Families face summer holiday premiums of up to 92%

Families planning a vacation during the school summer holidays may be forced to pay premiums of up to 92 per cent, equivalent to an extra £1,041, according to research from Santander Credit Cards.

The findings show that trips to some of the most popular overseas holiday destinations such as Florida and Crete, are on average 43 per cent more expensive between the 22nd and 29th of August, during the school holidays, than between 12th and 19th September just after schools return. A family of four planning a trip abroad during the school break can therefore expect to pay an average of £790 more than they would in the weeks that follow.

Santander Cards looked at the cost of a week-long trip for two adults and two children to five popular holiday destinations - the Algarve, Lanzarote, Gran Canaria, Orlando and Chania in Crete.

According to the research, families wishing to travel from London to Algarve could face some of the steepest price hikes, with one popular four star resort increasing its prices during the summer holidays to a staggering £2,174 compared to £1,133 after the school break. This £1,041 price rise is equivalent to 92 per cent.

The research showed that holiday packages with flights departing from London were subject to average premiums of 48 per cent, whereas families travelling from Manchester will face slightly lower price hikes of around 38 per cent.

Andy Smith at Santander, commented: "High demand means overseas holidays will inevitably be subject to some price inflation during peak season. However, at a time when many families are suffering financially from the rising cost of living, it is difficult to justify some of these premiums.

"There are bargains out there though if holidaymakers shop around, particularly for those who are able to book a trip at the last minute or are flexible in terms of where and when they travel. Families can also reduce costs by cutting out unnecessary expenditure once abroad, such as ensuring they only use a credit card that offers fee-free foreign usage."