Under pressure Britons are set to ditch holidays in a sign of the impact of cost of living hikes, according to a new study.
More than a third will not spend money on a foreign trip or staycation break in 2022, research by price comparison service MoneySuperMarket has revealed.
The research, which explores major spending intentions in 2022 and how people intend to finance them, finds that 62% will opt for either a holiday abroad (37%) or a staycation (25%), meaning that over 38% are not intending to spend any money on a break.
The average spend on foreign holidays will be £2,442, with staycations expected to be £1,127. Residents of the North West will spend the most on their travels abroad (£3,156) and those in Northern Ireland will spend the least (£1,537). Just 11% are planning to spend more than £5,000 on an overseas getaway this year.
Among other large financial outlays, nearly a third (32%) of those surveyed stated they will spend on home renovations and DIY jobs, with the average outlay being £2,899. Nearly a quarter (23%) intend to buy furniture with average expenditure expected to be £1,317.
Supply issues in the automotive industry are not discouraging 17% of Britons from buying a new car or motorbike. They expect to part with an average of £6,203, with drivers in the East Midlands preparing to spend the most (£9,501) and drivers in Northern Ireland expecting to spend the least (£3,733).
Debit cards (44%) and old-fashioned cash payments (42%) will be the most popular means of funding big purchases, with loans (12%) and buy-now-pay-later options also proving to be popular with one-in-10 shoppers.
But with credit cards (40%) the third most popular choice of payment, MoneySuperMarket is encouraging consumers to be more savvy and avoid paying interest.
Jo Thornhill, money expert at MoneySuperMarket, said: “The cost of living is a growing concern but, while some plan to hold back on non-essential outgoings like holidays, most aren’t putting off big purchases for 2022 yet. The majority are still planning on a holiday, a third will spend on home renovations and nearly one in five are preparing to spend on a new car or motorbike.
“Whatever your financial situation, try to start 2022 by getting on the front foot and reviewing your household bills and shopping around to make sure you’re getting the best deals.
“One-in-10 credit card users expect to pay interest on balances this year but this can be easily avoided, providing you make sure you pay your balance in full each month or, if you’re enjoying an interest free deal, the minimum payments each month."
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