As many of us are heading off on holiday, HSBC UK has surveyed over 2,000 UK adults about their holidays abroad, spending habits, and the unexpected holiday fees that can catch travellers off guard.
According to HSBC UK’s survey, it takes the average UK adult eight months to save up for a holiday. For parents, this period extends to ten months, reflecting the additional financial planning required for family trips. However, alongside saving, it’s crucial to be wary of unexpected holiday fees.
The survey revealed that 31% of UK adults have encountered unexpected holiday fees. This issue is most prevalent among Gen Z travellers (16-24 year-olds), with 52% being caught out, compared to just 15% of Boomers (age 55+). This highlights a significant need for younger people to be more aware of potential extra costs whilst abroad.
The most common unexpected fees include charges for using cards abroad, affecting 41% of UK adults. This issue is even more pronounced among those aged 55+, with 46% reporting such fees. Currency conversion charges also catch 41% of UK adults off guard, with women (47%) being more affected than men (37%). Additionally, 37% of UK adults have faced unexpected ATM withdrawal fees, with this issue being most common among 45-54 year-olds (46%).
When it comes to payment methods while abroad, 49% of UK adults prefer using physical credit or debit cards for convenience, 38% for security, and 24% to avoid transaction fees. Card payments via phones (e.g., Apple Pay) are preferred by 30% for their convenience. Meanwhile, 35% of respondents favour cash for its convenience, and 28% use it to help stick to a budget.
These findings underscore the need for a stronger understanding of unexpected holiday fees, especially among younger generations. However, it’s reassuring to note that the majority of UK adults (67%) are cautious of these hidden costs.
HSBC UK’s Head of Everyday Banking, Pella Frost, said: “We all like to splash out on holiday but splurge regret can cast a shadow over the whole experience.
“Over a third of holidaymakers get caught out by unexpected fees making a holiday splurge that little bit more costly.
“With no HSBC fees on card spend or ATM withdrawals abroad, Global Money helps customers avoid unexpected costs and makes it easy to plan and stick to a holiday budget.
“Customers can manage their spending easily through the app so they can forget about fees and focus on fun with their families or friends.”
