Going on holiday is always an exciting experience, but it can also be a costly one. Between accommodation, food, activities and transportation, expenses can quickly add up and put a dent in your wallet.

However, there are a number of ways you can save money while on holiday and still have a fantastic time. Here are our top tips on how to reduce your spending, so you not only have an enjoyable holiday, but an affordable one too.

Plan your holiday activities in advance

One of the best ways to save money while on holiday is to plan ahead. By researching your destination, making a list of the activities that you want to do and the places you want to visit and then checking for discounts, deals and special offers, you’re less likely to fall into the trap of paying a premium on last-minute bookings when you actually get to your destination.

Drive down the cost of car hire

As with flight tickets, the earlier you book car hire, (usually) the better the price. If you’re thinking about renting a car to help you get around on your holiday then you might want to think about renting from a company located outside the airport, as they typically offer lower prices.

Also, be careful not to get stung for those optional extras that you may not need but which tend to hike up the price you pay. GPS, car seats or additional drivers can all add up, making the total cost of your car rental more than it needs to be.

Additionally, watch out for the ‘excess insurance’ top-up insurance the provider will try and sell at the airport, which removes the excess. Look for an excess policy from a standalone provider, which is typically much cheaper.

Use public transport

As an alternative way of getting around, using public transport can be a great way to save money while on holiday. Buses, trains and metros are usually cheaper than taxis or rental cars, and they also offer a more authentic way to experience the local culture.

If you’re not planning on travelling too far afield, you could also consider renting a bike or walking to get around, giving you the opportunity to hit a few of your fitness goals as well as your savings ones!

Avoid tourist traps

Many holiday destinations have tourist spots that are specifically designed to attract holidaymakers in order to entice them into spending more money than they need to. These places often charge over-inflated prices for food, souvenirs and other items. To avoid falling into these tourist traps, try to eat where the locals eat, and shop in markets and supermarkets instead of tourist shops. This way, you can get a taste of the local culture and save money at the same time.

Be smart with debit and pre-paid cards

When it comes to holiday spending, one of the best ways to save money is by using a specialist travel or debit card. The right card can offer you almost perfect exchange rates, whereas the wrong one can lead to extra fees and charges for every transaction or cash withdrawal that you make.

Look out for banks offering special accounts specifically for travellers. These often come with no fees for foreign transactions or for cash withdrawals. However, be mindful that they sometimes impose monthly limits on the free withdrawals you’re allowed to make, so it pays to do your research to find the best account for you before you leave.

Prepaid cards can also be a great option as they allow you to load up a specific amount of money before you travel, which can help you stick to a budget. They also offer competitive exchange rates, meaning you can get more for your money. Additionally, if you lose your card or it gets stolen, you can quickly cancel it without worrying about your entire bank account being compromised.

Mobile phone use

If you don't plan on using your mobile phone in the same way as you do when you’re at home, take a moment to review your phone settings, as there are a number of ways you can tweak these to make sure you're not getting hit with unnecessary daily charges.

One option is to make sure you only use free Wi-Fi instead of data roaming by restricting your phone to Wi-Fi only. Many hotels, cafes, and restaurants offer free Wi-Fi, so take advantage of these to save yourself some money.

By turning off auto-updates, or at least setting your phone to only run these when you’re connected to Wi-Fi, means you can avoid using up large chunks of data that end up costing you money.

Similarly, you might want to switch off auto-uploads too. It might be tempting to share all of your holiday pics with your Instagram followers in real-time but is it worth paying a fortune for those likes and comments? So, before you go snapping away and uploading everything to the gram, take a minute to turn off that auto-upload feature.

Overall, there are a number of ways that you can enjoy a memorable, yet affordable holiday if you take the time to do a little bit of planning and make some smart choices.

Remember, the best holidays are all about how you spend your time, not how you spend your money!