Average holiday this year now costs £945 per person and one in five paying for their holiday on a credit card
London, June 2013 – It appears that Brits no longer find Marbella costs too much money, Provence too pricey nor the Costa Brava too costly, as new research suggests that 9.3 million more British adults will be going on a summer holiday this year than in 20111.
Figures from Experian CreditExpert reveal that two thirds of adults (65%) will be going on holiday this year – up from 47% two years ago.
The increase could be attributed to Britons’ sun, sea and sand savviness combined with financial acumen. Tactics employed by cost-conscious holidaymakers include a quarter of holidaymakers (25%) booking early to cut the cost and spread payments, a fifth (22%) deliberately travelling out of season, and more than one in 10 (11%) booking last minute.
The research finds that the up-front cost of the main holiday is now £945 per person in total, inclusive of travel, accommodation and other out-goings like insurance. Yet a savvy fifth (20%) are bagging a bargain when they book – forking out £500 or less.
Once overseas, the majority (55%) of Britons plan on spending £500 or less, and a savvy one in seven (14%) less than £200.
To pay for their ticket to the sun, many British holidaymakers are finding ways to spread the cost. One in five (20%) – or 6.5 million people2 – will use a credit card to pay for their main holiday with a further one in 10 (8%) paying in instalments3.
Although most Brits going on holiday this year spread the cost over up to three months (51%), many take far longer. One in six (16%) take more than six months to pay it off, and three per cent, or more than a million Britons,4 say they will still be paying off their previous holiday when they jet off on their next one.
The research also suggests that the credit card is as much a part of the family holiday as the bucket and spade, with two thirds of holidaymakers (63%) taking their card away with them. Although 17% will use it for large purchases or for the safety net it represents in case of unexpected outgoings (21%), nearly a quarter (22%) will use it for the additional protection against fraud that spending on a credit card holds over a debit card. A further one in 10 (12%) will use their credit card because it’s more widely accepted than their debit card.
Peter Turner, Managing Director at Experian Consumer Services, UK & Ireland, commented: “The great British getaway is a well-deserved break for many families and an essential part of their year. A significant number of people are using a credit card to help manage the cost of one of their largest annual outgoings – and many more will look to use a credit card while away.
“If you do use a credit card to help spread the cost of a holiday, we would encourage you to make sure you pay off a significant chunk each month – and above all don’t miss any payments. Only making the minimum repayments and using more than a third of your available credit limit can both have a detrimental effect on your credit rating – which could hamper your future financial – let alone holiday – plans. Keeping an eye on your credit report will also let you know whether your dose of sun, sea and sand is having a more gloomy effect on your finances.”
Notes to editors:
The 2013 research was carried about by YouGov Plc on behalf of Experian. Research was conducted among 2,111 adults from 17 to 19 June 2013. The survey was carried out online. The figures have been weighted and are representative of all GB adults.
1. There are 48,844,900 UK adults (ONS). 65.33% of adults are going on a main holiday in 2013 (YouGov). 0.65 x 48,844,900 = 31,910,373.
47% of adults went on a main holiday in 2011 (ICM Research conducted online in January 2012 among a representative sample of 2,029 adults on behalf of Experian). The UK adult population in 2011 was 48,091,600 (ONS). 0.47 x 48,091,600 = 22,603,052.
Therefore 9,307,321 more adults will be going on holiday this year than in 2011.
2. 20.25% of holidaymakers will be paying for their main holiday on a credit card. Therefore 31910373 x 0.2025 = 6,461,851.
3. The ways in which British adults will primarily pay for their main holiday this year are:
4. 65% of adults will be going on a holiday in 2013, of whom 3.2% will still be paying off their previous holiday while on their current break. Therefore 48,844,900 x 0.6533 x 0.032 = 1,021,131
For more information please contact:
Experian Consumer Services
Joanne Leahy, PR Manager - 020 3042 4089 / Joanne.email@example.com
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