Consumer sentiment on the up, but holiday cost remains an issue – PwC

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.

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