A weaker pound, higher prices overseas and squeezed personal finances mean that millions of Britons are shelving their summer holiday in favour of balancing the books at home.
Many Britons are thinking twice about that much-loved holiday in the sun this summer with new figures from ING Direct showing that as many as 4 in 10 will be going without a summer holiday this year in an effort to keep up with the cost of living at home.
With higher inflation, a weaker pound and rising costs overseas, it’s not surprising. In the last four years, the pound has slipped more than 20% against the Euro, giving holidaymakers little more than one Euro for every pound.
All this makes holidays to Spain, France and Italy that much more expensive. Figures put together by the Post Office show that, between 2007 and and 2011, a selection of typical holiday expenses in Italy increased approximately 70%.
But not everywhere in Europe is more expensive, however. Some prices in Greece have come down since 2007 as it tries to attract more tourists.
Richard Doe, of ING Direct, said, “It’s clear that a tough economic climate is causing consumers to pull off a very difficult balancing act – cutting down on debt while dealing with rising prices – so it’s not surprising that the summer holiday is often being sacrificed.”
Moneyhighstreet comments: “It isn’t just the high cost of living at home that is affecting decisions on whether to go on holiday. Airline fuel surcharges, rising prices, travel insurance and an increase in the price of package holidays are pushing more people to go into debt in order to go on holiday.
“But there are still ways in which you can save when you go on holiday to help offset the price rises. Take a look at our lists of 3 things to tick off before you go on holiday and 3 more things to get started.”