Nothing's untouchable

Holidays survived the entire cost of living crisis. That protection has now broken, and the reason goes deeper than money.

Holidays were the last untouchable. Through every phase of the cost of living crisis, people cut everything else first. Insurance, supermarkets, subscriptions, contracts. The booking still got made. That protection has now broken. 1.6 million fewer people have a main holiday booked than this time last year. And the uncomfortable bit: it's only partly about money.

"The cost of living crisis taught people a lesson they haven't forgotten: hold on to things and you get hurt."

Look at the data and the proportions are wrong. In 2022, a big rise in financial worry produced a small dip in bookings. In 2026, a relatively small rise in worry has produced a much bigger drop. Something else is driving this. The cost of living crisis taught people a lesson they haven't forgotten: hold on to things and you get hurt. The bills you committed to in January felt very different by July. So now, the response is pre-emptive. Cut the biggest discretionary cost first, before the storm arrives. The holiday goes early, not late.

This is hitting everyone. Higher income families, the buyers travel brands rely on, are pulling back sharply. For them the holiday has become both the prize and the contingency. One cancellation frees more cash than months of savings. Yes, we deserve it, but we don't really need it. The maths are hard to argue with.

64% of people say a holiday is something to look forward to. 56% say it's essential for their mental health. 53% need one more than ever right now. And fewer of them are booking one. That gap between wanting and going is where the commercial opportunity sits. The brands that meet people in it, with certainty on price, honesty about the world, and something worth counting down to, will win. The ones still selling the dream to people who've quietly shelved it will wonder where everyone went.