Overseas holiday spend 'rising'

30/06/2011

British holidaymakers are spending more money during breaks overseas because of the rising costs of goods and services, a new study shows.

According to Visa Europe, in 2010 Britons collectively shelled out more than £9.8 billion while holidaying abroad - up 18% from the previous year.

Accommodation accounted for the biggest share of the total expenditure, at £1.3 billion, while holiday activities and organised tours cost £693 million.

The average holidaymaker is estimated to have spent £178 dining out, £97 on drinks, £80 on activities and £74 on excursions last year.

A quarter of the more than 1,000 people polled believe their overseas holiday will put a bigger strain on their pockets this year than in 2010.

Soaring inflation and cost of living as well as higher flight costs as a result of additional fuel surcharges were cited as the biggest drivers of holiday costs.

Just over one-third (38%) of the respondents said their spending would be higher this year only because they plan to head off to holiday destination that is more expensive.

Tony Gibbons, head of debit at Visa Europe, said: "We're now seeing that spend abroad is increasing as consumers face higher costs on their annual break."