Despite pressures exerted by the cost of living crisis at home, this year’s Post Office Travel Money Holiday Spending Reportreveals that growing numbers of Britons are prioritising holidays and plan to travel abroad this year.
Over half of adults surveyed for the report intend to travel abroad, up from 53 per cent last year and 43 per cent in 2021, while even more families – 66 per cent – are planning an overseas getaway1.
Holidaymakers still harbour concerns about holiday finances but worries about the cost of accommodation (84 per cent) and flights (82 per cent) outweigh fears about the UK cost of living (78 per cent). Almost as many, 77 per cent, are concerned about the cost of meals, drinks and other tourist items abroad. Post Office says they have good reason. In recent years the gap between budgets set and cash spent has continued to widen, with two-thirds of holidaymakers (71 per cent of families) complaining that unexpected ‘rip off’ charges had led to their overspending.
On their most recent trip abroad, over four-in-five (81 per cent) of holidaymakers set a budget averaging £338.35 per person but only three-in-ten of them stuck to it. The remainder (70 per cent) paid an average of £135.22 – over 39 per cent – more than they planned. Overspending is also commonplace among families – and on the rise.
Over three-quarters (77 per cent) of families set a budget averaging £637.65 but only 23 per cent of them stuck to it. 77 per cent splashed out an average of around £243 – 38 per cent more than the budget they set. Compared with four years ago, family overspending levels are now 53 per cent higher than in 2019 when this averaged £159.
Although prices charged for excursions, attractions, meal and drinks, restaurant service charges and transport are regarded as the biggest holiday ‘rip offs’, growing numbers of Britons – particularly families – complained about charges made for credit or debit card transactions and for using ATMs.
One-in-five families objected to credit card transaction charges, while 18 per cent said that debit card charges were also unfair. 20 per cent were annoyed about being charged multiple times for ATM cash withdrawals and 12 per cent felt ripped off when they agreed to make a credit card payment in sterling rather than local currency, only to find that this incurred an extra charge.
Laura Plunkett, Head of Travel Money at Post Office, which accounts for one-in-four UK foreign exchange transactions, said: “Despite good intentions, our research shows that the majority of British holidaymakers are struggling to get their budget right and end up paying a financial penalty for this when they need to change more money while abroad.
“When planning a trip abroad, it is worth bearing in mind that there are improved rates for higher value exchange transactions in Post Office branches and online. This means holidaymakers who set realistic budgets based on past experience will get more for their money and can avoid the risk of poor exchange rates and transaction charges incurred at ATMs abroad or when paying with credit or debit cards. Another practical solution is to carry a combination of foreign notes and funds held on a pre-paid Travel Money Card that will not incur transaction charges.”
