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The gap between the daily budget planned by British holidaymakers abroad and the money they end up spending is at its highest level in 10 years, as more people underestimated the impact of inflation on costs of staples such as food and drink.
The finding comes from research by the Post Office, which conducts regular assessments of value for money across a range of places, and quizzes travellers on their spending habits and attitudes to countries as holiday destinations.
On their most recent holiday, three-quarters of holidaymakers surveyed in the research set a budget averaging £334 per person. But only one-third stuck to it, with the rest paying an extra £155 per person.
Families overspent to an even greater extent, splurging £312 above the average budget of £566. “Family overspending levels have almost doubled since before the Covid-19 pandemic,” the Post Office said.
The research comes after an extended period of high inflation across Europe. Over half (57 per cent) of British holidaymakers blamed the cost of eating out at a restaurant for busting the budget, while nearly one-third cited the high cost of food and drink at supermarkets.
Laura Plunkett, head of travel money at the Post Office, said the evidence suggested “most people set inadequate budgets and end up overspending as a result”. She recommended people look back to their last holiday and set their next budget starting from that basis.
Many holidaymakers opt for all-in packages as a way of reducing costs, since many expenses are covered as part of the deal. However, the research found the proportion of people paying extra for meals and drinks on an all-in deal had quadrupled to 57 per cent over the past decade, as fewer items are now included in the holiday package.
The report also questioned travellers on which of 28 destinations they found to be best value for money in their previous trip. Topping the list among respondents was Greece, followed by Spain and Portugal.
The report also sought the opinions of those who had never visited these destinations, producing a notable disparity in views. “Most of the 28 destinations included in our good value poll achieved higher scores from past visitors than among those who had to rely on what they had read or heard about the country,” said Plunkett.
