Key facts
- 88% of Britons took a holiday this year, matching the 2019 pre-pandemic peak.
The UK travel industry warned that demand for holidays abroad may have peaked due to the cost of living squeeze, despite a strong rebound in travel this year. While 88% of Britons took a holiday in 2026, nearly a third plan to spend less on international travel next year, suggesting holidays are no longer a top priority over other discretionary spending.
The travel industry's warning signals potential headwinds for airlines, hotels, and tour operators as consumer spending priorities shift due to economic pressures. A decline in holiday demand could impact the UK's £57 billion tourism economy and related sectors.
The UK's travel industry has warned that demand for holidays abroad may have peaked due to the ongoing cost of living squeeze, despite a strong rebound in travel this year. An annual report from industry body Abta indicated that while holiday numbers climbed back to pre-pandemic levels in 2026, rising costs could mean this is the peak.
Despite challenges including war, wildfires, and new EU border checks, 88% of Britons took a holiday this year, matching the 2019 pre-pandemic peak. This included a high of 74% taking holidays within the UK and 62% traveling abroad. However, the report found that nearly one in three people are planning to spend less on international travel next year, suggesting that the annual holiday is no longer considered sacrosanct and is being deprioritized over other discretionary spending like phones or gadgets.
Abta noted that the holiday business remained resilient, with its travel confidence index rebounding to +50 after dipping due to fears over jet fuel shortages and flight disruptions related to the Middle East conflict. Abta chief executive Mark Tanzer described it as a "tough year" but added that demand held up well and is expected to continue, with people prioritizing travel spending. He observed a trend of later bookings and shorter city breaks, with travelers waiting to see if better deals emerged or managing uncertainty.
Tanzer stated that the industry would continue to lobby ministers to reduce aviation taxes and increase support for sustainable aviation fuels to lower costs. Spain maintained its position as the top destination for British outbound travelers, with 36% visiting, while Portugal rose to sixth place. However, future travel intentions show only 26% planning to visit Spain, with destinations like Japan and Norway appearing in the top 10.
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