Don’t assume something is included or covered by any part of your holiday arrangements. Cheap flight prices, for example, often don’t cover the airport taxes, and you may need to pay extra for in-flight meals or even for your luggage.

Check what is and isn’t included in the price and work out the real cost before comparing deals. You can usually find this out on companies’ websites, or contact them if you’re not sure.

Ask the tour operator if they hold an Air Travel Organiser’s Licence (ATOL). This protects you from losing money or being stranded abroad if they go out of business. But check which part of your holiday arrangements are covered, and make sure you get an invoice that confirms this.

If you choose to arrange your own holiday by booking the different elements separately, rather than buying a package deal, your holiday is unlikely to be ATOL protected, although you can check for the ATOL logo for different arrangements to make sure. If they are not covered, see whether you can get protection with your holiday insurance. Make sure your travel insurance covers airline insolvency and any possible indirect loss as a consequence. Be careful though because many policies don’t give this cover, while those that do limit the amount you can claim or have exclusions, so read the small print.

And did you know that if you pay for your holiday by credit card and it’s more than £100, the credit-card company may be equally responsible for a refund if things go wrong?

We all want to enjoy ourselves on holiday and often spend a bit more than we usually would. Spending some time working out a sensible budget before you go means you can still have a good time, but may not be left counting the cost as much when you get home.

Find out if there are any problems or restrictions in the country you’re going to or if you need any jabs or visas. Travel insurance won’t usually pay out if you travel against government recommendations or you’re refused entry because you don’t have the right documents. You may also not be covered by your travel insurance for illness if you travel to a country where that illness is widespread. There may also be exclusions in some policies for illnesses which are considered epidemic or pandemic, so always check the details of your policy.

Make sure your passport is valid for your trip. Some countries ask that it is valid for at least six months after you return. If you are planning to drive, make sure your UK driving licence is current and valid in the country you are travelling to.

Take all your relevant documents with you (for example passport, insurance policy and driving licence), but leave copies of everything back home in case they are lost or stolen.

If you’re travelling in Europe, you are entitled to free or discounted healthcare if you get a European Health Insurance Card (EHIC) before you go. However, this is not a substitute for travel insurance.

Outside Europe, make sure your travel insurance includes adequate health cover to save yourself a big medical bill if you fall ill or have an accident and need treatment or have to be repatriated by air.

If you need any vaccinations or medication, contact your GP at least six weeks before you travel and make sure you take enough for your trip. If you leave things too late you may need to arrange them privately or overseas, and this will cost you more.

You should always double check whether your cover includes the cost if a holiday is cancelled because you (or whoever else is covered by the policy) is too ill to travel, as well as the cost of medical treatment abroad and any associated delays caused by getting an illness on holiday.
You will need to get written confirmation from either your doctor or the medical adviser of the mode of transport you are taking that you are unfit to travel in order to make a claim.

Travel insurance can protect you if you lose your passport, money or luggage, or have problems with your travel arrangements. It can also cover you against accidents, as well as higher-risk activities such as winter sports or jet-skiing but this is not standard and you may have to pay extra – so check the policy. Insurance companies make different arrangements for what conditions they’ll cover for pregnant women and at what stages of pregnancy – so check the policy if you’re expecting. Think about what you’ll need and shop around to find a deal that’s right for you.

Make sure you understand what’s covered and what isn’t, for example pre-existing medical conditions, and ask questions if you’re not sure about something.

If you are planning to take your car abroad, make sure your motor insurance is valid for the countries you plan to visit. If you are unsure, check with your insurer before you travel. You’ll also need to take your British driving licence, or for some countries you’ll need an international driving licence.

You’ll also need to take some emergency equipment such as spare light bulbs, fluorescent jackets and a warning triangle, and remember to check what the speed limits are and which side of the road you need to drive on. See the Foreign & Commonwealth Office’s ‘Steer clear of trouble’ checklist for more information.

If you’re planning to hire a car abroad, make sure you plan in advance to give yourself more choice. Most hire car arrangements will include some level of insurance – usually called a collision damage waiver – but will carry an excess that you must pay yourself if you make a claim. Many companies will offer you added insurance to cut your liability to a much smaller amount – typically between £50 and £100. This can be called the super collision damage waiver or damage excess insurance.

You can buy an insurance policy before you go to cover this excess which can cost far less. See the Which? website for more information.

Banks and credit-card providers monitor accounts for suspicious transactions. If they see overseas spending and don’t know that you’re abroad, you may find your cards are stopped to protect your account. Contact customer services and give them details of your trip to prevent this happening.

Even if you plan to use travellers’ cheques or plastic while you’re abroad, it’s usually a good idea to get a small amount of foreign currency before you go for smaller things, such as taxis, food and tipping for service.

It’s usually cheaper to buy foreign currency before you go, but you’ll generally pay more if you buy it at the airport. You can buy currency from lots of places, such as banks, bureaux de change, online or the Post Office, so shop around for the best rate.

It’s usually better to pay for things in the local currency rather than in sterling.

Travellers’ cheques work in a very similar way to cash when you’re abroad. You pay for them in advance and sign them twice, once when you buy them and once when you exchange them. If you use them to pay for something in a shop, your change will be given to you as cash, but check the shop will accept them first.

They are safer than cash because if they are lost or stolen you can report this to the provider, as long as you remember to write down the serial numbers and keep these numbers somewhere safe. The provider will arrange for replacements to be sent to you (usually within about 24 hours).

These are convenient and you are protected against losing money if you are an innocent victim of fraud. You’ll usually pay a percentage or fee when you buy something or take out money from a cash machine. You’ll have the option of paying in the local currency or in pounds sterling. If you choose sterling the payment will be converted from the local currency to sterling by the retailer or bank who will then apply their own conversion fee. If you choose local currency, the card provider will handle the conversion. Nearly all card providers charge a currency conversion fee but it can vary – so find out what this is before you travel.

It’s usually better to use your debit card at cash machines, as you’ll usually be charged less than if you use a credit card.

Find out what these charges are before you go and think about using your cards less often, as it will cost less.

A prepaid card is another way to take your money on holiday. They can be loaded up with euros, US dollars or sterling and can be useful for budgeting because you can only spend the amount you put on the cards.

Some have application, transaction and top-up charges and most of them charge a fee for withdrawing cash from an ATM.

One of the main advantages is that they can be cancelled and replaced for a small fee if they are lost or stolen, which makes them safer than carrying cash. And as they’re not linked to your bank account, you will be protected against fraud.

It can be expensive to use your phone abroad, so find out what the tariff is before you go. You may be able to get special deals for the area you’re going to. This applies to text messages, data charges (for using email or the internet), and calls.

Sales taxes (like our VAT) may be added on at the counter and may not be included in the price you see. It’s a good idea to find out what this is before you go, and get used to working out the total cost in your head or take a small calculator with you. Most mobile phones have one.

Local custom varies, and in most places there are standard rates for tipping for service, from the maid who tidies your hotel room to the person who serves you in a bar or restaurant. Get a good guide book and find out what these are before you go.

Depending on what you buy, the quantity, and where you’ve been, you may need to pay duty or tax on certain goods you bring back with you. Some goods are restricted or banned completely.

Make sure you understand the restrictions before you travel, or you may end up with a duty bill when you come back through customs, or have your goods confiscated.

Don’t be a victim of theft and fraud when you’re abroad. Look after your important documents (passports, driving licence, insurance policies) and keep them in a safe place. Don’t let your guard down just because you’re on holiday – be alert when using ATMs or paying for things. The Foreign & Commonwealth Office has useful tips to help you stay safe.