Tourists are overspending on their holiday budget by an average of £103, according to a new study by travel insurance company AllClear. The research, which surveyed 2,000 UK adults, found that nearly half (48%) of holidaymakers exceed their planned budget, with the average overspend amounting to £103 per trip.
Key areas of overspending
The study identified dining out as the top category where tourists overspend, with 42% of respondents admitting they spent more than planned on food and drinks. This was followed by souvenirs and gifts (28%), and activities and excursions (24%). Other areas include transportation (18%) and accommodation (15%).
Impact on holiday experience
Despite the overspending, many travellers view it as part of the experience. Gareth Lane, head of travel insurance at AllClear, said: “It’s easy to get carried away on holiday, especially when you’re enjoying yourself. Our research shows that while many people set a budget, they often exceed it, particularly on food and activities.” He added that having travel insurance can help protect against unexpected costs that might further strain finances.
The study also found that younger travellers are more likely to overspend, with 58% of 18-34 year olds exceeding their budget compared to 38% of those aged 55 and over. Additionally, couples overspend more than solo travellers, with an average overspend of £125 versus £80.
Tips for staying on budget
To avoid overspending, experts recommend setting a daily budget, using cash instead of cards, and planning meals and activities in advance. AllClear suggests travellers consider travel insurance that covers cancellation and medical expenses, as unexpected events can lead to significant financial loss.
