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Brits cut back on holidays as cost-of-living bites

Savers Cutback holidays.jpg

  • Holidaymakers set to cut back on the number of trips they take in 2023 in comparison to 2022, finds Paragon Bank research
  • The number of those holidaying in the UK set to increase, with fewer planning to take long-haul flights
  • Holiday spending also due to fall, but saving for holidays remaining a priority for majority

Brits are set to scale back on their holidays this year as they adapt to the higher cost of living, new Paragon Bank research has found.

Facing continued high energy and food prices, consumers plan to take fewer trips, spend less, and are increasingly staying in the UK rather than take long-haul flights.

Typically, 33% of people take two holidays a year, with 24% taking one annual trip and 17% taking three. This year, the proportion taking two holidays fell to 26%, with those taking three reducing to 15%. Those taking one holiday increased to 26%, with people not going away rising from 11% last year to 18% in 2023.

The change in holiday habits is also seen in where people plan to visit. In 2022 19% took long-haul flights, but 2023 will instead see the number fall to 14%.

The fall in those planning to take long flights is matched by the increase in those who will be holidaying in the UK - with an increase from 23% in 2022 to 28% in 2023.

The number of trips tourists will make, and where they are going to, are not the only changes travellers are making to – with the amount they spend while on holiday set to fall as well.

In 2022, 7% of tourists spent £1,000 while on their main holiday but 4% are expecting to do so in 2023, while those who previously spent £401-500 will fall from 12% to 10%. The number of holidaymakers spending less than £300 will increase from 16% to 18%.

The research of over 2,000 savers though found that savings for holidays remains the top priority for most – with 60% wishing they had more money to spend on them, compared with 23% saving to put money towards food shopping and 19% saying they wish to spend more on their family and friends.

Commenting on the research findings Derek Sprawling, Paragon’s Savings Director, said: “After years of challenges, disruption, and hard-work savers deserve a well-earned break – and it is time that their money starts working for them to help pay for their trips away.

“By looking for the best rates and products available for your circumstances, holidaymakers could start to build their savings pot to help retain their previous holiday plans or have more spending money when they’re away.”

He continued: “It is never too early to start putting money aside, make your savings work for you and to start planning for 2024. By taking positive steps and taking advantage of the rates currently available to them, savers can start to look forward to the holidays they deserve.”



For further information contact:

Tom Frew
Media Relations Manager
Paragon
E: [email protected]
www.paragonbank.co.uk 


Notes to editors:

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.