Is the cost-of-living crisis changing the way we holiday?

Following years of restrictions, people want to make up for lost time and reschedule trips they may have had to cancel. According to Google search data, the number of people looking for ‘cheap holidays’ online has soared, especially among those planning to get away in 2023.               

New research from World Travel Market London (WTM) shows that 64 per cent of people have already booked or planned a holiday for 2023 and just 16 per cent of people surveyed are scrapping their plans to go abroad completely.

Although people are still choosing to go on holiday, the kind of break they are booking has changed. Now, it's all about finding the best deal and scaling back on luxuries.

Recent WTM research showed that one in five of those surveyed had decided to ‘trade down’ by staying at cheaper hotels and flying with budget airlines. With bills higher than ever and a looming recession it’s not surprising that people are looking to make the most of their money when booking a break.

And what luxuries are holidaymakers most willing to give up to reduce costs? Almost 40 per cent of people would sacrifice 5* hotels, 33 per cent would give up more legroom and 32 per cent would get rid of extra luggage allowance, according to WTM data.

However, there are some things we are more reluctant to sacrifice. Guaranteed good weather and a location close to the main sites are still things people are keen to keep as part of their annual break.

In the face of an ever-rising cost of living, it seems unusual that people are still prioritising holidays, so what’s the impetus for the demand?

According to Euronews, the Association of British Travel Agents said: “Over the years, customers have repeatedly told us, that holidays are one of the last things they will cut back on when looking to ease financial pressures on hard pressed budgets.” 

World Travel Market research seems to back this, as of those that are already planning a break, a majority said they were hoping to go away twice in 2023. The top two types of travel were classic beach holidays and family trips.

Crucially, World Travel Market data also shows that nearly half of the people that have booked a place in the sun did so, because they want to have something to look forward to.