The growing cost of sunshine
Each year, the Post Office Travel Money Holiday Spending Report shares the latest research into UK travellers’ holiday spending habits.
This year, we asked over 2,000 UK adults if they were planning to jet off on holiday in 2025. 66%1 said yes, with more than half (54%)2 having already booked their trip. But nine in ten people expressed concerns about whether they have enough money to afford it.
Despite these worries, many holidaymakers are setting bigger budgets after overspending by an average of 37% on their last trip. At the same time, they’re feeling uneasy about the strength of the pound and potential impact of planned US tariffs.
We’ve highlighted more key findings from our report here. If you’d like to know more, you can also download the full report.
Key findings include:
- Over three-quarters (77%) of UK holidaymakers are worried about exchange rates, with 78% concerned about the impact that US trade tariffs might have on holiday prices
- As a result, 53% said they’re actively avoiding destinations where tariffs could push up costs. Two in five having ruled out visiting the USA, even if it was on their radar before
- So, where’s best for value? Holidaymakers rated Spain (41%), Turkey (35%) and Thailand (31%) as the best value for money out of 39 worldwide destinations
- The first-ever Post Office Exchange Rate Monitor, included in the report, revealed that the Thai baht is one of only five of the top 30 currencies to have risen against the pound in the last year. This means you’d get about £27.64 less for every £500 exchanged, compared to last year
- Almost half (48%) of holidaymakers said they’ll choose where to go on how strong the pound is. That’s why places like Vietnam and Bali could offer better value than Thailand
- According to the Exchange Rate Monitor, Turkey has topped the list as the best-value destination of 2025, where British holidaymakers will get the most for their money
How have exchange rates changed from last year?
The Post Office Exchange Rate Monitor, included for the first time in the Holiday Spending Report, reveals how far your money will go in 2025. Here’s what holidaymakers need to know:
- The pound is stronger than a year ago against 25 of the 30 top holiday currencies
- What’s more, the pound has gained ground against 80% of the top currencies since March 2025
- The Turkish lira has dropped 12.9% against the pound in the past three months. This means you’ll get around £116 more for every £500 exchanged compared to last year
- The pound is 6.6% stronger against the US dollar than last year and 4.9% stronger in the past three months. This means better value for travellers heading to the USA, the Caribbean, and the Middle East, where currencies are linked to the dollar
- The euro is only slightly stronger against the pound, by just under 1% compared to last year and three months ago
Remember, exchange rates can change daily so it’s always worth checking the rates before you buy your travel money. Find the latest Post Office exchange rates here.
