Holidays ‘remain top priority’ in 2026 despite cost-of-living concerns

Travel remains the top priority for 2026 spending despite concerns over the rising cost of living, new research reveals.

 

Longer holidays and shorter breaks, festivals, concerts, experiences and wellness dominate the wish lists of more than four in ten (41%) consumers determined to treat themselves this year amid increasing household bills – from utilities to groceries.

 

More than a third (35%) of 1,200 Nationwide customers polled by the building society plan to prioritise booking long trips - typically lasting a week or more or to a long-haul destination - and short trips such as weekend city breaks. 

 

An average spend of £5,517 a year on long holidays and £2,348 on short trips is expected. 

 

Almost a quarter (24%) of millennials and those aged 25-44 surveyed plan to spend between £3,000 and £6,000 this year on longer trips, with most spending up to £720 per year on shorter duration breaks. 

 

Among those aged 55-74, many who typically have more disposable income available to spend on holidays, 18% are planning to spend more than £12,000 this year.

 

But while many of those polled intend to spend on themselves, more than a quarter (27%) are putting off ‘big’ purchases such as a new car or large-scale home renovations, while 15% are worried about unexpected expenses.

 

“This suggests a relative shift from material to experiential spending as a way of treating themselves, without being financially overwhelmed,” Nationwide said. 

 

“Holidays, concerts, and wellness experiences are invariably more affordable in the short-term than buying a car or renovating a home.”

 

Almost a third (31%) of consumers are planning to cut back spending on eating out, while almost a quarter (24%) plan to cook at home more often to help cut costs and shore-up household finances.

 

More than a quarter (26%) will spend less on fashion and clothing, with 24% planning to purchase more second-hand items to save money. Just under a quarter (23%) will reduce spending on ‘sweet treats’ such as coffee, matcha and pastries, according to the study.

 

Experiences, including festivals and concerts, are a priority for almost a fifth (19%) of consumers this year, despite rising ticket prices. 

 

More than a third (36%) said that living a healthier lifestyle is influencing spend this year, and 14% are concerned about their mental health. 

 

Almost a fifth of respondents (19%) will spend between £100-£200 a month on wellness, while 19% of men plan to spend up to £720 per year on looking after their health.

 

Mark Nalder, service, operations & performance director at Nationwide Building Society, said: “Undoubtedly, some consumers are putting off bigger purchases and replacing them with manageable luxuries due to financial worries or constraints. 

 

“There is a degree of practicality to this as it balances enjoyment with caution. Many consumers still value making up for lost time since the pandemic, so leisure and travel remain high on peoples’ priority lists, even if budgets are squeezed.

 

“Our research found that one in five (20%) respondents plan to set a monthly budget, 18% will track their spending via a banking app in 2026.”