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All Inclusive holidays may not be such a bargain

Press release -

All Inclusive holidays may not be such a bargain

- Extra spending by holidaymakers on All Inclusive packages reaches record high

- Four-in-five families pay £139 for hotel extras on top of their paid-for package

- Nine-in-ten fork out £292 extra on food and drink in local shops and restaurants

- The extra spending means All Inclusive holidays are far more expensive than going B&B and eating out in resort restaurants in nine out of ten European destinations

- Poor wi-fi signal, lack of food choice and buffet boredom are top gripes for three-quarters of families on All Inclusive holidays

Three-in-ten holidaymakers planning trips abroad this year will be heading off on All Inclusive packages according to new research1 by Post Office Travel Money but its annual All Inclusive Report reveals that extra spending has hit a record eight-year high, adding hundreds of pounds to the holiday cost for most families.

Almost two-in-five families (38 per cent) chose to go All Inclusive on their last trip abroad because ‘it cuts the cost of kids’ meals and drinks’ and nearly as many (36 per cent) thought it ‘good value as everything is included and I don’t need to take holiday spending money’. Yet most of them spent an average of around £431 extra in their hotel and in the local resort, adding between 14 and 21 per cent more to the overall cost of their All Inclusive holiday.

The Post Office Travel Money research found that over four-in-five (82 per cent) families paid out extra for meals, drinks and other items in their All Inclusive hotel at an average cost of £139.31 each2. Even more – nine-in-ten of them - spent money on meals, snacks and drinks away from their hotel. In European resorts eating out, alcoholic and soft drinks, snacks, ice cream and bottled water cost All Inclusive tourists an average of £292, while holidaymakers on long haul holidays spent an average of over £320 on those items3.

To establish the impact of that extra spending on All Inclusive holiday costs, Post Office Travel Money compared the price of a week’s family All Inclusive summer holiday in 10 European destinations with the Bed &Breakfast alternative. It found that the extra spending on All Inclusive holidays makes them are far more expensive than going B&B and eating out in resort restaurants in nine out of ten European destinations4.

The only destination where All Inclusive proved cheaper than B&B was Majorca – where families can expect to save around £202, almost eight per cent less than the B&B option. The All Inclusive total for a family of four was £2,424.35 compared with £2,626.05 for B&B.

In the other nine destinations surveyed the Post Office found that families will be able to save hundreds of pounds if they book a B&B rather than an All Inclusive package with the freedom to choose a variety of resort restaurants for their meals.

The biggest saving is in Turkey where an All Inclusive week in Marmaris for a family of four costs 77 per cent (£1,208) more than B&B - a total of £2,771.55 compared with £1,563.38.

Bargain hunters will save almost as much - £1,064.67 – in Sorrento on Italy’s Neapolitan Riviera. A week’s B&B costs £2,428.88 compared with £3,493.55 for All Inclusive, which means that the All Inclusive option is almost 44 per cent more expensive.

There are big savings of over 20 per cent in the two biggest family favourites as well. In the Costa del Sol going B&B saves almost £453 or 21.5 per cent, while B&B in the Algarve scores a £595 discount and slashes almost 26 per cent off the All Inclusive holiday cost.

While the B&B gains are lower than that in Crete, Costa Blanca, Sunny Beach, Cyprus and Malta, they still provide savings of between £169 and £422, making the All Inclusive holiday cost up to 18 per cent higher.

Andrew Brown of Post Office Travel Money said: “Even though the majority of holidaymakers choosing All Inclusive packages do so because they can be a great way to control spending on meals and drinks, the truth is that most people spend hundreds of extra pounds once they arrive in their All Inclusive resort.

“This year’s report found that the numbers splashing out on extras has risen for the eighth year running and while this may reflect a growing acceptance that All Inclusive has its limits, the extra costs continue to catch people out. One-in-ten of the holidaymakers we spoke to expressed surprise at the prices they were charged for extras in their All Inclusive hotel.

The research also found that while only one per cent of families who had been All Inclusive before said they would not go again, three-quarters (74 per cent) disliked some aspect of their trip5. The biggest gripe was about wi-fi. Almost half of families (49 per cent) complained about poor wi-fi signals while 20 per cent were annoyed by internet charges.

Another issue is the food boredom factor. A quarter (24 per cent) complained about lack of food or restaurant choice while 22 per cent disliked buffet food.This helps to explain why over a third (35 per cent) spent an average of £67 on a la carte meals in European All Inclusive resorts and far more - 94 per cent - chose to splash out to the tune of almost £81 on meals in local resort restaurants. Half of families (48 per cent) on long haul holidays spent around £62 on a la carte meals and 95 per cent spent an average of £91 eating out away from their hotel.

Andrew Brown said: “If you are going All Inclusive this year, do your homework and find out as exactly what is and what isn’t included as soon as you arrive in your resort. Avoid falling into financial pitfalls like charges made for drinks late at night and limited periods when ice creams are free. Learn the rules of your resort and save yourself cash.

If you are going to venture away from your hotel into local resorts, it is also important to factor in the costs you are likely to incur. Eating out in local resorts will offer a real flavour of the destination but it is best to be prepared and take enough foreign currency to cover the costs – particularly as some restaurants are reluctant to accept credit or debit cards.

“Our research found that only two-in-five families took enough cash with them and didn’t have to change more money abroad. As a result, one-in-seven incurred extra charges for withdrawing cash at an ATM abroad and one-in-five incurred transaction charges when paying on plastic.

“The sensible solution is to think ahead and order currency online to get the best rate or to load cash onto our pre-paid Travel Money Card to provide back-up funds when those extra charges start to mount up.”

The Post Office is the UK’s leading provider of foreign currency, offering euro on demand at over 10,000 branches and US dollars in more than 4,000 branches. Both currencies can also be ordered online at postoffice.co.uk for same day ‘click and collect’ at almost 3,000 branches or for home delivery/next day collection at any Post Office branch. 1,600 larger Post Office Branches stock 30 leading currencies while up to 80 can be pre-ordered at over 11,600 branches or online at postoffice.co.uk/travel for next day branch or home delivery. 


About the Post Office

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It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services, telephony, foreign currency, travel insurance and mail services.

99.7% of people live within three miles of their nearest Post Office outlet. For many rural communities the Post Office is the only retail outlet. Post Offices remain highly valued and trusted and are the focal point for many communities. For more information, visit www.postoffice.co.uk.

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Post Office Press Office

Post Office Press Office

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