Research conducted by personal insolvency provider, Carrington Dean, has revealed that extra holiday costs will set a family of four back by an average of an additional £564.25 this summer.
An average all inclusive holiday, covering flights, accommodation and meals, will already cost a family of four an average of £1,600 this summer, and personal finance experts from Carrington Dean are warning that extra costs – including airport parking, travel insurance and passport renewal – could give family finances an unexpected shock.
These extra costs, on top of rising prices for flights and accommodation, mean that some families are struggling to find an affordable holiday. Rebekah, a mum of one, said:
“We want to go away this year but trying to find a holiday which isn’t going to break the bank and still be enjoyable is becoming increasingly difficult. We will probably book something soon so we can pay it off monthly before we go as can’t afford to pay it up front.”
Holidays extras could take 59 hours of work to save for
Layla Johnson, regional manager at Carrington Dean said: “While many families look forward to summer holidays, for many parents it puts an extra burden on budgets. Research by our sister company Creditfix has already shown that parents face debt levels 8% higher than the national average.
“The cost of holiday extras is a significant expenditure – and that’s after you’ve had to pay for the flights and accommodation itself. For those lucky enough to have holidays booked this summer, don’t let these additional costs catch you by surprise.
“Many household budgets are already being pushed to the limits and the pressure to spend extra on a family holiday can leave many people building unaffordable levels of debt. With the cost of living crisis continuing to bite, it’s vital that parents have a clear and honest view of their financial situation to understand what they can afford.”
The National Living Wage stands at £9.50 per hour in Scotland, meaning additional holiday costs of £564.25 will take over 59 hours of work to save for, not including the holiday package itself.
Carrington Dean has broken down the average cost of summer holiday essentials:
How much extra could you pay?
| AVERAGE EXTRA HOLIDAY COSTS | |
| Item | Cost for a family of 4 |
| Travel insurance | £32 |
| Clothes | £238.38 |
| Sun cream | £30 |
| Parking | £89.57 |
| Passport renewal | £74.30 (average) |
| Pre-flight snacks and drinks | £100 |
| Total | £564.25 |
Frugal travel tips
Layla has shared her top tips for avoiding debt as the summer holidays approach:
Shop around
It sounds obvious, but looking at different providers of these extras can save you a lot of money. It’s always worth shopping around for insurance and some providers offer extra rewards like 2 for 1 cinema tickets, but be sure to make the most of offers as we get closer to holiday season.
Stay all-inclusive
An all-inclusive holiday package can increase your accommodation costs significantly, but if you stay within your resort for things like food, drink and entertainment, you could save nearly £700 on all those restaurant and bar visits. Package holidays can also be significantly cheaper than trips where transport and accommodation are bought and paid for separately.
Start saving early
It’s never too early to start saving. Create a countdown or activity out of picking the destination to make it still feel exciting. If you can save little and often, you could have a tidy sum set aside for your next holiday.
Be honest about your personal situation
Social media only increases the pressure to spend on a holiday, but remember that the cost of living crisis is hitting millions of people across the country. Building levels of unaffordable debts can have massive implications down the line, so it’s important to be honest about your finances and look at the bigger picture.
