More Britons head abroad despite worries over rising holiday costs

Keep knowledgeable with free updatesSimply signal as much as the Journey & leisure business myFT Digest — delivered on to your inbox.The variety of Britons selecting to journey overseas has risen for the fifth consecutive yr, regardless of rising issues over US tariffs and the energy of sterling making holidays dearer. Greater than two-thirds of Britons intend to take a vacation abroad this yr, however of the 54 per cent who’ve already booked a visit, the bulk are frightened about affording the general price, together with meals, drinks and different vacationer gadgets, based on the Submit Workplace’s annual vacation spending report. Almost 80 per cent mentioned trade charges, in addition to the impression of US commerce tariffs on costs, have been a notable concern, prompting adjustments to monetary behaviour, together with placing cash apart earlier and growing budgets to forestall overspending.This had prompted some to keep away from locations the place tariffs might have an effect on costs, whereas almost 40 per cent deliberate to keep away from travelling to the US, regardless of having beforehand thought of doing so. As a substitute, Britons rated Spain, Turkey and Thailand as locations with one of the best worth for cash, whereas Kenya and Scandinavia have been rated as providing the poorest worth.Greater than 80 per cent mentioned that they had set a vacation price range averaging £377, however the majority admitted overspending by £140, whereas households spent £323 greater than their common price range of £766 on their final vacation overseas.“This yr’s vacation analysis once more demonstrates that holidaymakers don’t at all times set a sensible price range and overspend by giant quantities because of this,” mentioned Laura Plunkett, head of journey cash on the Submit Workplace.“It’s nice to listen to that holidaymakers are already planning to price range extra for his or her holidays this yr, to keep away from coming unstuck once they arrive at their vacation spot.”Regardless of being a preferred vacation spot, the Submit Workplace Change Fee Monitor discovered that the rise in Thailand’s forex in opposition to sterling meant British guests would get almost £30 fewer Thai baht on a £500 transaction. Almost half of UK holidaymakers added that their alternative of vacation spot would depend upon the energy of sterling, with Vietnam and Bali providing extra worth for cash.Though the US has fallen out of favour with many, holidaymakers will really feel the advantage of a weak greenback in international locations the place the dollar is broadly used, equivalent to within the Caribbean and Center East.The Submit Workplace report additionally uncovered situations of utilizing debit and bank cards overseas turning into a “pricey observe” attributable to financial institution transaction fees on ATMs.“Far too many holidaymakers advised us they paid considerably greater than they anticipated due to the transaction fees made for utilizing credit score and debit playing cards at an abroad ATM,” Plunkett added.