Interested in understanding Britons spending habits abroad, American Express Travellers Cheques asked over 2,000 adults how their spending habits change when they are on holiday.

Key Findings:

• Spending for the sake of it: One in five (20%) admitted that they will spend all their cash in a foreign country just to avoid having to convert it back to Sterling.
• Time consuming spending: One in four (25%) will go backwards and forwards withdrawing small amounts of cash several times whilst on holiday.
• Blow the Budget: Perhaps due to the highs you can get on holiday, instead of carefully managing their spending, 45% of us will blow the budget on holiday if we see something we want. Just 17% of holidaymakers say they will keep a tight budget whilst abroad.
• Travellers Cheques users are best Money Managers: Travellers Cheques users are most likely to keep to a tight budget whilst on holiday (18%) and least likely to blow the budget by treating themselves (47%), whereas those who spend on a debit card are the most likely to plan a budget (13%) and the most likely to treat themselves (52%).

Parents planning to jet off abroad for the half term break will be hit with premiums of up to 80 per cent according to research conducted by Abbey Credit Cards. Although those parents choosing to stay in the UK will pay less, they will also face highly inflated costs.

Despite the Pound having weakened considerably against the Euro in recent months, Spain remains true to its reputation of offering some of the best value family breaks. During the half-term break, British parents will pay an average of £348 for each family member for a break at a four star hotel (half-board), compared to £439 for similar standards of hotel in Cyprus and £553 per family member for a break in the Algarve.

Callum Gibson, Head of Abbey Credit Cards, commented:  “For many families money is tighter than ever this year, so every penny counts.  There are a number of ways to keep costs down on foreign holidays such as booking in advance to get the best deal, shopping around for the best price on foreign currency, taking a credit card on holidays that saves you money on foreign exchange fees and putting your holiday on a zero per cent credit card where appropriate.”

In Scotland, where local education authorities set their own terms and school holidays and breaks commence earlier than in the South, parents will pay almost a uniform amount for seven night breaks leaving any time in May. During the summer holidays, Scottish parents will pay less than their London and Newcastle counterparts for a seven night, half-board break in a four star hotel in Spain (£497), compared to £608 paid by London parents and £597 by mums and dads in Newcastle.

Those parents who are optimistic about the British weather this year can expect to pay around £239 for a four night break at Pontins during half-term, more than double the price of the week prior (19 May). Those opting for the more upmarket Centreparcs in the Sherwood Forest can expect to pay £799 for a two bedroom accommodation during the half-term break compared to £479 for four bedroom accommodation during the week prior.

Research shows:

• One in 10 Brits (9%) are considering taking their family on a driving holiday to Europe
• 32% of Brits are considering going on a caravan holiday and travelling to the destination by car
• 27% of Brits are considering a camping holiday if they could get there by car.

Chris Rolland, Head of American Express Insurance Services commented:

“For many hard working Britons it seems there are simply not enough hours in the day. For some, long working days means that they don’t want to waste any more time than necessary with long check-in times. 

Consequently the trend appears to be taking a return to family drive holidays.  We would like to advise Britons to ensure they have the correct cover in place to give people a greater peace of mind, allowing them to relax and enjoy their holidays. Customers with American Express Car Insurance get automatic European cover for up to 90 days a year and a courtesy car as standard while they wait for any repairs to take place.”

Peter Gerrard, head of insurance research at moneysupermarket.com, said: “With the pound falling by over 16 per cent against the Euro since September, it’s not surprising Brits are re-evaluating their holiday plans and looking away from Europe. Whether you’re a sun-seeker, adrenaline-junkie or culture-vulture we all want to get the best value for our hard earned cash and it seems Europe may not be the place to do that this summer. Holidaymakers are weighing up their options between a more expensive flight to a long-haul destination or a short hop across the channel and paying through the nose when you get there.

“The difference in travel insurance is minimal if you get a stand-alone policy. A family of four can get worldwide travel insurance for a two-week trip for less than £30, compared to under £14 in Europe.

“It is essential you check the levels of cover on your policy are right for you, particularly cancellation and baggage cover, which can sometimes be set below the value of the holiday or your belongings.”

The standard policies above are also available with optional cover for holidaymakers with more specialist criteria:

Golf trip cover. This package includes cover for golf equipment, delayed arrival of equipment, and loss of green fees. 

Winter sports cover. This package includes cover for ski/snowboarding equipment, piste closure and transport home if there is an avalanche or landslip.

