Brits spend more on holidays: are we being ripped off?

Boy with his parents looking at sea on the beach

A holiday company has revealed that the holidays it sold to Brits increased in price by 5% last year - a rise that wasn't replicated in the other countries it operates in - including Germany and France.

However, it said this isn't a sign we're submitting to rip offs - because we may actually be getting a better bargain.%VIRTUAL-SkimlinksPromo%

Spending more

The figures were revealed by TUI Travel - the company that owns Thomas Cook and First Choice. It showed that Brits are spending 5% more on our breaks overseas. And it revealed that demand for these breaks was so high that it had arranged more holidays to Greece, Ibiza and Lanzarote than a year ago.

However, CEO Peter Long said in a conference call that this wasn't a sign we're being ripped off - it's a result of the fact that we're now far more likely to choose an all-inclusive break.

Benefits

He said there were three reasons for this. First, customers like the certainty that they cannot spend any more money while they are away, so won't be tempted to blow the budget. This means that they can be certain of the total cost of their break at the outset.

Second, it gives them more protection, because everything is included in the package so they have complete ATOL protection for every aspect of their break. It makes the tour company responsible for putting things right if their flight is delayed or cancelled, or if one of the companies providing part of the holiday goes bust.

The third advantage, Long stated, is that these all-inclusive breaks may end up cheaper than paying less for a package, and then forking out for food and drink at the resort.

Is it cheaper?

There's no strict answer to the question of what is the cheapest approach. Some people like to ferret out bargains, they are happy to cook while they are away and have no problem with sticking to a budget and saying no to extras like a ice-cream or a can of pop. For them, self-catering is quite likely to be the cheapest approach.

Others prefer to indulge, eat out for every meal, and take their ice creams and cocktails without worrying about the cost. These people could end up saving substantially with the all-inclusive model.

Does it suit you?

Of course, it doesn't suit everyone. If you can answer yes to these questions then it may be the best option:
1. Are you on a strict budget?
2. Do you tend to lose track of costs?
3. Do you prefer the ease and simplicity of staying largely within the resort?
4. Do you find money-management stressful on holiday?
5. Do you worry about carrying local currency?

Meanwhile, if you can answer yes to these questions you may need to look beyond the simplicity of all-inclusive:
1. Are you good at budgeting?
2. Do you enjoy cooking on holiday?
3. Do you want to sample different restaurants and go outside the resort?
4. Do you have a restricted diet or want to control what your family eats?
5. Do you want to set your own timetable for meal times?

But what do you think? Would you choose all-inclusive? Let us know in the comments.

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