The latest research by Butter, the UK’s only Buy Now Pay Later (BNPL) travel agency, has revealed that the true cost of a holiday for the average UK holidaymaker sits at nearly £2,000 once additional costs above and beyond the flights and hotel have been accounted for.
Many of us are itching for a holiday abroad and many holiday providers continue to dangle a tantalising carrot in the form of low-cost flights and hotels despite another summer overshadowed by pandemic uncertainty.
Butters research shows that currently, a 10 night stay will set you back around £640 per person on average. Of course, today a holiday abroad will also require some form of COVID protocol, with PCR tests costing roughly £180 depending on where you go and the testing requirements in place.
However, before they’ve even travelled the average holidaymaker will have racked up a spend almost as substantial as the holiday itself, with travel insurance, holiday clothing, grooming, parking, travel essentials and other various costs totalling a notable £560 on average.
Of course, this holiday spending doesn’t stop once you’ve travelled and Butter’s research shows that after you’ve forked out for tourist taxes, airport transfers, food, drink, entertainment and spending money, the average UK holidaymaker will have spent a further £539.
As a result, their total holiday spend climbs as high as £1,919 in total.
Timothy Davis, Co-Founder and CEO of Butter, commented:
“A low cost holiday can be a tempting purchase but the reality is that while flights and a hotel may seem relatively affordable, many of us fail to consider the wider cost of a holiday until after we’ve booked.
This can leave some of us scrambling to cover the cost of essentials or heading away with less spending money in our pocket than we may otherwise have liked, and this can often cause worry or stress that you just don’t need while you’re on holiday.
The availability of the Buy Now Pay Later offering within the travel space can help avoid any nasty holiday spend surprises, as it allows you to spread the cost of your trip across a number of more manageable instalments. Opting to do so can leave you with a substantially larger budget leftover, enabling you to enjoy your holiday without worrying about your finances.
Of course, it’s important to pick an actual BNPL travel agent like Butter, rather than a BNPL lending platform. Doing so will mean spreading the cost of your holiday completely interest-free and even after you’ve travelled if you wish to.
It also means you’ll have full Section 75 protection in addition to any ATOL protection. So if the worst does come to the worst and your holiday is scuppered by COVID travel restrictions, you’ll be able to recoup any flight or hotel costs.”
You also have the ability to bundle your additional holiday costs together via the Butter shopping app, meaning it doesn’t matter whether you’re paying for flights and accommodation, or suncream and sandals, you can pay one low monthly fee to take care of the lot.”