Holidays remain a priority for Britons, but demand for budget-friendly trips is growing — ABTA report

According to the ABTA Holiday Habits 2026/27 report, 70% of adults in the UK plan to travel abroad in the next 12 months, despite the cost-of-living crisis and geopolitical upheavals. Only 7% are giving up holidays because of prices, but many are saving on accommodation and dining. City breaks have overtaken beach holidays for the first time, while Spain remains the most popular destination.

tafs uz editorial deskFirst published on tafs uz 14 October 2026 at 18:283 min readAI translation

The key facts

70% of adults in the UK plan to travel abroad in the next 12 months
Only 7% are giving up holidays due to the cost-of-living crisis; 21% are choosing cheaper accommodation
City breaks (53%) have overtaken beach holidays (49%) for the first time; Spain is the top destination (36%)

Holidays remain a priority, but holidaymakers are becoming more budget-conscious

It has been a difficult year for the travel industry: the conflict in the Middle East and unusually hot weather disrupted holidaymakers' plans, while the cost-of-living crisis forced people to tighten their belts. Nevertheless, according to the ABTA Holiday Habits 2026/27 report, based on a survey of more than 2,000 adults in the UK, 70% of adults intend to travel abroad in the next 12 months. Holidays remain a 'priority', but demand for more 'budget-friendly' trips is growing.

How Britons are saving on their holidays

Only 7% of respondents said they would not go on holiday at all next year because of the cost-of-living crisis. Meanwhile, 21% intend to choose cheaper accommodation, and 19% plan to eat out less often during their trips. Against the backdrop of the crisis, package holidays are growing in popularity: 48% of those who book them call them the best option in terms of value for money — up from 43% a year earlier.

Cruises are gaining popularity

The share of those who went on a cruise in 2026 remains stable (13%), but the number of people planning to do so next year is growing (17%). The reasons for choosing cruises are linked to the desire to save money: a good price (52% versus 49% a year earlier) and the ability to pay for everything upfront (40% versus 38%).

Words from the head of ABTA

'We still love our holidays, and the desire to travel remains strong; it seems this will continue despite the fact that for some people the opportunities to get away are limited by geopolitical and economic challenges,' said Mark Tanzer, chief executive of the travel association ABTA. According to him, in difficult times, booking with an expert who is an ABTA member gives travellers extra confidence, and in a market where value for money is paramount, such specialists help find a holiday within a budget.

City breaks have overtaken beach holidays

Over the past 12 months, city trips have become the most popular type of holiday among Britons — 53% (up from 48% a year earlier), while 49% of respondents chose a beach holiday. These are followed by trips to the countryside (23%), multi-destination trips (16%), adventure holidays (14%), cruises (13%), lake and mountain holidays (10%) and wellness tours (9%).

Popular destinations

Europe remains the most sought-after destination, and a number of countries are recording growth in tourist numbers as people avoid trips to the Middle East or flights through the region. Spain has been the most popular country for Britons over the past 12 months — 36% of survey participants visited it. Portugal overtook Germany and moved into sixth place (11%), behind France (24%), Italy (15%), the USA (14%) and Greece (12%). Turkey, Australia and Cyprus round out the top ten.