‘Oh sod it, I’m on holiday’ Brits spend over £1,000 on foreign holiday extras

Whilst the majority of Brits (39%) opt for an all inclusive package when on holiday, we still love to rack up the pounds - or pesos - on extras such as meals out, day trips and taxis.

Dining out tops the list of splurges with holidaymakers spending on average £191 per person per week - 81% more than what they would spend on restaurant meals in the UK. Brits also spend 39% more on live events or cinema (£97 at home vs £135 abroad), 36% more on clothes (£108 at home vs £147 abroad) and 29% more on travel (£92 at home vs £119 abroad).

Parents spend the most with a whopping £417 on average spent per day on extras for their children (kids clubs, day care, food, etc) during a one week holiday.

Jo Hemmings, Behavioural Psychologist, comments: “Our holiday mentality which encourages us to spend much more than we would at home is down to three main factors.

“Simply being out of our usual daily routine contributes to a sense of relaxation and reward, stimulating our feel-good hormones of serotonin and dopamine and reducing our stress hormone, cortisol, making us more likely to spend money on clothes, dining out and new experiences.

“Holidays are also associated with special occasions and escapism – whether that’s a birthday or an anniversary, the arrival of warm weather or simply the holiday itself which we have anticipated and saved for, enables us to justify spending more money than usual.

“We are also less inhibited on holiday, so we feel less constrained by our usual financial mindsets and the sense of spending more on immediate pleasures rather than deferred rewards – known as temporal discounting – is also heightened.”

However, we don’t like talking about our splurges. HSBC UK research shows over half (57%) of people never disclose how much they’ve spent on holiday. And only a third (38%) will share what they’ve spent abroad with their partner.

Jo adds: “There is an innate pressure to conform to holiday expectations and a social comparison where we see other people seemingly spending freely.

“When we get back to our daily routine, we may feel we haven’t exercised the financial control which would have allowed us to still have a great holiday, but on a more appropriate budget.

“This can lead to feelings of shame and regret about our behaviour and we can be reluctant to share those with our loved ones”.

HSBC Global Money can help reduce ‘splurge regret’ with no HSBC fees on card transactions or ATM withdrawals abroad. Launched in October 2022, over 1 million HSBC customers are signed up to fee-free spending through Global Money.

HSBC UK’s Head of Everyday Banking, Pella Frost, said: “We all like to splash out on holiday but splurge regret can cast a shadow over the whole experience.

“Over a third of holidaymakers get caught out by unexpected fees making a holiday splurge that little bit more costly.

“With no HSBC fees on card spend or ATM withdrawals abroad, Global Money helps customers avoid unexpected costs and makes it easy to plan and stick to a holiday budget.

“Customers can manage their spending easily through the app so they can forget about fees and focus on fun with their families or friends.”

Many mainstream debit cards charge a transaction fee of 2.75-2.99% on spending abroad, meaning you could be charged up to £25 in fees alone if you spend 1,000 euros². Using a debit card to withdraw cash overseas also typically comes with a cash handling fee of around 2%, or a minimum of £3. So if you use a cash machine five times while in Europe, withdrawing 200 euros a time, the fees would total around £42³.

Global Money is only available to HSBC customers. For more information visit: www.hsbc.co.uk/international/travel-money-card/

How spending abroad vs at home adds up

Other findings:

Fees

• Around a third (31%) of the UK population have been caught out by unexpected fees.
• Nearly half (41%) have been charged for using a debit or credit card abroad and 37% have been charged for unexpected ATM withdrawal fees whilst abroad on holiday.
• Gen Z (16-24 year-olds) were most likely to be caught out by unexpected holiday fees (52%)

Card vs cash

• Nearly half (49%) find it more convenient to use a physical card for their holiday spending whilst 30% prefer paying with their mobile (e.g. Apple Pay)
• 35% said using cash was more convenient whilst abroad and 28% said using cash helped them stick to a budget.

Money talk

• Gen Z are the most likely to tell others how much they have spent on holiday - 64% of respondents would talk about it vs only 22% of respondents aged 55 and over.
• People from Norwich are the least likely to disclose their travel costs (only 26% will share), whilst Bristolians are the most open (49%).
• People are more likely to tell their friends how much money they have spent abroad (47%), as opposed to their partner (38%).

Media enquiries to:

Hannah Langston, HSBC UK Press Office: 07384 792 248 / hannah.langston@hsbc.com