Tourists travelling to holiday hotspots overseas are continuing to bust their budgets by hundreds of pounds, according to the annual Holiday Spending Report from Post Office Travel Money. The study showed the high cost of UK-based breaks was an important factor for holidaymakers opting for an overseas trip.
More than half (54 per cent) of 2,000 polled expect costs to increase, with figures claiming individuals will need to allow at least £477 and families around £890 if they are to avoid busting their budget. The study showed on average individual holidaymakers set a spending money budget around £344.38 but only three-in-10 stayed within the limits.
Of those families which allocated a certain amount of cash, 76 per cent lost control of their purse strings and paid out £243.14 on top of the budget they had set of £644.43.
Nick Boden, head of Post Office Travel Money, said: “Over the past five years, research for the Holiday Spending Report has consistently revealed that most Britons start with good intentions by setting a budget but find that it is inadequate once they get to their resort.
“We urge them to think back to their last holiday and set a budget based on past experience. That way they can avoid extra fees for paying with a debit or credit card or having to withdraw cash from an ATM. A good solution is to carry a combination of cash and money held on a pre-paid Travel Money Card that will not incur extra transaction charges.”
A range of factors help to account for the high levels of overspending, but almost two-thirds (63 per cent) of holidaymakers put it down to ‘rip offs’. They named airline prices for meals and drinks onboard, excursion costs, attraction entry and compulsory restaurant service charges as the biggest culprits. However, significant numbers were also annoyed about the extra charges levied on credit or debit card transactions.
All Inclusive holidays are regarded as another way to cut costs and look set to be more popular than self-catering. Twice as many families – 48 per cent compared with 23 per cent – told Post Office Travel Money they would be go All Inclusive rather than choose to self-cater because they claim they do not need to worry about taking holiday money.’
The report states: “All Inclusive holiday market is evolving and most people have ceased to expect this type of holiday to cover all their costs – just the majority of them. The latest research confirms this by finding that the proportion of people paying extra for a wide range of items in their hotel – ranging from food and drink to souvenirs, excursions and spa treatments – has again risen across the board.
“One of the most positive benefits of going All Inclusive for around one-in-five people choosing this type of holiday is that they feel safe in the knowledge that they do not need to leave their hotel.”
Nonetheless, there is some evidence that holidaymakers have been tightening their belts. Overall, 46 per cent spent an average of £343.53 on nine food and drink items, down 12 per cent on 2021 levels. Away from their All Inclusive hotel, the amount spent on food and drinks has dropped 16 per cent to just under £248.
The conclusion drawn by the report is that more Britons on All Inclusive packages are prepared to pay for extras but are watching their wallets and curbing their spending.
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