Quarter of holidaymakers set to spend more this year

Over a quarter of UK holidaymakers (26 per cent) are increasing the amount of money they spend on vacation this year, according to new research from M&S Bank.

An additional £306 will be spent per person, with the figure increasing to £337 for those who choose to go abroad. People who stay in the country for a holiday will spend much less, but will still fork out an extra £221.

Close to a third (32 per cent) of individuals who are increasing their holiday spend this year put the blame on rising inflation, while 34 per cent said it was because they had planned to visit a more expensive destination. 

Some 14 per cent of people said their holiday spending budget, excluding flights and accommodation, totals £1,000 per person for their main vacation.

The study revealed the average weekly spend, including both foreign and domestic holidays, totals £357 per person. Holidaymakers plan to go away for an average of 1.5 weeks or 11 days, therefore people are spending an average of £481 per person, increasing to £579 for those going abroad. Individuals who stay at home will save a lot, with £273 set to be spent.

Nearly half (48 per cent) of people said they are shelling out the same amount as last year, with just 16 per cent reducing their holiday budget, showing that many are still committed to having a vacation despite inflation and reduced incomes.

Those who are set to spend less on their holiday this year expect to reduce their expenditure by £287 and a third (33 per cent) said this was because they do not have as much spare cash due to an increase in living costs, while 38 per cent are visiting a less expensive holiday destination.

The main expenditure for holidaymakers, regardless of whether they are travelling abroad or in the UK, is eating out in restaurants (48 per cent), while entertainment and excursions are the second largest (14 per cent).

Paul Stokes, head of travel money at M&S Bank, said: "It's great to see that, despite the economic climate, so many holidaymakers are able to spend the same or even more than last year. We look forward to our annual holiday all year and it's clear that the family holiday is something the nation is not prepared to compromise on."

Planning the holiday budget is the best way to keep costs down as without doing so, expenditure can soon spiral out of control.

Buying holiday money early is also a good way of making savings as rates change all the time. Many people get caught out by leaving it until the last minute.

When abroad it is important to keep in mind that using credit or debit cards often comes with a hefty charge, so keeping this to a minimum will reduce the chances of falling into debt.

It is important for people to take a break from their busy lives, but sometimes the cost of a holiday can be stressful in itself. By planning everything ahead individuals can find the whole process much more relaxing and avoid piling on any more debt.

By James Francis