31% of Brits have been caught out by unexpected fees on holiday: HSBC UK survey

As many of us are packing our bags for our summer trips, a recent survey by HSBC UK offers a fascinating insight into the holiday habits and spending patterns of over 2,000 UK adults. The survey delved into various aspects of holiday planning, including how long it takes to save for a trip, the prevalence of unexpected fees, and the preferred payment methods while abroad.

One of the standout findings from the survey is that, on average, UK adults spend eight months saving for their holidays. This figure rises to ten months for parents, reflecting the additional financial planning required for family trips. However, despite careful planning, many travellers still face unexpected holiday fees, which can put a dent in their vacation budgets.

The survey found that 31% of UK adults have been caught off guard by unexpected holiday fees. This is particularly pronounced among Gen Z travellers (aged 16-24), with 52% reporting surprise charges, compared to just 15% of Boomers (aged 55+). This discrepancy highlights the need for younger travellers to be more vigilant about potential hidden costs.

Several common reasons for these unexpected charges emerged. Notably, 41% of UK adults reported being charged for using their card abroad, with this issue affecting 46% of respondents aged 55 and over. Another 41% experienced fees related to currency conversion, a problem more frequently encountered by women (47%) than men (37%). Additionally, 37% of respondents faced unexpected ATM withdrawal fees, a situation most common among those aged 45-54.

When it comes to payment methods while abroad, preferences vary. Nearly half (49%) of respondents prefer using physical credit or debit cards for their convenience, while 38% appreciate their security and 24% use them to avoid transaction fees. Mobile payment methods, such as Apple Pay, are favoured by 30% of travellers for their convenience. Cash remains popular too, with 35% of respondents citing it as their preferred method due to its convenience, and 28% using it to help stick to a budget.

These findings underscore the importance of being aware of potential holiday fees, particularly for younger generations who seem to be more frequently caught out by hidden charges. Despite these challenges, it's reassuring to know that for the majority people are cautious spenders.