As the cost of all-inclusive package holidays to popular destinations rises sharply, travellers across the UK are employing inventive approaches to reduce their expenses and make summer breaks more affordable. From last-minute bookings and off-peak travel to house swaps and loyalty points, these money-saving hacks are reshaping how holidaymakers plan their escapes in 2025.
Last-Minute Bookings: A Gamble That Pays Off
Laura Strang, 25, from Oban, Scotland, exemplifies the potential savings of booking holidays at the eleventh hour. Just two days after her wedding in June, Laura and her husband Sam Gledhill secured a 14-night all-inclusive trip to Cancun, Mexico, for £2,400 approximately £1,200 each.
“We got married on the 21st of June and waited until the 23rd to book a holiday that started on the 25th,” Laura told BBC News. “Two weeks in Mexico were cheaper than two weeks in Europe, and I’d say we saved thousands based on comparing prices and reviews.”
Laura noted that the soaring costs of European destinations like Spain meant even shorter stays closer to home sometimes cost more than her extended Mexican getaway. “Ten nights in Spain were coming up the same or more expensive. Considering it’s a 10-hour flight to Mexico, it’s a bit crazy.”
Experts in travel economics highlight that last-minute bookings can yield substantial discounts when hotels and airlines aim to fill unsold inventory. Dr. Amelia Hartman, a travel economist at the University of Exeter, explained, “Tour operators may reduce prices sharply if they have rooms or seats unfilled as departure dates approach. This benefits spontaneous travellers willing to accept limited planning time.”
However, Dr. Hartman warns, “There’s an inherent risk of availability and choice being limited, which can make last-minute holiday planning unsuitable for some families and travellers with specific needs.”
Off-Peak Travel and Family-Friendly Offers Slash Costs
Families are particularly feeling the pinch amid rising holiday prices but are finding creative ways to ease the financial burden. Nathan Hart, 33, from Merthyr Tydfil, Wales, and his fiancée Cassie Farrelly estimate they saved £3,300 on a 10-day all-inclusive holiday to Ibiza by travelling off-peak in late September and securing a free place for one of their twin daughters, aged three.
“Many travel websites have filtering options that show which resorts offer ‘kids go free’ deals,” Nathan said. “We found a hotel charging £800 per adult including one free child place that alone was a significant saving.”
Comparing prices from peak summer months to off-peak periods confirmed the value of their strategy. “The same holiday in August was nearly double the price not affordable for us,” Nathan added.
While the trend of travelling outside school holidays saves money, it carries educational and legal complications. The UK government enforces strict rules on term-time absences to safeguard children’s schooling, with fines and potential prosecution for unauthorised holidays during school terms.
Home and House Swaps: Affordable Luxury Alternatives
For travellers seeking more space and flexibility, home-exchange platforms offer a compelling option to bypass accommodation costs. London-based May Burrough, 37, reserved a five-bedroom villa with a pool on Spain’s Costa Brava last October for just €100 (£85) the cleaning fee by swapping her cosy central London flat via a home exchange site.
“Usually renting a villa like that would easily cost £3,500 a week,” May told BBC News. “By swapping, I only paid the cleaning plus transport. We really indulged on local food and wines, as the savings on accommodation freed up our budget.”
May’s experience is mirrored by many who use credit-based exchange systems to increase flexibility, earning credits by hosting others in their home. She notes, “There is some effort involved with cleaning and preparation, but it is definitely worth it.”
Industry analysts point to increasing popularity for home swaps as travellers seek budgets that cannot accommodate traditional hotel stays. The HomeExchange platform reports a 35% rise in UK members over the past two years.
Maximising Loyalty Points to Cut Flight Costs
Collecting credit card loyalty points has become a savvy tactic among frequent flyers. Ebrahim Paruk, 35, from Nuneaton, Warwickshire, credits Virgin Atlantic credit card points for saving hundreds on flights.
“I pay for everything I can with my card bills, fuel, groceries then redeem points for flights,” Ebrahim explained. “My best saving was £400 off a return trip to Düsseldorf for the 2024 Euros football tournament.”
Such strategies align with surveys by consumer watchdog Which?, which found that loyalty points and reward schemes can save travellers an average of 15% to 20% on flight costs when used effectively. Financial advisor Helen Bridgeman advised, “While loyalty schemes deliver value, users should avoid debt by paying balances in full to prevent interest negating benefits.”
House Sitting: A Growing Trend Offering Free Accommodation
Single mother Annmaree Bancroft, 46, has leveraged house sitting to enjoy multiple trips to the US without spending on accommodation. Since taking care of pets and homes 11 times with her son, she says the concept makes travel more accessible.
“Our first house sit was in Scarsdale near New York City,” Annmaree said. “This year, I’ll be back visiting friends and then staying in Connecticut and Brooklyn, covering three more weeks without accommodation costs. Our trip expenditure is mainly flights and local travel.”
Annmaree uses TrustedHousesitters, which charges between £99 and £199 annually, and stresses the importance of reputable platforms for safety and reliability.
The house-sitting model is gaining momentum globally, with HomeExchange reporting a 40% increase in such bookings post-pandemic as travellers look for longer, more budget-friendly stays.
Staying Closer to Home: The Rise of UK “Staycations”
Not all are heading abroad to beat costs. Kayleigh Pennel-Price, 33, from Wiltshire, is opting for a two-week house sit in Buckinghamshire with her partner, two young children, and dog, Kofi.
“I looked into a foreign family holiday and it was about £3,000 for a week,” Kayleigh said. “Instead, we’re caring for two Yorkshire terriers in a home with a pool and sauna, at an estimated total cost of just £250.”
Concerns over pet care and travel with young children spur many families to explore staycations. According to VisitBritain, UK domestic holidays rose 12% in 2024, driven by more parents with infants and pets seeking convenient options.
Rising Holiday Costs and the Search for Value
Rising energy prices, inflation, and supply chain challenges have pushed holiday package prices upwards. ABTA, the UK travel association, reported that all-inclusive holidays increased by an average of 10-15% year-on-year since 2023.
Travel consultant Mark Thompson noted, “Consumers increasingly research multiple options, combining flexible travel dates, loyalty schemes, and alternative accommodations to find value. These trends will likely intensify as economic pressures continue.”
For the growing number of UK travellers, creative budgeting is key to maintaining holiday plans without breaking the bank. Whether through last-minute deals, off-peak scheduling, house swapping, or loyalty programmes, these strategies offer practical solutions amid a shifting market.
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