2026
9
UK Holiday Industry Review 2026
2026-02-12T09:45:34+00:00
REPD00809EC_1D50_4ECF_8809_EC1D50DECF82
2995
191156
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Report
en_GB
84% of UK consumers took a holiday in 2025, the highest level seen since before the pandemic. This milestone shows that travel has cemented itself as a non-negotiable spend for…
UK
Holidays and Vacations
simple

UK Holiday Industry Review 2026

"As travel demand stabilises, travel companies should focus on consumer segmentation and new areas of demand to drive continued growth in the market."

Sinead O'Connor, Travel Analyst

Sinead O'Connor, Travel Analyst

UK Holiday Industry Trends

  • 84% of UK consumers took a holiday in 2025, the highest level seen since before the pandemic. This milestone shows that travel has cemented itself as a non-negotiable spend for a wide range of UK households, even against a backdrop of sustained economic headwinds.
  • The cost-of-living crisis is sharply segmenting the market. Households with healthy finances are increasing holiday budgets and seeking premium experiences, while lower-income groups remain price-sensitive and are often squeezed out of international travel. As the early post-pandemic travel boom begins to level off, brands must double down on segmentation and data-driven targeting, especially as affluent and cautious audiences diverge in destination and booking lead times.
  • New white space in the market will provide the momentum for continued future growth, including interest in solo travel among seniors, extended holidays among younger demographics and holidays to undiscovered gems in the UK.

This Report Looks at the Following Areas:

  • The performance of domestic versus overseas holidays, and rising demand for short-haul and city breaks
  • Holiday spending, and how brands can leverage targeted offers and event-linked travel to trigger bookings and promote premiumisation
  • How far in advance people book accommodation and transport for their holiday, and the importance of segmented pricing tailored to consumer behaviour
  • Holiday companions, looking at opportunities in multigenerational and friend group travel
  • How younger consumers are looking to extend holiday time, and the importance of travel agent support for complex and niche holiday types

Report Scope

This report examines the habits and attitudes of British adults aged 16 or over towards holiday-taking in the UK and abroad. For the purposes of this report, Mintel defined a holiday as a stay of at least one night that is primarily for leisure purposes. Business trips and visiting friends or relatives are not included.

Market size and forecast data refer to holidays taken within Great Britain, in line with the Great Britain Tourism Survey (GBTS).

Questions Answered in this Report

  • What proportion of UK consumers took a holiday in 2025, and how does this compare to pre-pandemic levels?
  • How has the cost-of-living crisis influenced holiday spending habits and market segmentation among UK consumers?
  • What are the current and future trends in the value and volume of both domestic and overseas holidays in the UK?
  • Which types of holidays (e.g., city breaks, beach holidays, cruises) are most popular among UK consumers for the coming year?
  • What are UK consumers’ future intentions regarding domestic versus overseas travel, and how have these preferences shifted over time?
  • How far in advance are UK consumers booking accommodation and transport for their main holidays?
  • How does holiday spending vary according to household income in the UK?
  • What emerging opportunities exist in the UK holiday market, such as interest in city breaks, solo travel for seniors, or visiting undiscovered domestic locations?
  • How has the number of domestic and overseas holidays taken by UK residents changed from 2020 to 2025?
  • What demographic and social shifts are expected to shape the UK holiday market in the coming years, and how should travel brands adapt to these changes?

*Note, the questions above are not an exhaustive list. Please refer to the report’s table of contents for a comprehensive overview of the report’s contents.

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  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for the domestic and overseas holiday market
    • Opportunities
    • Shifting demographics spotlight opportunities among older consumers
    • Go niche to drive UK travel
    • Focus on opportunities in city breaks
  2. THE MARKET

