Despite record levels of overspending, holidays remain a top priority for many.
- Research reveals that over 60% plan to travel abroad, with Greece rated as the best value.
- Budgeting remains a challenge, with most holidaymakers overspending significantly.
- Fewer inclusions in all-inclusive packages are contributing to budget busting.
- Experts encourage better budgeting based on past experiences to avoid extra costs.
Despite facing record levels of overspending, the allure of holidays continues to dominate consumer priorities. A recent poll involving over 2,000 consumers highlighted that more than three out of five individuals and a significant 68% of families deem overseas travel essential, taking precedence after necessary expenses such as food, energy, and household needs.
Interestingly, Greece emerges as the top-rated destination for value, narrowly beating Spain and Portugal among 28 destinations surveyed. Notably, the opinions of past visitors appear more reliable, revealing a significant preference for Greece compared to the lesser-reviewed locations, affirming its status as offering superior value for money.
However, a staggering trend is observed in holiday budgeting, with a majority of holidaymakers admitting to overspending. Close to 78% of travellers had set a budget averaging £334.47 per person, yet a mere third successfully adhered to it. The remaining 67% exceeded their planned expenditure by an average of £154.62, marking a significant 46% increase compared to prior holidays.
Family overspending has seen a marked rise since pre-pandemic times. In 2019, families allocated £630 for holiday expenditures, a figure that has now decreased to £566. Yet, the overspending gap has widened, with current figures showing an overspend of £312, nearly double the £159 overspend recorded previously.
Dining and local shopping have been identified as significant contributors to this financial strain. Over half of the respondents attributed their budget breaches to restaurant meals, while 32% blamed additional food and drink purchases from local shops. Additionally, 36% cited drink costs, and 44% overspent on excursions and sightseeing.
The appeal of all-inclusive holiday packages, traditionally seen as a budget-friendly option, has diminished due to fewer included items. The percentage of families paying extra for food and beverages at all-inclusive resorts has more than quadrupled in the past decade, with 57% now incurring additional charges. Notably, the purchase of local brands of alcohol, once complimentary, has increased significantly.
Despite the financial challenges, the allure of venturing into local resorts for meals and drinks remains strong, with over 75% of individuals and 81% of families partaking in this practice. This trend further exacerbates the spending dilemma faced by holidaymakers seeking value and experience abroad.
To mitigate these financial strains, experts suggest holidaymakers reflect on the total costs of prior trips and set realistic budgets accordingly. Laura Plunkett, head of travel money, underscores the practical approach of basing future budgets on past experiences to forestall unforeseen expenses, particularly those arising from debit or credit card use.
Holidays remain a coveted priority, yet mindful budgeting is crucial to manage growing costs.
