Recent research also revealed that holiday overspending has reached its highest levels in a decade.
Only a third of Brits who set a travel budget stick to it, according to a new study.
Recent research also revealed that holiday overspending has reached its highest levels in a decade.
That’s despite families continuing to feel the strain of the cost-of-living crisis, and debt advice inquiries surging.
Travellers also seem more prone to overspending in some destinations than others.
Corporate travel company Good Travel Management ranked the countries around the world where travellers are most likely to splurge.
A European country took the top spot, where holidaymakers pay £45 (€55) over their budget each day on average.
Travellers are most likely to blow their holiday budget in Finland
Good Travel Management found that Finland is the country where UK travellers are most likely to overspend.
Holidaymakers typically budget £103 (€124) per day to visit Finland but are actually more likely to spend £148 (€178) per day on average.
This could mean travellers spend £315 (€379) more than anticipated for an entire week’s stay in Finland.
With the Northern Lights, ski slopes and Santa Claus’s Lapland abode on offer, it’s no surprise Finland is often one of the most popular winter getaways for tourists.
The country was even recently crowned the happiest place on earth for the sixth consecutive year.
However, high costs for food, transport and accommodation also make it one of the most under-budgeted destinations.
Alcohol prices, in particular, stand out as an expensive cost. The country has the third-priciest beers in the world, with 500mls expected to set you back around €7.
According to the European Commission, Finland’s alcohol prices are 102 per cent above the EU average.
Where else are travellers most likely to overspend?
In second place is Mexico, with UK travellers paying £39 (€47) per day over the average daily budget of £67 (€80).
UK travellers pay on average £106 (€127) per day to visit Mexico’s stunning beaches and rich culture, an increase of 45 per cent from the average daily budget.
Mexico is frequently lauded as a budget-friendly destination to enjoy winter sun. However, it is exactly because of Mexico’s low-cost reputation that UK travellers are more likely to under budget.
In reality, travelling to Mexico has become more expensive, in part thanks to the strengthening of the Mexican peso, which has jumped 16 per cent against the US dollar over the last few years.
This, paired with increased investment in luxury Mexican tourism, has contributed to higher costs for tourists.
In third place is Egypt, with UK travellers overspending on their travel budgets by £36 (€43) per day. Despite Egypt having one of the cheapest average daily budgets estimated at just £21 (€25), travellers will pay more than double this.
Mastercard has predicted Egypt’s inbound tourism will continue to surge, which saw a 27 per cent year-on-year growth in visitors last year. This combined with Egypt’s high inflation rates could see travellers spend more than anticipated.
Norway (€41 over budget) and Japan (€40 over budget) complete the top five countries where UK travellers are likely to overspend.
Where are travellers least likely to overspend?
At the other end of the scale, Barbados tops the charts as the country UK travellers are most likely to over budget for. Brits budget £194 (€233) per day on average, the highest of all countries studied, but only spend £118 (€142) per day in reality.
One reason for this is that, despite its luxury reputation, Barbados offers a range of budget-friendly options, from local eateries serving delicious Bajan cuisine to mid-range accommodation choices.
Many of the island’s most popular experiences, such as enjoying the stunning beaches, exploring Harrison’s Cave or visiting the historic capital of Bridgetown, don’t come with hefty price tags.
In second spot is Hong Kong, with UK travellers spending £66 (€79) per day less than the expected daily budget of £108 (€130).
While Hong Kong is renowned for its luxury shopping and upscale dining, it also has many free attractions, such as scenic hikes, vibrant street markets and cultural landmarks like the iconic Tsim Sha Tsui Promenade.
Completing the top three most over-budgeted countries is Luxembourg, with Brits spending £60 (€72) less per day than the expected £137 (€165).
As the country with the world’s highest minimum wage, it would be easy to presume prices are more expensive.
However, since 2020, travellers can enjoy completely free public transport for all modes of transportation, making Luxembourg the first country in the world to abandon public transport fares.
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