Debt conscious Brits opt for staycations

According to a recent report a rising number of people in the UK who are conscious about falling into debt and want to avoid the pitfalls of any further debt are now opting for staycations when it comes to holidays, as they believe that this will be the cheapest option for them in the current climate. Nearly one in four Brits stated in a recent survey that they would be trying to spend less on their holiday this year.

For many people, going abroad on holiday has become increasingly difficult as a result of their financial situations. Many have found that the cost of flights and accommodation have become too much for them to manage on their more limited budgets, and those with families are finding it increasingly difficult to afford to take the whole family on an overseas holiday, as this can run into many hundreds or even thousands of pounds.

The survey was carried out by the Insolvency trade body, R3, which said that of those that were trying to save money on their holidays nearly 60 percent had decided to holiday at home. Those that decided that they still wanted to holiday abroad looked at other ways to save money, with over 70 percent reducing the cost of accommodation, 66 percent choosing cheaper travel, and 60 percent deciding to spend less money whilst they were on their holiday.

An official from the firm said: “People choosing not to have a holiday this year is likely to have grown out of necessity rather than choice. UK households will either simply not have the money to go on holiday as result of cuts to their disposable income or have decided to save their money in preparation for the difficult times ahead. R3’s latest personal debt snapshot revealed only a quarter (25%) of consumers believe their financial situation will improve over the next six months. The money saved from spending less or not having a holiday at all will provide individuals with a financial ‘buffer’ in case they fall on hard times.”

Tags: choice uk, financial situation, cheapest option, spain, current climate, choosing, Brits, holiday

Finding a low cost winter break

At this time of year, when the nights start to draw in, the weather gets even colder and rainier than usual, and the prospect of the winter months brings on doom and gloom, many people start thinking about planning a winter break either before Christmas or afterwards, where they can soak up some sun, kick back and relax, and simply forget about their worries.

However, with Christmas coming up most people are on a budget when it comes to booking some time away, and most will be on the lookout for a bargain winter break. Getting away to the sun isn’t always cheap, but a number of steps can really slash the cost of a holiday, giving you something to look forward to without having to break the bank.

It is important to remember that the time of year that you book will affect the price you pay for your hotel as well as your flight. Holidays tend to be cheaper in the winter months, but can be more costly on certain weeks such as over the Christmas or New Year periods. Therefore you may find that going before Christmas such as late November or early December may be the best choice, or failing that waiting until after New Year, and jetting somewhere warm as others are heading back to work after the Christmas break.

In order to find the best price on a winter break you need to ensure that you compare prices on flights, hotels, or package holidays depending on your preferences. Many people these days prefer to book a package because of the number of small airlines and holiday firms that have gone bust, leaving many of those that booked separately unable to claim. However, if you do prefer to book your flight and hotel separately check and see whether you travel insurance policy will cover you, as some have now started to do, and ensure that you book with a credit card for extra protection under the Consumer Credit Act.

You should make sure that you also compare things such as travel insurance, airport parking, and if necessary car hire in order to get the best prices on these. Also, remember that whilst the headline prices on budget airline tickets may look cheap there are often additional extras that can really bump up the price, so you may end up paying far more.

Finally, do remember that you can often make a saving by booking your flight and hotel together, so it is worth comparing the cost of doing this against booking separately or a ready made package deal.

Tags: extra protection, car hire, christmas, worries, winter, holiday, travel

Holidaymakers slate insurance firms over volcanic disruption

Thousands of UK holidaymakers and business travellers have had their plans disrupted following the volcanic ash cloud that has swept across from Iceland, affecting both the UK and neighbouring European destinations. For the first time British air space was effectively closed down due to the risk of damage to plane engines.

However, this left many people stranded in airports and unable to travel, and for many a major concern was being able to get their money back. Whilst airlines have been offering refunds to those that cannot travel because of the natural disaster, there is no compensation available for those that booked DIY holidays in terms of accommodation costs and car hire.

DIY holidaymakers could now end up getting a very raw deal, as although they will get their flight money back they could stand to lose a fortune in accommodation and car hire costs, as well as other related costs such as any excursions that they may have pre-booked.

