Plan for your Next Summer Holiday Now

After some summer-like weather over the weekend it may be hard to accept that the summer holiday season is coming to a close. What better time though to star planning your next summer holiday?

Summer holidays can cost a lot and it’s not just the costs of transport and accommodation that you need to cover. There’s the holiday spending money you need, and this can add up.

In order to understand holidaymakers’ spending habits in the UK and abroad, Halifax asked people to compare their spending on a range of things during a ‘normal’ week at home versus being on holiday.

The respondents spent just over £200 every seven days when on holiday than when at home.

That said, a number of holidaymakers feel they save money on a number of things, such as childcare and buying food to ‘eat in’, whilst on holiday.

On average, ‘normal’ expenditure during a week at home works out at £167.18 and this rises to £376.74 during a seven day holiday – of course this excludes the cost of the holiday itself. 

Richard Washington, Halifax Credit Cards says: “When budgeting for a holiday, it’s really important to factor in the cost of some holiday ‘spending money’.

“The holidaymakers we spoke to said that while they spend less on things like childcare and household bills while away, they see their expenditure spike on travel, leisure activities and going out.

“For a two week holiday, this is around £400 more than they’d normally spend at home, and they should take this into account when budgeting.”

“It’s absolutely right that people spend time working out the best way to manage their holiday finances - particularly those going abroad – but they shouldn’t forget to do the same for their normal day to day spending.

“With no foreign exchange fees and a simple, straightforward rate, the Clarity Card is a great option not just for holiday but for at home too.”

So where does the extra holiday money get used?

According to the research:

• 77% of people spend more on eating out at restaurants when on holiday
• 68% of people spend more on leisure activities when on holiday
• 37% of people spend more on taxis and public transport when away
• 41% of people say that their expenditure on household bills such as utilities, remains the same irrespective of whether they’re at home or on holiday, with 3% claiming their bills at home actually increase when they’re away
• It’s more expensive to go to pubs, clubs and bars when on holiday for 58% of holidaymakers, compared to 11% who say they spend more at home.

MoneyHighStreet comments: “School summer holidays are expensive, and even more so it seems if you go away on holiday.

The key message is to budget for your expenditure and be aware of all the additional holiday costs, over and above the travelling and accommodation.

“Plan in advance to get the best deals. Don’t forget to buy travel insurance too – and don’t wait until your about to head away before you buy it.

“Our article on ‘When should you buy travel insurance’ explains more, you can read it here. For example, if you have to cancel your holiday you will under certain circumstances be able to claim back the cost from your insurer.

“Also, some travel insurance policies will cover you if you are made redundant and as a result have to cancel your trip. “