Parents punished with holiday premiums

Parents hoping to treat their kids to a family holiday will be hit by inflated holiday premiums according to the latest study from Abbey Credit Cards. Research has found that rates from mid-July to the first few weeks in August - when schools go on holiday - jump by up to 52 per cent in some foreign resorts, and up to a whopping 162 per cent here in the UK.

Abbey's research found that, regardless of destination or departure airport, holidays taken on the 9 August, when all schools have finished for summer, will be 38 per cent more expensive than holidays taken on the 12 July, when most schools are still open. And once school starts back in September the prices drop off by an average of 35 per cent, with some resorts slashing prices by as much as 53 per cent.

Families hoping to cut costs by staying in the UK will actually be hit by even higher premiums as domestic holiday prices almost double from 14 July to 11 August, with an average loading of 92 per cent. One Welsh holiday resort will be increasing prices by a whopping 162 per cent.

Callum Gibson, Head of Abbey Credit Cards, commented: "The costs of summer holidays increase drastically when the schools break up - and this year, with so many living costs going up, this could prove difficult for parents. It's also important to avoid unnecessary costs once abroad, for example on cash machine withdrawals or spending on cards. Try to find a fee free credit card such as Abbey Zero for easy holiday spending that won't add to your money worries."