Many are now turning on their insurance firms, accusing them of hiding behind the defence that the volcano eruption was an ‘act of God’ in order to avoid having to pay compensation to those that have been unable to travel. It is thought that personal losses from the disaster could amount to £20 million, and this is something that insurers will naturally want to avoid paying if they can.

One holidaymaker who was stranded at the airport because of the volcanic disruption said that her insurance company had already said that they would not be paying for her financial losses.

The customer said: ‘We rang our insurance company and they said it was an “act of God”, so they won’t cover us – we’re stuffed.’

Tags: travel, Insurance, holiday, insurance firms, disaster

Have a UK Holiday and Save Money

With the reduction in the value of the pound against foreign currencies, many people in the UK are rethinking their holiday plans for this summer. It promises to be a hot one, if the weather predictions prove to be correct, and most people will want to visit beach areas, of which there are plenty right here at home. Read more

Tags: National Trust, letsgowiththechildren, holiday bargains, Simon, fewer people, british holidays, holiday

Have a Holiday at Home and Still Get a Bargain

All sectors of the economy in the UK are experiencing difficulties. The travel and tourist industry has been hard hit because many people can no longer afford to spend money on a holiday when they have recently lost their jobs and need the money to pay for essential household expenses. Many of those who usually travel abroad for their holidays are reconsidering this option for 2009, electing to stay at home this summer instead. Read more

Tags: Hoxton, bargain holidays, holidays, attractions offering deals, british holidays, holiday, holiday in recession

Can you afford to head off abroad?

Traditionally, this is the time of year when many Brits start to think about their summer holidays, with many deciding where and when they want to go and then looking for the best deals so that they can get their holiday booked up. Read more

Tags: holidays, card handling fees, swing, holiday, air travel

A great way to save money on your holidays

For most households in the UK money is tight due to the effects of the global credit crunch, higher living costs, soaring inflation, and rocketing bills. However, even when finances are looking a bit sorry for themselves many of us still want to try and find a way to get away from it all by booking a holiday, especially with things as stressful as they are in the current climate. Read more

Tags: travel, description, flexibility, uk, official, holiday

‘Holidays abroad to drop under credit crunch’

The current economic turmoil means that more people will be unable to afford a holiday overseas this year, the Family Holiday Association (FHA) has said.

A recent study by Abbey Credit Cards found that parents who planned to take their families abroad for the half-term break were hit with prices up to 80 per cent higher than usual.

John McDonald, the director of the FHA, commented: “I think holidays are really important for the well being of both the children and the parents…it is a disappointment that perhaps more people will miss out this year than perhaps did last year.”

Last week, insurance company Axa warned holidaymakers that if they arrange the different parts of their holiday separately, such as flights, hotel and cars, they could be leaving themselves open to unnecessary risks.

According to the company, travel insurance does not always cover people who book their holidays independently rather than through a travel company.

Tags: holiday, Academic term, usual.john mcdonald, credit crunch, AXA, John McDonald

Holidaying without insurance “incredibly irresponsible”

Going on an adventurous holiday and risking serious injury without travel insurance is “incredibly irresponsible”, the Association of British Travel Agents (ABTA) has said.

A recent survey for the Foreign Office revealed that 20 per cent of people aged over 55 took risks on holiday that they would not have taken at home.

Furthermore, it was found that almost two-thirds (65 per cent) of over 55-year-olds did not take out travel insurance for their last holiday.

Sean Tipton, press officer at the ABTA, said it is “extremely foolish” for people to travel uninsured, particularly on an adventurous holiday such as skiing.

By not taking out travel insurance, holidaymakers could save “£30 or £40″, but in the event of a serious accident they “run the risk of having to sell [their] house to pay the bill and travelling uninsured is just a very foolish thing to do to”, says Mr Tipton.

Tags: risk, home, finance, Skiing, injury, tipton, holiday, bill

Bright Grey: Life insurance top priority

In principle life insurance is top of people’s insurance priorities but many do not put this into practise.

Recent research by Bright Grey protection specialists shows that 40 per cent of people felt that life insurance was most important, however when it comes to spending, Brits are putting there money towards home contents and holiday insurance over life insurance.

While 53 per cent insured their life, 74 per cent insured home contents and 61 per cent insured travel.

