Five vital tips for your next holiday

With the Easter holiday behind us, our thoughts now turn towards the summer holidays. Here are five essential precautions to take before you depart.

"We're all going on a summer holiday. No more working for a week or two. Fun and laughter on a summer holiday. No more worries for me and you. For a week or two."

('Summer Holiday' by Cliff Richard*)

It's 'back to school' across the UK as millions of children return to their classrooms after the Easter break. However, few working adults will have had a full fortnight off, so most of us are looking forward to our annual summer vacation.

However, as the old expression goes, "There's many a slip 'twixt cup and lip." In other words, to get maximum enjoyment from your holiday, you need to plan ahead, anticipate problems before they arise, and take sensible steps to avoid silly setbacks. Here are five ideas to smooth your way:

1.    Pay for your holiday by credit card

One nightmarish scenario well worth avoiding is having your travel operator or airline go bust, leaving you without a holiday or stranded abroad. In 2008, the collapse of travel firms XL and Zoom caused headaches for tens of thousands of holidaymakers. Last Thursday, Newcastle-based travel agency Freedom Direct Holidays ceased trading, jeopardising thousands of bookings and putting 109 people out of work.

Although various trade organisations (ABTA, ATOL and the CAA) provide consumers with protection against travel failures, making a claim is far from straightforward. Hence, my advice is always to pay for your holiday -- or leave a deposit -- by credit card. By doing so, you enjoy the legal protection of Section 75 of the Consumer Credit Act, which enables to reclaim your entire loss from your credit-card issuer. Note that this legal lifeline applies only to credit cards and not debit cards.

2.    Buy quality travel insurance

My second tip is never to buy travel insurance from a travel agent or tour operator. Past research has shown that policies bought from these firms can be five to ten times as expensive as Best Buy cover. Indeed, shopping around for travel insurance could save you upwards of £200, which is best put towards your holiday money. For more advice, read this guide to choosing travel insurance.

3.    Pack your EHIC

If you're off to Europe this summer, then be sure to take your European Health Insurance card (EHIC), which replaces the old E111 form. This entitles you to free or reduced-cost medical treatment in all EU countries, plus Iceland, Liechtenstein, Norway and Switzerland. It's important to note that some countries insist that you produce your EHIC before you can be treated. Also, an EHIC entitles you only to basic medical care, so don't use it as a substitute for proper travel insurance.

If you don't have an EHIC (or need to renew one), then the best thing to do is to apply online. Alternatively, you can apply via the Post Office, or by calling 0191 212 7500. You should leave at least ten days for your EHIC to arrive.

4.    Get a good deal on foreign currency

Whenever I conduct a review of the market for holiday money, I find a bewildering array of fees and charges. It's difficult to compare like with like, thanks to varying exchange rates, 0% commission, delivery charges, credit-card fees and so on. So, if you want to get the maximum foreign currency for your pounds, read How to avoid holiday-money horrors. For the record, I always buy my currency from the Travelex.co.uk website and then collect it at my departure point.

Likewise, it pays to take the right credit card abroad, so as to avoid paying a 'foreign-currency loading fee' of, typically, 3% of the value of each purchase. Alas, Nationwide BS, one of the few card issuers not to levy this charge, is to introduce a fee of 0.84% on 6 May, rising to 1% on 1 July, so it's out of my Best Buy tables. Last Saturday, Thomas Cook added a 2.5% foreign-currency fee to its credit card, so it's also off my list. The only remaining credit-card issuer not to charge currency fees is the Post Office, so it wins my gold medal in this category. My runner-up is SAGA, whose credit card levies no fee in EU countries and just 1% elsewhere.

5.    Check your passport

Finally, please check passport expiry dates for everyone travelling with you. I know this sounds obvious, but thousands of Brits are turned away from airports and ports every year because their passports have expired. Almost a decade later, I still remember waiting in the check-in queue at Heathrow and cringing at the ear-piercing scolding given to one poor husband who had forgotten to renew his passport!

* By the way, the worst thing about being named after Cliff Richard is the number of times I've have to suffer someone's rendition of 'Congratulations'!

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