Britons are in the mood to spend extravagantly during their summer holidays, research from the Post Office has shown.

Over one third declared they had no intention of setting themselves a budget when they travelled this summer, while another 48 per cent confessed that they set a budget then fail to stick to it.

The temptation to overspend is steepest in restaurants and cafes, it seems, although sightseeing attractions also enticed a large number of holidaymakers to abandon their best intentions.

Tracking holiday spending is vital, however, to ensure a little light self-indulgence doesn’t become a major financial problem, warned the Post Office’s head of travel Kevin McAdam.

He advised holidaymakers to keep a record of what they spend each day and to change their currency before they travel, avoiding costly commission charges.

But cutting the cost of a holiday can also mean making allowance for unexpected expenditure.

The possibility of theft, loss or injury while abroad makes comprehensive travel insurance cover a must.

Earlier this week, financial researchers Defaqto warned that Britons seeking to save on super-cheap travel insurance could be short-changing themselves.

“Too many people are now travelling abroad with inadequate cover,” Defaqto’s head of insight, Brian Brown, warned.

Find out more about Post Office travel insurance

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