Most consumers are prioritising a summer holiday this year despite the cost of living crisis, a new poll suggests.
A KPMG survey of 3,000 people conducted this month found that 41% will take a domestic holiday, with 29% going abroad.
But more than a third of consumers (36%) will not take a summer holiday this year, with 14% citing the level of their household essential costs.
Asked about the cost of their summer holiday, a third of those polled said the cost would be greater this year than in 2022 due to a higher price of travel.
One in 10 said their holiday was costing more as they are upgrading compared to last year.
A third of consumers said their holiday will cost the same as in 2022.
One in 10 reported that despite being able to afford a holiday this summer, they have had to scale back the cost due to their household essential bills.
Despite this, holidaying was the most common big ticket spend that had either already occurred (35%) so far in 2023 or is planned (28%) for later in the year.
Taking a holiday is also the most common priority from available summer budgets.
Linda Ellett, UK head of consumer markets, retail and leisure for KPMG, said: “Despite being faced with mounting household costs, what’s clear from our research is that consumers, where possible, are still prioritising holidaying this summer.
“A higher price of travel is making it more expensive to take a summer holiday for many, and some consumers have had to scale back their plans due to that – but it’s clear that whether in the UK or abroad, many people want at least a temporary escape from the cost of living storm clouds.
“However, household essential costs have reached a level where one in ten consumers that we surveyed said that they cannot afford to holiday this summer.”
With household bills remaining elevated, more than half (55%) of those surveyed have reduced their non-essential spending since the start of the year. This rose to as high at 69% among 18-24 year olds.
Concern about current, and future, mortgage rates was highest among those aged 35-44 – slightly above those in the 25-34 age range.
Concern about the cost of utilities was equally highest among those aged 45-54 and 55-64.
Ellett added: “With higher household essential costs having diminished consumer spending power already this year, climbing interest rates continue to further fuel financial anxiety among many homeowners. Some renters are also concerned about the prospect of higher rates for landlords being passed down the chain.
“It’s unsurprising that in this landscape of higher cost pressures that many consumers continue to take steps to reduce costs where they can, while around half of those with savings aren’t planning any big ticket purchases in the remainder of the year.”