And a fifth of all Brits are planning to spend more on going on holiday this year, a bank’s spending report finds.
Despite a combination of high interest rates and steep energy bills leaving nearly half (44%) to think they’ll be financially worse off this year, the appetite for a trip away hasn’t dampened.
In fact, of those expecting to have ‘weaker finances’ compared to last year, a third (33.5%) still expect to spend more on a holiday this year, while just a quarter (27.1%) will cut back on their holiday budget.
A total of 14% of the 2,000 adults asked as part of NatWest’s retail and leisure report had no intention of going on a holiday. With many considering holidays a necessity, that leaves almost nine in 10 (86%) British customers planning on going away this year.
Those feeling the most financial pressure and least likely to splash out on holidays are Gen Zs (aged 27 and under) and millennials (aged up to 40).
However, rather than ditching plans to get away completely, those cohorts are more likely to shop around for cheaper airlines and flights or opt for trips away in the UK rather than going abroad. Other methods adopted include booking to travel during off-peak travel times, like in the winter months.
‘More spending power in the pockets of UK consumers’
David Scott, head of consumer industries at NatWest, said: “The travel industry will be heartened to hear that a fifth of consumers are planning to increase their holiday spending this year. This shows just how much Britons value travel and exploration, even at times of high financial pressure.
“With peak holiday booking season now upon us, it will be important for travel agents to understand changing shopping behaviours.”
Scott added: “Consumers consider dynamic pricing to be more acceptable for hotels and airlines than any other category, but the industry should still be cautious to maintain customer trust and loyalty.
“We saw inflation fall significantly at the end of 2023, and we expect it to fall further in 2024. This puts more spending power in the pockets of UK consumers and should help them to increase their spending in 2024.”
