Research by the CAA found that families are spending 17% more than they have budgeted for in unforeseen costs while on their holiday.
The news comes as the research also revealed a family of four is facing a hike of 13% this year to get away in the first place, with the cost of an average holiday now at £3,133.
This means the CAA is advising families to set aside an additional £536.80 in order to meet any unexpected costs once they are overseas.
The research revealed that extra food and drink bills, charges from money withdrawals while abroad and parking charges pulled at people’s purse strings the most.
CAA head of Atol Andy Cohen said: “Holiday costs can mount up quickly, while you’re enjoying your holiday, making it very easy to overspend.
“Our research also showed the unexpected can happen, and over their lifetimes nearly a fifth of consumers (18%) have had to pay for replacement accommodation and a sixth (16%) have had to pay for new flights.”
Meanwhile, personal finance expert Simon Read said consumers can keep a budget on track by being wary of ‘hidden’ costs such as baggage or seat selection, as well as knowing exactly what’s included in a full-board holiday and what’s not.
He added remembering the benefits of the Atol scheme, using a foreign currency pre-payment card and keeping an eye on both airport and resort fees will also help keep the costs down.