Consumers vastly underestimate the cost of planning a momentous trip, such as a gap year or honeymoon, and travel insurance is just one of the expenses to be considered, says insurer P J Hayman.
The true cost of a once-in-a-lifetime trip should be considered in the planning and saving stages of the holiday, the travel insurance provider suggests, to avoid under-prepared consumers getting into debt or having to give up on their dream holiday.
Research by P J Hayman has found that hoiday-makers are "vastly underestimating the cost of booking and organising big trips away" by thousands of pounds.
The average honeymoon now costs £3,220 per couple, but the survey revealed that Brits are underestimating this cost by at least £1,200.
Respondents believed that a gap year would set the average school leaver back by between £500 and £2,500, but GapAdvice.org estimates that the actual cost is between £3,000 to £4,000. Such unrealistic expectations about the cost of a gap year could leave travellers up the creek without a paddle if they run out of money abroad.
The research unveiled that the most popular choice for a big event such as a milestone wedding anniversary would be a cruise, and they would expect to pay between £1,000 and £2,500, but, while this was the most accurate estimation, the cost of a cruise can run into many thousands of pounds, so travellers should make sure they save enough for what they have in mind.
P J Hayman also points to additional costs such as travel insurance as potential stumbling blocks if travellers underestimate the total cost of their trip.
Commenting on the survey's findings, Peter Hayman, director of P J Hayman, said: "The survey findings shed an interesting light onto people’s perceptions of how much it costs to travel abroad for milestone events. It may well be the case that in our turbulent economic climate, people are tightening their belts and are no longer willing to spend as much money as they may once have been prepared to do. However, these events do not happen often so setting an accurate savings goal and working towards it can help you go on your dream trip.
“Regardless of the type of trip, travellers should always ensure they take out adequate travel insurance in the unlikely event that anything should go wrong." He stressed. "Having peace of mind on large and significant trips abroad can enable a more enjoyable experience for all concerned."
© Fair Investment Company Ltd