A fifth of Britons to step up holiday spending in 2024

A fifth (17.3%) of UK consumers plan to spend more on holidays this year, according to the latest NatWest Retail and Leisure report.

Research into the spending habits of 2,000 UK consumers shows households are ring-fencing their holiday spending despite their personal finances coming under pressure.

Nearly half of consumers (44.0%) expect weaker finances this year compared with 2023.

Despite this, of people who expect their finances to be weaker, a third (33.5%) plan to increase holiday spending this year compared with 2023, while just a quarter (27.1%) expect to reduce their holiday spend.

The report also found that consumers consider dynamic pricing to be most acceptable for hotels and airline fares.

David Scott, head of Consumer Industries at NatWest, said: “The travel industry will be heartened to hear that a fifth of consumers are planning to increase their holiday spending this year. This shows just how much Britons value travel and exploration, even at times of high financial pressure.

“With peak holiday booking season now upon us, it will be important for travel agents to understand changing shopping behaviours. Consumers consider dynamic pricing to be more acceptable for hotels and airlines than any other category, but the industry should still be cautious to maintain customer trust and loyalty.”

Richard Lim, Retail Economics chief executive, added: “Holidays have become a critical, almost non-negotiable area of spending for households. Most consumers are determined to get away this year, particularly as they look to ‘catch up’ on travel after holiday plans were derailed during the pandemic.

“Consumers are now unwilling to cut out holidays even as personal finances come under pressure from heightened interest rates. Instead, households are becoming savvy by embracing off-peak travel, turning to cheaper short-haul destinations and looking out for last-minute deals.”