Maybe the sunnier weather will prove this survey wrong? Depends on how dry things get in July and August of course. But for now, Allianz say that cash-strapped consumers are cutting back on UK stays.
Three quarters (77%) of Brits are planning a summer holiday this year, down from 85% who did so last year. The drop is driven by a decrease in domestic travel, with the number of Brits opting for UK holidays falling from 57% last year to just 45% this year—a staggering 21% reduction. Conversely, nearly half (49%) of Britons plan to travel abroad, unchanged from the previous year.
The figures are revealed in new research by Allianz Partners which suggests that tight household finances are a primary concern for those not planning to travel, with almost half (46%) citing a lack of funds as their reason for staying home. Additionally, 22% feel that that travelling has become too expensive.
For those who are traveling, the average household expenditure on summer holidays is expected to reach £2,348, an increase of £425 compared to last year.
Europe remains the most popular destination (37% of all adults) followed by North America (8%) and Asia (6%).
Climate and Geopolitical Concerns
While costs dominate travelers’ concerns, environmental and geopolitical issues are increasingly influencing travel decisions. Nearly half of British travelers (46%) express worries about extreme weather conditions, such as heatwaves, floods and wildfires. Additionally, 59% (+7 percentage points vs 2024) are now factoring environmental considerations when choosing a destination.
Beyond environmental concerns, geopolitical stability also weighs heavily on travelers’ minds, with 45% of travelers expressing concern over global tensions. Stricter bolder controls have prompted 47% of UK holidaymakers to reconsider their destination, while 44% are apprehensive about safety and security risks related to crime and unrest.
Sacrifices Made for Summer Holidays
Despite continued financial worries, the summer holiday remains sacred for most Brits, who cut back on other spending so they can afford to travel. Almost six in 10 (58%) plan to reduce leisure-related spending (e.g., restaurants, cultural activities, gym membership) to save for their holiday, while 54% will delay major purchases prioritise travel.
A Shift Toward Meaningful and Sustainable Experiences
British holidaymakers are increasingly seeking authentic and experience-driven holidays. Concerns about overtourism are prompting 20% of those not traveling to cite it as a reason for staying home, while many are intentionally seeking less-frequented, environmentally conscious destinations. A remarkable 72% believe it’s important their spending benefits the local communities they visit.
Attitudes Toward Travel Insurance
The importance of travel insurance is underscored by the survey findings, with 35% of holidaymakers opting for single trip cover, 33% for annual multi-trip cover, and 16% relying on coverage included with their bank accounts or credit cards. The main driver for purchasing travel insurance is to cover medical problems, with 59% seeking protection for medical assistance and repatriation.
Commenting on the survey, Andrew Tolman, Head of Travel at Allianz Partners UK&I, said:
“It’s evident that while Brits still prioritise summer holidays, the rising costs are impacting their choices, particularly for domestic trips. With increasing concerns over extreme weather and geopolitical stability, travellers are turning to insurance to safeguard against unexpected medical expenses and emergencies abroad.
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