How to budget for more than one holiday a year

Taking several holidays in one year might sound expensive, but they don’t all have to be long-haul adventures or luxury breaks. With some forward planning, you may be able to spread your travel budget across a mixture of trips, from a main summer holiday to a weekend city break or a few days exploring the UK.

The key is to plan for the total cost of the year, rather than budgeting for each holiday in isolation. This guide explains how to prioritise your trips, estimate the true cost and build a realistic holiday savings plan.

Key takeaways

• Decide which holidays matter most before you start booking.
• Set one annual travel budget covering every planned trip.
• Include spending money and other extras, not just transport and accommodation.
• Save regularly throughout the year and keep holiday money separate.
• Look for ways to make some trips cheaper instead of cutting them out completely.
• Leave some flexibility in your budget for unexpected costs.
  
  

Decide what your ideal year of travel looks like

Start by thinking about the trips you would like to take over the next 12 months. This might include:

• A main summer holiday
• A weekend city break
• A UK staycation
• A trip to visit friends or family
• Travel for a wedding or another special occasion
• A few spontaneous weekends away

At this stage, treat the list as a wish list rather than a fixed itinerary. Once you know what you would ideally like to do, you can compare it with the amount you can realistically afford.

It can help to rank each trip in order of importance. Perhaps attending a family wedding is non-negotiable, while a winter weekend away would simply be nice to have. Prioritising your plans makes it easier to adjust them without giving up your entire year of travel.

Set an annual holiday budget

When holidays are planned separately, it can be difficult to see how much you are committing to spend across the year. Setting one annual travel budget gives you a clearer overall picture.

Review your income, regular bills, existing financial commitments and savings goals before deciding how much you can comfortably put towards travel. Your holiday budget should not leave you struggling with essential costs or relying on money intended for emergencies.

Once you have an annual figure, divide it between your proposed trips. You don’t necessarily need to split the money equally. You might choose to put most of the budget towards one main holiday and keep the remaining trips shorter or closer to home.

For example, an annual travel budget could be divided between:

• 60% for a main holiday
• 20% for a city break
• 15% for a UK getaway
• 5% as a contingency fund

There is no perfect formula. The right balance will depend on your priorities and the types of holidays you enjoy.

Work out the full cost of each holiday

Flights and accommodation may be the biggest expenses, but they are unlikely to be the only ones. Underestimating the extras can quickly put pressure on your overall travel budget.

For each trip, consider the cost of:

• Flights, train tickets, fuel or other transport
• Accommodation
• Transfers, taxis or car hire
• Travel insurance
• Passports, visas or entry requirements
• Luggage and seat reservations
• Food and drink
• Activities and admission fees
• Local transport
• Airport parking
• Pet care or childcare
• Mobile data or roaming charges
• Tourist taxes
• Clothing and travel essentials
• Spending money
• Emergency or unexpected expenses

Try to estimate these costs before booking. This will help you compare destinations more accurately. A cheap flight, for instance, may not represent good value if accommodation, transfers and day-to-day costs are particularly high.

Create a holiday savings plan

Once you have estimated the total cost of your trips, work backwards from the dates you expect to travel. Add together the amount you need to save, subtract any money you have already set aside and divide the remainder by the number of months available. This gives you a monthly savings target.

For example, if you want to save £3,000 for holidays over the next 12 months and already have £600 set aside, you would need to save £200 a month:

£3,000 − £600 = £2,400

£2,400 ÷ 12 months = £200 per month

Check whether that monthly amount is manageable alongside your other commitments. If it isn’t, you may need to reduce the cost of one or more trips, change your plans or give yourself longer to save.

Setting up an automatic transfer shortly after payday could make saving more consistent. Keeping the money in a separate savings account may also reduce the temptation to use it for everyday spending.

Match the size of each trip to your budget

Taking more than one holiday does not have to mean paying for several expensive trips. Combining different types of breaks can make your plans more affordable.

