Three pitfalls to avoid when booking your holiday

Winter chill making you eager to book your next holiday? Here are three potentially costly pitfalls to watch out for - and to avoid: 1. Not factoring in exchange rates.

Peter Kenyon, chief executive of Ramsdens Currency, says: "Many people use flight and accommodation costs to help determine their destination, but most aren't doing the same with currency. Getting the most out of money exchange can make a huge difference to the total amount spent on holiday, so we'd urge holidaymakers to compare destination currency rates before booking." Recent research from Ramsdens into where exchange rates have improved found Turkey, Sri Lanka and Russia are among the places where holidaymakers may find their money goes further compared with a year ago.

2. Booking a destination that's too good to be true.

Those villa photos on the internet may look like the holiday of your dreams - but could it be a scam? If it is you risk losing a large amount of money. Research from Barclays has found that more than one in three reported cases of a villa scam results in money loss.

A quarter would be prepared to put themselves at risk just in hope of bagging a summer bargain, the research also found. Barclays warns that if the villa in question appears to be advertised by other companies under another name, this may be a warning sign.

3. Not considering singletrip travel insurance policies if you have a medical condition.

If you have a pre-existing condition, such as asthma, high blood pressure or diabetes, looking for a single-trip policy rather than a multi-trip one may give a wider choice of quotes, comparison website Compare Cover suggests.

Simon Williams, travel insurance product manager at Compare Cover, explains: "With an annual multi-trip policy, the insurer won't necessarily know the extent of the individual's travelling plans - the person asking for a quote could travel up to 10 times over that year and if their condition is potentially a deteriorating one, it becomes very difficult for an insurer to judge the risk posed for that customer.

"Compare that with a single trip policy quote, which has set dates, destinations and costs. Asking for a single trip quote means that the insurer can far more easily judge the risk and increases the likelihood of obtaining cover at an affordable price."