A report from Money.co.uk has discovered that those aged between 16 and 30 have been on almost twice as many ‘dream holidays’ as their parents.
It has been previously acknowledged that Brits will enjoy 2 of these holidays in their lifetime. However, this latest study suggests that the younger generation could have up to 7 or more by the time they reach their parent’s age.
As well as finding that younger people are likely to travel more frequently, it was also discovered that they are more likely to pay for their dream trip using a credit card rather than cash or savings.
In comparison, around 60% of those aged over 50 will use cash or savings to pay for their dream holiday.
What is a ‘dream’ holiday? A trip is usually classed as a ‘dream holiday’ when costing around £5,000, as well as an additional £2,500 on spending money. A regular holiday costs around half of this.
Those living in London spend the most on holidays with the average trip costing around £3,050; however, it is Bristolians who are most likely to splash out on a dream holiday in 2020, with almost a third of residents in-and-around Bristol planning to do so this year.
Findings also revealed that men are more likely to spend big on their trip of a lifetime than women, but are also more inclined to fund the trip using a credit card.
Around 1 in 3 Brits planning on taking a trip away this year will be going on their ‘dream holiday’, with a similar percentage of the population not planning on going anywhere at all.
Most popular holiday destinations 2020
Despite the uncertainty surrounding Brexit, a trip to Europe was the most popular dream holiday destination with 19% of travelers spending their hard-earned cash on a trip across the continent.
16% said that they dreamt of soaking up the sun in the Caribbean while a further 15% of Brits cited a trip down under to Australia & New Zealand as their idea of a dream holiday.
Other popular choices include the Maldives, North America and the Far East.
Out of the people asked, some were unsure of where they’d like to travel, with 25% of those living in Wrexham admitting that they did not have a dream holiday.
Young travellers paying for holiday on credit card
The study revealed that more and more young people are paying for holidays using a credit card which, at a glance, sounds worrying.
This may not be the case though, as one reason why many travellers are using credit cards to pay for their holiday is to take advantage of the extra protection provided.
If paid off before the end of the month, a credit card is usually seen as the safest way of making a significant purchase as, under section 75 of the Consumer Credit Act, card providers are held equally responsible with the merchant for certain problems that might arise before or during your stay.
READ MORE: Credit card protection
Even if you have the money saved up to pay for your dream holiday, we recommend that you use a credit card to pay your deposit (a minimum of £100). By doing this, you ensure that your entire purchase is protected by your credit card issuer.
Personal finance expert, Salman Haqqi, said:
"Some may criticise the younger generation for taking so many dream holidays so soon in life and paying for them on plastic, but actually using a credit card to finance such a big purchase offers additional financial protections that other forms of payment do not.
Recent studies by ATOL show that 69% of holidaymakers do not always seek financial protection for their holidays, putting themselves at risk of being out of pocket if their airline or travel company goes out of business, like we saw with Thomas Cook last summer.
Credit card transactions, between £100 and £30,000, are automatically covered by Section 75 protection - which isn't the case with debit card or cash payments. Credit card transactions offer peace of mind because you're protected from the moment you book, in case it all goes wrong with the holiday or the holiday company."
Travel insurance with Bobatoo
Whether you’re travelling across the continent or around the world, taking out an adequate travel insurance policy can help you out in the event of an emergency.
Comprehensive travel insurance policies will offer compensation in the event of lost or stolen luggage and can also cover millions-of-pounds’ worth of medical costs if you require attention while on your travels. You can even claim back the cost of your holiday if you are no longer able to travel due to certain unforeseen circumstances.
Get a quote with one of the best travel insurance providers today to make sure that your next dream holiday doesn’t turn into a nightmare – simply tap the button below!