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Cost of holidaying abroad rises

Cost of holidaying abroad rises

Category: Credit cards

Updated: 17/05/2013
First Published: 17/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The overall cost of a family summer holiday has increased by an average of £128 since this time last year, according to research by M&S Bank.

Many families are being forced to dig deep into the pockets to afford the increased cost of travelling abroad, particularly in European countries, where exchange rates remain poor and inflation has soared.

According to the provider, just one in ten of the most popular holiday destinations have inflation levels lower than in the UK, where inflation currently stands at 2.8%.

France emerged as the 'most affordable' place to visit in terms of general spending costs, with a week's break costing an average of £547 per person. In Egypt, costs have increased over the past year by just 0.8%, equating to £848 per person.

Ongoing uncertainty in the eurozone has had a massive impact on the cost of spending abroad as the pound continues to decline against the Euro. Costs incurred by UK tourists across the continent are rising faster than the rate of inflation in the UK and are 4.3% more expensive on average than in 2012.

Holidaymakers looking to travel further afield can expect to pay at least £1,218 per person in the most expensive overseas destination, the USA. A week's spending in the 'Land of the Free' was found to cost almost £300 more than a week in Thailand.

Working out costs before going away is vital in keeping overall costs down.

A number of credit cards offer 0% interest when spending overseas, although it is always wise to check a card's terms and conditions before setting off on your travels to be sure it meets your financial needs.

The Halifax Clarity Credit Card MasterCard offers 0% on all overseas spending, as does the SAGA Over 50's Platinum Visa and the Post Office's Classic and Platinum MasterCards from the Post Office.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.