This thread is so fascinating, not least because I realised I had no idea what we spend on holidays, it’s slightly unconscious and I have never totted it all up before. I now realise it’s actually a lot, although the way in which we spend it is also a bit illogical. (I also realise that the fact that we don't have to budget for holidays and can go where we please makes us very privileged).
For context our household income is about £165,000 and we have no children / dependents and already own a house (mortgaged) etc, with fair pensions/savings etc so in theory we could spend £500 just on a hotel room in a city centre but I wouldn’t be able to enjoy it. Like another poster said upthread it really depends on what we’re doing and where we are going.
If we go on a citybreak to Paris/Rome/Berlin, or need overnight accommodation for a wedding, we will happily stay in a simple, clean Air BnB for say £80 a night – it’s just a place to crash and as long as it is conveniently located and clean, neither of us could care less. I am not one for selfies so I wouldn’t be taking pictures of me in my Taj bathrobe holding a glass of champagne…
I would pay e.g. £500 for a hotel room that was unique and in a spectacular location – a real one-off once-in-a-lifetime stay in an incredible location which had some special interest beyond the hotel room, if that makes sense. So yes, I’d consider spending £700 a night to stay at the IceHotel, for example. But I wouldn’t pay £300 to stay in an lovely suite in Paris, if that makes sense?
We are a real mixed bag with our holidays. We love to camp and will often drive off for a week or so with a boot full of Aldi food and wine – that to me is utter bliss! When we plan a camping holiday it does of course cross my mind that it is cheap (and that is one small reason why we love it) but that’s not the reason why we do it over another type of holiday. In winter we will stay at a cosy pub guesthouse for maybe £120 a night – my only criteria is that it needs to have an open fire – we don’t have one at home so that’s a treat for me.
On the other hand, our honeymoon safari lodge was £650 per person per night (!) but it was worth it to us and I don’t regret that expenditure. If i'm being frank we didn't need or want the money for anything else, so why not.
We also generally hire a really lux ski chalet once a year with a big group of friends (something costing £25,000 - £35,000 a week) and once ski hire, flights, champagne etc is factored in that tends to cost £5000 - £6000 for the week. However, as a previous poster said, for me skiing is one of those holidays that’s only worth doing if we do it right. I’ve done my time sleeping in a mini-studio in Tignes on a click clack bed with the two ring hob beside your pillow and your ski boots drying in the shower and I’m just past that stage!
We are also pretty modestly in other ways: our car is a 14 year old Peugeot (live in London, don't commute for car, have no need for anything else) and wear high-street clothes. No nice jewellery beyond my engagement ring.