The extra costs to consider when planning your summer holiday

The cost of flights is soaring ahead of the busy summer holiday period, so what can you expect to pay to get away this year?

Holidays abroad are "more expensive than ever" in the current cost-of-living crisis, said GoCompare.

Popular tourist destinations such as Spain could even "face a drop in tourist numbers", warned the Daily Express, as flight prices on low-cost carriers such as easyJet, Ryanair and Jet2 have risen by 30% on average.

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Why are flight prices rising?

Airlines consider a range of factors when it comes to flight pricing.

But "distance and demand are pivotal" when deciding prices, said SkyScanner.

Airlines put seats into "price buckets", explained the comparison website, and as one fills up, "they open the next, more expensive one, up for purchase".

Tour operators and airlines serving popular destinations such as the Canary Islands are also battling with "rising operational cost and growing demand", Carlos Cendra, marketing and communications director of tourism analyst Mabrian told Canarian Weekly.

Ryanair boss Michael O'Leary has also warned that flight prices could rise by "as much as 10% this summer", said the Daily Telegraph, "because of shortages of new aeroplanes". 

Here are some of the costs holidaymakers can expect, and how to cut them.

The risk of last-minute bookings

Flights "tend to be cheaper" the earlier you book, said Forbes Advisor.

Airlines release flights up to 12 months in advance and you may be able to book package deals up to 18 months ahead. However, providers may also "reduce prices on flights that have a lot of empty seats" closer to departure, added the financial website. 

It can be difficult to find flight bargains "at any point during the school holidays", said the Daily Telegraph, and fares are "universally high for the two July weekends immediately after the schools break up" while return flights around the end of August "also tend to be expensive", so it is worth planning when you travel.

Watch out for airline extras

Even if you succeed in "bagging a cheap flight", said Which?, the overall cost can "spiral at the checkout" when you add luggage. It may be worth seeing how much you can fit in your hand luggage to avoid this added cost. 

Do be aware of other fees such as choosing your own seat, added the consumer watchdog. 

Travel insurance tricks

Travel insurance can help cover or recoup the costs of delays, lost luggage or if you need medical treatment while abroad.

You can make "significant savings" if you take out a joint policy with your partner, said Which?.

Additionally, depending on how many holidays you have each year, said CompareTheMarket, it may "work out cheaper per trip" to get multi-trip rather than single-trip cover, especially if you go away more than twice a year. 

Airport parking fees

If you leave booking your airport parking to the last minute you'll "pay a heavy price", said Which? – potentially hundreds of pounds more if you book at the last minute.

So it is worth shopping around using comparison websites to secure a spot early if you plan to drive to the airport. 

Holiday spending habits

Your credit or debit card provider may let you spend and withdraw abroad, said MoneySavingExpert, but "will charge you for the privilege", adding non-sterling transaction fees of about 3% on spending and flat fees of around 50p to £1.50 when withdrawing money from an ATM.

Instead, said The Times Money Mentor, a dedicated travel credit or debit card "could be one of the cheapest ways to spend while abroad" as there are often no fees or extra charges.