Holiday-loving Brits are still determined to join the great summer getaway despite increases in the cost of living.

A survey¹ highlighting HSBC UK’s fee-free Global Money²account shows nearly three-quarters (71%) of people are planning a trip abroad – and has revealed the top five ways people are managing their money to make sure they can get away.

Where are Brits heading?

Spain, Italy, Greece, the USA and France top the list of destinations. And Brits are clearly fond of their holiday habits – and most likely to have picked their resort because they’ve been there before (18%).  

There are some more adventurous travellers out there, especially among 23-34-year-olds, who are 50% more likely than the rest of the nation to have picked their holiday spot after seeing it on screen in a film, TV show or social media feed.³

But the boldest of all are the nearly one in ten (8%) who say they picked somewhere at random.

How are people saving up for their holidays?

Just under half of holidaymakers (46%) say this year they’d rather spend less for a budget holiday and stay away a little longer, rather than splashing out on a shorter luxury vacation.

These are the top five ways Brits said they are managing their money to make sure they can still get away:

• Spending less on eating out (31%)
• Saving more money each month (29%)
• Spending less on nights out (27%)
• Spending less on clothes (26%)
• Putting off large purchases (e.g. car) (18%)

How do people plan their holiday budget?

Once Brits get to their dream holiday destination, here are the top five ways they make sure they stick to their holiday budgets:

• Setting aside a certain amount of cash per day (32%)
• Setting money aside for unexpected expenses (27%)
• Prioritising spending based on budget and interests (25%)
• Tracking spending on a banking app (21%)
• Looking for low-cost activities (19%)

What’s the best way to spend money abroad?

British travellers’ favourite ways to Spend Money Abroad are local currency cash (27%), followed by debit cards (23%), credit cards (18%) and prepaid currency cards (10%).

They’re very conscious of the fees that can be charged for using cards, with three in five Brits (61%) saying they consider those charges when Spending money.

But more than one in three (35%) admit they don’t know how much money they’re spending when they’re on holiday because they don’t know the exchange rate.

Despite advice suggesting that in most cases you can save money by opting to spend in local currency when using your cards abroad – one in three holidaymakers (33%) say they always choose to pay in GBP.

And just under a quarter (24%) of Brits are also potentially missing out on chances to save money, by admitting that they never compare fees or exchange rates while planning their travel spending.

HSBC UK’s Global Money account allows customers to spend money abroad (withdraw cash or make card purchases in multiple currencies) with competitive live exchange rates and no HSBC fees.²

Pella Frost, Head of Everyday Banking, HSBC UK said: “While the vast majority of Brits are looking forward to travelling abroad this year, they’re also feeling the pinch on their finances more than ever. In addition to making it easier to access competitive FX rates and manage spending, our Global Money account has helped customers save an estimated £3million in card fees when spending abroad.

“On average it takes customers just over one minute to open a Global Money account. It’s so quick, I’ve heard of customers ordering their Global Money debit card while waiting in line at the airport and adding it to their digital wallet for secure and HSBC fee-free spending on their travels.”