Business cover. This package includes cover for accessories such as laptops, mobiles phones and PDAs and even the cost of flying out another colleague if the original attendee is unable to attend to undertake the planned work due to illness. 

Wedding cover. This package is for people getting married overseas covering rings, gifts, photos and clothing.

The new policies, which are available over the telephone or online at LV.com, offer cover for UK, European and worldwide trips for individuals, families and groups of up to 10 travellers. Cover starts from as little as £6.76 for a seven-day trip in the UK and £15.01 for European cover. Annual policies start from £38.82 for Europe and £74.16 for worldwide cover.  

John O’Roarke, Managing Director of LV General Insurance states: “We know that travel insurance isn’t the most exciting part of going on holiday but it is an essential part of any foreign trip. Holidaymakers spend thousands of pounds on foreign holidays, and by getting travel insurance they are protecting themselves should the trip need to be cancelled or if the unexpected happens overseas.”

As well as the standard policies listed, LV also offers cover for travellers with medical conditions. Customers simply fill in extra details online about their condition or alternatively can speak to an LV travel adviser on the telephone for more information.

“Many travellers with medical conditions struggle to get travel insurance as many insurers don’t offer cover. Our policies will enable customers in this situation to go away safe in the knowledge they are covered if they fall ill whilst overseas. The policy can be purchased online or on the telephone and there is no need for a lengthy telephone interview.”

“Our cover will be very competitive for these travellers. For example, the premium for a 40-year-old man with high blood pressure travelling to Spain for two weeks would be just £17.91. Cover for a 60 year old woman with diabetes travelling to the USA for two weeks would cost £64.93, and cover for a 20 year old woman with asthma going to the Canaries for 10 days would be just £43.48.”

I traveled over there in June 2007 and to keep the cost down I opted to stay at the YMCA Vanderbilt hostel in midtown. Rooms were small but tidy with maid service each day. Each room came equipped with TV, wardrobe space and air conditioning, which is essential if you’re traveling in the summer months. There a shared bathroom with shower facilities, which were kept clean, and also a gym in the main lobby for those guests who wanted to work out before venturing off around the city. Rooms are charged at approximately £20 a night with a small extra charge to use the gym.

As you leave the hostel turn left out of the main doors and walk up the street for a bout 2 minutes, you will find yourself at a small smoothie hut which is a great way to start your day. With the sun shining and the streets heaving sit back and enjoy your breakfast on Second Avenue.

The hostel is located close to Grand Central Station which means routes to all sights and attractions is a short tube journey away. A trip up the Empire State Building is a must if you want to a panoramic view of Manhattan, it costs around £5 and is well worth it but beware get there early, as there are long waits. Plan your days carefully; don’t wear yourself out on the first day by rushing to see every attraction, this will leave you exhausted for the rest of your stay. A trip over to the Guggenheim museum is an enjoyable way to spend a few hours, followed by a walk through Central park (If possible try to stop and have lunch here).

Make sure to head over to Liberty Island at some point during your stay, try to leave plenty of time for this as it can take up a large part of the day. There are a number of ferries, which will take you across for a small fee. I highly recommend spending at least one evening in Times Square, there are plenty of places to eat and drink and the atmosphere is phenomenal. Just remember to go easy with your money, as drinks can be quite costly.

This romantic city draws lovers from all over the globe to see the iconic sights and sample the local cuisine. If you are prepared to do a bit of walking the best way to move around the city is by foot, that way you are guaranteed to see as much as Paris as you can. To take a trip to the top of the Eiffel Tower will cost £8 per adult, cheaper tickets are available which take you up to the first or second floors. From the top of the Eiffel Tower the panoramic views will take your breath away.

A short walk over the River Seine will lead you back to the famous Louvre Museum in 1st district. Entrance to the museum costs approx £6 for a day pass, however make sure this pass covers every exhibition you want to see as many of the smaller exhibitions cost extra. Try not to make the same mistake I did and walk straight past the Mona Lisa (Twice). I’ll give you a hint it’s the one with the huge crowd around it, I think I had my eyes closed.

After an afternoon strolling through the Louvre head over to the cathedral of Notre Damn, take some time to sit in the square and watch people enter and leave through the huge front doors this way you will really get an idea of how big Notre Damn is. Entrance is free but donations can be given inside. Be careful with your money as peddlers and gypsies swarm this location selling snacks and souvenirs to tourists.

Paris is a city that lives up to all expectations; its beauty and romantic sights make you want to return year after year. As a major capital city in Europe you can expect to pay high prices, but if you are prepared to shop around you will find reasonably priced restaurants and bars to eat and drink in.

