In the Axa poll, Britons spent £97.3 billion on holiday and new clothing accounted for much of this, even more than tours, excursions and car hire combined.
Britain and Ireland were the most popular destinations, serving as the destination for over two thirds of holidaymakers.
However, Nick Kidd, head of lifestyle protection and household claims at AXA Insurance, warned that without adequate insurance, the debt incurred through a holiday could become even greater.
Commenting on how Britons are enjoying the chance to take a break, Mr Kidd said: “With so much being spent on holidays and travelling abroad, it is now more important than ever to have travel insurance.
“You don’t know what could happen to you whilst on holiday and travel insurance is therefore as important as taking your passport or toothbrush.”
Booking the holiday itself accounted for the largest debt, at £45 billion, followed by spending money, but new clothes for trips also added to the bill.