Brits are prioritising holidays despite four in 10 facing the prospect of rising holiday costs, Paragon Bank research has found.
The study by Paragon Bank revealed that holidays and travel are the top savings goals for a third (33%) of active savers.
This is the most popular savings category, just surpassing retirement (32%), but ahead of financial security (18%) and buying a home (17%).
The survey of over 2,200 savers found that 39% planned to spend more on their main break this year. The average planned spend on a main family holiday this year is £1,942, up from £1,908 in 2023.
Inflation is the primary driver behind the increased spending, with one-third of respondents citing it as a factor. Interestingly, the same proportion (33%) plan to spend more because they're exploring a new destination, highlighting a continued desire for adventure despite rising costs.
For those prioritising a more luxurious getaway, 14% plan to upgrade their accommodation, while 13% are celebrating a special occasion with a more expensive trip.
Quality, cost or convenience
When focusing on how holidaymakers prioritise cost, quality and convenience, the survey revealed that Brits are prepared to spend more when it comes to accommodation, location and food. They were more cost-focused with regards to transport and activities and excursions, whilst convenience was also important when it came to transport options.
| |
Quality |
Cost |
Convenience |
| Transport |
21% |
43% |
35% |
| Accommodation |
58% |
31% |
11% |
| Location |
59% |
16% |
26% |
| Activities and excursions |
38% |
42% |
20% |
| Dining and food expenses |
52% |
38% |
10% |
Location, location, location
Europe remains the preferred travel destination, with over half (53%) of holidaymakers opting for short-haul trips this year. Long-haul destinations hold appeal for a quarter (25%) of travellers, while 20% plan staycations within the UK.
The research also explores holiday saving habits. Nearly half (46%) of those who save specifically for holidays plan 6-12 months in advance, while 28% save for over a year. Almost one in five (18%) save 3-6 months ahead, with the remainder saving closer to departure.
On average, proactive savers plan to take three holidays this year. Almost four in ten (39%) aim for three or more trips, while 27% plan two holidays, and 20% just one. Notably, 12% don't plan a holiday in 2024.
“Holidays are a significant saving goal for many,” comments Derek Sprawling, Paragon Bank Savings Managing Director. “With holiday costs rising both domestically and internationally, savers need to optimise their returns to get the most out of their hard-earned money.”
For further information contact:
Michael Clarke
Head of Media Relations
Paragon Bank
07740090746
Notes to editors:
Paragon surveyed 2,268 savings customers in April 2024.
Paragon Bank PLC is a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £15 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.
Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.