14th August 2015
Families are planning to upgrade their holiday this year, spending £1,878 more than last year.
Research by M&S Bank shows the average family of four is planning to spend £1,878 more on their main holiday this year, not including spending money.
Over half, 57%, said they will spend more than they did in 2014 and 10% will spend more than £4,000.
Of those planning to spend more in 2015, a third said that it was due to upgrading to a more expensive destination and a quarter said it was because they were going on a longer holiday. A fifth said they are planning to go away for more than a fortnight.
Hotels are the most popular accommodation for holidaymakers, with 50% planning on staying in one. Of those 58% are planning an all-inclusive hotel and 42% are opting for a hotel without meals.
Another 23% are opting for self-catering apartments and 12% are planning on using a holiday home owned by friends of family.
In addition to the cost of flights and accommodation, families will spend a total of £560 per person, or £2,240 for a family of four, while on holiday.
Despite knowing about these costs, when it comes to planning their holiday spending money a third of people do not make a budget and more than 10% will make a budget but won’t stick to it.
The key to budgeting successfully is to make an overall budget, with a third of people saying they find this easier than planning their spending each day or week. Just 9% of people will make a daily budget and 7% will make a weekly plan.
There is also the cost of holiday essentials to factor in and 52% of families start shopping for sunscreen and sunglasses a month before they leave, with 15% leaving it less than a week before departure.
Paul Stokes, head of products at M&S Bank, said: ‘For many the family holiday is one of the highlights of the year and so it’s great to see that the majority of families are planning to treat themselves by spending a little extra this year, whether that’s upgrading to a more expensive destination or going away for longer.
‘We would encourage families to plan a budget before jetting off to ensure they get the most from their travel money.’
Top travel money tips:
1. Plan your holiday budget to work out how much it will cost and how much travel money you will need. Even if you’re staying in half-board or all-inclusive accommodation, and don’t forget to factor in cash for taxis and tipping.
2. Find out if you can buy tickets for activities you’re planning cheaper in advance.
3. Don’t rely on internet rates if buying travel money in-store; many providers have different rates online and some change their rate throughout the day.
4. Don’t leave your holiday money until the last minute; airport bureaux often offer less competitive rates and may not have a wide variety of note denominations.
5. Take both cash and a credit or debit care to ensure you’ve got multiple methods of payment.