71% of Brits planning getaways abroad despite cost of living increases

As wanderlust is rampant among many, new research on travel trends from HSBC UK reveals how savvy Brits are managing their finances ahead of and while jetting off abroad. Despite the cost-of-living crisis, the survey of over 2000 individuals revealed nearly three-quarters (71%) of respondents are in pursuit of a getaway, planning a trip abroad.

Spain, Italy, Greece, the USA and France top the list of destinations this summer. And Brits are clearly fond of their holiday habits – and most likely to have picked their resort because they’ve been there before (18%).

There are some more adventurous travellers out there, especially among 23-34-year-olds, who are 50% more likely than the rest of the nation to have picked their holiday spot after seeing it on screen in a film, TV show or social media feed. But the boldest of all are the nearly one in ten (8%) who say they picked somewhere at random!

The survey has also revealed the top five ways people are managing their money to make sure they can get away. These include:

Just under half of holidaymakers (46%) say this year they’d rather spend less for a budget holiday and stay away a little longer, rather than splashing out on a shorter luxury vacation.

• Spending less on eating out (31%)
• Saving more money each month (29%)
• Spending less on nights out (27%)
• Spending less on clothes (26%)
• Putting off large purchases (e.g. car) (18%)

Just under half of holidaymakers (46%) say this year they’d rather spend less for a budget holiday and stay away a little longer, rather than splashing out on a shorter luxury vacation.

While it’s promising to see many still eager to travel, the survey does highlight potential oversight in managing holiday expenses. While Brits are keen on preserving their holiday experiences by being conscious of budgets, the survey reveals there is room for improvement in understanding exchange rates and most economical ways of spending.

British travellers’ favourite ways to spend money abroad are local currency cash (27%), followed by debit cards (23%), credit cards (18%) and prepaid currency cards (10%). They’re very conscious of the fees that can be charged for using cards, with three in five Brits (61%) saying they consider those charges when spending money.

But more than one in three (35%) admit they don’t know how much money they’re spending when they’re on holiday because they don’t know the exchange rate.

Despite advice suggesting that in most cases you can save money by opting to spend in local currency when using your cards abroad – one in three holidaymakers (33%) say they always choose to pay in GBP.

And just under a quarter (24%) of Brits are also potentially missing out on chances to save money, by admitting that they never compare fees or exchange rates while planning their travel spending.

HSBC UK’s Global Money account allows customers to spend money abroad (withdraw cash or make card purchases in multiple currencies) with competitive live exchange rates and no HSBC fees.

Pella Frost, Head of Everyday Banking, HSBC UK said: “While the vast majority of Brits are looking forward to travelling abroad this year, they’re also feeling the pinch on their finances more than ever. In addition to making it easier to access competitive FX rates and manage spending, our Global Money account has helped customers save an estimated £3million in card fees when spending abroad.”

Find out more here: https://www.hsbc.co.uk/international/how-to-save-money-on-your-holiday/