Many holiday companies offer great savings on early bookings as well as last minute deals. Often, if you book over 12 months in advance you can save money on the price you would have paid later on down the line.
When booking a holiday in advance you do need to take some time to consider if you can commit to a holiday that far ahead and what would happen should you have to cancel. With most holidays you will pay a deposit and then pay the remaining over a period of time. If you have to cancel your holiday after booking you may find that you lose all or some of the deposit you paid. Often this is on a sliding scale depending on how close to your holiday date you cancel.
You can often take out holiday insurance that will cover the cost of our holiday should you not be able to go, but you need to carefully check the terms and conditions to see what reasons for cancelling are acceptable.