More people planning foreign trips despite affordability concerns, study finds

The number of people planning overseas trips is up this year despite doubts over costs and the impact of US trade tariffs on destinations, new research reveals.

 

Two-thirds (66%) of those surveyed intend to take a foreign holiday, up 5% year-on-year, according to a poll of more than 2,100 consumers by Post Office Travel Money.

 

More than half (54%) have already booked their trip despite growing concerns voiced by nine-in-ten of them about whether they have enough money to afford going away.  

 

In spite of this, holidaymakers say they are setting bigger budgets after overspending by an average of 37% on their last trip but admit to being worried about sterling’s strength and the impact of planned US trade tariffs.

 

More than three-quarters (77%) highlighted exchange rates as a big concern, while 78% are worried about the impact that Donald Trump’s trade tariffs might have on prices in destinations abroad.  

 

As a result, 53% will actively avoid destinations where they think the tariffs could affect resort prices, while 39% will avoid the US even though they had previously considered going.  

 

The UK pound is stronger than a year ago against 25 of 30 currencies and has gained ground against 80% of them since March.

 

Holidaymakers rated Spain (41%), Turkey (35%) and Thailand (31%) as being the best value for money out of 39 worldwide destinations.  

 

The collapse of the value of the Turkish lira has made the country the best value country.

 

Visitors can now expect to receive around £116 or 30.2% more when they buy £500 worth of lira compared with a year ago.

 

Sterling has also bounced back against the US dollar and is currently 6.6% stronger than last year as well as having gained 4.9% in the past three months.  

 

“Although demand for US trips may be in question, holidaymakers can still benefit as the dollar recovery also extends to the Caribbean and Middle East currencies that are pegged to the dollar,” a Post Office statement said. 

 

“It means Britons planning trips to Barbados, Antigua, Dubai and other long haul holiday favourites will get more for their pounds.”

 

However, more than half of people say they will budget more for their next holiday due to increased costs.  

 

More than four-in-five (82%) had set a budget averaging £377 on their last trip but 71% admitted overspending this by £140.   

 

Laura Plunkett, head of travel money at Post Office, said: “This year’s holiday spending research again demonstrates that holidaymakers don’t always set a realistic budget and overspend by large amounts as a result.  

 

“It’s great to hear that holidaymakers are already planning to budget more for their holidays this year, to avoid coming unstuck when they arrive at their destination.”