Be careful about Spending on Your Holidays!

By on December 10, 2015

When people are excited about visiting their dream destination, they often indulge themselves in making unnecessary expenses, only to repent later when they see their bills. Such spending often happens largely due to the rising phenomenon of goods and services being available by means of ‘instant gratification’. Naturally, a trend called as ‘impulse spending’ rises during the holiday season, and travelers would do best to be careful right from day 1 of the journey.

Capital One Canada has released the findings of their study about holiday spending by travelers. The results indicate that Canadians using their credit cards on their flight’s day end up spending about an extra $58.65 (on an average) compared to what they would have initially kept aside for expenses related to travel.

Be careful about Spending on Your Holidays

Out of this impulse spending, the lion’s share of $85 is seen to go to shopping at the airport’s duty-free shops. Also, thanks to the rise of taxi-hailing mobile apps, travelers are now tempted to go for the quicker and more convenient way of hiring cabs instead of using public transport. This was seen in the study to be the second biggest category of spending, averaging at $48. The third highest expense is actually a group of ‘value-added services’ charged by airlines, like additional luggage. These were seen to contribute about $39 at the eleventh hour.

Tempting offers about the items which we love the most often end up becoming a major reason to indulge at duty-free shops, according to one the travelers surveyed in the study.

The location of the airport too was one the factors that affected the amount of spending, as revealed by the study findings. According to Brent Reynolds, an analyst with Capital One Canada, this typically happens because people forget to factor in expenses that may take place on the day of traveling. Reynolds added that travelers usually would have budgeted only for the actual destinations to be visited.

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