High cost of staycations fuelling demand for overseas holidays, study shows

More people are planning overseas trips fuelled by concerns over the high cost of domestic holidays after two years when the pandemic restricted foreign travel.

More than half (53%) of more than 2,000 Britons polled intend to take a holiday abroad this year against 43% in 2021. The proportion rises to 59% of families.

The high cost of staycations is likely to affect holiday choice for 64% of those surveyed.     

However, attitudes are polarised when it comes to budgeting for breaks, Post Office Travel Money found in its latest Holiday Spending Report.

More than half expect to spend more but a “significant minority” will have to cut their outlay under cost of living pressures.

All-inclusive holidays are set to be popular as a result, with only 23% of families planning to self-cater, down by 5% on last year.

The number of families planning to go all-inclusive has risen from 42% a year ago to 48%.

This comes against a backdrop of seven in ten holidaymakers admitting to overspending their budget by as much as 38% on their last break abroad.

A quarter of those asked will be cutting the amount they spend on holiday, rising to 31% of families.

The most important factors when making holiday decisions saw cost of accommodation (82%), travel to destination (76%) and prices in resort (68%) outweigh all other considerations, according to the study,

On their last overseas trip, individual holidaymakers set a budget averaging £344.38 but only three-in-ten stuck to it and the rest spent an average of £132.46 more. Three quarters of families also set a budget but 76% paid out £243.14 above the level they had set of £644.43.

Almost two-thirds (63%) also said they had been ripped off on their last trip abroad, with airline meals and drinks, excursion and attraction costs and compulsory restaurant service charges named as the biggest irritations.

Head of Post Office Travel Money, Nick Boden, 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.”