Holidaymakers splash the cash on £250 of 'extras' while away, says HSBC survey

People relax their purse string when they Jet off to sunnier climes, according to a new study

The typical holidaymaker splashes out an extra £250 on "extras" during a week-long break compared to their usual at-home expenses, according to a survey.

HSBC UK's research reveals that dining out, attending live events, buying clothes and transport are among the items people tend to spend more on while on holiday. The study also found that individuals aren't keen on discussing their holiday spending habits, with over half (57%) admitting they never reveal how much they've spent while away.

Behavioural psychologist Jo Hemmings said: "Our holiday mentality which encourages us to spend much more than we would at home is down to three main factors. Simply being out of our usual daily routine contributes to a sense of relaxation and reward, stimulating our feel-good hormones of serotonin and dopamine and reducing our stress hormone, cortisol, making us more likely to spend money on clothes, dining out and new experiences."

Hemmings added: "Holidays are also associated with special occasions and escapism whether that's a birthday or an anniversary, the arrival of warm weather or simply the holiday itself which we have anticipated and saved for, enables us to justify spending more money than usual."

"We are also less inhibited on holiday, so we feel less constrained by our usual financial mindsets and the sense of spending more on immediate pleasures rather than deferred rewards known as temporal discounting is also heightened."

Pella Frost, HSBC UK's head of everyday banking, commented: "We all like to splash out on holiday but splurge regret can cast a shadow over the whole experience." The survey was conducted by Censuswide for HSBC UK in June, with more than 2,000 people participating.