The UK’s cost of living squeeze is leading to fewer people planning to set aside money for holidays abroad next year, according to a warning from the travel industry on Tuesday. Despite challenges such as war, wildfires, and EES border checks, the number of Britons taking holidays has returned to pre-pandemic levels this year. However, rising costs may indicate that this peak has been reached, as highlighted in an annual report by the travel industry body Abta.
Current Trends in Holiday Travel
The report indicates that while the number of people taking holidays both domestically and internationally continues to rise, there is a notable trend towards late bookings and shorter city breaks, which are expected to persist through 2026. Confidence in travel has slightly decreased year on year but has rebounded as concerns over jet fuel shortages and flight disruptions have eased since the onset of the US-Israel war with Iran in February.
Overall, 88% of Brits took a holiday this year, matching the 2019 pre-pandemic peak, with 74% traveling within the UK and 62% going abroad. However, Abta’s findings reveal that nearly one in three individuals plan to spend less on international travel next year, suggesting that the annual holiday is losing its status as a non-negotiable expense. Interestingly, fewer people are willing to cut back on spending for phones or gadgets compared to holiday travel.
