Britons reluctant to cut holiday spend despite recession

Publication date | 08/05/2009

British holidaymakers are showing a reluctance to cut down on their spending this year despite the deteriorating economic climate, a new poll has revealed.

A survey of 2,000 people by Holiday-Rentals.co.uk found that almost a third would be unwilling to spend their break in cheaper accommodation, while nearly a quarter suggested that they would not compromise on their choice of destination.

While the investigation discovered that the average amount spent on a break away is now £259 less than it was two years ago, it also disclosed that many Britons still pay out more than £2,000 for their family holiday.

Considering this, it is likely that a number of people will carefully think through their options for raising such an amount, including those looking to dispose of a poorly performing financial investment.

An expert from the market maker aap, which is also the country's biggest buyer of endowment policies, commented that a sizeable number of its recent customers have sold an underperforming policy when looking to finance a substantial lifestyle purchase.

Although endowment holders who are looking to offload their policy will usually realise that surrendering is one of their options, they may be unaware that selling can in some cases be more profitable.

If aap makes an offer to purchase an endowment, it will without fail value it higher than its surrender price.

Considering the UK's economic climate, some households may be tempted to abandon their holiday plans altogether if they cannot get hold of the required funds, suggested Courtney Wylie, managing director of Holiday-Rentals.co.uk.

"The credit crunch is really taking its toll on Brits," she said.

"Many people view holidays as a luxury and therefore it's inevitable that they are one of the first things people will consider scrapping."

Figures published by the Office for National Statistics last month showed that Spain was the most popular travel destination for Britons, attracting almost a third of holidaymakers during 2007.