Industry Report: Cost-of-living woes hit holiday plans

Industry Report: Cost-of-living woes hit holiday plans

The cost-of-living crisis is by far the single most issue that is likely to impact 2023 holiday plans according to the latest Industry Report by World Travel Market London.

When asked the question: What is most likely to have the biggest impact on your 2023 holiday plans?, two-thirds of adults (66%) said rising cost of living prices was likely to have a serious impact, with one in four (27%) saying the price of petrol was a major concern.

Rising bills have far more of an impact on holiday plans than worries about Covid-19 rules or infection rates (20%); other global health emergencies (11%); the war in Ukraine (14%); airport chaos (16%); Brexit (12%) or enhanced UK/EU border checks (13%). 

Climate change is bottom of the list, cited by 9.7% of respondents.

Women are far more concerned about the effect of the cost of living on travel plans next year, with 73% saying it will affect holiday spend, compared with 58% of men.

The youngest and the eldest age groups are less concerned than anyone else, with 51% of 18-24s and 54% of over 65s saying the cost-of-living crisis will impact holiday choice.

Cost-of-living concerns on holiday plans rise to at least 70% for the rest of the population.

The 35-44 age group and 45-54s are the most likely to be affected, with 73% and 72% respectively saying they are concerned about the cost of living on their travel plans.

Regionally, people in London and the East of England are the least concerned about how growing cost of living will affect their holiday decisions, with 63% and 60% respectively saying they are concerned.

By contrast, people in the South East (70%), East Midlands (71%) and Northern Ireland 70% are the most concerned. 

Over half of holidaymakers (56%) say the cost-of-living crisis has made them more aware of currency exchange rates when it comes to choosing a holiday, with 35% saying exchange rates have made no difference. 

When asked about the budget for their 2022 holiday compared to their 2019 holiday, respondents were almost equally split, with 31% saying they spent less; 34% spending more and 35% spending about the same.

There’s a big difference in age groups, with only 14% of over 65s and just 24% of 55-64s spending less on their 2022 holiday. 

Holidaymakers in the 25-44 age groups all were above the national average in terms of spending less on their holiday, with 40% of 25-34s and 35% of 35-54s saying they spent less for 2022.

Juliette Losardo, Exhibition Director at World Travel Market London, said:
“Our research shows that the squeeze on household budget is likely to have an effect on holiday spend – but it’s pleasing to see that people are still planning to go away and enjoy their much-needed holidays in 2023.”

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