The past year has been turbulent for the travel industry, with conflict in the Middle East and record heatwaves disrupting plans across the continent. Yet the appetite for holidays remains remarkably resilient. According to ABTA's Holiday Habits report for 2026/27, 70% of UK adults intend to travel abroad in the next 12 months, underscoring that vacations are still a spending priority even as households tighten their budgets.
The survey, based on responses from more than 2,000 UK adults, reveals a clear shift toward cost-conscious travel. Only 7% say the cost-of-living crisis will stop them from taking a holiday altogether. Instead, travellers are adapting: 21% plan to book cheaper accommodation, and 19% will eat out less while away. This pragmatic approach is reshaping how holidays are planned and booked.
Package deals and cruises gain ground
Package holidays are proving particularly popular in this climate. Nearly half (48%) of those booking one say it offers the best value for money, up from 43% last year. Cruises are also seeing a rise in interest, with 17% planning to take one next year, compared with 13% who did so in 2026. The reasons mirror the cost-conscious trend: 52% cite value for money (up from 49%), and 40% appreciate being able to pay for everything upfront (up from 38%).
Mark Tanzer, chief executive of ABTA – The Travel Association, commented: “We continue to love our holidays and the desire to travel remains strong; this looks set to continue despite the ease of getting away, for some, being affected by geopolitical and economic challenges.” He added that in uncertain times, booking with an ABTA member gives holidaymakers added confidence, and that these experts are well placed to find “a fantastic holiday at a budget that works for them.”
The report also highlights a shift in destination preferences. City breaks have overtaken beach holidays as the most popular type of trip, with 53% of respondents having taken one in the past year, up from 48%. Beach breaks follow at 49%, with countryside escapes (23%), multi-destination trips (16%), adventure holidays (14%), cruises (13%), lake and mountain getaways (10%), and wellness retreats (9%) rounding out the list.
Europe remains the dominant choice for UK travellers, though some destinations are benefiting from travellers avoiding the Middle East. Spain tops the list, visited by 36% of respondents, followed by France (24%), Italy (15%), the US (14%), and Greece (12%). Portugal has overtaken Germany as the sixth most visited destination, with 11% having travelled there. Türkiye, Australia, and Cyprus complete the top ten.
The findings come as the travel industry adapts to a more value-driven consumer. For those seeking inspiration, Europe's best longevity holidays highlight destinations like Valletta, Paxos, and Eger. Meanwhile, Expedia's 2027 travel trends point to a growing interest in gothic hotels and playful escapes, suggesting that even cost-conscious travellers are looking for unique experiences.
Geopolitical instability continues to cast a shadow over travel planning. The reported attacks in the Strait of Hormuz have stoked supply fears, potentially affecting fuel prices and, by extension, travel costs. Yet the ABTA data suggests that, for most, the holiday is non-negotiable—only the way it is taken is changing.
As the industry looks ahead, the message is clear: holidays remain a priority, but the way Europeans travel is evolving. Cheaper stays, fewer restaurant meals, and a preference for all-inclusive packages are the new norms, reflecting a broader economic reality that is likely to persist.
