Holiday budgets have risen by 10 percent this year as spending on getaways bounces back, research has found. A poll of 2,000 adults found they are typically willing to spend £1,015 in 2023, up from £927 last year.
The study also revealed how the economic climate has changed booking habits for 64 percent, with one in four looking to travel outside of peak season. October and November are now the top choices for those looking to avoid the highest prices.
The research was commissioned by HSBC UK, to mark the launch of a new cash offer for new customers opening both a current account, and a Global Money account.
Simon Calder, travel journalist and broadcaster, said: “This surge shows the insatiable appetite for travel. The last few years have been very difficult for many reasons – but we are now seeing more people willing to invest in enriching experiences.
“Our appreciation of travel has intensified after the pandemic – as the saying goes, you don’t know what you’ve got till it’s gone.
“The desire to create lasting memories is prompting individuals and families to prioritise holidays – and specifically, to seek out activities, local cuisine, and culturally immersive tours.
“But while this is happening, costs are still on holidaymakers’ minds – as many are strategically ditching the summer months in favour of October and November.
“I will be travelling extensively in Europe over the next few weeks. In the southern Mediterranean, the sun is still shining and the sea is warm. The crowds have vanished, and the prices are dwindling too.
“By opting for travel during the autumn, you can enjoy the last of the summer sunshine in the south – and, in the poetry of John Keats, the “season of mists and mellow fruitfulness” in the north. And all without breaking the bank.”
The HSBC UK research also revealed the number of people holidaying at home has dropped by 21 percent compared with last year – as one in three (32 percent) are aiming to find a cheaper holiday abroad.
The most important factor for those travelling last year was their trip offering value for money – but this has now been replaced by chasing the weather.
However, while many are still choosing cheaper getaways abroad, the bank warns about fees when spending overseas with debit cards.
Many mainstream debit cards charge a transaction fee of between 2.75 percent and 2.99 percent on spending abroad – meaning that, by spending €1,000, travellers could be charged up to £25 in fees.
And using a debit card to withdraw cash overseas also typically comes with a cash handling fee of around two percent, or a minimum of £3 – so using a cash machine five times while in Europe, withdrawing €200 a time, the fees would total around £42.
Pella Frost, head of everyday banking at HSBC UK, said: “We designed Global Money to make spending overseas simple, quick, and straightforward for our customers.
“It helps customers avoid unexpected costs, and makes it easy to plan and stick to a holiday budget. Customers can manage their spending easily through the app, so they can spend more time enjoying their holiday.”
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