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Holidaying Britons determined to spend

31/05/2008

Britons heading overseas this summer plan to spend heavily to leave credit crunch and recession fears behind them in the UK.

Research by American Express reveals 30 per cent of Brits abroad – despite feeling the pinch from soaring fuel, food and energy bills – aim to spend all they holiday cash.

Overall, 83 per cent of Britons do not plan a budget to stick to while on their holiday. One in ten ‘waste' money at the airport just to get rid of it rather than converting it when they get home and 20 per cent go over budget stocking up on duty free.

The poll found 20 per cent of people spend all their cash to avoid having to convert it back to sterling, while 45 per cent will willing blow their budget if they see something they want.

Just 17 per cent stick to tight budget.

Those with travellers cheques tend to keep a budget, while holidaymakers relying on withdrawing cash are more likely to lose the budget and treat themselves.

Kirstie Bayley, vice president of American Express Travellers Cheques, said: "The last thing people want to do when they go on holiday is worry about money and this summer's trend should be about being savvy with your money."

Opting to use debit and credit cards abroad can be costly in itself – so it is worth looking for a specific card that has low fees for withdrawing cash.

Also a new skein of prepay cards have come onto the market of late offering greater fraud protection than cards – akin to that offered by travellers cheques – with greater convenience to spend in shops and use cash machines.

Again it is worth checking the small print on prepay cards for their charges.