Holidaymakers set to spend an extra £365 on holiday

Despite the economic climate, new research from M&S Money has found almost a third (32 per cent) of holidaymakers believe they will spend more money while abroad this year, on average an extra £365 each, and 32 per cent of those believe the additional expense is due to rising inflation pushing up the cost of living.

However, despite rising prices, many holidaymakers are taking extra care to keep their holiday budgets in check with 42 per cent believing they will spend the same as last year and 17 per cent actually planning to spend less. Those planning to spend less believe they will cut their spending by an average of £326. For half of travellers spending less, it simply comes down to having less spare cash.

When it comes to where the majority of holiday spending money goes, 44 per cent of holidaymakers believe they will spend the most money on eating out, although one in ten (12 per cent) are planning on splashing out on excursions, such as fishing trips or a diving experience. 

James Yerkess, Head of Travel Money at M&S Money, commented: "It is encouraging that although family finances have been squeezed by the economic downturn so many people are confident they will be able to maintain their holiday spending this year or spend even more.  While the rising cost of inflation means an increase in spending is inevitable for many, there are ways for the savvy holidaymaker to maximise their budgets. 

Follow M&S Money's top currency tips to get the most out of your holiday money: 

Plan your holiday budget so you know how much your holiday is going to cost and how much currency you need - and make sure you stick to it

If you're getting your currency on the high street choose a provider with a large number of currencies on demand - the majority2 have just 57 per cent availability which means you'll need to make multiple trips to order and collect

Don't rely on internet rates if buying in-store - many providers have different online and high street rates

Don't leave your holiday money until the last minute - airport bureaux offer less competitive rates