Credit crunch impacts on holiday plans

A study into holiday spending has revealed that the British public is becoming so concerned about their finances that they are changing their holiday plans.

According to CreditExpert.co.uk, one in five people are choosing to share a holiday with family and friends in order to save money, rather than having to scrap their break altogether.

Jim Hodgkins, managing director of CreditExpert.co.uk, said: "The credit crunch is really biting now and it will be painful for people to make the choice between not going on holiday or taking on more debt to do so.

"Due to the recent increases in the cost of living, we are seeing more people keeping a closer eye on their credit commitments."

The survey also revealed that many people feel they cannot cancel their holidays, no matter what financial difficulties they are in - 33 per cent of 18 to 24-year-olds said they succumb to peer pressure to go on a holiday which then pushes them into debt.

People in the north-east of England were found to be the most likely to go into debt from holiday spending.

Earlier this month, a spokesperson for the Air Transport Users Council said many tour companies are still reporting good numbers of bookings, even in the midst of the credit crunch.

ATUC industry affairs manager James Fremantle commented that people are still taking their breaks, but are economising in other ways, for example, by taking cheaper package holidays.