Three out of five UK adults and two-thirds of families plan an overseas holiday this year despite concerns about the cost of living and increased holiday prices, according to the latest consumer research.
A survey of more than 2,000 UK adults on behalf of Post Office Travel Money found 57% planning a holiday abroad – up four percentage points on the same time last year – and 66% of families planning to travel overseas.
Almost two in five of those planning trips abroad said would take an all-inclusive holiday in an effort to control spending – 38% of families and 36% of all adults – amid widespread concerns about costs.
Half of those choosing all-inclusive holidays rated them “good value”. However, the report noted UK families staying in all-inclusive resorts spend on average an additional £750 while on holiday.
Four out of five (78%) expressed concern about the UK cost of living and a similar proportion said the price of travel and accommodation would affect their holiday decisions – 82% identifying the cost of flights or other transport as a concern and 84% the cost of accommodation.
Almost as many, 77%, said the prices in resort could affect their spending.
However, two thirds (68%) told researchers the high cost of UK holidays was also a consideration.
Two out of five adults (37%) planned to spend more on holiday this year than last and almost one third (30%) to take more money away with them.
The survey found more than one in four families (27%) plan to dip into savings to finance their holiday.
The findings form part of the annual Post Office Travel Money Holiday Spending Report which highlights a significant gap between most holidaymakers’ spending intentions and their final travel budgets.
It reveals that four out of five holidaymakers (81%) set a budget for travel overseas which 70% of them fail to stick to – spending on average almost 40% more than they planned.
Families find it even tougher to stick to their planned budget, with 77% failing to do so.
The report notes the average amount overspent by families on holiday has risen 53% to £243 since 2019.
Two-thirds of holidaymakers (66%) and 71% of families complained of facing unexpected charges on their most-recent holiday.
Post Office research found the most-significant increases in costs in resorts year on year were for water sports (up 39%) and spa treatments (up 21%).
One in five complained about the cost of card transactions abroad, and one in seven chose to use pre-paid cards on holiday.
Post Office head of travel money Laura Plunkett said: “Our research shows the majority of British holidaymakers are struggling to get their budget right and end up paying a financial penalty when they need to change more money while abroad.”
The research was carried out at the end of April (28-30 April) among 2,080 UK adults aged 18 and over of whom 1,294 had been on a holiday abroad in the past five years.