domestic
The post-pandemic surge in domestic travel has abated
UK holidays lose out to overseas demand FIGURE 82:
UK DOMESTIC TRIPS, H1 2024
January to June, % of total
% point change on H1 2023
UK DOMESTIC trip and holiday numbers returned to pre-Covid levels in 2022 but have since seen a decline, no doubt due to strong overseas holidays demand combined with cost-of-living pressures. Great Britain Tourism Survey results
for 2023 showed a 5% fall year on year to 117 million domestic overnight trips – the lowest since 2014 – and a 2% decline to £31.3 billion in spending, with a 9% decline adjusted for inflation despite a 3% rise in average spend per trip. The decline in volume was driven by a 12% fall in domestic holidays, with a 19% increase in domestic overnight stays as part of an overseas trip confirming the impact of surging demand for holidays abroad. The countryside saw the sharpest fall
in areas visited, at 16% down year on year. Seaside towns and major cities saw just a 3% decline in overnight visitors. Caravan
The Deloitte view
The UK’s domestic travel market is experiencing a return to more normal conditions with a decline in trips for both holidays and business in the first half of 2024. However, despite a return to international travel, domestic short breaks remain popular, having grown in popularity during Covid restrictions and subsequently due to the cost-of-living crisis. The rise of remote and hybrid working
continues to allow for greater flexibility in travel, while economic uncertainties and an increasing awareness of sustainability are encouraging people to explore destinations closer to home. This shift towards staycations is reshaping the tourism landscape, presenting both challenges and opportunities for businesses, with growing demand for rural retreats, unique accommodation and active holidays.
The cost-of-living crisis has also led to
a greater emphasis on value for money. Travellers are increasingly prioritising destinations that offer affordable luxury, all-inclusive packages and off-peak options. Environmental consciousness is growing,
with travellers seeking eco-friendly accommodation, sustainable transport options, and destinations committed to responsible tourism practices. According to survey data by Kantar,
seven in 10 consumers intend to take a holiday in the UK this year, up from six in 10 last year. According to Deloitte’s Future of Consumer research, 47% of millennials (born 1981-96) have planned an entire trip around a specific restaurant and 46% have travelled to view a place seen on Instagram. Businesses must embrace digital transformation to capitalise on these trends.
Q Travellers will increasingly prioritise immersive experiences, outdoor adventure, local culture and personal enrichment, and this will drive demand for curated tours,
culinary adventures and wellness retreats. Q The lines between work and leisure continue to blur, leading to a surge in ‘workcations’. Destinations offering strong Wi-Fi, co-working spaces and inspiring
environments will be particularly appealing. Q Technology will play a pivotal role in shaping travel experiences, from AI- powered booking platforms to personalised
itineraries and contactless payments. Q Eco-conscious travellers are seeking responsible tourism offerings, including eco-friendly accommodation, locally sourced food and opportunities to engage
in sustainable activities. Q Danielle Rawson, director, CFO Advisory
UK stay as part of outbound trip
+6 -16
5% 9%
domestic trips 47.4m -11 Business
UK stay as part of outbound trip
+6 12% -4 8% Business -5 26% VFR Source: GB Tourism Survey £13bn total spent 39% VFR Spending, % of total spend
Misc, incl. events, study, sports etc
-17 17% 37% -4 Holidays
Misc, incl. events, study, sports etc
-16 17% 30% -10 Holidays
and camping sites saw the greatest dip by accommodation type (14%). Hotels and other serviced accommodation saw a 6% decline and commercial rentals a 1% rise while remaining just 11% of the market. Figures for the first half of 2024
showed a continuing fall in numbers and overall spending. The number of overnight trips in January to June fell 12% year on year to just over 47 million and spending was down 8% nominally but 11% adjusted for inflation despite the average spend per trip increasing 1% in real terms. The only category of trip to increase in both volume and spending in the first half of the year was ‘domestic overnight stays as part of an overseas trip’. These trends continued into the third
quarter of last year, with an 8% decline year on year in overnight trips. However, there was a nominal 14% increase in spending during July to September and a 10% increase in real terms. The cumulative decline in trips for the nine months to September stood at 10%. Yet spend per trip in the third quarter
rose 23% nominally and 20% adjusted for inflation, suggesting somewhat stronger
Travel Weekly Insight Report 2025 57
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
