about competitions and discounts.

You can find more brilliant offers on these websites

Rock up to the airport without checking in beforehand at your peril. If you’re flying with a budget airline, you could be hit with hefty fees, with some even charging you to reprint your boarding pass. Make time to check in online before your trip to avoid wasting cash.

Now take a look at how to save money on your next US trip