Over 2024 UK consumers are set to spend £64.20bn on travel and holidays despite the ongoing cost-of-living crisis.
New research by VoucherCodes.co.uk reveals that spending on travel is forecast to rise by 6.9% versus 2023, which saw £60.06bn spent by consumers. This means that each person in the UK is set to spend £1,140 on average, and each household is set to spend £2,239 on holidays.
However, whilst 2024 is set to see travel spending grow year-on-year, growth has slowed significantly since the end of the pandemic. Between 2022 and 2023 travel spending rose by 18.3%, but between 2023 and 2024 YoY growth has dropped 11.4%.
This drop in growth is caused by Brits trying to cut back on travel spending over the next twelve months, with over one-third saying they plan to spend less (34.5%). In comparison, just 16.5% say they plan to spend more and 49% say they will spend the same.
Looking at when travel spending will take place, the data shows most consumers will be spending over the summer months, with June to September accounting for almost half of all travel spend (46.1%), in line with the European summer and school holidays.
However, this year one-fifth of Brits say they plan to book their holidays early to get the best savings (20%). A further 17% of consumers will save money by choosing their travel plans based on where and when they can get the best deals.
Despite rising costs, just 1.9% of consumers say they won’t be booking a holiday this year because of the cost of living, suggesting that Brits are prioritising their travel plans above other purchases.
Michael Brandy, Senior Commercial Director at VoucherCodes.co.uk, comments: “Although the cost of living crisis continues to eat away at consumer
budgets, the travel sector is set to hold up well over the next twelve months. Whilst many consumers will be trying to cut spending, inflation will push sales figures up resulting in considerable growth in the sector.
“With many consumers having to be careful about where they spend their money, it seems many are choosing to prioritise holidays as a way to relax and spend time with friends and family. However, with budgets stretched offering value, deals and discounts will be more important than ever if travel companies want to convince consumers to part with their hard-earned cash.”