Less than a third (31%) of holidaymakers who set a budget for their last trip were able to stick to it, a survey has found.
The average overspend per couple was £212, the poll of 2,081 UK adults for Post Office Travel Money revealed.
Despite many people not setting aside enough funds for past trips, just one in 10 (11%) of those planning a foreign holiday this year intend to increase their budget.
Mainland Spain, the Balearic Islands and Turkey offer the best value out of 16 popular destinations, according to holidaymakers.
Travellers say they get the poorest value for money in Dubai, France and Italy.
Andrew Brown, of Post Office Travel Money, said: "Holidaymakers seem to bust their budgets year after year.
"The latest research findings suggest holidaymakers start with good intentions by setting a budget but then let go of the purse strings once they reach their resort.
"Careful budgeting will save money in the long run because there are so many ways in which tourists can fall prey to the holiday money trap."
The research found almost a quarter (24%) of holidaymakers are planning a trip to Spain, followed by 18% crossing the Channel to France and 17% heading to Italy.
Mr Brown was surprised by the responses due to the perception of France and Italy offering poor value for money to UK visitors.
He said: "One in six complained about the charges they incurred by using plastic to get cash from an ATM abroad.
"Another one in six felt ripped off by charges made on credit and debit card payments in shops and restaurants. But the cost of meals and drinks can be a bigger pitfall.
"That's why it is surprising to find that holidaymakers choose destinations where resort costs are pricey.
"Our advice to those who haven't booked their trip yet is to do their homework by comparing our barometer costs and choosing a resort where living costs are low."