Money Wellness
Illustration of empty sun lounge chair on beach against blue background
category iconcost of living
calendar icon28 Jun 2024

UK travellers cut back on holidays due to cost-of-living crisis

The cost-of-living crisis is forcing many travellers cut back on overseas trips, with many choosing to holiday in the UK instead of abroad.

New research by investigated how rising costs are changing holidaying habits of UK travellers.

More than a third (57%) of UK travellers say they’ve had to cut back on the number of holidays they go on. While travelling, almost two in three (63%) have been eating out less to save money.

On top of this, travellers are opting for ‘staycations’ over holidays abroad because of financial pressure. Three in five (57%) said they’ve chosen or thought about holidaying within the UK since the beginning of the cost-of-living crisis.

People are also travelling at different times of year. More than half of respondents said they try to travel outside of school holidays to cut costs.  

Accommodation costs are the biggest worry for travellers – more than half (57%) selected it as their cost-saving priority. Hotels are the most popular choice, with 68% choosing it over Airbnb. That’s likely because the average daily rate of Airbnb rentals rose by 36% between 2019 and 2023. 

Overall, the study found travellers prioritise saving on the following:

  • accommodation (57%)
  • travel to/from destination (37%)
  • food and drink (28%)
  • travel to/from airport (25%)
  • activities and entertainment (16%)

How to save money on holidays

Book well in advance

Holiday prices change all the time. Booking in advance gives you more time to consider your options, compare deals and look for discounts.

According to Expedia, you can save 24% on average by booking domestic flights at least a month early, and 10% if you book international flights at least two months in advance.

Watch out for dynamic pricing

Dynamic pricing algorithms show different prices to customers depending on market demand and seasonality. Most airlines and hotels use these types of sites.

To find the best deal, compare the results you get on different browsers or devices. Disabling your on-site cookies when booking a holiday will prevent sites from accessing you browsing data and using it for their results.

Think about getting travel insurance

Booking travel insurance protects you against unexpected costs, like medical expenses, or losing your luggage. Some policies also cover unexpected flight cancellations.

There are plenty of cheap travel insurance options. You might need to budget for it, but at least you’ll be protected in case anything goes wrong.

Can I go on holiday with a debt solution?

If you’re in arrears and have arranged a debt solution, you might be wondering whether you can still go away on holiday.

Most debt solutions let you travel as long as you prioritise your repayments – but you can always contact your financial services provider to double check that it’s okay.

If you’re being affected by the cost-of-living crisis, we can support you with free and impartial advice and budgeting help. We can also advise you on debt solutions online or you can give us a ring. Some solutions are free, others have a fee.

Connie Enzler

Connie is a multimedia money-wellness-in-work expert, with a master's in multimedia journalism and over five years' experience as a digital writer and podcast creator. Connie is committed to making debt and personal finance information accessible to all.

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