Confidence in travel has wavered amid a challenging environment for the industry, including the EES rollout, conflict in the Middle East and escalating fuel prices.
But while ABTA’s travel confidence index reported that confidence dropped by three points compared to last year to plus 50, it is still the second highest score since the research began.
This year, 88% of UK travellers went on at least one holiday, which was ‘nearly back to pre–pandemic levels’, Director of Communications Graeme Buck told the ABTA Convention in Madeira.
A growing number booked a holiday with a travel professional (an agent or operator) in the past 12 months, increasing to 38% from 34%.
It rose the most among 18–24 year-olds, up six percentage points to 35%, with Head of Media and Communications Emma Brennan attributing the trend to parents recommending travel professionals to their children, as well as younger generations’ desire for the ‘little luxury’ of an arranged holiday.
“We get asked on a weekly basis if booking through a travel professional is more expensive, but travellers see them as a way to get good value holidays,” she added.
Across all age groups, value for money was a growing reason why travellers booked with a travel professional, increasing by five percentage points to 44% in the past year.
However, ease of booking was the primary motivation for booking with a travel professional at 60%, up from 56% last year.
Travellers are also becoming increasingly cost–conscious compared to the previous 12 months, ABTA found, with 15% saying they would spend less on holidays next year, with 52% of those saying the main reason was the increased cost of living, up from 47%.
Some 32% said they would spend more on holidays next year, down from 34%.
Holidays remain a priority, according to the report, but the data suggests people are being more cautious. “While holidays are still far down the list of what people will cut back on, the gap between holidays and other areas of spend has tightened,” said Graeme.
For the first time, the survey differentiated between cutting back spending on UK holidays (23% and less than any other activity), with more people likely to cut back on holidays abroad (32%).
While city breaks were the most popular type of holiday in the past 12 months, cruises increased by one percentage point to 13%, with value for money cited as one of the primary motivators at 52%, up from 49%.
The same proportion of 18–24 year-olds and 35–44 year-olds took a cruise last year at 14%, which is an increase of four percentage points and three percentage points respectively, proving its appeal to ‘all age groups’, Graeme said.
Young families – those with children under the age of five – were also a core market for cruises, with 23% taking a cruise in the past year, up three percentage points.
Some 17% intend to take a cruse next year, with Graeme highlighting the sector’s potential. “It remains strong and stable and is holding up well,” he added.
ABTA’s data also found an increased demand for package holidays, with 63% of people who travelled overseas in the past 12 months having booked a package, up two percentage points compared to the previous year.
Value for money was the primary reason for booking a package holiday at 48%, while families were the core market, with 78% of young families booking a package and 75% of families with older children.
This year, 36% of UK travellers visited Spain, making it the most popular destination, followed by France and Italy at 24% and 15% respectively.
Graeme noted demand cooled for Turkiye, with 9% of UK travellers visiting there, the same as last year, which he said was due to the geopolitical situation in the Middle East, with travellers wanting to ‘wait and see’ before booking.
He also said there was a slight uplift in travellers visiting Egypt, from 2% to 3%, due to ‘good deals and good availability’.
Elsewhere, travel intentions for the next 12 months overall remain steady, with 70% of adults planning to travel abroad and 56% planning a UK holiday.
Looking ahead, Spain remains the top destination for UK travellers, with 26% considering a visit in the next 12 months, followed by France and Italy, both at 14%.
Chief Executive Mark Tanzer said: “We continue to love our holidays and the desire to travel remains strong; this looks set to continue despite the ease of getting away, for some, being affected by geopolitical and economic challenges.
“When times are uncertain, booking with an expert ABTA member gives holidaymakers added confidence. And, in a ‘value for money’ market, they are excellently placed to find people a fantastic holiday at a budget that works for them.”
