Finding Funding for a Holiday or a Bucket List Adventure
It’s been a strange year for travel. After the turmoil caused by the pandemic, there was an initial surge in holiday bookings causing airport chaos and travel disruption. But as the cost-of-living crisis worsens, many people are now thinking of putting their holiday plans on hold. Finding funding for a break or even a bucket list adventure is becoming increasingly difficult for some. But there are options if you know where to look, as we will explain
How much have holidays increased?
According to figures compiled by the president of the Irish Travel Agents Association, Paul Hackett, the average cost of holidays abroad has skyrocketed by 16% this July and August. This study compared figures with the same pre-pandemic period in 2019. The Guardian and i news have also been reporting on rising holiday costs. Here are some stats:
- The average hotel charging £120 per night has risen to £150 – £175 per night.
- A one-week trip to St Ives, Cornwall could cost £1,400 more than a week in Majorca.
- An average holiday to Lanzarote has gone up from £625 to £696.
- Some cruise prices have risen by 7% due to rising fuel costs.
- An average holiday-let in Cornwall has risen by 30%.
(Sources: Irish Independent, The Guardian and i news)
Why have holidays increased so much?
There appear to be many different factors causing this price hike, including inflation, fuel costs, and high demand. Many are reporting that it’s cheaper to go abroad than holiday in the UK due to rising prices. Even Airbnb and glamping costs have reached epic figures. So, it’s worth thinking about what you want to do and comparing different locations before you book your travel. In many cases, the further ahead you book, the better the price.
Interestingly, according to Which?, UK flight prices to Europe decreased on average by 48% (April 2022), when compared to pre-pandemic figures over the same period in 2019. As flight cancellations are expected to continue until autumn for some airlines like EasyJet, make sure you have adequate travel insurance in place before you go away. Whether or not holiday prices will start to fall as fewer people make bookings remains to be seen.
Planning a bucket-list trip
With all the news focused on shorter term holidays, how does this affect bigger adventures? The pandemic forced many people into early or semi-retirement. Some people have taken the opportunity to go on a once-in-a-lifetime trip, especially if they missed out on gap year travel in their younger days. Nowadays, it’s common to see backpackers in their late fifties or sixties exploring the Amazon or Himalayas. Or maybe a luxury cruise is more your thing?
Are you dreaming of a bucket-list trip but you’re unsure where to start? It’s important to do lots of research. Use the Foreign Office website to check any countries you are thinking of visiting. Research popular travel information websites such as Rough Guides and Lonely Planet for more detailed guidance on finding accommodation and facilities. Make a plan and a realistic budget for travel, accommodation, food, drink, sightseeing, tours and souvenirs.
Equity release could fund your holiday
If you have been planning a trip for some time, but your plans have now stalled, you might have options. Whether you’re looking for a luxury cruise or a jungle trek, there are ways to find funding for your holiday. Your home could hold the key to your once-in-a-lifetime trip. If you’re over 55 and you have equity in your property, you might be able to unlock enough cash to pay for your holiday.
Known as a Lifetime Mortgage, this is a type of loan that only gets paid once you pass away or if you have to go into a care home. Equity release is now a highly regulated area, and you should always speak to an experienced, qualified, specialist mortgage broker.
If you’re an IFA or an accountant with a client who is trying to find funding for a special holiday, please get in touch. We may have options you can present to your client that will allow them to make the most of the money locked away in the value of their home.
If you’re looking to fund a holiday or bucket list adventure, talk to our friendly team for advice. Call 01455 238 650 or send us an enquiry.