‘Ripped off’ Brits expect to go over budget on holiday despite strict spending limits
According to the Post Office Travel Money Annual Holiday Spending Report, tourists traveling to overseas holiday hotspots continue to blow their budget by hundreds of pounds. The study showed that the high cost of stays in the UK was an important factor for holidaymakers opting for a trip abroad.
More than half (54%) of the 2,000 people polled expect costs to rise, with figures saying individuals will need to allow at least £477 and families around £890 if they want to avoid breaking their budget . The study showed that on average, individual holidaymakers set a spending budget of around £344.38, but only three in 10 stayed within the limits.
Of the families who allocated some amount of money, 76% lost control of their purse strings and paid £243.14 on top of the budget they had set at £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 out with good intentions when setting a budget, but find it insufficient once they arrive at their resort.
“We urge them to think back to their last vacation and budget based on past experience. This way they can avoid additional charges for paying with a debit or credit card or having to withdraw cash. at an ATM A good solution is to carry a combination of cash and money held on a prepaid Travel Money card which will not incur additional transaction fees.
A range of factors help explain the high levels of overspending, but nearly two-thirds (63%) of holidaymakers attribute it to ‘scams’. They named airline prices for onboard meals and beverages, excursion fees, entry to attractions and mandatory food service fees as the main culprits. However, a significant number were also annoyed by additional fees levied on credit or debit card transactions.
All-inclusive vacations are seen as another way to cut costs and are expected to be more popular than self-catering. Twice as many families – 48% vs. 23% – told Post Office Travel Money they would opt for all-inclusive rather than choosing to self-catering, as they say they don’t have to worrying about vacation money.
The report states: “The all-inclusive holiday market is changing and most people have ceased to expect this type of holiday to cover all their costs – only 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 increased again across the board.
“One of the most positive benefits of going all-inclusive for about one in five people who choose this type of vacation is that they feel safe knowing they don’t have to leave their hotel.”
Nevertheless, it seems that vacationers are tightening their belts. Overall, 46% spent an average of £343.53 on nine food and drink items, down 12% from 2021 levels. Away from their all-inclusive hotel, the amount spent on food and drink has dropped 16% to just under £248.
The conclusion drawn by the report is that more Britons on all-inclusive packages are willing to pay extras but are watching their wallets and limiting their spending.
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