Abta consumer research projects strong late booking pattern

A strong late booking pattern is being forecast with many holidaymakers waiting just weeks before they travel amid the Middle East conflict and the rising cost of living.

New consumer sentiment research released by Abta today (Tuesday) reveals that holidays continue to be a spending priority, with more than a third (34%) of people planning to spend more on trips over the coming year.

The study shows that a strong appetite to travel abroad remains, with 64% of people planning to travel overseas during the next 12 months. However, that proportion is down from 70% at this time last year.

Abta expects to see a surge in late bookings over the coming months. Almost a third (30%) of people planning to travel this summer intend to book their trip two-to-four weeks in advance, with a further 10% saying they will book less than a fortnight ahead.

Of those who plan to take a trip over the next 12 months, 38% have delayed making their booking. Key drivers for this delay include waiting to see what happens with the cost of flights (43%), the conflict in the Middle East (36%), the general cost of holidays (31%), or waiting for household finances to improve (33%).

Although holidays remain a spending priority above all other non-essentials, they are not completely insulated from macroeconomic pressures. When all 2,000 respondents were asked what was putting them off booking, the cost of living was the top response at 31%, suggesting those not planning to travel may have already been deterred by rising bills.

Similarly, 20% of respondents said they would spend less on their holiday over the next 12 months, compared to 15% in a previous survey. The rising cost of living is driving this shift, with 54% cutting down their holiday budgets due to increased household bills, up from 47% in the last tracking research.

The consumer data was released ahead of Abta’s Travel Matters conference in London today.

Abta chief executive Mark Tanzer said: “Global and economic uncertainty pose challenges for any business, with travel often feeling them more acutely; the conflict in the Middle East has not only had an operational impact, it has also affected consumer confidence, both when it comes to travel and confidence in their finances.

“However, as our research shows – and we’ll explore at today’s event – the appetite and interest to travel remains, and we continue to be hopeful for a strong summer season. There is plenty of competition in the market, which will ensure customers continue to get good value for their money.”

But he added: “Clearly it is not an easy time for travel. Not only do our members have to contend with the impact of the conflict in the Middle East, and its uncertainty, but also rising costs, such as increased business rates and Air Passenger Duty.

“Travel is a huge contributor to the UK economy and provides employment for hundreds of thousands of people. At times like these, collaboration and an open dialogue with government is key to ministers and officials understanding the pressures all parts of the industry are under, and exploring the solutions that will help businesses, including our members – the travel agents and tour operators.”