The current Loqbox poll findings indicate that although the cost-of-living crisis is still having an impact on UK household budgets, there remains a strong desire to prioritise travel. Additionally, it found that increasing personal savings buffers to meet lifestyle objectives is becoming more and more popular.

In collaboration with OnePulse, a UK polling platform, Loqbox polled a variety of UK citizens on their travel preferences and financial arrangements. When asked how they intended to pay for any travel plans they had for the summer this year:

 

• Of those surveyed, 41% said they are making use of savings they already have.
• Thirty-five percent are saving money on a regular basis.
• Thirteen percent stated they would make use of a credit card.
• Seven percent are using points for travel rewards.
• Six percent want to take out loans from relatives and friends.
• Five percent are thinking about taking out a loan in another way.

Even though fewer respondents choose to use credit to pay for their vacations, and even fewer turn to loans or borrowing from friends, the utilization of travel rewards points suggests that continuing membership in travel loyalty programs is a more affordable option to finance trip plans.
 

Co-founder and co-CEO of Loqbox and participant in the Business in the Community cost-of-living taskforce, Gregor Mowat further stated: "People in the UK are facing ongoing challenges related to cost of living, but their willingness to make financial adjustments to achieve their lifestyle goals is demonstrated by the importance they place on saving for their vacation plans.

It's encouraging to see that more people are looking into using savings tools and more cheap credit alternatives, as high interest rates drive up the cost of borrowing. We are evidence that expanding access to financial education is having a positive effect on society as more people come to Loqbox for financial advice.
 

The value of personal budgeting tools and financial education

The related costs of borrowing, according to Loqbox, are another compelling sign that people are shifting away from credit and toward self-management and individual financial planning, especially because the majority of respondents are paying for their summer vacations out of pocket rather than using credit cards or borrowing.
 

"Our survey findings reinforce a shift we've seen in consumer behavior over the past couple of years," said Loqbox co-founder and co-CEO Tom Eyre. While the UK still has a strong desire for summer vacations, more and more individuals are realizing how important it is to save money in order to pay for big-ticket items like travel. People who have financial buffers in place are less likely to rely on expensive credit cards and other forms of borrowing.

In order to pay for their travel plans, some of our respondents said they had to make considerable sacrifices, such as cutting back on spending overall and doing away with certain expenses completely.
 

"A number of people brought up changes to their lifestyle, such cutting back on social events and splurging on things like TV packages and clothes. Overall, the study confirms our belief that people may improve their financial well-being and make more responsible and informed purchases if they have access to the appropriate financial education and personal budgeting tools.

Nevertheless, a noteworthy 23% of participants disclosed that they do not have any trip arrangements for 2024, primarily due to budgetary concerns.

A smaller percentage of respondents stated that they do not actively prepare their finances for travel, suggesting a more haphazard approach to holiday choices dependent on available funds. Respondents are more likely to make travel arrangements when they receive a windfall from events or bonuses at work.