ABTA’s latest Holiday Habits report, published on 31 October, shows strong demand for – and confidence in taking – overseas holidays, despite ongoing pressure from the cost-of-living squeeze.

In the 12 months to August 2023, 52% of the UK population went on a holiday abroad and took an average of 1.4 holidays abroad each, in line with typical pre-pandemic levels over the last 10 yearsii. This appetite for travel looks set to remain strong into 2024, as almost two-thirds (64%) of people say they plan to take a trip overseas in the next 12 months. 

The report shows that people are making price-driven decisions about their travel plans due to the rising cost of living – and they’re turning to package holidays and travel professionals to make the most of their budget. 

Of those who took a foreign trip in the last year, 61% went on a package holiday, with the price the main motivation for choosing this way to book. Those saying they booked a package because it was the best value option for the price rose to 42% compared with 34% last year while a third (33%) said they booked a package because they wanted an all-inclusive holiday, up from 28% who said the same last year.

Competitive pricing was also among the top reasons for booking with a travel professional. Of the 35% of people who booked a holiday abroad with a travel professional in the last 12 months, those citing value for money as their reason for doing so was up considerably, to 38% from 26% last year.

ABTA’s data also shows holidays will remain a spending priority for the year ahead compared with other sectors. People are planning to cut back on other non-essentials, such as eating out (57%), leisure activities (46%) and clothes, shoes and accessories (42%) before cutting back on their holidays (34%).

The majority of people (51%) are planning to spend the same amount of money on holidays this coming year as during the last 12 months, with a significant proportion instead planning to spend more (28%). 

But, although the findings show that many people plan to go on holiday keeping to the same sort of budget, most (72%) say the cost of living will affect their travel plans. To keep their holiday dreams alive, customers will adopt a range of cost-cutting tactics, like taking fewer holidays (22%), booking cheaper accommodation (21%) and eating out less on holiday (17%) to make sure they get that all-important break. 

The search for value for money might explain a growing trend for all-year-round travel. ABTA’s data suggests that May and June will be the most popular months for overseas breaks in the year ahead, with 21% of people planning to travel in those months, just ahead of October (19%) and just slightly ahead of the traditional peak months of July (17%) and August (17%)iii. Many ABTA members have extended the seasons in some destinations, such as Turkey and Greece, and added capacity in the shoulder season. 

ABTA’s Holiday Habits 2023-24 report can be downloaded at abta.com/holidayhabits2023-24.