Most Britons bust the budget abroad
Despite good intentions, Britons travelling to holiday hotspots overseas are continuing to bust their budgets by hundreds of pounds, according to a new report.
Research for the annual Holiday Spending Report from Post Office Travel Money shows that 53% of more than 2,000 Britons polled intend to travel abroad and, for almost two-thirds of them, the high cost of UK-based breaks was an important factor in their decision-making.
However, the research also revealed that three-quarters of holidaymakers set a budget for their last trip abroad, but resort spending cost seven-in-10 of them an average of 38% extra.
Holidaymakers need to allow at least £477 and families around £890 if they are to avoid busting their budget again, found the report.
On their last overseas trip the research found that individual holidaymakers set a budget averaging £344.38 but only three-in-10 stuck to it and the rest spent an average of £132.46 more.
Around 76% of families also set a budget but over three-quarters of them 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, which accounts for one-infour UK foreign exchange transactions, 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.”
Concerns expressed about the cost of accommodation, travel and resort meals and drinks by Britons planning trips abroad may mean that many cash-strapped holidaymakers will turn to budget destinations.
All-inclusive holidays are regarded as another way to rein in costs and look set to be more popular than self-catering. Twice as many families – 48% compared with 23% – told Post Office Travel Money they would be going all-inclusive rather than choose self-catering.
However, while 46% of those who have gone all-inclusive in the past five years, or plan to do so this year, view this type of holiday as good value ‘because everything is included and they do not need to worry about taking holiday money’, significant numbers splash out on extras.
The latest Post Office research reveals that the proportion of people paying for extras has again risen across the board – both in all-inclusive hotels and in local resorts.