Holidays are the most common thing Brits are saving up for reveals retail bank, Tesco Bank, in its latest research on holiday spending preparedness.
According to ONS figures, UK residents made more than 86 million visits abroad in 2023, spending over £72.4billion in the process. This figure is showing no signs of slowing down either as in its research, Tesco Bank found that 45 per cent of UK adults have already put aside their holiday money for 2025. On average the research found that Brits are saving £1,250 each on average, a 13 per cent rise from 2023.
It’s not just savings that are funding Brits holiday plans. Internal data analysis from Tesco Bank shows that people who are taking loans for holidays borrowed an average of £5,900 to fund their trip. Tesco Bank’s research also found that nearly three in 10 (29 per cent) people have a specific savings goal in place for holiday budgets. In fact, 16 per cent said they commit to sticking to it so they are fully ‘holiday-ready’.
Chris Henderson, savings director, Tesco Bank commented: “The price of a holiday – large or small – might be on the rise but, clearly, it’s not stopping people getting away. Brits have stashed away over £1,000 already for trips in 2025, with the lure of time away with loved ones, space to relax, and the opportunity to try new things making holidays a top savings goal.
“Factoring in holiday budgets ahead of time and having a clear view of your finances is the best way to ensure you’re jet-set-ready! And, if you’re planning to take out a loan to cover your trip, it’s well worth working out your repayments and that these are factored into your budgets ahead of time, so all your finances are manageable.”
Saving for 2025
Tesco Bank shared a some tips to help boost people’s holiday budgets ahead of next year:
Setting realistic saving goals are always more motivating. Holiday seekers might want to consider adding a little extra to their savings at the start of each month or try to commit to a new goal ahead of the new year. By setting a target and working out how they will get there is a good head start to ensure the goal is achieved.
Once Brits have covered the essentials like their weekly food shop, rent or mortgage, dividing up the rest of their money for other spending or savings is a good habit to get into. Henderson added: “If you don’t do this already, it’s something you can start now and it will stand you in good stead for New Year money goals when we all want a fresh start with our finances.”
For the best rates, spenders should remember to pay in local currency when using their debit or credit card abroad.
Henderson concluded: “Don’t forget to budget for departure tax which is sometimes required at the end of your holiday. Some package holidays may include this, but not all, so it’s best to check before you go and allow for it within your 2025 holiday budget.”
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