31% of UK adults have been caught off-guard by unexpected holiday costs, latest survey reveals

HSBC UK recently conducted a survey of over 2,000 UK residents to analyse their summer holiday spending habits and understand what they value most when travelling abroad. The survey highlighted some notable trends in how UK adults plan and manage their holiday finances.

According to the findings, it takes UK adults an average of eight months to save for a holiday. This figure rises to 10 months for parents, reflecting the extra financial preparation required for family trips. The survey also warned of the need to be mindful of unexpected holiday fees, which have impacted a significant portion of travellers.

One of the key revelations was that 31% of UK adults have been caught off-guard by unexpected holiday costs, with Gen Z travellers (aged 16-24) being the most affected. Over half (52%) of this younger demographic reported encountering unforeseen fees, compared to only 15% of Boomers (aged 55 and over).

The most common reasons for unexpected charges included 41% of adults being charged for using their cards abroad, while another 41% experienced fees for currency conversion. Additionally, 37% were hit with unexpected ATM withdrawal fees.

The survey also delved into how openly people discuss their holiday spending. It found that 57% of UK respondents prefer not to disclose how much they have spent, with 34% citing discomfort around discussing their finances as the reason. Interestingly, respondents were more likely to share spending details with friends than with partners—47% would tell friends how much they spent abroad, compared to only 38% who would share the same information with their partner.

When it comes to payment methods, nearly half of the respondents (49%) preferred using physical credit or debit cards for convenience, while 24% chose physical cards specifically to avoid transaction fees.

HSBC UK’s survey provides valuable insights into the financial behaviours of UK holidaymakers, emphasising the importance of budgeting and being aware of potential hidden costs while travelling abroad.