The bank found that, on average, hopeful holidaymakers had £1,250 saved this year – 13% more than last year.
Figures from the Office of National Statistics (ONS) show that UK residents made more than 86 million visits abroad in 2023, spending £72.4bn.
But it’s not just savings that are funding Brits’ holiday plans. Internal data analysis from Tesco Bank shows that people who are taking loans for holidays borrowed an average of £5,900 to fund their trip.
Tesco Bank’s research also found that nearly three in 10 (29%) people had a specific savings goal in place for holiday budgets, with 16% committed to sticking to it.
Chris Henderson, savings director at Tesco Bank, said: “The price of a holiday – large or small – might be on the rise but, clearly, it’s not stopping people getting away. Brits have stashed away over £1,000 already for trips in 2025, with the lure of time away with loved ones, space to relax, and the opportunity to try new things making holidays a top savings goal.
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“Factoring in holiday budgets ahead of time and having a clear view of your finances is the best way to ensure you’re jet-set-ready! And, if you’re planning to take out a loan to cover your trip, it’s well worth working out your repayments and that these are factored into your budgets ahead of time, so all your finances are manageable.”
How to boost your holiday budget
Set a goal
Whatever you’re saving for, setting realistic saving goals is always more motivating. Set yourself a target, work out how you will get there and make a head start if you can. Once you’ve made sure you can cover the essentials such as food and bills, and rent or mortgage payments, dividing up the rest of your money for other spending or savings is a good habit to get into.
Use the right plastic
If you plan to use a debit or credit card overseas, look for one that doesn’t charge extra for overseas use. Also, remember to pay in local currency for best rates.
