Zut alors! Save money on holidays and travel insurance

Holidays in Europe will cost families an extra £321 this year, according to a report in the Daily Telegraph, but it's not all doom and gloom ? French restaurateurs are about to slash their prices and families can save money on travel insurance.

A 27% fall in the value of the pound since summer '07 means that the cost of accommodation, food and entertainment in key European holiday destinations is considerably more expensive for Brits this year.

Anyone swapping their pounds for euros will find they have less spending money than they had 2 years ago, but there is good news for some.

As of July 1, a reduction in French VAT means that restaurateurs are planning to knock 10% off their prices ? great news for Brits planning to spend their summer holidays in France.

Also, hoteliers in key European destinations, such as Greece and Spain, are cutting their rates to try to attract more British tourists who might otherwise be deterred by the weakness of the pound.

Families can save money by buying travel insurance from insurewithease.com, which offers free cover for children under 18 to customers buying its Gold policy.

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