    • Snapshot – market size and forecast
    • Market size – domestic holidays
    • Rising costs boost market value
    • Graph 1: value of domestic holidays taken by British residents, 2020-25
    • Staycations regain appeal
    • Graph 2: volume of domestic holidays taken by British residents, 2020-25
    • Market size – overseas holidays
    • Overseas trips grow strongly
    • Graph 3: volume of overseas holidays taken by UK residents, 2020-25
    • Rising overseas holiday costs drive up market value
    • Graph 4: value of overseas holidays taken by UK residents, 2020-25
    • Market forecast – domestic holidays
    • Domestic trips begin to recover
    • Graph 5: market volume size and forecast for the domestic tourism market, 2019-30
    • Value forecast to surpass pre-pandemic highs
    • Graph 6: market value size and forecast for the domestic tourism market, 2019-30
    • Market forecast – overseas holidays
    • Overseas volume maintains upwards trajectory
    • Graph 7: market volume size and forecast for the overseas holiday market, 2019-30
    • Value growth to stabilise
    • Graph 8: market value size and forecast for the overseas holiday market, 2019-30
    • Market factors
    • Cost-of-living is still top of mind for some, but financial confidence improves
    • Spending on holidays remains a top priority
    • Graph 9: spending levels in 2025 compared to 2024 in holidays category, by annual household income, 2025
    • Stronger winter for bookings in 2025
    • Graph 10: holiday bookings in the last three months, 2023-25
    • Visa regulations become a potential barrier to travel
    • Changing demographics reveal opportunities for third age travel
    • Graph 11: population change projections, by age group, 2025-35
  3. THE CONSUMER

    • Holiday destinations – visited
    • Economic caution fails to dampen enthusiasm for travel
    • Graph 12: destinations visited on holiday in the past 12 months (net), 2019-25
    • Short-haul finds a sweet spot
    • Graph 13: select overseas destinations visited on holiday in the past 12 months, 2020-25
    • Tap into silver solo travel
    • Graph 14: holiday companions on last holiday, 2025
    • Holiday destinations – future intentions
    • Future travel intentions level off after post-pandemic boom
    • Graph 15: intentions to visit destinations, 2020-25
    • Consumer destination preferences hold level
    • Graph 16: intentions to visit destinations, by country, 2020-25
    • The majority of top earners plan to travel overseas
    • Graph 17: intentions to visit select destinations, 2020-25
    • Leverage undiscovered UK destinations to drive domestic visits
    • Graph 18: “I would rather visit undiscovered gems than popular tourist destinations in the UK”, 2025
    • Holiday types – future intentions
    • Future opportunities lie in city breaks and cruises
    • Graph 19: future holidaying intentions, by holiday type, 2023-25
    • UK cruise and activity holidays show promise
    • Brits still love to fly and flop
    • Graph 20: future holidaying intentions abroad, by holiday type, 2023-25
    • Long-haul consumers care about the why
    • Spotlight on Japan
    • Holiday spending
    • Budgets remain static as consumers exercise caution
    • Tailor luxury experiences for the time-rich traveller
    • Graph 21: spending on holidays abroad, by age, 2025
    • Events can drive spend
    • Graph 22: “I have taken/plan to take a holiday for the purpose of attending a specific event¹”, by annual household income, 2025
    • Booking lead times
    • Booking lead times remain stable
    • Graph 23: accommodation booking lead times, 2024-25
    • Graph 24: transport booking lead times, 2024-25
    • Late winter to early spring is the peak booking period
    • Top spenders want to lock-in deals early
    • Graph 25: accommodation booking lead times, by spend on most expensive holiday, 2025
    • Holiday companions
    • Over half of holidaymakers travel with a partner
    • Family holidays remain the norm
    • Graph 26: holiday companions on last holiday – NET 2025
    • Friends go short haul
    • Holiday preferences and behaviours
    • Travel agents needed for complex and niche holiday types
    • Graph 27: “I would prefer to book with a travel agent than independently when planning a complex trip”, by future holiday type intentions, 2025
    • A new way to travel: extended holidays
    • AI tools support family trip planning
    • Graph 28: “I am more likely to use AI tools than a search engine to search for travel inspiration”, 2025
  4. INNOVATION AND MARKETING

    • Tripadvisor spotlights trending destinations for 2026
    • Regulators get tough on travel advertising
    • The World of Frozen to open at Disneyland Paris
    • Alexa, book me a holiday: Expedia comes to Alexa+
    • Lorraine Kelly’s new Channel 4 series puts the spotlight on Hurtigruten
    • Food vloggers can drive travel decisions
    • Centre Parcs’ new advert positions holidays as a chance to connect
  5. APPENDIX

    • Market definition
    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • Volume forecast and prediction intervals for total holidays
    • Value forecast and prediction intervals for total holidays
    • Volume forecast and prediction intervals for domestic holidays
    • Value forecast and prediction intervals for domestic holidays
    • Volume forecast and prediction intervals for overseas holidays
    • Value forecast and prediction intervals for overseas holidays
    • The consumer
    • Consumer research questions
    • Consumer research methodology
    • UK generation groups
    • Abbreviations

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