Holidays remain a spending priority for UK travellers, but rising living costs and global uncertainty are changing how people plan their trips, according to ABTA’s Holiday Habits report for 2026/27. Rather than abandoning their travel plans, many holidaymakers are looking for cheaper accommodation, reducing restaurant spending and choosing trips that offer better value for money.
The report, based on a survey of more than 2,000 adults in the UK, found that 70% plan to travel abroad in the next 12 months. The findings suggest that demand for international travel remains strong despite the financial pressures facing households and disruptions linked to geopolitical tensions and extreme heat.
Only 7% of respondents said the cost-of-living crisis would prevent them from taking a holiday next year. However, 21% said they would opt for cheaper accommodation, while 19% planned to spend less on eating out during their trips. The figures point to a shift in holiday spending habits, with travellers seeking ways to manage their budgets without giving up their time away.
Package holidays are also gaining appeal among travellers looking to control costs. According to the report, 48% of people booking a package holiday said they chose it because it offered the best value for the price. That figure was up from 43% in the previous year’s report, suggesting that more holidaymakers are weighing the overall cost of a trip when deciding how to book.
Cruises are showing a similar trend. While 13% of respondents said they had taken a cruise in 2026, the proportion planning to cruise in the next 12 months has risen to 17%. Value for money was cited as a reason for booking by 52% of cruise customers, up from 49% previously. Meanwhile, 40% said the ability to pay for everything upfront was a factor, compared with 38% in the previous year.
The findings indicate that predictable costs are becoming an important consideration for some travellers. Package holidays and cruises can bring several travel expenses together in one booking, making it easier to assess the overall price before departure. However, the value of either option will depend on what is included and what travellers spend on extras.
Mark Tanzer, chief executive of ABTA, the UK’s travel association, said the desire to take holidays remained strong despite economic and geopolitical challenges.
He also said booking through an ABTA member could give travellers greater confidence when making arrangements in an uncertain market, particularly when trying to find a holiday within a specific budget.
The report also revealed a change in the types of holidays attracting UK travellers. City breaks were the most popular option over the previous 12 months, with 53% of respondents saying they had taken one, compared with 48% in the previous year’s survey. Beach holidays followed closely, with 49% of those surveyed taking a seaside break.
Countryside holidays ranked third, attracting 23% of respondents. Multi-destination trips accounted for 16%, followed by adventure holidays at 14%, cruises at 13%, lake and mountain breaks at 10%, and wellness holidays at 9%.
Europe continued to dominate holiday choices, with Spain remaining the most visited country among those surveyed. Some destinations have also benefited from travellers reconsidering routes and locations amid concerns about the Middle East, although the report’s figures do not establish how much of the change can be attributed to those concerns.
Spain was visited by 36% of respondents over the previous 12 months. France ranked second at 24%, followed by Italy at 15%, the United States at 14% and Greece at 12%. Portugal ranked sixth, with 11% of respondents having visited, overtaking Germany in the reported rankings. Türkiye, Australia and Cyprus completed the top 10.
Taken together, the findings suggest that financial pressure is influencing the way people travel more than their decision to travel at all. Cheaper accommodation, fewer restaurant meals and greater interest in package holidays and cruises are among the ways travellers are adjusting their plans while continuing to make room in their budgets for a holiday.
