Saturday, June 15, 2024

UK travel trends: Majority of consumers plan to travel this year, despite ongoing cost of living crisis – TravelDailyNews International

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Despite the cost-of-living crisis, 87% of UK consumers plan to travel this year, with a preference for UK breaks and short-haul holidays, reveals BDO’s latest survey.

The large majority of UK consumers are planning to travel this year despite the ongoing cost-of-living crisis, with UK breaks remaining slightly more popular than trips abroad, according to new research by business advisory firm, BDO.

The survey of 1000+ consumers aged 18+ gives cause for optimism for the travel sector after a challenging few years. The research reveals that almost nine in ten (87%) UK consumers plan to travel either abroad or in the UK this year.

Short-haul holidays are favoured by half of consumers

Almost two thirds (63%) plan to travel within the UK and a similar number (61%) plan to travel abroad, while 36% of consumers intend to enjoy both domestic and international holidays – up from 33% last year.

Short-haul holidays are favoured by half (47%) of consumers. Nearly a quarter (24%) of those surveyed are planning long-haul trips.

The BDO research also found that consumers are intending to spend more on their trips, with a net increase of 12 percentage points in spending rate compared to last year.

Price rises are the most prevalent reason for those who plan to spend more, with 28% of consumers stating them as a contributing factor to increased spend on travel. A smaller number (13%) expect to spend more by eating out more frequently on holiday and 12% plan to do more activities.

 ‘Gen Z’ consumers are opting for more frequent but shorter holidays

The research also reveals that consumers are opting for more frequent but shorter holidays this year compared with last. The survey recorded a +5% net increase of people choosing to go on more holidays and a -2% decrease on the length of holidays.

This trend is driven by ‘Gen Z’ consumers, aged between 18-24, which showed a +21% net increase in the frequency of holidays this year compared to last. The Gen Z group’s travel intentions are also slightly higher than the overall sample, with 89% intending to travel this year.

In the UK, the most popular destinations for consumers include the South West of England (17%), followed by Scotland (12%) and London (11%).

For international holidaymakers, Spain is the most popular choice of destination (43%), followed by Greece and Italy (both 30%) and France (29%). A fifth (21%) of those travelling overseas intend to travel long-haul to the US.

Tom Holt, partner at BDO commented: “These results may come as a sigh of relief for those in the hospitality and leisure industry, and those in its supply chain, who we know have been disproportionately affected by both the COVID-19 pandemic and the more recent cost-of-living crisis.

“Due to challenging economic conditions, the competition for the consumer purse is incredibly tough, with our research suggesting that consumers are choosing to prioritise discretionary spend on experiences like travel rather than on products.

“Much of the spend on travel is being driven by Gen Z consumers, likely a result of this category being less vulnerable to the rises in mortgage repayments and energy bills compared with other age categories.”

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor’s degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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