According to M&S Bank, Brits are increasing their holiday expenditure this year – with those heading abroad tipped to blow £337, compared to £221 for those holidaying in the UK.

Almost a third of those who are increasing their holiday spend this year put it down to rising inflation, while 34% said it was because they planned to visit a more expensive destination this year.

The research also showed that 14% of people said their holiday spending budget, not including flights and accommodation, totals £1,000 per person for their main holiday.

The average weekly spend, including both foreign and domestic holidays, totals £357 per person.

With holidaymakers planning to go away for an average of 1.5 weeks or 11 days, people are spending an average of £481 per person, increasing to £579 for those going abroad compared to £273 for those holidaying in the UK.

Paul Stokes, head of travel money at M&S Bank, said: “It’s great to see that, despite the economic climate, so many holidaymakers are able to spend the same or even more than last year. We look forward to our annual holiday all year and it’s clear that the family holiday is something the nation is not prepared to compromise on.”

The biggest dent in holiday money, regardless of whether they’re travelling abroad or in the UK, comes from eating out in restaurants (48%), while entertainment and excursions prove the second biggest expense (14%).

Holiday spending habits vary across the UK. Londoners are spending the most; an average of £545 per person, while those in the east of England are spending an average of £392 per person.

Travel money tips to cut down on costs:

 Plan your holiday budget so you know the total cost of your holiday, factoring in travel and accommodation as well as spending money or currency

 Do some research to find out whether tickets for any of the activities you’re planning are cheaper if bought in advance

 Don’t rely on internet rates if buying travel money in-store, many providers have different rates online and some change their rate throughout the day

 Don’t leave your holiday money until the last minute, airport bureaux often offer less competitive rates and may not have a wide variety of note denominations

 Always take both travel money and a credit/ debit card, to ensure you’ve got multiple methods of payment