More than half of Britons holidaying abroad in 2022 are expecting to put more cash towards their spending at resorts this year.
Some 53% of people plan to have a foreign holiday this year, up from 43% who said this in 2021.
Nearly six in 10 (59%) families are expecting to travel overseas this year, the Post Office Travel Money report indicated.
Among those expecting to travel abroad this year, 54% are planning to increase their budget for resort spending.
Most Britons start with good intentions by setting a budget but find that it is inadequate once they get to their resort. We urge them to think back to their last holiday and set a budget based on past experience— Nick Boden, Post Office Travel Money
Nearly a quarter (23%) plan to spend money they saved during the Covid-19 lockdowns.
But a significant proportion (24%) of those planning trips abroad said they will be cutting their holiday budget because they have less money to spend, rising to more than three in 10 (31%) of families.
Researchers also found that seven in 10 (70%) people who set a budget on their last overseas holiday ended up busting it.
On their most recent trip abroad, three-quarters (75%) of holidaymakers set a budget.
While three in 10 stuck to it, the remainder blew their budget by an average of £132.
People aged 45 to 54 had the highest typical overspend, at around £155.
Those in the South West of England also had the highest average overspend in the survey, at nearly £182.
And people in Yorkshire had the lowest average overspend, at just under £85.
A range of factors accounted for the high levels of overspending, but nearly two-thirds (63%) of holidaymakers claimed “rip-offs” had a part to play, such as the price of airline meals and drinks, excursion costs and restaurant service charges.
Some people who had booked “all inclusive” holidays also said they had ended up paying for extras outside their pre-paid package.
Nick Boden, head of Post Office Travel Money, which accounts for one in four UK foreign exchange transactions, said: “Over the past five years, research for the Holiday Spending Report has consistently revealed that most Britons start with good intentions by setting a budget but find that it is inadequate once they get to their resort.
“We urge them to think back to their last holiday and set a budget based on past experience.
“That way they can avoid extra fees for paying with a debit or credit card or having to withdraw cash from an ATM. A good solution is to carry a combination of cash and money held on a pre-paid travel money card that will not incur extra transaction charges.”
– More than 2,000 people were surveyed in April and May across the UK.
