Up and away? Holiday costs hit £2,000 per person for UK adults

More than half (58%) of UK adults are going on holiday this summer - the majority estimate it will cost them almost £2,000 on average per person, new research from Aviva shows.

Nearly three quarters (73%) say it is important to them to go on holiday. Almost two thirds (64%) of holidaymakers surveyed plan to travel overseas this summer, mainly for beach holidays (54%), with nearly half (48%) holidaying within the UK. To afford these holidays, UK adults admit they have had to make sacrifices, cutting back on eating out at restaurants (23%), reducing entertainment and leisure costs (18%) and not going out on evenings and weekends (17%).

Encouragingly, of the ways people plan to pay, or have paid, for their summer holidays this year – a quarter (24%) will draw from specific savings they have set aside for their holiday while more than one in three people (36%) will use their current accounts. 

A further 35% plan to use some form of credit to pay for their trip – using credit cards, loans, ‘buy now pay later’ or borrowing money from a friend or relative and almost half of them (49%) admit they are concerned about how they will repay the cost of their summer break.

Of those who choose to pay for their holiday on credit, more than a quarter (27%) expect it could take between 19-24 months to pay it off.

A third (34%) have no plans to go on holiday this summer.  Most of them (84%) cite financial constraints as the main reason either because they cannot afford it, have other costs to prioritise or have decided it is too expensive to travel during school holidays.

Joanne Phillips, Managing Director of Aviva Direct Wealth, commented: “Getting away in the summer remains a priority expense for many people across the UK – an understandable luxury that brings joy to millions. Our research shows that despite concerns about the affordability of summer holidays, most are still determined to find a way to make it happen.

“Understanding your finances and planning accordingly can help.  By making small sacrifices here and there, or using some form of credit, people are getting savvy with their summer holiday planning. With enough research and support there are ways people can reduce their expenses - for example, setting aside a budget for your holiday and sticking to it; saving in advance to avoid using unnecessary credit; managing expenses to allow for spending on holiday and always trying to top up your ‘emergency fund’ for last minute costs.

“There are lots of holiday hacks out there to help keep costs to a minimum and allow you to travel knowing you can afford the great holiday experience you are looking for.”

Top tips for affordable summer travel

1. Set up a specific ‘holiday fund’: Try setting up a payment into a separate account each month especially for your holiday if you can.
2. Set a Budget: Determine how much you can afford to spend on your holiday and stick to it.
3. Book in Advance: Early booking often secures better deals on flights, hotels, and activities.
4. Track your Spending: Use a finance app to record all your expenses daily.
5. Limit Cash withdrawals: Plan your cash needs and limit ATM withdrawals to avoid high fees.
6. Use Credit Cards wisely: Prefer credit cards that offer rewards, cashback, or have no foreign transaction fees. Pay off the balance promptly to avoid interest charges.
7. Shop Smart for Deals: Look for discounts, coupons, and deals on activities, dining, and attractions.
8. Currency Exchange Rates: Exchange a portion of your money before leaving or use an ATM at your destination to get a better rate than at currency exchange booths.
9. Travel insurance: Remember it’s important to buy your travel insurance when you book your holiday to avoid any unnecessary costs if the unexpected happens.
10. Avoid Roaming Charges: Use a local SIM card or mobile plan with international coverage to avoid expensive roaming charges.

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References:

^{Methodology: The research was conducted by Censuswide, with 2001 UK Nationally representative respondents between 26.06.2024-28.06.2024.  Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.}

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