A recent poll showed 53% of more than 2,000 Brits intend to travel abroad and, for almost two-thirds (64%) of them, the high cost of UK-based breaks was an important factor in their decision-making.
However, the research also revealed three-quarters of holidaymakers set a budget for their last trip abroad, but resort spending cost seven-in-ten of them an average of 38% extra.
Despite more than half (54%) of those planning holidays abroad this year intending to allocate more spending cash because they expect costs to increase, past levels of overspending indicate individuals will need to allow at least £477 and families around £890 if they are to avoid breaking their budget again.
On their last overseas trip, the research found individual holidaymakers set a budget averaging £344.38 but only three-in-ten stuck to it and the rest spent an average of £132.46 more.
Nick Boden, head of Post Office Travel Money, said over the past five years, research for the Holiday Spending Report has "consistently revealed most Britons start with good intentions" by setting a budget but find it is inadequate once they get to their resort.
"We urge them to think back to their last holiday and set a budget based on past experience," he added. "That way they can avoid extra fees for paying with a debit or credit card or having to withdraw cash from an ATM."
A range of factors help to account for the high levels of overspending, but almost two-thirds (63%) of holidaymakers put it down to "rip offs".
They named airline prices for meals and drinks onboard, excursions, attraction entry and compulsory restaurant service charges as the biggest costs.
All Inclusive holidays are regarded as another way to rein in costs and look set to be more popular than self-catering. Twice as many families told Post Office Travel Money they would go all inclusive rather than choose to self-cater.
