No hols barred

More than one in three people (38%) are refusing to forego their summer holiday this year, despite money being tight, preferring instead to ration their daily treats in the run up to summer, according to new research from American Express Travellers Cheques.

Holiday makers are expecting to splash out £773 while on their break, in addition to the flights and accommodation. In order to fund this, spending on a new outfit (22%), that special meal out (21%) and an extra night in the pub (15%) are all being reined in ahead of the main holiday season so that Brits can spend in the sun.

It's not just small sacrifices that are needed; 13 per cent of people are delaying a major home purchase, such as a TV or sofa, and scruffy garden furniture will be dusted off again in early summer as one in ten people put off buying new items until after their precious two weeks away.

Small savings made in order to afford a summer holiday:

Spending less on a new outfit 22%
Giving up that special meal out 21%
Fewer nights in the pub 15%
Delaying major home purchases (TV, sofa etc.) 13%
Cutting back on expensive family days out 12%
Living on a fixed weekly budget 11%
Avoiding driving long distances to save on petrol 11%
Putting off buying new furniture for the garden 10%
Deferring home improvement plans 7%

Across the UK

Those in the North of Scotland are least likely to be feeling the summer pinch. Despite having the highest estimated holiday spend of anywhere in the UK, £1,231, they also have the highest proportion of people who say they will not need to make any sacrifices in order to fund their holiday, (38%). Those in the South West will be most frugal, spending an average of £644.

Those aged 35 - 44, possibly with young children to amuse, are the biggest spenders whilst on holiday, expecting to spend 50 per cent more than 18 - 24 year olds - £1054 and £520 respectively.

Kirstie Bayley, Vice President, American Express Travellers Cheques comments: "Whilst people are thinking about their spending now, it's the last thing they want to worry about when they are actually enjoying their break. Travellers Cheques can actually help people to budget on a holiday as you can see exactly how much you have left in your wallet and also fix the exchange rate when you purchase. They are also insured against loss or theft, giving travellers peace of mind when it comes to their hard-earned money.”