Overspending on All Inclusive packages makes B&B holidays with meals costs added a cheaper choice

Overspending on All Inclusive packages makes B&B holidays with meals costs added a cheaper choice

More Britons are going All Inclusive this year as Post Office All Inclusive Holiday Report reveals a surge in families who say it will cut the cost of kids’ meals and drinks

But while half of holidaymakers say they won’t have need to take spending money on an All inclusive trip, over 4-in-5 families splash out more than £407 while abroad

Sterling’s continuing strength and low resort prices in Europe make B&B holidays a cheaper bet than All Inclusive packages, once extra spending is factored in

A Post Office comparison found that going All Inclusive could cost up to 85% more

All Inclusive Holidays look set to be this year’s big winner in the overseas holiday market as summer bookings reveal an eight per cent year-on-year rise that is likely to smash the record 46.8 per cent of package holidaymakers who took one last year¹. However, Post Office Travel Money researchhas found that low prices in European resorts, boosted by sterling’s strength, will make B&B holidays a cheaper bet for most people. This is because over four-in-five pay out for extras averaging over £407 that inflate the cost of their All Inclusive package.

Half of All Inclusive holidaymakers surveyed² by the Post Office for its annual All Inclusive Holiday Report rated them good value because they do not need to take holiday spending money. The research also revealed a 12 per cent increase to 56 per cent in the numbers of families who think All Inclusive is a great option as it cuts the cost of kids’ meals and drinks.

However, despite some evidence of belt-tightening, the report found that over four-in-five families splashed extra cash to the tune of more than £407 (down from £431 last year) on their last All Inclusive holiday. 84 per cent paid an average of £152.65 in their All Inclusive resort, while 81 per cent spent £254.78 on food and drink items in local shops, restaurants and bars.

With prices down in many European resorts this year³ and sterling remaining stubbornly strong against the euro and other European currencies, the stark reality is that the price of a week’s All Inclusive holiday for a family of four with the average levels of extra spending added could cost as much as 85 per cent more than a B&B holiday that includes the cost of lunch and evening meals with drinks in local resort restaurants.

When 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 going B&B

was a cheaper option for bargain hunters in all 10 destinations.⁴

The biggest savings were in Malta and Turkey. An All Inclusive week for a family of four in Sliema cost 85 per cent (£1,860) more than B&B - a total of £4,045.83 compared with £2,186.33. Bargain hunters will save almost as much - £1,217 – in Marmaris. A week’s B&B cost £1,462.67 compared with £2,679.43 for All Inclusive, making the All Inclusive option 83 per cent more expensive.

There were big savings in the two of the leading family favourites as well. In the Costa del Sol, going B&B saved £341 or 17 per cent, while B&B in the Algarve saved £665, slashing a third (33 per cent) off the All Inclusive holiday cost. The smallest gain was in Majorca, where B&B cut just 1.9 per cent (£43) off the cost of an All Inclusive holiday.

Based on its consumer research and pricing comparisons, Post Office Travel Money says the only way to make a saving on an All Inclusive holiday is to stick strictly to the package and avoid all extra spending. When the Post Office compared the cost of an All Inclusive package without any additional spending with B&B including resort restaurant meals, it found that prices for All Inclusive trips were between 1-16 per cent cheaper in six of 10 destinations⁵.

Thrifty All Inclusive holidaymakers could save £365 (16 per cent) if they spent nothing at all on top of their paid-for-package in Majorca. The savings were smaller in Cyprus (6 per cent, £148), Crete (5 per cent, £108), Costa del Sol (3 per cent, £66), Sunny Beach, Bulgaria (3 per cent, £49) and Costa Blanca (1 per cent, £24).

Despite the high levels of overspending, the Post Office research found that most All Inclusive holidaymakers like the experience. Only five per cent said they would not go again and 44 per cent did not dislike anything about their All Inclusive holiday. Of the 56 per cent who did voice a gripe, by far the biggest cause for complaint was poor Wi-Fi. 47 per cent of this group – rising to 56 per cent of families – were irritated by the poor signal in their resort, while 24 per cent complained about internet charges.

Nick Boden, Head of Post Office Travel Money, which accounts for one-in-four UK foreign exchange transactions said: “Since over four-in-five families paid for extras while on an All Inclusive holiday, the best advice is not to get caught without the cash to cover these additional costs. On average most of these families will pay well over £400 extra during their holiday so they should budget carefully in advance of travel and be prepared.

“The most sensible solution is to order currency online to get the best rate or to load cash onto a pre-paid Travel Money Card to provide back-up funds when those extra charges roll in. There are improved rates for bigger value transactions in Post Office branches and online so holidaymakers who calculate costs carefully and change sufficient cash into foreign currency can only benefit.”

The Post Office is the UK’s leading provider of foreign currency, offering euro on demand at over 9,000 branches and US dollars in more than 3,500 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 70 can be pre-ordered at over 11,500 branches or online at postoffice.co.uk/travel for next day branch or home delivery.

Ends

For more information, please contact:

Joanne Leahy Post Office Press Office 07791 894469

Joanne.Leahy@postoffice.co.uk

Christine Ball CBPR 01798 874177 / 07976 285997 cball@cballpr.co.uk

Notes to Editors:

A full breakdown of this year’s Post Office All Inclusive Holiday Report findings, including the extra amounts spent by holidaymakers in All Inclusive resorts and in local shops, restaurants and bars is given in the separate report document.

¹ 46.8 per cent of packages last year were All Inclusive ones according to market insight provider GFK’s Travel Insights, a point of sale service using transactional data from a combination of tour operators and travel agents for UK bookings for outbound travel. A seven per cent rise in bookings this summer has been boosted by a 12 per cent increase for Turkey

² Consumer research carried out online by Populus for Post Office Travel Money between 12-14 April 2019 among 2,087 UK adults found that over two-in-five of adults, aged 18+ (42 per cent), had been on an All Inclusive holiday or are planning to do so this year

³ Post Office Holiday Costs Barometer (April 2019) found that prices were down in three-quarters of European resorts

⁴ Post Office Travel Money compared an average of the five cheapest seven-night B&B and All Inclusive holiday packages, departing from London airports, on 27 or 28 July (source: Travelsupermarket.com). Package prices include return flights and three-star (or lower-priced four-star) accommodation for two adults/two children plus the average of £152.65 extra spent by 84 per cent of families in their hotel and £254.78 spent by 81 per cent on food and drink items outside the hotel in local bars, restaurants and shops. For B&B the cost of meals/drinks for one week sourced via the Post Office Holiday Costs Barometer was added to the package price to provide a comparison with All Inclusive.

Comparison of costs between All Inclusive and B&B holidays in 10 European destinations

All Inclusive Holiday total includes extra spending average of £407.43 and B&B holiday includes lunches and evening meals with drinks for a family of four for one week

⁵ Comparison of costs between All Inclusive and B&B holidays in 10 European destinations excluding any extra spending by families on an All Inclusive holiday (theB&B holiday includes lunches and evening meals with drinks for a family of four for one week).

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