10 Million Britons Cut Their Holiday Budgets This Summer

    NARBOROUGH, ENGLAND, September 18, 2009 /24-7PressRelease/ -- Holidaymakers primarily cutting back on eating out and holiday spending money.

Britons spending on a credit card abroad should pay in the local currency and use a card that doesn't charge a foreign exchange fee.

As millions of Britons prepare to jet off on holiday, new research by Santander Cards reveals that cutbacks are at the forefront of many holidaymakers' minds this summer, with a quarter of those who are going away (10 million Britons) dramatically reducing their overall holiday budget.

The research found that more than four out of five Britons (84 per cent) are planning on going away this year. While nearly half of all holidaymakers (43 per cent) are keeping their holiday budget at the same level as last year, a lucky 12 per cent are in a position to spend more this summer and a fifth don't know how their budget will compare to last year. Of the quarter of holidaymakers reducing their holiday budget, the average decrease stands at GBP256 per person, per week.

When it comes to sticking to a holiday budget, however, one in four Britons (27 per cent) admits to exceeding their budget, overspending by an average amount of GBP117 per week, with those aged between 18 and 34 the most likely culprits (31 per cent), overspending by an average amount of GBP123.

And while a virtuous 53 per cent of holidaymakers say they stick to their budget on holiday, a surprising 20 per cent claim not to budget at all, which may mean a rise in overdraft facillities being used.

The research found that the biggest holiday cutback Britons are planning is to eating out (54 per cent), followed by spending money (46 per cent) and accommodation (40 per cent).

Other areas taking a hit are activities and local trips (29 per cent), travel arrangements to/from the holiday destination (28 per cent) and travel arrangements once there (26 per cent). Britons making such cutbacks are hoping to save on average GBP150 per person, per week by doing so.

Callum Gibson, Director at Santander Cards, says: "A summer holiday is the one thing that most Britons won't do without but many Britons are consciously looking for ways to reduce the amount they're spending this year. As well as reducing their overall holiday expenditure, Britons can make their money go further while they're abroad by always paying in the local currency - to avoid being charged a dynamic currency fee for converting the purchase to sterling - and using a credit card that doesn't charge a fee for converting transactions made in a foreign currency, so you and your bank account can be free of worry.

"Santander Zero is the only credit card on the market to offer fee-free foreign usage anywhere in the world and no fee for cash advances, making it ideal for both day to day spending while on holiday, and also those rare times holidaymakers might need to take out cash in an emergency."

Features of the Santander Zero card include:
• The only card on the market with no foreign exchange fee and no cash advance fee
• Zero per cent on balance transfers for 12 months and purchases for three months
• Available in branch or by visiting www.santandercards.co.uk

Notes to Editors

Opinium Research carried out a poll of 2,000 British adults from Friday 1 May to Tuesday 5 May 2009.

Zero has an ongoing purchase APR of 18.9 per cent and a cash APR of 27.9 per cent.

About Us
Santander (SAN.MC, STD.N) is a retail and commercial bank, based in Spain, with operations in more than 40 countries. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches - more than any other international bank - and over 180,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm. In 2008, Santander registered EUR8,876 million in net attributable profit, an increase of 9% from the previous year excluding capital gains.

In the UK, Santander operates three retail businesses - Abbey, Alliance & Leicester and the savings business of Bradford & Bingley. Together they have over 1300 branches, around 4,500 cash machines and they provide a full range of retail and corporate banking services to 24 million customers.

Abbey, Alliance & Leicester and the savings business of Bradford & Bingley will all become known as Santander by the end of 2010. Abbey and the savings business of Bradford & Bingley will be rebranded from the first quarter of 2010 and Alliance & Leicester will follow later in the year. The move will deliver a significant advantage for customers as they will be able to use any of 1,000 Santander branches from early 2010, rising to over 1,300 by the end of 2010.

The Bradford & Bingley logo is a trade mark of Bradford & Bingley plc and is used under licence.

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