Lastminute.com has launched a ‘Small budget, big holidays’ web page, which features breaks for under £500 to offer affordable options for travellers affected by cost-of-living concerns.
The online travel agency said: “Despite recent NielsenIQ data highlighting that 76% of consumers expect to be moderately or severely affected by the cost-of-living crisis, lastminute.com has seen a higher spend and longer holidays from UK consumers in 2022 so far, suggesting that travel is an expenditure that many aren’t willing to sacrifice.”
Looking at 2023 bookings, it said city breaks ranging from four to seven nights now account for 40% of its sales, compared to 31% in 2019.
For sun and beach bookings, seven nights continues to be the most popular duration, but holidays lasting eight or more nights have increased their share of sales for 2023 compared to 2019.
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However, the rising cost of living has affected how consumers pay for their holiday, with more of them spreading payments over a longer period.
More than two-thirds (68%) of bookings for 2023 have opted for a deferred payment plan.
The OTA is offering consumers tips about saving money on bookings, highlighting how a seven-night holiday on Spain’s Costa Blanca costs from £509 next June.
For city breaks, it said Italy has overtaken the Netherlands and Spain, and a three-night break in Rome costs from £289 in June 2023.
Furthermore, it highlights long-haul destinations such as the Maldives as offering “luxury for less” than consumers might expect next year.
Other tips for consumers include booking all-inclusive accommodation “to keep a tighter rein on their holiday spending when it comes to food and drink”, and choosing destinations with the lowest “cost per night” hotels, such as Krakow, Prague, Agadir, Istanbul and Dalaman.