Bag a luxury holiday for £1!

And no, we're not talking about those £1 P&O ferry breaks either. We explore the wacky world of holiday auctions...

The recession has forced many of us to change our shopping habits. While some of us make do and mend, others have downsized brands, and some have looked to alternatives to the high street such as eBay to bag a bargain.

And with the holiday season in full swing, many of you will have also chosen to stay at home this summer in an attempt to save some cash.

But saving money also means thinking outside the box, and one way you could still bag that holiday bargain is by bidding for your holiday online.

Going, going, gone

More and more people are considering holiday auctions as an alternative to booking their holiday 'the traditional way'.

But availability is shrinking fast, and big auction players such as lastminute.com and Thompson Holidays have already pulled out of the auction game.

However, if you know where to look, you can still bag yourself a decent holiday bargain.

eBay

Now we've all heard of people selling old rope (sometimes literally) on eBay, but have you ever considered booking your next holiday on the auction site?

There are more than 2,000 holiday related deals up for sale, with everything from a trip for two to Venice, to seven days accommodation in Mumbai on offer.

Many auctions start from just a penny, and if you're lucky, you could bag yourself a decent deal. I saw a six-day self catering trips for two to Italy sell for £41, including transport and accommodation - that's just over £20 per person!

But when it comes to eBay, the important thing to remember is if you're the winning bidder, you must commit to the purchase, so read the listing very carefully before you bid.

Some listings require extra payment to claim the holiday, and other 'scratchcard holiday' listings often require you to call a premium number and pay a processing fee to claim.

By the time it's all added up, you'd probably be better off paying for the holiday yourself.

If you're bidding on a second hand holiday, you may also be charged a fee to change the name on the flights or other transportation.

That said, there are plenty of accommodation-only deals on offer, and with budget airlines such as Ryanair and easyJet offering cheap flights, it's always worth a look.

Auctionair.co.uk

If you're more of a high-end traveller, Auctionair has a small number of luxury holidays available to the highest bidder.

The bidding process is straightforward. You find a holiday you're interested in, and place a bid on it. If at the end of the auction your bid is highest, you bag the holiday!

There is a small fee of up to £5 for placing a bid. For this reason, your research and find out the prices of similar holidays offered by tour operators.

That way, you will avoid bidding too much for a holiday you could have got cheaply anyway, or too little and waste your £5 entry fee.

As well as bargains to the highest bidder, Auctionair also offers holidays to the lowest bidder. This involves some smart bidding (and a touch of luck!).

Bids start from £1 - so you could bag a luxury holiday for just a quid! However, you will be pitted against 200 or so bidders, all hoping they're the lowest bidder.

So how much can you save? Auctionair says that 4% of winning bids have achieved 60% discount or more off the regular retail price, and 81% of winning bids get 20% discount or more.

Priceline.co.uk

Priceline is a hotel and holiday booking website with a twist. As well as selling named hotel rooms, it also has a 'name your price' function, where you choose how much you're willing to pay to stay at a mystery hotel in your chosen location.

To start, you pick an area, and choose a star rating for where you want to stay. You then enter the price you're willing to pay and it will search hotels in that area within your price range.

The important thing to understand about Priceline is that once you enter your details, and a price you're happy to pay, if it finds a hotel at your bidding price, your card is automatically charged and you're committed to the sale.

Although you also won't know the hotel you're staying at until the time of booking, (similar to the lastminute.com secret hotels offer), by following these smart steps, you might be able to work out where you're staying before you book.

Teletext and Gumtree

If you don't fancy dabbling in the auction market, thanks to the recession there are still some fabulous bargains to be had.

Apart from traditional websites such as lastminute.com, good old Teletext often has last minute deals to European destinations and further afield.

Gumtree also offers a range of holidays and accommodation advertised by private individuals. I know a couple of people who have booked through Gumtree and shaved hundreds off the cost of their accommodation.

Just remember that with all private bookings, communication is key, so make sure you get contact details and phone numbers before you exchange cash. Most people are honest individuals just looking to make the most of a deal, and you could bag yourself a bargain.

If you know of any good auction websites or any other holiday websites where you can get a good deal, please post them to the bottom of the article. We'd love to hear your tips!

More: Make money from your holiday / Bargain hotel breaks from £1