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The Post Office recently ran a survey and found out that 46% of people are actively trying to lower the cost of their holiday. This means that holiday companies are feeling the pinch as many people are waiting longer to book and spending less on the package. Thanks to a relatively good summer and the constraints on people's finances because of the recession, the UK holiday market has been one of the few winners this year. But despite many people touting the return of the British summer holiday, people still want their week in the sun, and preferably somewhere a little more exotic than Torquay. Airlines such as British Airways have reported massive losses this year as people continue to jump on the low-cost carriers bandwagon. But even the Ryanairs and eayJets out there have had to think up new ways to make money, namely excessive baggage and check in costs and a reduction in the number of routes and airports that are serviced. Cross-channel ferries and Eurotunnel have picked up some of the slack. You can take a whole family to France for the cost of one person's flight, even before you add the baggage charges. Accommodation wise, hotels are struggling to fill rooms and the self-catering cottage of apartment is muscling in on the action. This is a great way to save money, because not only is the accommodation itself better value for money, particularly for large groups and families, but you can also cook your own food which has been bought from a supermarket, i.e. a double-whammy of a saving. Travel insurance has taken a bit of a hit as people see it as an unnecessary extra expense. However, this is rather dodgy ground to be playing on. Firstly, with the number of holiday companies that have gone under in the last two years the risk of this happening is far great to the holiday maker. Especially as people are booking holidays with the cheaper less scrupulous companies that are happy to take your money and run. If something does go wrong whilst away, the costs of treatment will be far greater than the cost of an insurance policy. Also, a European Health Insurance Card really isn't adequate and for those holiday makers lucky enough to be heading off further afield, to the US for example, travel insurance is essential. Annual family policies also tend to work out better value than individual single-trip options and specific insurance for the kind of activities that people will be engaged in such as skiing or backpacking are vital. It's not worth cutting corners on insurance when you can make savings in other areas of your holiday.
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