Will you Overspend on Your Holiday?

NEWPORT, Wales, August 30, 2011 /PRNewswire/ --

British holidaymakers run out of cash exactly four days and eight hours into their week-long summer holiday according to a study conducted by Gocompare.com.

The study of 2,000 holidaymakers shows that by day four of their seven day break, holidaymakers have spent all of the £422.79 they budgeted for the week. They then go on to spend a further £115 over the remainder of the holiday - averaging just under forty pounds each day, compared to more than £100 each day at the start of their break.

Jeremy Cryer, head of travel insurance at Gocompare.com, which conducted the research, said: "Going on holiday is an expensive business, and as this survey shows, when people land on foreign soil, it is as if all common sense disappears.

"Despite setting realistic budgets for the week before jetting off, a large number of people then seem to go mad on holiday and overspend on food, drinks and excursions. Most Brits would think it crazy to spend over £500 during the course of one week at home, but for some reason, when on holiday this seems perfectly acceptable. It is only when people get home that the reality sinks in, and they have to pay the consequences."

The poll suggests 35 per cent of holidaymakers simply visit the cashpoint to withdraw more money when they run out, while 25 per cent spend on their credit card. More than one in 10 people do a combination of both - and worry about how they'll pay everything off later. Indeed, a third of people who choose to overspend on their credit cards when on holiday usually end up paying off their debts over a course of two and a half months.

While most holidaymakers set themselves a budget at the start of a break, holiday essentials such as food, alcohol and day trips always seem to cost more than anticipated:

• Two in five people claim food is their worst indulgence on holiday, as they overspend on meals out or cuisine they may not try at home.

• Alcohol or other drinks sets nearly half of all holidaymakers back more than they'd first thought, and 37 per cent get carried away with all the tourist attractions and day trips - which often cost an arm and a leg.

• A fifth of Brits also don't plan to spend as much on nights out, while a generous 12 per cent can't resist packing their suitcase to the brim with souvenirs and trinkets to remember their stay.

• Clothes, travel, car hire, shopping trips and gifts for the children also eat into the average holidaymaker's spending money.

Jeremy continues: "It's all very well budgeting before you go on holiday, but much harder to do so when you are actually there. Those people yet to embark on their summer holiday would be wise to save an extra couple of hundred pounds to put by before going, in anticipation of a bit of overspending."

The survey also polled people who prefer to take 14 day holidays. It shows that these jet-setters usually run out of money nine days and 18 hours into their two week break. In this case, holidaymakers usually allow themselves a spending budget of £1,002.07, but end up spending nearer £1158.26 - an overspend of £156.29.