Summer hotspots confirmed: East Asia and Eastern Europe enjoy surge in UK tourism spend

Strong summer for trips abroad, with total spend by Brits up 5.4% over summer 2014

Far-flung destinations such as Indonesia, Mexico and Japan saw fastest growth in UK holiday spend

Brits are increasingly going card-first abroad

London, 21 October 2015: Spend data analysis by Visa Europe shows a renewed appetite for overseas holidays as total spend by UK cardholders on trips abroad between June and August 2015 grew by 5.4% over the same period in 2014.

Brits have also become more comfortable using their cards during these trips. The majority (84%)[i] who have been on a holiday abroad this year say they spent more or the same on their cards than in the past, according toa new survey from Visa Europe. This marks a step-change in Brits’ holiday payment habits. A study conducted early this year revealed that almost two thirds (62%) of UK holidaymakers had never used their debit card outside the country on trips abroad in the last three years.

During summer 2015, Brits flocked to far-flung destinations such as Mexico, Indonesia and Japan according to Visa spend data. Nearer to home, Eastern European countries also cashed in on the strong British pound, with Latvia, Romania, Hungary and the Czech Republic being among the fastest growing destinations for UK holiday spend.

• Top ten fastest growing destination for UK holiday summer spend

• When asked how they plan to pay on their next holiday abroad, cards come out on top as the preferred way to pay. More than a third (36%) of holidaymakers now say they plan to pay for expenses in a foreign country using cards[ii].This compares to the 30% who plan to exchange cash at the high street bureau de change and the 17% who will withdraw cash locally at their destination.

• The change in behaviour is reflected by the drop in those who plan to convert cash at the airport bureau de change on their next holiday – only 2%, a stark contrast to the previous research in which almost a third (28%) were planning to do so.

• Despite these changes in behaviour, some surprising misconceptions prevail. One in five still worry they won’t be able to pay for standard expenses on their cards such as accommodation (21%) and in-store purchases (23%). Brits also remain worried about paying for transport with their cards as only 16% expect to be able to pay for a taxi by card, and just one in five (20%) expect to be able to pay for public transport with plastic on their holidays. Two in five (38%) still believe debit card fees abroad are higher than airport bureau de change fees.[iii]

• Kevin Jenkins, Managing Director UK & Ireland, Visa Europe comments: “It’s encouraging to see Brits starting to shake off old-fashioned habits when it comes to spending in a foreign country. Misconceptions are breaking down as people begin to realise, through experience, that card payments and ATM withdrawals abroad are not only convenient, but easily available and safe.

• “Visa cards are accepted at millions of locations in over 200 countries worldwide, including nearly 400,000 ATMs in Europe alone[iv]. It’s important to note your Visa cards are protected against fraud, both at home and abroad, and they are often better value than using an airport bureau de change. With these reassurances, travellers can do away with worrying about cash-only payments and start spending abroad as they do at home in the UK.”

• When asked about what they’d do differently on their next trip abroad, 50% of British travellers said they will pay more with their cards or withdraw cash at their destination on their next holiday. As it turns out that the ‘way-to-pay’ isn’t the only thing Brits are looking to change on their next trip abroad:

• More than a third (36%) said they would book flights and accommodation further in advance

• A third (32%) said they would like to sample more local cuisine

• Two in five women (39%) said they would pack less

• Perhaps unsurprisingly, 43% of those aged 16-24 want to take a longer holiday

• Kevin Jenkins, Managing Director UK & Ireland, Visa Europe continued: “With the half-term break coming up, we want people to focus on having a fun and memorable trip with their friends or families. It’s time to start thinking about card payments abroad as just the same as they are here in the UK – secure, easy, and convenient.”

• ENDS

[i] All statistics unless otherwise referenced refer to research commissioned by Visa Europe with Censuswide who surveyed 1,000 people ages 16+ in the UK who have been on a foreign holiday in the last 12 months. Research was conducted in September 2015. Sample size is nationally representative.

[ii]

[iii] Research commissioned by Visa Europe with Populus who surveyed 2,000 adults aged 18+ in each of the following 16 European countries: UK, France, Germany, Italy, Poland, Spain, Sweden, Turkey, Austria, Czech Republic, Republic of Ireland, Norway, Denmark, Belgium, Finland and Switzerland. Research was conducted between 6-23 March 2015. Sample sizes are nationally representative in each country

[iv] Find an ATM. You can use your Visa card to withdraw money at nearly 400,000 ATMs across Europe. https://www.visa.co.uk/products/travelwithvisa/