Two-thirds of households plan to reduce their spending on holidays and breaks because of the rising cost of living, according to research in Scotland.
The survey of more than 1,000 adults by research firm 56 Degree Insight provides fresh evidence of the impact rising costs are having on household spending and holiday demand.
It found 69% of respondents intend to cut back their spending on holidays, with two out of five (38%) planning to do so by “a lot”.
That compared with 90% who plan to reduce their household energy use, 85% who will cut back on food and clothes buying, 84% who will reduce spending on household goods and 80% who intend to cut back on eating and drinking outside the home.
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More than three-quarters (78%) said they would axe days out and other leisure activities, and 76% intended to cut mobile phone and home entertainment bills.
However, the proportion intending to cut back on holiday spending “a lot” was higher at 38% than on food purchasing (36%), petrol-buying (33%), home entertainment (30%) or alcoholic drinks (30%).
Strikingly, families were more likely to cut back ‘a lot’ on grocery shopping with 41% indicating they would do so compared to 33% of households without children. Yet even one in three higher-income households (32%) said they would cut back on groceries ‘a lot’.
56 Degree Insight reported research last week which found 84% of adults in Scotland and 77% in the UK felt the rising cost of living was affecting their holiday choices.
The researchers said the latest results suggest: “Scots are cutting back on spending across the board.
“There is clear evidence all sectors of the economy are going to suffer as consumers tighten their belts. But hospitality, leisure, tourism and retail are likely to be hit especially hard.”
The survey, one in a series of quarterly Scotland Viewpoint surveys, was conducted in early August among 1,007 adults in Scotland.
The findings came ahead of the Confederation of British Industry (CBI) reporting today (Tuesday) that sentiment about the general business situation saw the sharpest decline (-39%) in the three months to August since the early stages of the pandemic in May 2020 (-79%).
Cost pressures appear to have impacted profitability, while investment intentions have deteriorated, according to a survey by the business group.
CBI head of economic surveys Charlotte Dendy said: “Come 5 September, business will be looking to the next prime minister to move swiftly and effectively to help shore up confidence.
“That means supporting vulnerable households and businesses with high energy prices and setting out plans to get the UK economy back on a growth trajectory.”
More: Cost of living now having ‘major impact’ on holiday choices