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Family holiday budgets increase by almost a fifth on last year

13th August 2014 Print
Holiday

The average family intends to spend £1,937 on their main holiday this year (not including spending money); £281 (or 17%) more than the amount spent last year, according to research from M&S Bank.
 
As the outlook for the British economy and people’s personal finances begins to improve, over half (53%) of holidaymakers travelling abroad said they will be treating themselves this year by spending more on their holiday than they did in 2013. Almost a third (32%) of those who are planning to spend more said the key reason was because they are planning a longer holiday.
 
The average length of time British holidaymakers plan to go away for is 11 days, although longer holidays are also popular, with over one in ten (13%) planning to go away for more than a fortnight.
 
In addition to the cost of flights and accommodation, families will also spend a total of £612 per person - or £2,448 for a family of four - while on holiday this year. Eating and drinking is the area almost half (47%) of families spend the most on during their holiday. Over a fifth of families (23%) spend the most on entertainment and excursions, while 10 per cent will spend the most on transfers to and from the airport.
 
Despite being aware of these costs, when it comes to planning their holiday spending money almost a quarter (24%) do not make a budget. Women are more likely to plan their holiday spending (80%) than men (73%).
 
Of those who do not budget for holidays, almost half (45%) say it’s because they see their holiday as a luxury and don’t want to scrimp. An additional 38 per cent do not budget because they are confident they will not overspend, while one in ten (10%) never stick to their budget so don’t see the point in setting one.
 
Even among those who do make a holiday budget, more than one in ten (13%) won’t stick to it. However, the key to successful budgeting is making an overall budget, with a third (33%) finding this easier than planning their spending each day (17%) or week (13%).
 
When it comes to purchasing their travel money, eight per cent don’t buy their currency until they get to the airport. However, a fifth of holidaymakers will get their foreign currency up to two weeks before they are due to travel.
 
Only half of holidaymakers (50%) always check exchange rates to ensure they’re getting the best deal, and one in ten (10%) never shop around for the best rates.
 
Paul Stokes, head of travel money at M&S Bank, commented: “The family holiday is one of the highlights of the year and our research suggests that many families are planning to treat themselves by spending a little extra this year. We would encourage families to plan a budget to ensure they have the best possible holiday.
 
“To maximise their budget, we would also urge holidaymakers to visit a bureaux de change well in advance; airport bureaux often offer less competitive rates and may not have a wide variety of note denominations.”
 
Customers purchasing travel money from an M&SBank Bureaux de Change this summer will receive a voucher for 50 per cent off the price of a single trip travel insurance policy or 25 per cent off an annual trip policy.
 
In addition, M&S card holders receive discounted rates on all currencies purchased from M&S Travel Money, including a discount of two per cent on euros and one per cent on US dollars.

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Holiday