How to save money on your next holiday
Top tips for cutting flight and accommodation costs amid uncertainty over fuel supply
The warmer weather is a signal for many to consider booking a summer holiday, but there are warnings that prices could be higher this year and flights could even be cancelled due to the Iran war.
Blockades in the Strait of Hormuz are causing oil prices to rise and could lead to shortages of jet fuel, said the Daily Mirror, meaning “passengers could be facing fuel surcharges and disruption”.
If high costs persist, said The Sun, the extra bill “will be passed on to passengers” – so it may be worth booking now.
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Will the conflict in Iran affect travel this summer?
If your holiday is in Europe, “it is almost certainly going ahead exactly as planned”, said HolidayExtras. Travellers heading to Asia, Australia and the Indian subcontinent on flights which previously had stopovers in the Gulf may face “longer journey times, rerouting and connection uncertainty”.
Some airlines are “choosing to cancel flights” to “protect their profits” while costs are high, said Which? Travel, but this is likely to remain on a limited scale. Unless the situation “significantly worsens”, most European flights will continue as normal.
Look for the cheapest time to fly
As well as where you go on holiday, when you go and for how long can have a big impact on how much you pay.
There’s no “fixed cheapest day” to book a flight, said SkyScanner, but historic data suggests airlines release deals late on Mondays, “which may lead to lower fares early in the week” before prices rise again as demand increases.
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Flying midweek around the UK “is the cheapest option”, said Kayak, while the weekend is "unsurprisingly" the “most expensive time”.
You can make further savings by going on holiday when many other people can’t, such as outside the school holidays. Or if that isn’t an option, said MoneySavingExpert, prices usually “drop rapidly” towards the end of August, as “many people don’t want to be away the week before schools go back”.
Websites such as SkyScanner and GoogleFlights are useful tools to compare flight prices for different dates and times.
Consider all-inclusive
An all-inclusive holiday covering your flight and hotel, as well as food, drink and activities “all in one upfront cost” can hold a lot of value, said TravelSupermarket, and save cash overall “as long as you stay at the hotel all day”.
An all-inclusive holiday can be perfect for all sorts of travellers as it “takes the stress out of planning and budgeting”, and many packages offer on-site activities, pool access, dining plans and kids’ clubs, said Loveholidays.
Make use of free cancellation and payment flexibility
Accommodation booking sites such as Airbnb, Booking.com and Hotels.com sometimes offer free cancellation. This offers “some protection” if you need to rearrange, or you can cancel “if a better deal comes up”, said Sky News.
Some holiday companies such as Tui are offering zero-deposit holidays, allowing you to secure a deal without any upfront payments. Others, including Jet2, offer “pay monthly” trips allowing customers to pay in interest-free instalments.
Holiday homes vs. hotels
A hotel may offer extra comforts such as daily housekeeping, but renting a holiday home could be cheaper.
Many holiday villas can house a large number of people, said the Oliver’s Travels blog, “meaning you can get the gang together and split the cost – and it’ll often come up less per night than a hotel”.
You may also save on restaurant bills if you rent a home, as you can buy and cook your own food. And while guests may enjoy a wide range of amenities in hotels, “they lack the extra authenticity that more and more travellers are looking for when planning their holidays”, travel website Wimdu suggests.
Staycation vs. sunseeking
Holiday companies are predicting a “surge in bookings”, for UK-based summer breaks due to uncertainty about flights amid the Iran conflict, said The Guardian.
VisitBritain’s April 2026 Domestic Sentiment Tracker found that 78% of a total of 1,500 respondents were planning a UK break in the coming months.
You will make an “immediate saving on flights, transfers and expensive foreign hotels, said MoneyToTheMasses, but you have to factor in the relatively high costs of accommodation, food, fuel and entertainment in the UK.
So if you are planning to holiday in the UK, be sure to shop around for decent deals.
Don’t forget insurance
Having travel insurance can be useful to cover the costs if there are delays or cancellations, as well as if you have an accident or experience any other costly issues during your break.
It is a “smart move”, to buy travel insurance as soon as you book your holiday, as it will cover you straight away, said MoneyWeek.
Marc Shoffman is an NCTJ-qualified award-winning freelance journalist, specialising in business, property and personal finance. He has a BA in multimedia journalism from Bournemouth University and a master’s in financial journalism from City University, London. His career began at FT Business trade publication Financial Adviser, during the 2008 banking crash. In 2013, he moved to MailOnline’s personal finance section This is Money, where he covered topics ranging from mortgages and pensions to investments and even a bit of Bitcoin. Since going freelance in 2016, his work has appeared in MoneyWeek, The Times, The Mail on Sunday and on the i news site.