A pair of reports on surveys recently conducted among UK travelers seems to bode well for travel suppliers in the United States, and for other long-haul destinations for the UK, which is the number one overseas source market for the USA. While the tour and travel industry in the United States might be pleased with the findings, the survey results suggest that British travelers are also a bit reckless with their travel spending.
In the first report, research concluded by CYBG’s digital banking service, B, it was revealed that 33 percent of Brits experience financial challenges when they return home due to unhealthy holiday spending habits. (A Note: CYBG is the holding company that owns Clydesdale Bank, Yorkshire Bank and the app-based bank B.)
The survey– which polled 2,000 adults – predicts that they will spend an average of £GBP 1,175 ($530) per person on their vacations, plus an additional £118 ($155) on pre-trip purchases. Most of the pre-holiday spending will go for wardrobe, followed by toiletries such as the widely used sun cream.
British consumers have a ‘spend now, worry later’ mindset.
“Holidays are something people find very hard to give up and that’s understandable. The benefit of time away from the office or home is well documented, so getting away should be encouraged,” said Louise Hedges, head of consumer communications at B, adding, “What should be kept in mind, however, is the importance of sticking to a budget and not ignoring the reality of how to pay for that break. If, as our research shows some people are relying on credit to afford household bills due to blowing the budget, there is a risk that all that unwinding on holiday could soon be undone when normal life resumes.”
In sum, budgeting seems not on priority, as only 13 percent of holidaymakers said they set a daily budget and don’t exceed it.
Travel Far and Spend More: In the second report, conducted by payments technology firm Worldpay, it was found that UK travelers are spending nearly 11 percent. more on their holidays this year, according to new research. Worldpay believes the trend means that holidaymakers will continue to look for holidays further abroad.
Other highlights from the survey results:
—Brits are choosing fewer, larger trips as data showed Brits they spent an average of 10 percent more year-on-year per booking while the number of bookings overall was down 2.2 percent.
—Worldpay also predicted a flurry of last-minute bookings, which its research found were typically 7.5 percent cheaper.
—The final week of June saw sales down 2.2 percent compared to the previous year. A heat wave in the UK heatwave was credited for contributing to that decrease.
—July got off to a “busy start” helped by bookings to Russia to follow England in the World Cup. Flight bookings from the UK to Moscow surged by 330 percent following the team’s victory against Sweden in the quarter final.
—“Looking at our data we predict a surge in last-minute bookings in August,” said Thomas Helldorff, vice president, travel and airlines at Worldpay, “with holidaymakers taking advantage of cheaper prices on flights and accommodation, especially if we see a turn in the weather.”