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UK travel industry warns holiday demand may have peaked

ABTA data showed the share of British holidaymakers visiting Spain rose to 36% this year, up four percentage points.

Reported · Written up by our desk · Sectors

The UK travel industry warned that holiday demand may have peaked as the cost of living squeeze leads fewer people to set aside money for trips abroad next year, according to an annual industry report cited by The Guardian Business.

Even with disruptions including war, wildfires, and EES border checks, the report said the number of Britons taking holidays climbed back to pre-pandemic levels this year, but rising costs could cap further growth.

The report also found that Spain remained the most popular destination, with the share of British holidaymakers saying they visited Spain rising four percentage points to 36% this year.

It added that booking patterns have shifted, with more late bookings and shorter city breaks featuring through 2026, while travel confidence fell slightly year on year before rebounding as fears over jet travel moderated, according to The Guardian Business.

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