Foreign Office appeals to winter sun seekers

With approximately 11 million Brits* heading abroad this winter - many enticed by the cheap deals being made available by tour operators and airlines - the Foreign & Commonwealth Office (FCO) is appealing to holidaymakers to avoid additional financial strain by being thoroughly prepared for their trips abroad.

Whilst some of the low-priced holiday deals on offer may be tempting this winter, the FCO is urging people to think through all the potential costs of their trip and to be prepared for all eventualities.

Claire Gorst recently went on holiday to the Caribbean with her sister. Claire said: “We thought we got a great deal on a two week package and assumed that the rest of the holiday would be cheap too. However on arrival we discovered that the food and drink at the hotel was not only extremely expensive but the hotel was also very remote and leaving the vicinity wasn’t recommended by the staff. This meant we had to spend the whole holiday stuck in the hotel where it cost £14 for a tube of Pringles and a bottle of Coke! We hadn’t budgeted anywhere near enough and had to use our credit cards for nearly everything. If we’d done some research before booking, we wouldn’t have gone to that particular location and we would have made sure we had more spending money saved up. It’s no fun having no money on holiday!”

The FCO is concerned that more Britons could end up in financial trouble abroad this year. With new research showing that almost one in five Brits** think the local embassy could lend them money if they ran out abroad, the FCO stresses that this is only the case in very exceptional circumstances.

Jess Prasad, from the FCO’s Know Before You Go campaign, said: “British embassies and consulates around the world are regularly faced with Brits who have run into financial problems when on holiday – many of whom are not covered by travel insurance. Taking out comprehensive travel insurance and taking some simple steps to minimise costs could significantly reduce the risk of having an exceptionally expensive Christmas break.”

The FCO has teamed up with financial expert, Jasmine Birtles, to provide some top tips to ensure a winter break doesn’t turn into a financial nightmare.

Jasmine said: “The last thing British holidaymakers need when escaping for some sun this winter is to be faced with costs they hadn’t budgeted for. There are many things to look out for, for example, fluctuating exchange rates, credit card charges and getting the correct travel insurance for your trip. Do your homework before you go!”

Financial expert Jasmine Birtles from Moneymagpie.com provides some top tips for managing your money on holiday:

Credit cards

• Consider taking a pre-paid credit card with you rather than your debit or credit card. The majority of card fraud happens abroad, but if you use a pre-paid card fraudsters will not have access to your account details. The Post Office, Lloyds TSB, Caxton FX and Travelex are just some of the companies who offer pre-paid cards especially for foreign travel.

• If you do take your credit and debit cards with you make sure that you put their ‘lost or stolen’ number into your mobile phone or keep a copy in your bag so you can call and cancel them as soon as you notice they are gone.

• Most credit cards will charge you a fee when you use them abroad. However, the Post Office and Nationwide credit cards are free to use abroad. Nationwide current account-holders are also not charged when they use their debit card to take cash out of ATMs abroad. If you are over 50 and travelling to Europe consider a Saga card which is free to use in Europe.

Travel insurance

• Remember that with travel insurance, cheap is not always cheerful. Make sure that your policy covers everything you might do when you are away. When you read the small print you may find that the cheapest policies are low-cost simply because they cover so little.

• No travel insurance policy will pay out for an accident or injury if you were drunk or on drugs, so think twice before that second jug of sangria!

• If you are over 60 there are a number of insurance companies that will now provide travel insurance to you at a reasonable rate including Insurewithease.com, Insurefortravel.co.uk Golfguard.com and Age Concern.

• It's really important to shop around for travel insurance so that you can compare prices. You must be completely upfront with insurers about any pre-existing illnesses because they won't pay out on claims if you withhold information.

• If you take more than two holidays a year most annual multi-trip policies will be more economical than individual policies. However, make sure that the policy you get covers all the activities you are likely to do, particularly skiing and any dangerous sports.

The EHIC

• Remember to take a European Health Insurance Card (EHIC) with you if you are travelling in Europe. You can apply online or find out further information by visiting dh.gov.uk/travellers. An EHIC (which replaces the E111 form) entitles you to state-provided healthcare. An EHIC is not a substitution for travel insurance.

Know Before You Go

• Research the country you are visiting before you go, particularly if the culture is different to ours. Visit fco.gov.uk/travel for the latest information about your destination and for all kinds of travel advice.

(The Foreign & Commonwealth Office does not endorse any of the companies mentioned in these top tips or any of their goods and services)

For specific travel advice by country visit fco.gov.uk/travel and click on your destination.

* 11 million Brits will holiday abroad this winter (ABTA, 2008)

**Foreign & Commonwealth Office research carried out by TNS revealed that 19% (1 in 5) of Britons thought that a British embassy or consulate could lend them money if theirs is lost or stolen when abroad. Respondents were asked to identify who could lend them money if theirs is lost or stole from a choice of: British embassy/consulate; insurance company; or friends/family. (The face to face survey interviewed 788 adults who had travelled abroad in the past 12 months. This group was taken from a nationally representative sample of 2016 adults and was conducted between 23 July and 27 July 2008).