Faith in agents on the rise as travel emerges from the pandemic

The report also found Brits are keen to travel abroad once again, with 45% of people travelling overseas in the 12 months to August 2022. This is equivalent to 70% of the people who took a foreign holiday in 2019, which Abta described as a "significant proportion" considering travel only reopened – in part – in March 2022.

Package holidays were the most popular way to travel, with almost two-thirds (63%) of respondents opting for this type of trip. Being the best value option for the price (34%), having everything taken care of (29%), and booking an all-inclusive holiday (28%) were the top reasons why people went with a package.

According to the report, the pandemic will lead to "longstanding changes" in how holidaymakers organise their travel, with many taking steps to bring extra reassurance to the process. These include taking out a good travel insurance policy (71%), paying closer attention to terms and conditions (63%), or making sure they book with an Abta member (61%).

Meanwhile, more than half (61%) of people plan to head abroad in the next 12 months, despite the increasing pressures on household finances.

Holidays remain a spending priority for consumers, despite the cost of living squeeze, with people more likely to cut back on other non-essential spending: eating out (55%), leisure activities (48%), and clothes, shoes and accessories (40%), were all things respondents said they’d cut back on before their holidays (35%).

The top three ways people plan to reduce their holiday costs are by taking fewer holidays (36%), opting for cheaper travel options (28%) and eating out less while away (23%), while only 14% of people say they won’t go away at all – which drops to just 4% of those who travelled in the last year.

Mark Tanzer, Abta chief executive, said: "The lifting of the UK’s travel rules this year unleashed a surge in overseas holidays, with almost twice as many people travelling abroad in the six months from March to August 2022 (38%), than in the previous six months (21%).

"Given how much these restrictions had dampened demand, it’s quite remarkable to see foreign holiday taking already reaching 70% of 2019 levels, which was in itself a bumper year for travel, in such a short space of time."

’Rare positive legacy of Covid’

Tanzer added the industry now faces an "uncertain year ahead", given the cost of living challenges, but Abta’s research suggests a continued increase in demand and bookings for foreign holidays.

"As our Holiday Habits 2022 report shows, people have found comfort in the security of booking a package holiday and accessing the expertise of travel professionals," he added.

"It remains to be seen whether this will continue as a firm trend in 2023 but, if it does, it may prove a rare positive legacy of the pandemic for Abta members."