Demand for holidays abroad in the UK is close to pre-pandemic levels according to tour operators, travel agents and airlines who have reported a roller coaster wave of early bookings.
However, if bookings are surging, it appears that the cost of a holiday is also rising, often at levels above inflation, according to Post Office Travel Money - Holiday Money Report 2023.
Consumer research conducted by Post Office partner First Rate Exchange Services backs up the reported boom in holiday sales during early 2023.
Despite the growing cost of living pressures, millions of Britons regard holidays as an important part of their lifestyle and they will prioritise trips away over almost all else in 2023. Furthermore, only 27 per cent of those surveyed expect to cut back on holiday spending this year.
However, the research findings also reflect the difficulty many households expect to face in making their holiday plans a reality. This is especially the case for families who are most likely to have to make financial sacrifices elsewhere to ensure they can go away.
63 per cent of people – rising to almost three-quarters of families – say they will have to start saving earlier to afford an overseas holiday. Almost as many, 57 per cent overall and more than two-thirds of families, will make cuts elsewhere in their spending in order to afford a trip abroad.
Despite this, over half (52 per cent) of holidaymakers regard holidays abroad as their most important priority after food, energy and other essential bills, and more important than spending on a car or home improvements. In fact, over a third (35 per cent) are planning to delay big investments like this to fund their holiday.
43 per cent of those surveyed, rising to half of families, plan to travel abroad because ‘it’s cheaper than holidays in the UK’. Spain is regarded as the best value destination by 55 per cent of people, with Greece (24 per cent) and Turkey (23 per cent) also scoring well. All Inclusive holidays are seen as one way to rein in costs, particularly for families.
55 per cent of those with young children will take an all inclusive trip to control holiday costs.
Leading online travel agent Travel Republic, which hasprovided local destination prices for the Worldwide Holiday Costs Barometer for the first time, confirms that it has seen a marked increase in all inclusive holiday booking this year as part of a wider growth in demand overall.
Antonio Fellino, Managing Director, Travel Republic, said: “The demand for holidays has been steadily growing over the last 12 months to a point where we are now back at pre-pandemic levels. While the cost of living continues to be a key factor in how much consumers are willing to spend, it’s clear that Britons are reluctant to give up their holidays.
Instead, they’re considering their options more carefully and really looking hard at how they get great value from the package they book and the destination they’re travelling to. So it’s not surprising to see places like Egypt and Turkey seeing a significant increase in popularity this year because of the all-round amazing value they offer.”