Some 30pc planning to book 2-4 weeks out, says ABTA

Holidays remain a priority, despite the conflict in the Middle East and continued pressure on household finances – but people are waiting to book closer to departure, new research from ABTA reveals.

ABTA’s consumer sentiment study found that almost two-thirds (64%) of people plan to travel abroad over the next 12 months, and holidays remain a spending priority, with 34% saying they expect to spend more on holidays in the coming year.

When asked where they would cut spending to cope with the rising cost of living, respondents said they would reduce expenditure on eating out (55%), leisure activities (45%) and clothing (41%) before sacrificing holidays. Just 33% said they would cut back on overseas trips, while 23% would reduce spending on UK breaks.

Despite the strong desire to travel, ABTA said many consumers are delaying bookings, creating a late-booking trend this summer.

The research found that 30% of people planning a summer holiday intend to book just two to four weeks before departure, while a further 10% expect to book less than a fortnight before travelling.

Among those planning a trip in the next year, 38% said they had delayed making a booking. The biggest reasons included waiting to see whether flight prices would fall (43%), concerns about the conflict in the Middle East (36%), hopes that the cost-of-living situation would improve (33%) and uncertainty over holiday prices (31%).

The cost-of-living crisis remains the biggest deterrent for many consumers, with 31% of respondents saying rising household costs were putting them off booking a holiday altogether.

The findings also suggest travellers are becoming more cautious with their budgets. One in five (20%) said they expect to spend less on holidays over the next 12 months, compared with 15% in ABTA’s previous survey.

More than half (54%) said they were reducing spending because of increased household bills, up from 47% in the earlier research.

ABTA said the findings highlight not only the resilience of the travel sector but also its importance to the wider economy. The association estimates the outbound travel industry contributes £52 billion annually to the UK economy and supports more than 818,000 jobs.

The research was released ahead of ABTA’s Travel Matters conference in Westminster this morning (9 June), where Government representatives, industry leaders and travel businesses are meeting to discuss the challenges facing the sector and the support needed from policymakers.

ABTA Chief Executive Mark Tanzer said: “Global and economic uncertainty pose challenges for any business, with travel often feeling them more acutely. The conflict in the Middle East has not only had an operational impact, it has also affected consumer confidence, both when it comes to travel and confidence in their finances.

“However, our research shows that the appetite to travel remains, and we continue to be hopeful for a strong summer season. There is plenty of competition in the market, which will ensure customers continue to get good value for their money.

“Clearly it is not an easy time for travel. Not only do our members have to contend with the impact of the conflict in the Middle East and its uncertainty, but also rising costs such as increased business rates and Air Passenger Duty.

“Travel is a huge contributor to the UK economy and provides employment for hundreds of thousands of people. At times like these, collaboration and an open dialogue with government is key to understanding the pressures the industry is under and identifying solutions that will help businesses, including travel agents and tour operators.”