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Last year, three-quarters of British travelers who went abroad exceeded their weekly spending budget by an average of 38 percent, indicating the impact of inflation in popular summer destinations.
A major factor contributing to overspending was the increased cost of meals and drinks, as revealed by research conducted by Post Office Travel Money, a foreign exchange provider. In a survey, nine out of ten parents spent an average of £310 on eating out or purchasing food and drinks for a week, despite budgeting only £145.
The average spending on sightseeing was £87, while spending on treats for children had increased by 35 percent compared to previous overseas holidays.
Laura Plunkett, head of travel money at the Post Office, highlighted the impact of inflation on local prices abroad, despite the strengthening of the sterling currency against European currencies. She advised families to expect higher prices for meals, drinks, and tourist items in most resorts.
The researchers compared the costs of 16 European destinations as schools in England were about to enter summer holidays. Out of these, 15 places experienced price increases. However, the largest increases were observed in Turkey and Bulgaria, which still remained the cheapest overall.
Inflation in Turkey, which reached 38 percent annually up to June, caused costs in Marmaris to double since last year. However, due to the depreciation of the Turkish lira (which fell by 64 percent year-on-year), the increase in costs for British holidaymakers, when converted to sterling, was a more modest 33 percent.
On the other end of the cost spectrum, Ibiza, Porec in Croatia, Lanzarote, and Crete were the most expensive destinations. Living costs in Ibiza were found to be 56 percent higher compared to the previous year.
The research was conducted in collaboration with Tui, the travel group. Richard Sofer, commercial director at Tui UK and Ireland, noted the continued demand for all-inclusive packages and self-catering options, which provide customers with opportunities for cost savings. He also mentioned that some customers are shortening their holidays by a few nights to manage expenses.
The analysis involved tracking the prices of 12 items including a three-course family meal, alcoholic and soft drinks, ice cream, and the rental cost of a sun lounger or pedalo.
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