Decreasing oil prices and higher earnings mean that Brits have more cash to treat themselves to a sun-filled holiday, according to research from Lloyds.
Due to a stronger economy, more than three quarters of Brits have begun planning their summer holidays, according to the report.
Shelling more money out on holidays
Lloyds found that British sun seekers are set to shell out an average of £1,345 on their summer holiday this year, which is made more affordable by lower living costs.
The British bank said that consumers spent 0.8% less on “essential items” in April when compared to the same month in 2014. This total was complemented by a 6.7% drop in spending on gas and electricity, with a further 8.8% fall in fuel bills.
The huge fall in the price of oil since the summer of 2014 has resulted in British holidaymakers having more cash in their pockets to spend on a trip away.
Just 27% of people interviewed by Lloyds said they were not planning on having a holiday abroad this summer.
Increase in spending for Brits
This extra money has benefitted those over the age of 55 as an additional 4% of this age group said they have more money to splash on holiday treats.
Additionally, the recent increase in retail sales data has been attributed to Brits preparing for the summer season, as clothing sales grew at their fastest pace in four years in April 2015.
The Chief Economist at Lloyds, Patrick Foley, said that British households remain positive about their finances due to a “pick up in wage growth and muted inflationary pressures combine to strengthen real outcomes”.
Foley concluded that following the election “a solid pace of growth seems likely to unfold this year”.
If you are looking to make the most of your additional cash with a holiday this year, don’t forget to book cheap travel insurance in advance.
Date Created: 26/05/2015