Roger Edwards, product director at Bright Grey, commented: “For most, life insurance is key when it comes to planning properly for the future. It protects your dependents if you die and they lose your income.

“And if you don’t have dependents, and really don’t need life cover, then what about critical illness cover or income protection – if you value yourself, you should be protecting yourself.”

He added that people should seek guidance on different forms of cover and how important they are, while also finding a deal that suits them.

Tags: edwards, insurance top priority, holiday, Bright Grey protection, cent

Stay within drink drive limit when on holiday

Every year many Brits head off on their holidays, with a large number of singles, couples, and groups heading to lively destination where they plan to drink themselves into oblivion.

However, anyone that is planning a drink fuelled holiday should bear in mind that even if they have travel insurance cover they may have their claim invalidated in the event that they suffer an injury as a result of being intoxicated.

Most insurance companies that offer travel insurance already have this stipulation in place, where if the accident is found to be the result of intoxication the claim could well be invalidated. American Express insurance is taking it one step further, and has stated that they will conduct an ‘acid test’ in cases where claimants have been injured on a drink fuelled holiday.

These regulations do not mean that holidaymakers cannot drink at all, but in order for the claim to be valid injured parties must prove that they are within the drink drive limits that apply in that particular destination, even if they are not actually driving. Officials from American Express Insurance services have warned that holidaymakers need to ensure that they look after themselves and do not drink to excess when they go away, otherwise it could end up costing them dearly.

Having travel insurance in place when you travel abroad is vital, as the cost of treatment and emergencies can prove extremely costly. However, if you take out insurance and then drink to excess you could risk having to shell out thousands of pounds anyway as the result of being injured whilst under the influence.

Tom Smith
21st September 2007

Tags: limit, car, drive, drink, accident, travel, law, Insurance, break, holiday

Students forgetting to take out insurance cover

It has become traditional for many students in the UK to take a year out after graduating from university to travel the world or get some work experience abroad before settling down to handle ‘real life’.

For many students this is a hugely exciting prospect, and is their first taste of freedom and independence. However, some get so carried away with their plans for taking time out abroad, that they forget about the basics – the vital protection of travel insurance cover.

Travel insurance is vital for those going abroad for any length of time, and even more so for students that are intending to spend long periods of time abroad. Without this the student could really run into problems when it comes to anything from lost and damaged belongings to medical and emergency treatment. Experts are now urging parents to ensure that their children have taken out an adequate travel insurance policy before their head off on their travels.

One official stated: ‘Most parents wouldn’t dream of allowing their child to drive a car without insurance. Yet as many as one in four gap year travellers sets off without travel insurance. Parents could be putting their home at risk because if their child suffers an illness or accident and needs hospital treatment or repatriation, the costs can run into tens of thousands of pounds.’

One student explained how travel insurance cover had helped her when she ran into problems and her belongings were taken: ‘After such a bad experience, I wouldn’t now dream of going away without travel insurance. I have also fallen off a moped in Thailand, which required hospital treatment. Thankfully, my insurance covered me.’

Tom Smith
13th September 2007

Tags: medical, Insurance, vacation, claim, accident, travel

Is your caravan insured for your holiday?

If you are planning to take a caravanning holiday this year, as many Brits tend to do, it is important to ensure that you have adequate insurance cover in place, state experts.

According to many industry professionals many consumers forget to insure their caravan and contents before heading off on their holidays, and although not compulsory as with car insurance, not having caravan insurance in place could cost some holiday makers a fortune in the event of unforeseen circumstances or accidents.

According to recent figures just over 25% of caravan owners have taken out adequate insurance cover, and with around two million Brits likely to be heading off on caravanning holidays over the next couple of months this reflects a serious deficit in the number of consumers that have protection for their caravans. A good caravan can be a costly investment, and without the benefit of insurance cover can end up costing the owners a fortune.

Many people with lower value caravans fail to take out cover because they may feel that it is not worth it. Reports suggest that the same goes for those that have caravans but rarely use them. However, insurance experts are warning caravan owners of the serious financial implications that can stem from lack of adequate insurance on their caravan, no matter what the age of the caravan or now much it is used.

