The British holiday is not dying. It's evolving. According to the latest Holiday Habits 2026-27 report from ABTA, the UK travel association, a whopping 88% of UK adults took a holiday in the past year, matching pre-pandemic levels. Even with the Middle East conflict disrupting routes and fuel prices, the urge to get away remains stubbornly strong.
But here's the twist: travelers are changing how they holiday, not whether they holiday. The report, based on a survey of 2,082 UK adults, shows that people are becoming increasingly cost-conscious. Instead of staying home, they're booking cheaper accommodation, eating out less while away, and turning to package holidays for better value. Mark Tanzer, ABTA's chief executive, calls the shift "evolutionary rather than revolutionary," with most changes amounting to just a few percentage points.
So what are Brits actually doing differently? For starters, package holidays are making a serious comeback. 63% of those who traveled abroad booked one, up two percentage points from last year. Travel agents are also back in fashion, with bookings through professionals rising from 34% to 38%. The appeal is clear: ease of booking (60%), value for money, and the reassurance of having someone to turn to when things go wrong.
Cutting Back Elsewhere, Not on Travel
The report reveals a clear hierarchy of sacrifices. Only 7% said the cost of living would stop them from holidaying altogether. But 50% would cut back on eating out, 38% on leisure activities, and 37% on clothes and accessories. Compare that to just 23% who would reduce spending on UK holidays, and 32% on holidays abroad. Holidays are the last thing to go.
Once on holiday, the penny-pinching continues. 21% plan to book cheaper accommodation, and 19% will eat out less. This is where the cost of everyday life at home is making travelers rethink their priorities. They'd rather have a week in the sun than a monthly transport pass.
City Breaks Take the Lead
Europe remains the top destination, with 84% of overseas holidaymakers heading there, followed by North America (20%), Asia (15%), and Africa (13%). But the type of holiday is shifting. While beach holidays are still the favorite for families (57%), city breaks have taken the overall lead, rising six points to 53%, ahead of beach holidays at 49%. Wellness breaks are also gaining ground, reaching 9% this year.
This shift toward city breaks might be partly driven by the new Entry/Exit System (EES) in Europe, which has affected travel plans. But it also reflects a desire for culture, food, and experiences over simply lying on a beach. And with the pound stretching further in some European cities, it's a smart move for budget-conscious travelers.
Cruises Are Riding the Wave
Cruises remain stable at 13% of holidays taken, but interest in taking one over the coming year has jumped to 17%. The reasons echo the package holiday appeal: value for money (52%) and the ability to pay essential costs upfront, avoiding unpleasant surprises (40%). Cruises are also attracting more families, with 23% of those with children under five having taken one, up 3%.
This trend is worth watching. As airports continue to break records despite global chaos, cruises offer a more predictable, all-inclusive alternative. And with new ships and itineraries launching all the time, it's no wonder Brits are setting sail.
So what's the takeaway? The British love affair with holidays is far from over. It's just getting smarter. Travelers are prioritizing trips over dining out, choosing packages for security, and exploring city breaks and cruises for better value. As Tanzer puts it, "Demand has held up well despite a range of challenges this year, and that looks set to continue."
For travelers, the message is clear: you don't have to give up your holiday. Just be clever about how you plan it. Whether it's booking a package, choosing a city break, or considering a cruise, there are ways to make your travel budget go further. And with 32% still planning to spend more on holidays over the coming year, the wanderlust shows no signs of slowing down.
