Business · Economy · 2 hrs ago
UK holiday spending may peak as cost pressures grow, travel group warns
UK holiday-taking returned to pre-pandemic levels this year, with 88% of people taking a trip at home or abroad.
Abta, the UK travel industry body, says rising living costs may limit holiday spending next year.
Almost one in three people plan to spend less on travel abroad, while fewer say they would cut spending on phones or other gadgets instead.
The travel industry also faced disruption linked to conflict in the Middle East, fuel concerns and new EU border checks.
Late bookings and shorter city breaks became more common as travellers waited to see how conditions changed.
Abta says confidence has recovered from an earlier dip, but industry pressures are expected to continue over the next 18 months.
The group plans to urge the UK government to reduce aviation taxes and support the shift to sustainable aviation fuels.
Abta warned that rising living costs may mean UK holiday demand has peaked.
Almost one in three people surveyed planned to spend less on travel abroad next year.
This year, 88% of Britons took a holiday, matching the 2019 pre-pandemic level.
The share taking holidays in the UK reached a record 74%, while 62% travelled abroad.
Late bookings and shorter city breaks became more common during 2026.
- Who
- Abta, the travel industry body, warned that holiday demand may have peaked.
- What
- Rising costs may lead more people to cut spending on holidays abroad next year.
- When
- The report was discussed on Tuesday, 13 October 2026.
- Where
- The warning concerned the UK travel market; Abta’s annual convention was held in Madeira.
- Why
- The cost of living squeeze is putting pressure on household budgets.
This story does not have two clearly opposing sides.
The US-Israel war with Iran began, and fears about jet fuel shortages and flight disruption affected travel confidence.
Late bookings and shorter city breaks became more common, while holiday numbers continued to rise.
Abta warned that rising costs could mean UK holiday demand had peaked.
- Britons taking a holiday in 2026
- 88%
- Holidaying in the UK in 2026
- 74%, a new high
- Holidaying abroad in 2026
- 62%
- Planning to spend less on travel abroad next year
- Almost one in three people
- Travel confidence index
- +50
- UK economic contribution from the industry
- £57bn
What people are saying
Demand has held up well despite a range of challenges this year, and that looks set to continue, as does the willingness to prioritise spending on travel over other discretionary items.
The pressures of the last few months are not going to go away in the next 18 months.
Sources
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