10 million Brits cut holiday budgets this summer

As millions of Britons prepare to jet off on holiday, new research by Santander Cards reveals that cutbacks are at the forefront of many holidaymakers' minds this summer, with a quarter of those who are going away (10 million Britons) dramatically reducing their overall holiday budget.

The research found that more than four out of five Britons (84 per cent) are planning on going away this year. While nearly half of all holidaymakers (43 per cent) are keeping their holiday budget at the same level as last year, a lucky 12 per cent are in a position to spend more this summer and a fifth don't know how their budget will compare to last year. Of the quarter of holidaymakers reducing their holiday budget, the average decrease stands at £256 per person, per week.

When it comes to sticking to a holiday budget, however, one in four Britons (27 per cent) admits to exceeding their budget, overspending by an average amount of £117 per week, with those aged between 18 and 34 the most likely culprits (31 per cent), overspending by an average amount of £123.

And while a virtuous 53 per cent of holidaymakers say they stick to their budget on holiday, a surprising 20 per cent claim not to budget at all.

The research found that the biggest holiday cutback Britons are planning is to eating out (54 per cent), followed by spending money (46 per cent) and accommodation (40 per cent).

Other areas taking a hit are activities and local trips (29 per cent), travel arrangements to/from the holiday destination (28 per cent) and travel arrangements once there (26 per cent). Britons making such cutbacks are hoping to save on average £150 per person, per week by doing so.

Callum Gibson, Director at Santander Cards, says: "A summer holiday is the one thing that most Britons won't do without but many Britons are consciously looking for ways to reduce the amount they're spending this year. As well as reducing their overall holiday expenditure, Britons can make their money go further while they're abroad by always paying in the local currency - to avoid being charged a dynamic currency fee for converting the purchase to sterling - and using a credit card that doesn't charge a fee for converting transactions made in a foreign currency.

"Santander Zero is the only credit card on the market to offer fee-free foreign usage anywhere in the world and no fee for cash advances, making it ideal for both day to day spending while on holiday, and also those rare times holidaymakers might need to take out cash in an emergency."

Features of the Santander Zero card include:

The only card on the market with no foreign exchange fee and no cash advance fee
Zero per cent on balance transfers for 12 months and purchases for three months
Available in branch or by visiting santandercards.co.uk