A recent study has found that tourists overspend on their holiday budget by an average of £108 per person. The research, conducted by travel insurance provider AllClear, surveyed 2,000 UK adults who had been on holiday in the past two years. It revealed that 62% of holidaymakers exceed their planned budget, with the average overspend amounting to £108.
Where Does the Extra Money Go?
The main culprits for budget blowouts are food and drink, which account for 38% of overspending. Activities and excursions come second, contributing to 22% of extra costs. Souvenirs and shopping add another 18%, while unexpected transport costs make up 12%. Accommodation upgrades and other expenses account for the remaining 10%.
According to the study, the average holiday budget is set at £1,200 per person, but the actual spend rises to £1,308. This means that collectively, UK tourists are spending an extra £1.3 billion annually beyond their initial budgets.
Age and Gender Differences
The research also highlighted demographic variations. Younger travellers aged 18-24 are the most likely to overspend, with 78% exceeding their budget by an average of £152. In contrast, those aged 55 and over are more disciplined, with only 48% overspending, and by a smaller average of £68. Women tend to overspend more than men, with an average of £118 compared to £98 for men.
Chris Rolland, CEO of AllClear, commented: “It’s easy to get carried away on holiday, especially when you’re in a new place and want to make the most of it. But our research shows that many people are underestimating how much they’ll actually spend. We recommend setting a realistic budget and tracking your spending to avoid a financial shock when you get home.”
Impact on Post-Holiday Finances
The overspending can have lasting effects. Nearly a quarter (23%) of respondents said they struggled to pay bills after returning from holiday, while 15% had to use credit cards to cover the extra costs. Another 10% said they had to dip into savings meant for other purposes.
The study also found that 18% of holidaymakers felt stressed about their finances after their trip, and 12% regretted not sticking to their budget. To mitigate this, experts suggest using a prepaid travel card or setting daily spending limits.
Tips for Staying on Budget
To avoid overspending, the study recommends several strategies. First, research the cost of food, drink, and activities at your destination before you go. Second, set a daily spending limit and use cash instead of cards to make it easier to track. Third, look for free or low-cost attractions and consider all-inclusive deals for meals. Finally, leave some room in your budget for unexpected expenses, but be disciplined about not exceeding it.
Rolland added: “It’s all about balance. You want to enjoy your holiday without worrying about money, but a little planning can go a long way in helping you avoid post-holiday debt.”
