Research reveals that millions of Brits plan to spend more on holidays this year than before the pandemic, despite the rising cost of living. However, young people will increasingly be borrowing money to pay for trips. Jenny Southan reports
To identify 2022 travel spending trends, credit provider Tymit surveyed 2,000 UK residents on their spending habits abroad. The post-Covid travel report explored what UK residents are purchasing overseas, how they are financing their vacations, how many UK holidaymakers overspend, and the difference between age groups and gender when it comes to spending.
Data from the survey suggests that 14 million UK adults (28 per cent) plan to spend more on holidays this year, despite the rising cost of living.
However, over 17 million UK holidaymakers (31 per cent) plan to pay for their holidays on credit cards, with younger generations far more likely to finance their travel with unsecured credit.
As you would expect of a generation with less income and savings, 40 per cent of Gen Zs (18- to 24-year-olds) are planning to use a credit card to finance their next trip abroad, while just 20 of Boomers (aged 55+) plan to do the same. 62 per cent of Boomers say they will use savings to finance their next holiday instead.
There are also gaps between genders when it comes to spending abroad. Over a third (35 per cent) of men say they have gone over budget when holidaying abroad, compared to just 26 per cent of women, suggesting that they are slightly more careful with money.
What are people using their credit cards on when they are overseas? Paying for shopping and eating out both rank at about 30 per cent, while only 11 per cent use a credit card to pay car rental, which is surprising given that most car rental firms demand a credit card. About one in five Brits have upgraded their holiday with a credit card.
Tymit CEO, Martin Magnone, says: “After a tough couple of years, Brits are itching to get away, and many clearly plan to use credit to fund their summer holidays. Used wisely, credit cards offer a convenient way to spread the cost with the added security of consumer protections, but too many holidaymakers are still hit by the pitfalls of traditional credit – the hidden fees, loaded exchange rates and minimum payment traps that last long after the journey home.
“It’s shocking that so many are still paying off last year’s holiday, but sadly not a surprise. We give Tymit users the peace of mind of having a clear plan to pay back their fee-free spending abroad.”
Worryingly, about 30 per cent of UK residents say they do not check the charges on their credit cards whilst abroad. Many also don’t realise that booking with a credit card gives extra protection if something goes wrong.