Britons are increasingly choosing to stay in the UK as rising costs and travel fears disrupt holiday plans abroad / Image: Getty Images
More people in the UK are choosing to holiday within the country this year, as rising fuel prices and concerns about international travel disrupt plans for trips abroad, according to a report by the Financial Times.This shift is already becoming evident across the travel industry, with many holiday operators reporting a rise in domestic bookings over Easter, alongside strong demand for the May half-term and summer season.Research data supports this trend. Airbnb recorded a 15 per cent year-on-year increase in searches for stays in the UK during the bank holidays in May. Popular destinations include Northumberland, Pembrokeshire, Herefordshire, Gwynedd and Derbyshire, while Whitby in North Yorkshire has emerged as a top choice over Easter, alongside the Lake District and coastal areas of Dorset, Devon and Wales.Travel companies say the nature of bookings is also changing. Hannah Harrison, commercial director at Coaching Inn Group, told the Financial Times that demand has been increasing steadily since the spring. “We are seeing an increase in bookings, and people who book are spending more and staying longer,” she said.Holiday park operators also reported growth. Haven said bookings across its coastal sites were up 10 per cent compared to last year, while Sykes Holiday Cottages saw an 18 per cent increase in visits over Easter.
Butlin’s said its resorts are operating at capacity, with an increase in last-minute bookings.Industry leaders point out that uncertainty about global events is affecting decisions. “People don’t want to commit to the journey,” Matthew Price, chief executive of Awaze, told the Financial Times. Rising household costs are also shaping behaviour, he added, with travelers still looking for breaks but becoming more cautious about spending.Economic data reflects this shift. Barclays reported that UK consumer spending on travel fell by 3.3 per cent in March compared to a year ago, the first decline since 2021. Many travelers appear to be postponing trips or opting for more affordable local holidays.At the same time, demand for international travel weakened. Data from Trivago showed that searches by British travelers for destinations in the Middle East have fallen by 48 percent, while interest in Turkey and Cyprus has fallen by more than a third, the Financial Times reported.For UK hospitality businesses, the rise in the number of staycations provides some relief. Operators are dealing with rising costs, including energy bills, wage increases and higher business rates. Ian Dunstall, director of Upham Inns, told the Financial Times that strong domestic demand could help offset these pressures. “The strong demand for accommodation will be a good compensation for us,” he said.However, challenges remain. Industry estimates suggest the average hospitality property faces a 15 per cent increase in business rates this year, adding further pressure on the sector.High fuel prices are also a concern. Petrol prices have risen to around £1.58 a litre, the highest level since 2022, raising questions about how much consumers can continue to spend.Adam Charity, managing director at Coaching Inn Group, warned that financial pressures on families could limit the increase. “My growing concern is about the actual money available that people have to spend,” he told the Financial Times.While domestic tourism is witnessing renewed momentum, the sustainability of this trend will depend on how economic conditions evolve in the coming months.