Staycations still in favour with UK holidaymakers - spend predicted to hit £25.9bn

This year, there are other factors too which may affect consumer choices; the summer of 2023 is set against the backdrop of the cost of living crisis and rising overseas holiday prices, with a weaker pound adding to the cost of international travel.

Further, the extreme weather in Europe throughout July will have influenced choices, whilst many destinations have sadly experienced conditions which are unsafe for holidaymakers.

As the summer holidays come into focus for families, new research¹ from American Express has found that UK adults are set to spend £875 on the average staycation* in 2023.

In total, spend on holidaying at home is predicted to hit £25.9bn in 2023² , with over a quarter of Brits (27%) planning to spend more on staycations compared to last year.

Holidaymakers are looking to explore stunning coastlines, countryside retreats and vibrant cities on their doorstep. Last year, UK adults took just one domestic holiday, on average. This year, of those who are holidaying in the UK, the average number of trips is predicted to be two.

Despite our unpredictable weather, the UK  is also closely associated with many positive attributes; a recent Mintel report showed that  more than 50% of consumers deem it to be family friendly, relaxing, as well as having a good range of transport options. Judged on these factors, the UK outperforms overseas destinations on family-friendliness and accessibility.

The research shows that consumers consider that domestic holidays offer a more budget-friendly option whilst camping and caravan holidays are a favourite amongst families with young children.

In addition, COVID has impacted upon consumer choices:

• 22% of family holidaymakers have discovered a new place in the UK for a family holiday as a result of COVID-19
• 26% of family holidaymakers have a tighter holiday budget than before as a result of COVID-19

Post-pandemic, many holidaymakers opted to stay in the UK for both long and short breaks and there can be no doubt that the pandemic has fostered a greater appreciation of the UK and its holiday rental options.

Holiday rental properties continue to show the highest growth potential of any accommodation type. The segment is benefiting from a larger pool of new customers as a result of holidaymakers who wanted more personal space during the pandemic and continue to do so, while its affordable image and self-catering facilities help it to appeal amid the rising cost of living.

The Mintel research showed that:

• 49% of UK adults are interested in using a holiday rental property in the future
• 61% of holidaymakers are interested in booking a holiday rental holiday in the UK
• 21% of holidaymakers have booked a rental property using Airbnb
• 53% of holidaymakers specifically search for rental properties that are located near a beach

Inevitably, local supermarkets and hospitality venues will benefit from the self-catering staycationers.

Over a third (35%) of holidaymakers reported that to help their holiday spend go further this summer they will get back to basics and shop in local supermarkets, shops and markets to find items to create a picnic to eat during the day.

Research carried out by the Post Office in 2022 also revealed some interesting trends which are positives for cash in society:

In an increasingly digital world, cash is still king for British staycationers. The research showed that Brits carry twice as much cash with them whilst on holiday in the UK compared to their day to day lives, with over £50 on average lining the pockets of Brits when on holiday in the UK.

What’s more, the survey found that only 14% of Brits want to live in a cashless society and that 40% of those carrying cash do so as it helps them to budget and keep track of spending.

The new research also revealed the situations where holidaying Brits are most likely to use cash. Paying for ice cream scooped first place as the most common cash-spending occasion with parking and tipping at restaurants also shown to be common reasons for going card-less.

Coming right up to date in 2023, a report published by Travelodge in June 2023 reveals that “We're all going on a summer holiday” despite the current ‘cost of the living crisis’.

The research finds that the majority (63%) of Britons have booked a summer holiday this year - a 50% increase from the number of Britons (42%) that went away in the summer of 2022.

And nearly three quarters (72%) of these holidaymakers have opted to holiday on British shores this summer and discover what makes Great Britain so Great!

“Our latest research shows that Britons are prioritising and taking a well-deserved staycation this summer, despite the rising cost of living; as a break has become one of life’s necessities. Interestingly in these challenging times, our bookings data shows Britons are getting creative and resourceful with their budget and holiday planning. New travel trends we are seeing include Britons splitting their holidays into lots of shorter breaks and also planning multi-location holidays. This enables them to combine two different experiences within one holiday and obtain a better return on their money and time. Just a weekend break can make a huge difference to your wellbeing”.

Shakila Ahmed - Travelodge Spokesperson

Again, that bodes well for cash spent whilst holidaymakers are out and about.

Important then, for businesses set to benefit from the staycation trend that robust, secure cash management procedures are in place.

¹Research was conducted by Opinium. Sample was of 2,000 UK adults (18+). Results were weighted to be nationally representative. Fieldwork took place 14-16 June 2023.
²In a nationally representative survey of 2000 UK adults, 1121 said they have or are planning to take a holiday in the UK this year. 1121 / 2000 * 52890000 = 29,644,845 or 29.6 million. On average UK holidaymakers are spending £875 on staycations this year. 29,644,845 * £875 = £25,939,239,375 or £25.9 billion