Recent research shows that holiday overspending is on the rise, reaching its highest levels in a decade. Despite this, only a third of Brits who set a travel budget actually stick to it. Families are feeling the strain of the cost-of-living crisis, with debt advice inquiries also increasing. Travellers are found to overspend more in certain destinations, with Finland ranking as the top country where UK travellers are likely to blow their budget. Finland, known for its Northern Lights and ski slopes, sees tourists spending £45 (€55) over their budget each day on average.
In second place for overspending is Mexico, where UK travellers exceed their daily budget by £39 (€47). The average daily budget is £67 (€80), but travellers end up spending £106 (€127) per day on average. Despite Mexico’s reputation as a budget-friendly destination, costs have increased due to the strengthening of the Mexican peso and investments in luxury tourism. Egypt comes in third for overspending, with UK travellers exceeding their daily budget by £36 (€43). Mastercard predicts a continued surge in inbound tourism to Egypt, along with high inflation rates contributing to higher costs.
On the other end of the spectrum, Barbados is the top country where UK travellers are least likely to overspend. Despite budgeting £194 (€233) per day on average, they only spend £118 (€142) per day. Barbados offers a range of budget-friendly options, from local eateries to mid-range accommodations, making it easier for travellers to stay within budget. Hong Kong takes the second spot for underspending, with UK travellers spending £66 (€79) less per day than their expected daily budget of £108 (€130). Luxembourg completes the top three for least likely to overspend, with Brits spending £60 (€72) less per day than expected in the country known for its high minimum wage and free public transportation.
Overall, the research highlights the importance of setting and sticking to a travel budget to avoid overspending, particularly in popular tourist destinations. Factors such as currency exchange rates, inflation, and the overall cost of living in each country can impact travelers’ budgets. By researching and planning ahead, travelers can better anticipate and manage their expenses while enjoying their holiday experiences. Travelers should also consider exploring budget-friendly options and free attractions to help stay within their budget while still enjoying the beauty and experiences different countries have to offer.
