More than seven in 10 people who plan to go on holiday this summer are looking at ways of cutting costs compared to last year, new research reveals.
KPMG’s latest quarterly Consumer Pulse survey of 3,000 Brits shows 5% of consumers will spend more on this year’s summer holiday, while 20% say their holiday will cost around the same amount as last year.
The rest are looking to cut costs, including going for fewer nights, staying in a cheaper hotel, booking joint accommodation with family or friends or changing their board basis.
The Consumer Pulse survey shows the number of people feeling financially secure has risen this quarter by three percentage points to 58%. Half of people (51%) feel the economy is still worsening, however that figure is down from the 58% who said so in the last quarter.
Half (50%) also report being able to spend freely. But 14% say they are still having to actively cut their discretionary spend to pay for their essentials, while a further 3% of are incurring debt to do so.
Seven in 10 will go on holiday this summer, with 34% staying in the UK, 21% holidaying abroad and 15% having a holiday both in the UK and overseas.
Taking children on holiday during term-time is another tactic being deployed to lower the cost of holidaying, with 33% saying their child(ren) will miss some term-time in order to holiday this year, while 20% said their whole holiday would be taken during term-time.
Among consumers not taking a holiday this summer, a fifth had either already been on holiday or will go after summer is over, or both. Four in ten (41%) of those not taking a trip away this summer say it is due to them not being able to afford to, while a quarter (23%) don’t want to go on holiday this year.
KPMG Head of Consumer, Retail and Leisure Linda Ellett said: “Many households have prioritised discretionary spend for their holiday but, considering both household essential costs and the price of travel have increased, it is little surprise to see three quarters of holidaymakers are still taking a variety of steps to get the cost of their break down where they can.”
