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.

Let ICE Stop you getting burnt this summer with some hot money tips

2011 could be the most expensive year to take a holiday, as fuel increases push airlines and travel agents to pass rising costs onto travellers. The weakness of the Pound against the Euro and other key holiday currencies is not helping as British tourists who are having to spend more to achieve the same buying power. In response, travel money expert ICE (International Currency Exchange – www.iceplc.com) has produced its top tips for getting the most out of the holiday spending budget:

ICE’s Top 10 Tips to make holiday money go further

1. Buy foreign currency in advance of leaving the UK, online or from specialist providers on the high street, to avoid less competitive rates at airports
2. Buying budget airline tickets? Don’t get stung by debit or credit card charges – consider using a Sterling prepaid card to buy your tickets – but shop around as some providers charge as much as the airline in internet and shop transaction fees
3. Use a PIN protected prepaid card overseas too to avoid hefty debit and credit card charges – some charge as much as 1.4% of the transaction
4. Check the financial security of your provider – are they linked to a bank for example that is FSA regulated?
5. Having your currency delivered to home? Look out for free postage charge deals for minimum orders; every penny counts!
6. Take a mixture of local currency and prepaid card on holiday – enough local currency for when you first arrive and a prepaid card for added security
7. When in Rome: Do some research on tipping etiquette in your holiday destination to avoid embarrassment and possibly save you money
8. Consider paying the sundries bill at the end of the stay with cash - 82% of travellers used their credit card to pay for their hotel bill in 2010
9. Remember, some countries restrict the amount of cash that can be taken in and out. Don’t get caught out, check before you travel
10. UK banks won’t buy back some currencies. Check before you travel and spend your local currency before returning home

Joanna Williams, Head of Marketing for ICE said “With household budgets being stretched and the cost of holidays going up, Brits will be looking to make savings where they can and stick to a budget. Using a prepaid card at home and abroad can help. Some, like the ICE Travellers Cashcard offer good savings on budget flight transaction charges and offers families a convenient and secure alternative to cash and travellers cheques. Most importantly, the card helps holidaymakers avoid charges incurred when using a credit or debit card abroad, whether it’s paying for small items such as food, drink and souvenirs or for the bill at then of the stay.

“There are many additional charges on travel money that can soon mount up so we advise holidaymakers to shop around for their foreign currency to ensure they get the best exchange rates from a reputable provider.”

Travelex and TripAdvisor announce strategic partnership

Travelex and TripAdvisor have announced a deal that will provide holidaymakers with real time real time currency rates and information on the TripAdvisor website. Up to 40 million people annually could benefit from the deal as they research holidays on the site in what is the first time the TripAdvisor has partnered with a travel money provider to provide live web content.

Launching this month, June, the campaign will be made up of a series of tailored digital advertisements, plus the Travelex’s currency converter widget placed strategically within ‘Before You Go’ sections of the site, automatically updated with relevant rates and currencies.

Julian Neal, Global e-Commerce and Marketing Director, Travelex Currency Services says “Travelex is delighted to join with TripAdvisor to provide its users with timely and relevant information to aid them in preparing for the holidays. As the only truly global currency specialist, we see this as an important strategic partnership, with the world’s largest travel site.

“The fees associated with using debit and credit cards abroad are becoming increasingly expensive and there are so many hidden costs, travellers simply don’t know what they will be paying. Organising currency ahead of your trip is the best way to get best overall value from your holiday and removes the stresses associated with getting cash at the destination.

“The best currency rates are found online and Travelex customers in the UK and US have the assurance of our Online Price Promise and the ability to take care of all their travel money needs in what is a one-stop shop.”

Kevin Clapson, TripAdvisor’s head of UK sales, points out: “As the world’s largest travel site we aim to provide travellers with everything they need to plan the perfect trip. Partnering with Travelex means travellers can quickly and easily view real time currency rates and information on the TripAdvisor site while planning their trip.”