There's more to going on a skiing holiday than just booking the trip with a travel agent. The fees and commissions charged by financial institutions can eat into your travel budget but with proper planning you can ensure you get the best possible deal on your holiday money.

It is always advisable to bring cash, travellers cheques and a credit card to cover every eventuality. Exchange rates vary form day-to-day and from institution-to-institution so it is a good idea to shop around and to keep an eye on the exchange rates for a few weeks before you go on holiday to guarantee getting the best deal.

The mix of money you choose to bring may well depend on your financial circumstances. However, it is worth bearing in mind that a credit card is the cheapest method (excluding the annual fee and the government duty of £15), provided you pay your monthly bill in full.

The exchange rates on November 6th would have converted £1,000 into French francs as follows: 8,490 (cash), 8,500 (travellers cheques), approximately 8,510 (eurocheques, though it is subject to a number of charges) and approximately 8,692 (credit card). Although cash is the least secure payment method, some cash is essential to pay for expenses on arrival. If you are going to an east European country, or intend to travel to several countries, it is advisable to bring dollars or deutschmarks and change it when you get there. Travel insurance policies only cover lost or stolen cash up to a limit so it is a good idea not to carry more than the amount covered by your travel insurance policy.

The commission paid when buying foreign currency is 1 per cent and there is a flat charge ranging from £1 to £5. "If you are going on holiday with a group, you should club your money together and only pay the flat rate once. Furthermore, you get a better exchange rate if you are converting a larger sum of money," says Mr Turlough Crowe, of AIB's marketing department.

Provided you pay your monthly bill in full, a credit card is the cheapest method of payment. Banks charge a conversion fee of 1.75 per cent. However, at times of currency instability you would be better advised to use travellers cheques which are exchanged before you go on holiday.

Credit cards are a popular holiday option and they eliminate the inconvenience and risk of carrying large amounts of cash, as well as giving you the means to keep an accurate record of your spending. One of the advantages of using credit cards is that you can take up to 56 days interest-free credit if you pay the balance in full by the payment due date. "It is advisable not to use your credit card for cash withdrawals because the interest is charged straight away," says Mr Crowe.

Travellers cheques are more expensive than credit cards, but they offer security. The commission charged for buying travellers cheques ranges from 1 per cent to 2 per cent. There may be a further commission when you cash the cheques into local currency.

Eurocheques are issued by banks and allow you to withdraw cash from your account in foreign currency. You write the cheque in the local currency and use the eurocheque card to back it up. The eurocheque guarantee card can also be used to withdraw cash from ATMs. "Due to fraud, banks in France will not accept eurocheques but you can still use the eurocheque guarantee card to withdraw cash from ATMs," says Mr Crowe.

There are a large number of fees charged for eurocheques. It you are withdrawing cash there is a flat fee of £1.27 and of 0.25 per cent of the amount withdrawn. Because of this it is advisable to withdraw a large sum of money form the ATM.

The eurocheque is also subject to a handling fee per cheque of 25p and a transaction fee per cheque of 24p and government duty of 7p per cheque. The high cost of using eurocheques makes them poor value compared with travellers cheques.

It is a matter of striking a balance of when you go on holiday. It is advisable to plan ahead to avoid exchanging your money at airports where the fees are higher. Happy skiing.