Is It Normal to Borrow for a Holiday? What UK Travellers Are Really Doing

If you've ever wondered whether people really take out loans for holidays, you're not alone. 

For some, holidays are something to save for. For others, they're paid for using credit cards, Buy Now Pay Later, monthly payment plans or personal loans. 

But just how common is it? 

The short answer: more common than you might think. 

Research from Aviva found that around 1 in 3 holidaymakers planned to use some form of credit to pay for a holiday, including credit cards, loans and Buy Now Pay Later services.  

While borrowing for a holiday isn't the right choice for everyone, many households choose to spread the cost of travel using credit. 

Why are more people borrowing for holidays? 

The biggest reason is simple: holidays are getting more expensive. 

Research by Which? found that package holiday prices in 2025 were on average 4.2% higher than the previous year, with some destinations seeing even larger increases.  

For a family of four, Which? has found that a typical weeklong all-inclusive holiday can cost anywhere between £3,200 and £6,000, depending on destination and time of year.  

When a single expense costs several thousand pounds, many people choose to spread the cost rather than pay upfront. 

Borrowing isn't the only way people spread the cost 

It's worth noting that not everyone who pays monthly is borrowing. 

Many travel companies allow customers to secure a holiday with a deposit and then make instalments before departure. 

That's different from taking out a loan or using a credit card because you're paying for the holiday before you travel rather than repaying it afterwards. 

What do people think about holiday borrowing? 

Opinions are mixed. 

In online discussions, some people view holiday borrowing as a practical way to budget for important experiences and family time. Others believe holidays should only be paid for with money already saved.  

The reality is that there isn't a single "normal" approach. 

People choose different options depending on their income, savings, financial goals and personal comfort with borrowing. 

When can borrowing make sense? 

Borrowing may be worth considering if: 

• You understand the total cost of borrowing 

• The repayments comfortably fit your budget 

• You have a plan to repay the debt 

• You're choosing affordable credit rather than high-cost borrowing 

For some households, spreading the cost can make a large one-off expense more manageable. 

When should you think twice? 

You may want to reconsider borrowing if: 

• Repayments would stretch your finances 

• You're already relying on credit for everyday expenses 

• You don't have an emergency fund 

• The holiday would leave you struggling financially afterwards 

A holiday should help you relax, not create financial stress when you get home. 

Yes, borrowing for a holiday is more common than many people think. 

With holiday costs rising and family trips often costing thousands of pounds, many people choose to spread the cost through monthly payments, credit cards or loans.  

The most important question isn't whether it's normal. 

It's whether it's affordable for you.