One industry expert stated: “We were alarmed to see from our research how many people were not taking out insurance. Not only can some of the top of the range caravans set you back well over £20,000 if they are stolen, the damage you can cause to third parties can be enormous.”

Tom Smith
1st August 2007

Tags: damage, caravan, travel, car, holiday, countryside, accident, claim, Insurance

Government to crackdown on insurance cover from travel agents

According to a recent report the government in the UK plans to crackdown on travel insurance cover purchased from travel agents in a bid to provide consumers with higher levels of protection when they purchase this insurance.

The government has announced plans to regulate the sector, and this means that travellers could look forward to increased levels of protection when they purchase their travel cover from travel agents.

The government has announced that the Financial Services Authority will now be regulating travel insurance sold alongside holidays by travel agents. Travel agents that plan to sell this type of insurance with holidays will therefore have to make sure that it is designed to fit the needs of customers.

Customers will have to be treated fairly in line with Financial Services Authority regulations when buying these policies, and in the even that the customer of dissatisfied with an aspect of the sale of the policy he or she can go through the Financial Ombudsman Service.

Ed Balls, economic secretary to the Treasury, stated: ‘Evidence shows that companies regulated by the FSA are better at getting consumers to make an informed choice because they are better at explaining the key features and exclusions of the product and guiding the customer through the sales process.’

The crackdown results from complaints from consumers groups with regards to unsuitable and expensive policies being sold to customers in the past – a problem that this move will help to reduce. The new regulations are set to come into force in 2009, although many officials from the travel agents industry are not happy about the move.

The travel agency industry had asked for the opportunity to make changes without these new regulations being put in place, but were not granted this opportunity.

Tom Smith
4th July 2007

Tags: Insurance, holiday, crackdown, agency, travel, options, finance, changes

HSBC may be confusing customers over withdrawal fees abroad

With the summertime fast approaching many people in the UK are getting ready to jet off abroad to enjoy a relaxing holiday, and most will go armed with their debit cards in case they need to withdraw any cash when they get to their destination.

For consumers who have a packaged current account with HSBC the news appeared to be good, as HSBC has been boasting that these customers can enjoy using their debit cards at cash machines abroad without facing any withdrawal fees. However, although this makes it appear that the transaction will be totally free of any charges this is not actually the case.

HSBC do waiver the withdrawal fee for customers that have a packaged current account, which is basically a premium account that offers a range of benefits but costs the customer fourteen pounds a month. Being able to make fee free cash withdrawals at cash points abroad with a debit card is one of the benefits offered to these account holders. However, what many consumers fail to realize is that a loading fee of 2.75 percent is added to the foreign currency exchange rate.

According to campaigns and advertisements from HSBC: ‘Withdrawals from Cirrus/Maestro ATMs worldwide, free from HSBC transaction fees’ and ‘Cash withdrawals from ATMs worldwide are free from HSBC charges’.

However, viewers that look at the foot of the advertisement will see the small print relating to the loading fee, which means that these transactions will not be free of charge because of the increased foreign currency exchange rate.

An official from HSBC stated: ‘The 2.75% loading is not a fee. It’s part of how we calculate our exchange rate. We don’t believe we have misled our customers.’

However, Nationwide, which is one bank that does not charge any loading fee or additional charges is looking into the claims made by HSBC.

Tom Smith
12th June 2007

Tags: confusing, hsbc, withdrawel foreign, holiday, charges, penalty, abroad, cards, credit, cost

Don’t bodge it yourself (BIY)

Homeowners are being encouraged to avoid partaking in any bodge it yourself (BIY) over the Bank Holiday weekend.

According to Halifax Home Insurance, we spend £607 million on repairing the damage we do to our homes while trying to fix them up.

Traditionally the UK goes DIY mad over the Bank Holiday and this is often when the majority of damage is done.

However, Halifax is warning people not to take on a job which they are not qualified to do as it could end up costing a lot more to fix the job than it would have to have got a professional in originally.

“Whilst well planned and executed home improvements can add significant value to a home, getting it wrong can be a disaster,” commented Vicky Emmott, senior manager of underwriting at Halifax.

“We’d advise anyone planning any major improvements to their home to employ qualified and reputable tradesmen, rather than going it alone.

