Holidays remain a ‘spending priority’, but ‘cost-conscious’ travel is on the rise, report reveals

The holiday industry continues to prioritize vacations despite the challenges of a cost-of-living crisis and geopolitical conflicts. According to ABTA's 2026/27 Holiday Habits report, 70% of UK adults plan to travel abroad within the next year. While 7% of respondents said that the cost of living crisis would prevent them from going on holiday, 21% indicated they would choose cheaper accommodation and 19% would eat out less during their trip.

Package holidays, seen as a cost-effective option, are particularly popular, with 48% of people booking them for their value for money. This is an increase from 43% last year. Cruises, which have remained stable at 13% of respondents, are on the rise for 2026, with 17% planning to take one, driven by the appeal of value for money (52%) and the ability to pay up front (40%).

Mark Tanzer, ABTA's chief executive, noted that despite the ease of travel, the desire to go on holiday remains strong, even in the face of challenges. ABTA members provide holidaymakers with added confidence, particularly in a market where value for money is key. City breaks were the most popular holiday type in the last year, with 53% of respondents opting for one, up from 48% the previous year.

Beach breaks followed at 49%, while countryside breaks were the third most popular (23%), followed by multi-destination trips (16%), adventure holidays (14%), cruises (13%), lake and mountain retreats (10%), and wellness getaways (9%).

Europe remains the top destination choice, with Spain being the most visited country, visited by 36% of respondents. Portugal overtook Germany as the sixth most visited destination, with 11% having visited. The top 10 destinations also included Türkiye, Australia, and Cyprus.