Many Brits use PPI cash boost to book holidays, study reveals

If you were to receive a sudden cash boost, what exactly would you do with the money? Perhaps you'd take the opportunity to book a holiday or take a weekend away, to make the most of your windfall?

Based on the findings of a recent survey, it seems many Britons would do exactly that.

Research from Mintel and British Airways Holidays indicates that around 1.7 million people who have successfully claimed for mis-sold Payment Protection Insurance (PPI) have treated themselves to a trip away.

The study suggested that almost a third (28 per cent) have used their compensation to enjoy a welcome change of scenery.

It found that spending on a holiday was almost as popular as reducing or paying off debt (30 per cent) and a more common choice than paying the bills (26 per cent) or saving (15 per cent).

Since PPI claims payouts started on a large scale three years ago, around £15.5 billion has been returned to people affected by the scandal.

The study revealed that those who received over £1,000 after making a claim were more likely to take a trip away with their money.

Harry Segal, senior travel analyst at Mintel, explained that the height of the scandal coincided with the financial downturn, at a time when many household budgets were stretched.

And with this in mind, the bonus of a compensation pay-out provided a much-needed boost to households, he noted.

Mr Segal said it offered some families the chance to make purchases or decisions that would otherwise have been difficult – such as taking a well-earned break.

The additional cash meant people could go on holiday, without the same level of impact on their household budget.

Berkeley Scott is a specialist recruitment agency to help source hospitality recruitment jobs.