You could pair one larger holiday with:

• A short break during an off-peak period
• A few nights somewhere within driving or train distance
• A camping or self-catering trip
• A visit to friends or relatives
• A day trip that still provides a change of scenery
• A destination with plenty of free attractions

Think about what you want from each trip. If your main goal is rest, you may not need to travel far. If you want to explore somewhere new, a two-night city break might be enough. Focusing on the purpose of the holiday can help you avoid paying for more than you need.

Space out your bookings and payments

Paying for several holidays at once could put unnecessary pressure on your monthly budget. Mapping out booking dates and payment deadlines can help you spread the cost.

Create a simple calendar showing:

Be flexible about when you travel

Travel dates can make a significant difference to the cost of a holiday. If your circumstances allow, compare prices across different days, weeks and seasons.

You might save money by:

• Travelling outside school holidays
• Flying during the week
• Choosing an early or late departure
• Visiting a destination during its shoulder season
• Staying for a different number of nights
• Using an alternative airport or train station

However, a lower headline price is only worthwhile if the overall trip still suits you. An early flight might require an airport hotel, for example, while travelling from a distant airport could add fuel, parking or train costs.

Compare the total journey cost, rather than choosing solely on the cheapest ticket.

Give each holiday its own spending limit

Once you are away, it can be easy to treat your spending money as one general pot. Setting a separate limit for each trip makes it less likely that your first holiday will use money intended for the next one.

You could divide your spending allowance into daily amounts, while leaving some money aside for larger activities or unexpected costs. Check your balance during the trip so you can adjust before overspending becomes a problem.

If you spend less than expected, move the remaining money back into your holiday savings rather than absorbing it into your usual account. It could help fund a future break or strengthen your contingency pot.

Look for savings across the whole year

Small savings on each trip can add up when you are planning several holidays. Before booking, compare the full package rather than focusing on one attractive price.

Ways to reduce the overall cost could include:

• Comparing package holidays with separate bookings
• Choosing accommodation with cooking facilities
• Travelling with hand luggage where practical
• Booking flexible or refundable options when the extra cost is reasonable
• Using legitimate reward points or cashback you have already earned
• Researching free activities before you go
• Taking reusable water bottles and other essentials from home
• Setting price alerts for suitable routes and dates

Be cautious about buying something purely to earn rewards or qualify for a discount. A travel deal only saves you money if it reduces the cost of something you already planned to purchase.

Build some breathing room into your budget

Even a well-planned holiday can cost more than expected. Exchange rates may change, transport plans can be disrupted and unexpected expenses sometimes arise.

Adding a contingency amount to your annual budget can give you some flexibility without taking money from your next trip or your household bills. The amount you need will depend on your plans, but even a modest buffer could be useful.

It is also sensible to keep your holiday fund separate from your emergency savings. Emergency money is designed to cover essential, unexpected costs such as urgent home repairs or a loss of income - not optional travel expenses.

Is it better to take several smaller holidays or one big trip?

There is no right answer. Several shorter holidays could give you more frequent breaks and allow you to explore a variety of places. One larger trip may offer better value for long-distance travel or provide time to relax without repeatedly paying booking fees and transport costs.

Think about what you value most, as well as what your budget can support. You could also choose a combination: one main holiday supported by a few lower-cost breaks throughout the year.

Make your travel plans work for your finances

Budgeting for more than one holiday a year is largely about seeing the bigger picture. By planning your trips together, accounting for the full costs and saving consistently, you can make more informed choices about where and when to travel.

Plans may change as the year progresses, so keep reviewing your budget and be prepared to adjust. The aim is to enjoy each holiday without returning home worried about how it will affect your finances - or discovering that one trip has used the money intended for the next.

If you’re planning a special trip and your savings won’t cover the full cost, a holiday loan could help you pay for it upfront and spread the repayments over an agreed period. Before borrowing, consider the total amount repayable and make sure the monthly repayments will remain affordable alongside your existing commitments.

Explore holiday loans