I stayed in a small family run hostel called Casa Olmata located in the heart of Rome. A group of 4 of us decided to take out a 6-bed dorm with ensuite. The room was small but served its purpose fine, after all when you’re in a city such as Rome the last place you want to be is holed up in your hotel room. Back in 2005 when I visited a lift was being built next to our room, fingers crossed that it’s completed now. The main reason for staying at Casa Olmata was the price, the room cost £11 a night which included a free pasta party up on the roof terrace, with as much red wine as you could drink.

Instantly when stepping outside of the hostel you’re thrust in to the hustle and bustle of the busy Italian streets. Mopeds fly past sometimes mounting the curb to gain a few extra feet on the car in front, the streets are lined with designer shops and there are plenty of pizza bars to grab a quick snack while out and about.

Take a short walk from the hostel and you will find yourself at the great coliseum in Rome, it’s the largest coliseum ever built in Roman times and seated 50,000 blood thirsty spectators who would congregate to watch the barbaric gladiatorial games inside. It costs £7 to enter the amphitheater but expect long queues all year round. After a tour around the Coliseum walk along the main strip (Via Fori Imperiali) and head towards the Vittoriano or Wedding Cake as the Italians call it. The Vittoriano is the monument dedicated to King Victor Emanuele who was the unifier of Italy. In the centre theirs a flame and if your lucky you may get to see the changing of the guards which mark the tomb of Italy’s unknown soldier.

A great place to meet for lunch is the Spanish Steps close to the Piazza di Spagna, Here you will be able to sunbathe, relax and watch shows the locals perform for tourists. From here cross the River Tiber by using one of the many bridges and make your way to Vatican City, all within walking distance no need for taxis. Once you arrive there are plenty of tours to follow which will take you inside St Peters Basilica and the Sistine Chapel.

I stayed at the Anker hostel, which is located in the busy Karl Johan district and is very popular with younger travelers aged between 18 and 25. It’s about a 10-minute walk to the city centre and nightlife. Private rooms will set you back around £40 per night with ensuite and safe deposit box. The Hostel was clean, tidy with friendly staff and good atmosphere. There’s a common room to chill out in and also Internet access for a small fee.

The Rådhus or City Hall as we know it, lies midway between the Royal Palace and Akershus Slott, and is a great starting point for many of the walks and trails which lead you around the city. One of the most popular sights is the Vigeland Sculpture Park, which is located on the eastern edge of town; this is a great spot to stop off for some lunch as there are often local shows and events being held (weather permitting).

For the artists out there make sure to visit the Munch museum which is home to a vast collection of the Norwegian artists work. Entrance to the museum costs around £7 and make sure to enquire about opening times before heading over, as the museum can sometimes be closed due to exhibit changes.

The peninsula of Bygdøy is another location to spend an afternoon. It’s a short ferry ride away from the City Hall and is home to The Viking Ship Museum which is one of two buildings comprising the Museum of Cultural History.

Oslo is a beautiful picturesque city with plenty to offer, it’s a great destination to spend a long weekend away. However it’s not ideal for travelers on a tight budget, as dining out can be extremely expensive, with drinks costing around £5 in some bars.

Budapest is the largest city in Hungary and was formed in November 1873 when the West bank city of Buda amalgamated with the East bank city of Pest, creating a single city occupying both sides of the River Danube.

I stayed at the popular Mellow Mood central hostel, which is on the busy high street of Besci Utca on the Pest side of the Danube. Recommended for its great positioning and cheap prices it proved to be a satisfactory, friendly place to spend my time in Hungary. Rooms where modest with a large window overlooking the bustling streets below. I opted for the dorm, which sleeps 4-6 with a shared bathroom.

There’s plenty to see and do in Budapest, from visiting the beautifully crafted parliament building to relaxing in one of the many Turkish baths. Entry to the baths is relatively cheap (approx £6) and is worth every last penny, I decided on the Rudas Baths which boast a central octagonal pool with smaller pools situated around it at varying temperatures. It’s also home to three saunas and numerous steam rooms, definitely the best way to relax after a day out shopping and sightseeing.

Afterwards a walk around Budapest’s Castle district’s monuments and museums is a must to really appreciate some of the historic attractions this city has on offer. Followed by a meal and a cherry beer in one of the many fine restaurants situated close by, be sure to try the local cuisine especially the goulash.

For those who are looking to party be sure to stop at Jam Pub on the Buda side of the river. Restaurant by day it then turns in to a club with live bands and DJs at night serving drinks until the early hours.