All Inclusive holidays could save cash-strapped Britons £403 million each year whilst abroad

- Consumers want budget certainty in an age of uncertainty in 2012, as 74% consider an All Inclusive holiday.

- Over half of UK holidaymakers overspend on holiday
- 40% claim ability to pre-budget as main reason for going All Inclusive

More and more British tourists are opting to go all inclusive 2012, as over half of holidaymakers (57%) overspent whilst on holiday last year, costing the UK’s consumers a staggering £403m. The new research released today by First Choice shows that British holidaymakers are struggling to control of their holiday budgets and overlook exchange rates and extra costs whilst abroad. The biggest causes of overspending on holiday are evening meals (42%), daytime snacks and drinks (31%) and evening drinks at the bar (27%) – all of which are included in the cost of an all-inclusive holiday.

With value leading the way in 2012 as the driving factor behind holiday bookings (40%) and over 74% considering an all-inclusive holiday this year according to the British Travel Association, Brits will welcome First Choice’s bold move to become the Home of All Inclusive. In five years (2004-2009) the all-inclusive holiday market has grown by 32%, according to latest research from Mintel³ and research from First Choice shows a family of four can save £511 per week on an All Inclusive Holiday versus a bed and breakfast only trip.

The ‘First Choice Holiday Spending Study’, conducted in association with the Centre of Economic and Business Research (Cebr), also shows that overspending impacts the lives of over half of Brits (52%) when they return from non all-inclusive holidays. It reveals that 1 in 4 have to cut back on things such as the weekly food bill (26%), and luxuries such as weekend socialising (28%) when back in the UK.

Commenting on the First Choice Holiday Spending Study, Douglas McWilliams Chief Executive of leading financial institution the Cebr, says: “The figure of £403 million is surprising, particularly when people want budget certainty these days. It seems it is the little extra things on holiday that sometimes we don’t even consider that really do add up and make a difference.”

David Burling, Managing Director of TUI UK & Ireland comments: “Many of our customers will have overspent at Christmas, but they can go on all inclusive holiday knowing that this won’t happen again. In the current climate, people want to leave their money worries behind when they go on holiday. All Inclusive is fast becoming the holiday of choice for many British consumers, offering them great value for money, and yet First Choice is the only mainstream holiday company offering a completely All Inclusive portfolio. We pride ourselves on listening to our customers and creating unique offers that reflect the need of each holidaymaker.”

From summer 2012, all First Choice holidays will include flights, transfers, hotel accommodation, three meals a day and all local drinks as standard. Offering a range of holidays for different budgets, from 3 star to 5 star, customers will be able to choose from standard, added value resorts such as SplashWorld and Holiday Village, and premium properties.

First Choice is the first UK mainstream company offering all inclusive holiday packages

First Choice is now the first mainstream holiday company in the UK to offer all its hotel and resorts on an All Inclusive basis.

Top holiday company First Choice (part of TUI UK & Ireland) is setting up a major travel industry milestone by becoming the UK's first mainstream holiday company to offer 100% of its hotel and resorts on an All Inclusive basis – including flights, in-resort transfers, hotel accommodation, three meals a day and unlimited local drinks as standard.

Available to book online from next month,  May 2011, First Choice's new All Inclusive holidays offering has been created in direct response to the needs of today's consumers who want more control over their holiday spend, and the growing demand for All Inclusive holidays. In five years (2004-2009) the All Inclusive holiday market has grown by 32%, part of the 14.4 million package holidays estimated to be taken in 2010 according to latest research from Mintel.

Driven by the emerging trend for All Inclusive holidays, which now account for 65% of First Choice sales, budget conscious Brits are cottoning on to the fact that All Inclusive holidays are the way forward. New case study research from First Choice shows that a family of four can save a staggering £511 on an All Inclusive holiday versus a bed and breakfast only holiday for one week.

All Inclusive holidays can also be significantly less stressful - nearly two-thirds said they would relax more on an All Inclusive holiday, as everything has been paid for upfront and they don't need to worry about added extras on top of the total cost of the holiday. The research also showed that two-thirds of Brits on non-All Inclusive holidays tend to overspend, a quarter of them by over 20%.

Evening meals are the most likely area where people overspend (40%), followed by 36% who blow the budget on daytime meals and snacks, and 27% who put their over-spending down to long, leisurely evenings spent in the hotel bar.

Johan Lundgren, who is the managing director of TUI UK & Ireland, believes this will build further on the reputation of First Choice as one of the most innovative, yet accessible holiday companies in the UK. "This is a major milestone for the UK travel industry and an exciting and timely transformation for the First Choice brand. All Inclusive is becoming the holiday of choice for many British consumers, offering them great value for money, yet there is no mainstream holiday company currently offering a completely All Inclusive portfolio.

"First Choice will become the home of All Inclusive, offering the best of both worlds – a unique feeling of indulgence combined with practical control over their holiday spending – whatever their budget."

(EDITOR: Although perhaps meant to poke fun at the idea of all inclusive holidays, the hit ITV comedy series set in an all inclusive  hotel in Spain, Benidorm, the series has boosted interest in all inclusive holidays by the public.)