'I'm a savings expert - here are 5 sneaky holiday price hikes costing more than £337'

Holidaymakers have been urged to beware of “sneaky” price hikes that could cost them hundreds of pounds extra.

From package holidays to booking return flights, Brits may be signing themselves up for a more expensive trip away by opting for these deals. Rajan Lakhani, head of money at the smart money app Plum, shared five hidden costs to watch out for when booking your next break abroad.

Package holidays can seem like a great idea for people who want a fuss-free holiday booking. All-inclusives can remove the stress of booking separate flights, hotel transfers, and accommodation and provide financial protection.

However, Mr Lakhani warned: “You might be paying for the privilege of less admin. This is especially true for city breaks, but less applicable for all-inclusive resorts.

“European city destinations will have more frequent outbound flights from UK destinations, therefore more pricing variations, so you should be able to pick the cheapest flight for your destination to reduce the total cost of your holiday. These might be late afternoon or overnight flights.”

He added: “If you’re looking for the cheapest flights, it’s usually recommended to book in the early morning between 5am and 9am, or on Tuesday afternoons.”

Always check whether your booking includes tourist tax. Tourism taxes are charges typically applied through accommodation providers or travel companies, usually targeting overnight guests.

Mr Lakhani said: “If you have to pay this tax on arrival, it could leave you hundreds of pounds out of pocket.

“Cities with the most expensive tourist tax are generally based in the US, with Los Angeles, New York, Washington DC, and Las Vegas among the most expensive.

“To put this in perspective, Los Angeles has a 15.5% tourist tax. Say your hotel costs £200 per night; if you include tourist tax, that works out at £231 per night. If you stay for seven nights, that means you’ll end up paying a total of £1,617 - £217 of which is tourist tax.”

If your return flight is looking a little expensive, Mr Lakhani suggested booking "hacker fares". These fares involve booking two one-way tickets on different airlines, which can lead to savings.

However, the savings expert pointed out: “Be mindful that this doesn’t apply to every flight, so it’s worth checking both options - prices for return flights and two single flights - before booking.”

To avoid spending hard-earned holiday money on travel, Mr Lakhani suggested booking train tickets online well in advance to get the best deals.

He said: “Sites like Rail Europe and Trainline offer international travel booking, which will help you budget in advance. They will also show the cheapest times to travel, if you’re looking for additional savings.”

Some airlines, especially low-cost providers, charge a check-in fee to cover the costs associated with providing the service at the airport. Mr Lakhani said: “The costs can be quite significant, exceeding £30 per ticket in some cases. For a family of four, that could cost £120.”

Combining just this extra cost with the tourism tax example, these hidden fees alone would add an additional £337 to a family holiday.

Mr Lakhani continued: “You should have the option of completing online check-in in advance, which is usually free. Make sure to do this well in advance of the departure date, as online check-in will normally close on the day.

“Not only do you save money, but you also have the peace of mind that this task has been completed. And weigh and measure your luggage bags in advance so you don’t find you have to pay excess baggage fees when you get to the airport.”