A recent survey conducted by financial wellbeing leader Loqbox reveals that budget-conscious UK holiday-goers are opting to use existing savings rather than relying on credit to fund their summer travel plans. Despite the ongoing cost-of-living crisis impacting household budgets, the survey indicates a strong prioritization of travel among respondents, along with a renewed interest in building up personal savings for future lifestyle goals.
Partnering with UK polling platform OnePulse, Loqbox surveyed a diverse group of UK residents on their travel plans and financial strategies. The survey results show that the majority of respondents are tapping into their savings to finance their holidays, indicating a continued emphasis on travel in the current economic climate. While some individuals are still using credit or travel rewards points to cover their travel costs, the overall trend towards self-funding reflects a shift towards more individual financial planning and reduced reliance on borrowing.
When asked about important factors when choosing a payment method for summer holiday expenses, respondents cited fees and interest as top priorities, followed by security and convenience. Repayment options and rewards were deemed less important, highlighting the emphasis on minimizing costs and managing finances efficiently.
Notably, 23% of respondents stated that they have no travel plans for the year, potentially influenced by economic factors. Some individuals mentioned a spontaneous approach to travel decisions based on current affordability, with plans contingent on windfalls like bonuses or extra cash.
Tom Eyre, Co-Founder and Co-CEO of Loqbox, emphasized the importance of saving to afford major expenses like travel, noting that financial buffers can reduce reliance on expensive credit options. He highlighted the significant cutbacks some respondents have made to accommodate their travel plans, including reducing overall spending and eliminating discretionary expenses.
Gregor Mowat, Co-Founder, and Co-CEO of Loqbox, and member of the Business in the Community (BITC) Cost-of-Living Taskforce, commented on how people are adapting financially to achieve their lifestyle goals amid cost-of-living challenges. He mentioned the positive impact of financial education and tools in empowering individuals to make informed financial decisions and improve their financial wellbeing.
Overall, the survey findings indicate a shift towards more responsible financial management and a growing awareness of the importance of saving for travel among UK residents. As individuals explore savings tools and affordable credit alternatives, there is a significant trend towards financial empowerment and improved access to financial education.
