News

STUDY: New research examines consumer spending in U.K.

February 19, 2006

GREENWOOD VILLAGE, Colo. - Research conducted by Western Union Financial Services Inc. before the launch of its travel cash cards revealed that U.K. travelers tend to indulge while on vacation, overspending on their holiday budgets by approximately £300 (U.S. $523).

Most of the extra money is spent on food and drink.

The Western Union travel cash card is a personal-PIN secure, prepaid and reloadable card available in euros, U.S. dollars and U.K. sterling. The card is issued in conjunction with MasterCard and can be used at more than 900,000 ATMs displaying the Cirrus, Maestro or MasterCard brandmarks.

The study found that, collectively, 29 million U.K. holidaymakers overspend by a whopping £8.7 billion (U.S. $15.2 billion) - £14.5 billion planned but £23.2 billion spent.

Different regions produce different kinds of holiday spenders:

• The Scottish spend the least, approximately £300 (U.S. $523) and the Northern Irish spend the most, more than twice the average at £1,000 (U.S. $1,744).
• The Welsh are the most conservative, with only 7 percent overspending on holidays; conversely, 24 percent of travelers from the East Midlands and East Anglia blow the budget on every holiday they take.
• While the rest of the United Kingdom prefers to spend its extra cash on food and drink, along with 32 percent of holidaymakers in the West Midlands, 40 percent of Scottish travelers spend their cash on gifts.
• One holiday a year is average, but 44 percent of travelers in the North East take two holidays a year.
• 75 percent of U.K. travelers would rather spend their money on holiday than on Christmas; and 86 percent of holidaymakers in the East Midlands value relaxation the most-important aspect of a holiday.