If you thought that inflation would hamper people’s holiday plans, then think again. In a survey that Ipsos conducted, 78% of Europeans feel “really excited to travel” or “happy to travel” this year; and overall, around 75% of Europeans intend to travel during the summer. The number has once again reached an all-time high since 2011.
Even though the numbers have dropped post-revenge spending and global economic recession, UK holidaymakers on average are set to budget out GBP £1,925 on domestic and overseas travel in 2023, a minor increase compared to the previous year.
The surge in travellers this year illustrates how eager people are willing to travel and spend regardless of the increment in cost. Let’s go over the inflation situation in Europe and what travellers and expats can do to save money when travelling in this Pacific Prime UK article.
What is Inflation?
Undoubtedly, the trending keyword for 2023 is inflation. When figuring out what this is, it’s worth knowing that prices for goods and services change over time, which means prices rise and fall based on factors like demand and supply.
Inflation occurs when there is a noticeable increase in the prices of goods and services. And what you buy with, say, GBP £1 today will be less than what you could get yesterday. In other words, inflation reduces the causes depreciation in the true value of the currency over time.
What is the Impact of Inflation in Europe?
We have been seeing prices go up for literally everything. Inflation in the UK reached 6.8%, significantly higher than in other comparable economies such as Eurozone(5.3%) and France(5.0%). What’s more, the cost of gas and energy have increased by 2% and 7% respectively from July 2022 to July 2023.
The Office for National Statistics(ONS) stated that regarding the CPIH report, the price of food and non-alcoholic beverages increased by 14.9%. Prices in restaurants and cafes rose by 9%. Even worse, 1 in 20 adults reported to have run out of food in the past weeks and were unable to afford more.
Encountering such drastic inflation, it is inevitable that Brits adapt their consumer behaviour in travelling. They cut shopping expenses, and search out cheaper restaurants and accommodation. It is evident that the increase in the cost of living is putting a squeeze on people’s finance.
Note: Numbers above are recorded up till July 2023.
With all the price rises across the UK, consumers will surely want to put in plans to increase the spending power of their pennies. Let’s look at a few ways to maximize gains while minimizing spending when travelling abroad.
Top Tips for Saving Money during a Cost-of-Living Crisis
Whether you’ve made plans to travel abroad this summer or stay in the UK, you can try applying these helpful tips to make the most of your holidays in 2023:
1. Travel Closer to Home
Why travel far away for beauty when beauty can be found at your doorstep? When it comes to travelling, most think about tropical islands or faraway places as destinations to head to, but the UK itself has some pretty amazing destinations to offer for friends and family.
From the breathtaking countryside to quaint villages and historic cities, there’s so much to explore in England, Wales, Scotland and Northern Ireland. These include:
- The Scottish Highlands
- Norfolk
- Pembrokeshire
- Windsor
- Peak District
- And more
Expats living in the UK may also enjoy or find the option of travelling to the UK appealing given the number of sites and places for a lovely staycation. Destinations that are distant from cities like London, Cardiff, Edinburgh and Belfast are inexpensive too.
Camping is also a great alternative. You’ll save a considerable amount on flight or ferry costs by travelling inland. Not to say you shouldn’t travel globally, but if you want to minimize expenditure, travelling within the UK doesn’t sound too bad of an idea as well.
2. Fly on an Off-peak Day or Time
If you do decide that a foreign destination is at the top of your list, then book your tickets to fly on quieter days. Generally, flying earlier in the week, i.e. Monday or Tuesday versus Friday or Saturday, equates to better deals, and the earliest and latest flights of the day tend to be less expensive.
You can also travel during low seasons such as April through May, and September through August. During these times, tourists tend to be in smaller numbers. It is almost guaranteed for you to get a steal on plane tickets, so you won’t be too tight on budget for trip spending.
3. Negotiate on Holiday
Negotiation here means upgrading or making special requests. If you have booked accommodation online with a homestay, hotel, or apartment directly, then ask the owners if they could make the experience even more memorable by offering extra benefits.
You could ask for a bigger room or a later check out. If it is a special occasion like a birthday or an anniversary, why not ask for a complimentary cake or maybe a spa treatment? Of course, not every place will be able to make such arrangements, but it doesn’t hurt to ask, right?
4. Secure Health and/or Travel Insurance
The world has changed considerably over the past few years. From the COVID-19 pandemic to climate change, the forecast doesn’t look good for travellers without a suitable travel insurance plan. Securing one gives you some assurance under millions of possible uncertainties.
Comprehensive travel insurance can not only provide basic medical coverage, but also compensation for flight cancellation or delay and baggage loss (depending on the agreed policy)
If you end up having an accident or illness abroad and you require emergency medical treatment, then international medical insurance grants you access to an extensive network of healthcare providers that are partnered with your insurer. As the policyholder and patient, you can focus on your recovery while the healthcare provider settles the overall cost with the insurer via direct billing.
Overall, you won’t have to pay out of pocket for bills under the agreed limit. You then can better utilize your money, or save up for future trips.
Further reading:
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