How are so many people booking holidays if they are struggling with the cost of living?

[Brinnyloowho]

This is definitely not meant in a snarky way but so many people around me are going on not one, but multiple holidays over the next year. Ordinary, not particularly well-off people. All the news of airports and travel being pushed to their capacity. All at the same time I'm seeing about the cost of living crisis. Yet, in reality I'm not seeing it.

Maybe all of these holidays were booked pre-crisis (I know ours was). Does this mean travel will slow down again after the summer?

Both things in the thread title can be true.

UK now has a sickening disparity in wealth between the richest and poorest.

I'm affording a holiday this year due taking on a second job and working my arse off all summer. Going in term time too for the first time as school holiday prices are insane. We're in Scotland though and don't get fined.

We saved a considerable sum during lockdown largely because of a new job 2 months before lockdown & significant reduction in childcare costs as the youngest started school in that Sept.
We have spent some on home improvements & I know inflation is devaluing my savings but I'm a bit worried about the next few years. Despite never having so much savings I want to hang onto them, so we are staying in the UK this yr. We've been to Cornwall (rollover from 2020) & the New Forest so far & have 2 wks in Wales in the summer. May have a camping trip too. It just means we don't have to touch our savings pot. Other people have more & some are more laissez faire

We can afford to absorb the increase in cost of living and go on holiday.

What do you do that you can charge £20 an hour more just like that?

0% credit card and pay off slowly. I've always prioritised holidays over takeaways, nights out, clothes etc.

And yes, second job here too.

The media have hyped this COL to the hilt, in reality, most people are ok, bars are full, restaurants full, and holiday demand is sky high. Our gas bill was £19 last month with £9.60 standing charge.

We're having about 6-7 holidays and renovating the house, buying new cars.Dp has had a 10% pay increase reinstated bonus and I've put £20 per/hr on my basic rate.

The COL crisis isn't impacting the above poster but they have had significant pay rise. Isn't this what the BOE are worried about? inflation becoming embedded.

Our gas bill was £19 last month with £9.60 standing charge

Ours was zero, apart from the standing charge. It sure as hell won’t be in the winter. Hospitality is really struggling here - affluent part of Cambridgeshire - and I can see small businesses going under. Meanwhile foodbank donations have gone down while demand has increased.

A lot of people are just not hugely affected by the cost of living increases. For a lot of our friends, it generally means people have less disposable income each month, so perhaps 1.5k instead of 2k, but still plenty left to spend or save.

Another point I think many overlook is how the whole COVID + WFH crisis gave many the final push to jump ship to a new job at a new firm. Some industries were thriving and a lot of my ex-coworkers have since nabbed positions that netted them a 10-20% raise over their previous salaries. Not everyone lives pay cheque to pay cheque.

I think the people it affects are the people who said close to managing anyway

we are 40d but have never taken on a mortgage which relied on two incomes to pay it and all the house bills

to me that’s common sense

I wouldn’t want to risk a home if one lost a job or lost ability to work etc

so for us one wage pays mortgage and all bills and we have an entire second wage really which funds ‘everything else’

so a rise of £300 month in bills say is a pain but manageable

people I know struggling now are people who took out massive mortgages to afford amazing houses that take up 3/4 of their income

I also think lockdown has a part to play - during lockdown our savings went up a lot and we bought a house. But I got severely depressed from not being able to socialise and it was pretty much the worst time of my life, just sat on the sofa crying and had 11 weeks of NHS counselling. Now I’m enjoying summer to the max and spending all my money on festivals/seeing friends/holidays and have no regrets - summer is the only season in the UK with decent weather and fun outdoor events. May as well make the most of it!

@Brinnyloowho I think a lot of holidays are those that have been moved dude to covid cancellations and were paid for 1-2 years ago.

Because you can be ordinary, on a fairly average income and also have a couple of grand available for a holiday. Obviously as well there are people on rearranged holidays paid for ages ago etc, but there's no contradiction between basic living expenses increasing and some people still having disposable income. Remember too that you're not seeing all the people who aren't spending money on holidays.

I totally agree. I had people who go out every weekend questioning how I can afford holidays and family visits, am I taking out loans? I just prioritise that over going partying often. None is wrong, it's just different. I literally moved to really deprived postcode to ensure super cheap mortgage so we can ALWAYS afford to travel to visit our families abroad and at least get UK based trips on top, if it comes to worse with money for us.

Plus I always have funeral travel fund where I added for months from the first day I started working so... But that is not holiday fund... But it's still "omg how can you travel so much" territory apparently when it hits close to other travels🤨

I also foegot to mention the very strict use of contraception🙈 That helped

Some people earn much more than you realise, some borrow, some prioritise a holiday above absolutely everything else.

Inheritance.

Some are careless with money; will go on a foreign holiday but have no savings or rainy day fund. They’ll be screwed if the car breaks down or the boiler gives up, they’ll be late to pay bills.

people I know struggling now are people who took out massive mortgages to afford amazing houses that take up 3/4 of their income

But how were they able to borrow so much?

I earn slightly above the average, single parent, one teenager, no savings. We booked our two UK holidays last year and paid 50% deposits. We haven’t been impacted yet really.

However this is for 2 reasons - I don’t run a car so not worrying about petrol prices. Most importantly I paid off a home improvement loan in January and my mortgage in May. The balance of the holidays and spending money were covered by what would have been the mortgage and loan payments.

If I still had those two big bills going out, I would be having to make some serious cutbacks. Instead I have a good cushion against rising prices.

I am worried for my parents who in their late 70s and not the best of health - I’m glad I’m in a position to help out there, 2 older neighbours, and a couple of other single mum friends.

I should have added that in our case and I’m sure there are lots of families like ours, I book in September for next year and will pay for it monthly on the holiday company website. That makes it very affordable and I treat is as a bill in our family budget.

We can absorb the rising costs. The only thing we spent a lot of money on were holidays. The pandemic put paid to overseas holidays for 2 years and the ensuing mess of overseas travel means we will still holiday in the UK for a couple more.

DH saved a huge amount of money by not commuting for 18 months plus his workplace now has a hybrid working model so in for 2 days a week. He also got a promotion yesterday.

In our circle of friends a high number of people are in jobs that pay double or triple the national average. Known because we worked in the same field and the banding’s are easily available. Plus we are all aged 45 or over so established.

I do have some friends who are worried, these are friends I have made through the school gate and hobbies. Most of them are women that do not have a partner so no shared costs at all.

@flowerycurtain probably consulting, my friends DH does this and earns a huge amount. My own DH has in the past done a little consulting it paid 1k per day by arrangement with his actual employer.

Not everyone is struggling, we’re able to absorb the price rises and continue to live a nice life.

I'll take a stab at this. My household bills have increased by £250. I am in the fortunate position where through strict budgeting in other areas, that £250 would previously gone into savings pots for holidays for the kids future. So now my budget can only really cover bills, food shopping, and the occasional treat. I don't smoke, have given up drinking and don't eat out apart from very special occasions where I'd go to a cheap family restaurant, a couple of times a year. I work really hard and give up time with my children to earn money (what used to be a reasonable amount of money!) to cover our costs. But I still want to have holidays if I can, I want my children to play in the countryside etc not be stuck in the city all their lives. So this year I have booked the cheapest holiday I could find, and used apps for the cheapest trains. Family holiday for £350 all in. Some of that cost has put me in my overdraft. But I'll have paid for it by August. It will be self catering and I will be on a tight budget for food during the holiday. But it was worth it to me to give my kids the experience.