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25/08/2011

‘Staycation’ the holiday of choice for debt conscious Brits

Nearly four in ten (38%) of the British public is trying (or will try) to spend less on their holiday this year. Of those saving money 59% are choosing to holiday at home instead of abroad, according to a recent poll by R3, the insolvency trade body.

While those who have decided to venture to foreign waters, 71% are choosing less expensive accommodation, 66% are choosing a cheaper travel option and 60% are spending less money on eating out and activities once on holiday.

Frances Coulson, R3 President, comments:

“It’s unsurprising that people are choosing to stay at home instead of holidaying abroad to cut down on their expenditure, given that we have seen consumers’ disposable income become squeezed as a result of inflationary pressures.

“Consumers who are cutting back are already having a significant impact on the economy, as the latest drop in retail sales revealed. The nation deciding to stay at home might provide the much needed boost to the UK economy, particularly in tourist areas and coastal towns where insolvency levels rocketed during the recession.”

R3’s research found nearly a third (30%) of Britains’ have chosen not to go on holiday at all, an increase from one in four (25%) people this time last year.

Frances Coulson said:

“People choosing not to have a holiday this year is likely to have grown out of necessity rather than choice. UK households will either simply not have the money to go on holiday as result of cuts to their disposable income or have decided to save their money in preparation for the difficult times ahead. R3’s latest personal debt snapshot revealed only a quarter (25%) of consumers believe their financial situation will improve over the next six months.

“The money saved from spending less or not having a holiday at all will provide individuals with a financial ‘buffer’ in case they fall on hard times.”

R3’s holiday poll also revealed of those having a holiday this year, 1.8 million people (5%) will be borrowing to pay for it. They will on average borrow £1,581, an increase from £1,130 last year. This will take on average nine months to repay compared to an average of seven months last year. Of those going on holiday, the younger you are, the more likely you are to borrow money to pay for your holiday, with one in ten (10%) 16- 24 year olds borrowing money to pay for a holiday.

Frances Coulson continues:
“For those who have borrowed to pay for their holiday they should be aware of the high interest rates that may be charged. R3 members have seen an increase in the number of financial distressed individuals whose debts include loans.” 

 

ENDS

For further information please contact:
Charlotte Towerton, R3 External Communications Officer
t: 020 7566 4203 m: 07918 161 291 e: charlotte.towerton@r3.org.uk


Methodology note:
GfK NOP interviewed 1000 adults 16+ in the UK by telephone on 12th – 14th August 2011, and 1001 adults on 16th – 18th July 2010. Data has been weighted to bring it in line with national profiles.


R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.