Households won’t give up holidays as cost-of-living pressures bite

Many of us are making cutbacks as living costs rise, but there are some treats and luxuries some people won’t give up - specifically holidays.

When asked by ABTA what they’d give up in order to meet day-to-day expenses, more than half (55%) said eating out, followed by leisure activities (45%) and buying clothes or shoes (41%).

But just one in three (33%) said they’d go without a holiday abroad, and less than a quarter (23%) said they’d sacrifice a UK break.

Interest in overseas travel strong, but slightly down

Nearly two-thirds (64%) of people plan to travel to another country over the coming year.

But while ABTA describes the level of demand as “strong”, it’s slightly down on last year’s figure of 70%.

“The conflict in the Middle East has affected consumer confidence, both when it comes to travel and confidence in their finances,” said Mark Tanzer, chief executive of ABTA.

“However, the appetite and interest to travel remains.”

Many Brits waiting to book at the last minute

The economic uncertainty created by the ongoing US-Israel conflict in Iran is making many people who want to go away wait to see how it pans out.

For example, nearly a third (30%) of those who plan to travel this summer intend to book their trip just two to four weeks before setting off. 

And of those who plan to go abroad in the next year, more than a third (38%) have delayed booking their holiday, because they’re waiting to see:

• what happens to the cost of flights - 43%
• how the conflict in the Middle East unfolds- 36%
• if the cost of living improves - 33%
• what happens to the cost of holidays - 31%
• the availability of jet fuel later in the year - 26%

Holidaymakers want to spend less this year

The number of people planning to spend less on their holiday over the next year stands at 20% - up from 15% a year ago.

More than half (54%) said they’re cutting their spending because of the rising cost of living.

That compares with 47% this time last year.

What are Brits doing to cut holiday costs?

People who want to go away are taking all sorts of steps to cut costs.

Figures from YouGov show that nearly one in three (31%) people plan to save money by travelling during off-peak dates.

Meanwhile, about one in five (21%) have booked their summer holiday earlier in order to take advantage of lower prices.

In addition, a fifth (20%) compared travel websites before booking.

So if you’re put off going on holiday by the likely cost, it could be worth exploring tactics like this to reduce what you pay.

Check out our 60 ideas on how you can cut the cost of a getaway either at home or abroad.