Whether in the UK or abroad, holidays can be done cheaply

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By Mark Burton
Know Your Money Editor

The credit crunch will not stop a large number of Brits from packing up their things and getting away from it all. But with the recession clamping down on their finances, holidays may now have to be enjoyed on a budget. And it appears that this can be easily done, as tour operators and insurance companies are infiltrating the market with bargain deals to attract cash-concerned consumers to spend their money on a getaway.

Indeed, a recent survey from Post Office Travel Services reports that the eurozone is currently an affordable destination for Brits once again. The Algarve in Portugal has experienced a plummet in prices, with a holiday shopping basket of goods costing just 39p more than in Spain, which comes in as the cheapest eurozone destination.

Bulgaria - currently not in the eurozone - has been named as the cheapest destination for holidaymakers to head off to and has replaced Thailand, Egypt and South Africa as the best bargain holiday location.

Commenting on the findings, Sarah Munro, Post Office head of travel services, says: "The eurozone has taken a bashing this year but our survey suggests that tourist outlets in many resorts are taking dramatic steps to encourage tourists.

"Despite the weak pound, this means that UK tourists who shop carefully could find that they get more than expected for their money."

UK versus abroad

The latest findings by the Post Office may convince Brits that abroad is the place to be this summer. Indeed, local prices in Greece and Italy have also taken a tumble. And with the convenience of a Post Office Travel Money Card, going away could be made even easier for individuals concerned about cash security. The card comes in three currencies - sterling, euros and dollars - and there is no sign-up fee. It may be a safer and more practical alternative to carrying large amounts of cash abroad. More information about the Post Office Travel Money Card can be found on Know Your Money's website, . Next, when comparing travel insurance, the cheapest may not always be the best and could cost Brits more in the long run. The Association of British Insurers (ABI) advises intrepid travellers that their policy should cover medical expenses and loss of baggage, both of which may be pricey to fork out for.

Ensuring that travel insurance covers for a loss of possessions could also mean that Brits who find themselves the target of thieves do not have to dip into their own coffers to cover the costs. However, people looking to bag an affordable insurance policy should be realistic about what can be offered, says Malcolm Tarling, spokesperson for the ABI.

"If you wanted a travel policy that would cover you for everything under the sun, fine but it will be at a price nobody will be able to afford. That's why travel insurance is pitched the way it is. It provides a wide range of cover that makes it affordable to as many people as possible," he states.

As such, shopping around on a comparison site such as Know Your Money could help people - so long as they read the terms and conditions of a policy carefully - bag an insurance policy that covers them for the essentials but at a credit crunch-friendly price.

Important Notice
This guide is intended for general information only and is not intended as, and does not constitute, any form of advice, recommendation or endorsement by us of any particular product(s) or services and you should rely on your own further research and professional advice in relation to your specific requirements and circumstances before purchasing any products or services. Use of this guide is subject to the Terms of Use of the KnowYourMoney site.