“Indeed trying to tackle certain areas that you are not qualified for, such as electrics or plumbing, could invalidate your home insurance and leave you liable for the cost of any subsequent damage,” she added.

DIY enthusiasts are encouraged to make sure there house is properly covered before embarking on a project.

Tags: homeowners, home improvements, whilst, major improvements, home insurance, majority, holiday, bank

Travel Insurance – Keep Your Holiday Protected!

Holidays aren’t exactly cheap these days. Gone are the years when you could pitch up at the English seaside and spend a couple of weeks with the kids paddling in a storm tossed grey sea at Scarborough or Blackpool. These days of sunshine abroad and quality children’s entertainments come at a price. Today, there’s no better reason to insure your holiday. Read more

Tags: holiday, employee, accident, travel, policy, damage, Insurance, cancellation, overseas

Dirty weekend is dead

The days of the dirty weekend appear to be fading away, with new research showing that most of us prefer to go away with friends.

New research by AA Insurance shows that 55 per cent of people in a relationship have gone on holiday without their lover, while 13 per cent admit they enjoy short breaks more when their partner stays at home.

The most popular reason for taking a break without our partners, cited by 22 per cent of those asked, is that we want to do an activity which our other half does not enjoy.

A further ten per cent say that they go away alone because they need some space.

“For many, mini breaks are a chance to have some time away from their partners and do things they wouldn’t necessarily do if their partner was with them,” said Clare Emsley from the AA.

The new partner-less mini-break has been dubbed a Clean Weekend and a number of insurance firms are offering special premiums for people taking this kind of holiday.

However, many people will find that it is far cheaper to get travel insurance for a couple than on an individual basis.

Tags: fading away, New, holiday, activity, mini, Clean Weekend, research, basis

Card holders wasting millions on holiday

Credit card holders are being warned that they may be wasting millions of pounds on fees by making purchases while abroad. Read more

Tags: research, purchases, cent, holiday, Credit card holders, GBP

Nationwide is fined

The Nationwide Building Society has received a huge fine after security flaws at the firm were exposed.

A laptop, belonging to a Nationwide employee, was stolen last year, potentially exposing around eleven million customers’ details.

The Financial Services Authority (FSA) says that the bank did not act quickly enough, not launching an investigation until three weeks after the laptop was taken.

The firm even allowed the employee to go away on holiday without asking what information was contained on the hard drive.

In response, the FSA has fined Nationwide for £980,000, even though no money was lost by any customer as a result of the theft.

“We have extensive security procedures in place, but in this isolated incident our systems of control were found wanting,” said Philip Williamson, Nationwide’s chief executive.

“We have made changes to fill the gap and improve our procedures further.”

Both the police and the FSA have said that they believe the laptop was stolen purely for computing reasons and the thieves were probably unaware of the information that it contained.

We can at least ensure that we do our bit to ensure we are banking safely by shredding any unwanted documents which have our details on them.

Tags: Gap, holiday, executive, exposed.A laptop, year

Skiers warned over insurance

Holidaymakers planning a skiing trip in the coming months are being warned to check their travel insurance policy before setting off.

The Post Office says that the mild winter has left many people disappointed, as there has not been enough snowfall.

Recent weeks have seen a fairly heavy dumping in many parts of Europe, but the travel insurance provider says that there is still a risk that a lack of snow may stop play.

The firm warns holidaymakers to check their travel insurance policy before setting off, ensure that they are covered and read the small print to make sure there are no hidden surprises.

“So far, this ski season has been among the worst on record in Europe with some areas having little or no snowfall,” said Kevin McAdam from the Post Office. “This can mean limited time on the slopes, plus an increased risk of injury or damage to equipment due to poor conditions.

“This may leave people without the holiday they would have wanted and looking for some form of compensation.

“Our advice is to make sure you know exactly what your cover offers before you go and, importantly, what evidence you need to have before you come home,” he added.

Mr McAdam went on to say that many insurance companies will only pay out if all of the slopes are closed for 12, or even 24, hours. Many firms also want written confirmation from authorities that the slopes were closed.

Tags: small print, holiday, winter, insurance companies, risk