Consumer sentiment on the up, but holiday cost remains an issue – PwC
Consumers feel better about their finances and are keen to book holidays, but many are waiting for late sales, new PwC research has confirmed.
Nearly 70% will spend the same or more on holidays this year than they did in 2023, while only 18% plan to reduce spending on travel, the poll of 2,000 UK consumers found. The research was conducted in March for TTG’s Agenda 2024 Summer Breakfast.
The result was similar to the June 2023 survey, illustrating continued high demand for holidays. A quarter of those surveyed said travel was their top priority. However, when asked what the biggest barriers were, the greatest number – 32% – said cost.
Just how late will consumers wait? Read the report now
Concern over household finances was named as the next biggest issue by 22% of respondents. Airport delays also registered with 10% of consumers, taking third place, with same number worried about currency.
Eleanor Scott, partner, Strategy&, part of the PwC network, said that while affordability was the chief issue, disruption was a key factor. “People are worried about getting caught up, and there is a fear of travelling safely with things like wildfires and Covid," she said.
PwC found 25% of consumers had booked early, but Scott added: “We have quite a lot of people expecting to book in July or August; it’s mainly affordability-related. They are waiting to save up and see what they can afford hoping there is going to be some last-minute lates.”
Another 10% were waiting to check the weather in destination, with the same proportion naming the general election or Euro 2024 as factors for delaying bookings.
On the economy, Scott predicted interest rates had peaked and would begin to fall “towards the end of this year”, with inflation also falling. “Prices are not necessarily coming down but it is easing that pressure on people’s daily bills,” she said, adding disposable incomes were growing.
She added 70% of people felt “financially okay” and 20% “a little better”, while 10% were struggling.
Factors named as potentially reducing spend this year include the higher cost of everyday products, a concern for 49% of respondents, followed by high interest rates (30%) and concerns over debts (29%) and income (29%).
However, these percentages have all declined from a year ago, further suggesting some easing of pressure on household finances.
A surprising 40% said they had used artificial intelligence to book travel. “They are using it mainly for researching destinations and tour operators – 50% of the under 35s are using it,” Scott said.
TTG and PwC’s full Agenda 2024 Summer Breakfast report is available to read now. Just make sure you’re signed up to ttgmedia.com and logged in.
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