Brits Ready to Amplify Holiday Spending in 2024, Despite Economic Hurdles

Brits Won’t Pause for the Price Tag – 1 in 5 Plan to Spend More on Holidays

NatWest Retail & Leisure’s latest study of 2,000 UK consumers shows that even when wallets feel a little lighter, the “holiday” bucket is still considered essential, not optional.

Key Takeaways (in plain English)

17.3 % of folks are gunning to shell out more for trips than last year.
Almost half (44 %) expect a dent in their overall finances for 2024 compared to 2023.
Still, 86.4 % of people plan to go on holiday this year – they see vacation as a must.
Of those feeling the squeeze, 33.5 % are looking to boost holiday spend, while only 27.1 % intend to cut back.
Gen Z and Millennials are the most likely to trim trips, opting for cheaper alternatives: fewer days, home‑cooked meals, and short‑haul flights.
Dynamic pricing wins the hearts of travelers: they’re fine with hotels and airlines charging more when the demand justifies it.

Why the Trend Matters for the Travel Biz

David Scott, NatWest’s Chief of Consumer Industries, highlights that a rise in holiday spending shows how British people value travel, even when the bank account is a bit bumpy. He urges travel agents to heed new shopping habits: consumers are more accepting of rose‑tinted prices for hotels and flights but still expect transparency and loyalty.

With inflation easing and 2024 slated to see even lower rates, the forecast‑friendly climate is expected to give Brits more pockets to splash on adventures.

Retail Economics CEO Richard Lim Weighs In

Lim points out that holidays have become a non‑negotiable part of the household budget. Amid the lingering effects of the pandemic and high interest rates, families are making savvy choices: off‑peak travel, cheaper short‑haul destinations, and last‑minute deals.

But budgets will still get tight elsewhere – home expenses and luxuries get the short end of the stick when consumers are looking after essentials and hedging against rising borrowing costs.