KPMG’s latest Consumer Pulse survey, published every quarter, found the number of people feeling financially secure has risen by three percentage points over the past three months to 58%, while confidence the UK economy is improving has risen to 17% from one in ten three months ago.
Half of the 3,000 consumers polled also report being able to spend freely, but 14% say must still cut discretionary spend to pay for essentials, while a further 3% are incurring debt to do so.
KPMG also found 21% were holidaying abroad, and 15% both abroad and in the UK. However, 75% of those are taking steps to reduce the cost of travel, with 20% going for fewer nights and 16% controlling cost by using all-inclusive, full- or half-board deals.
Only 5% of consumers said they spent more on this year’s summer holiday, while 20% said they would spend around the same amount. Another 20% said they would pull children out of school for the entire summer holiday to avoid price hikes.
Linda Ellett, KPMG UK head of consumer, retail and leisure, said: “Summer holiday demand looks very healthy, bringing direct and indirect benefit to the UK retail and leisure sectors.
“Many households have prioritised discretionary spend for their holiday but considering both household essential costs and the price of travel have increased, it is little surprise to see three quarters of holidaymakers are still taking a variety of steps to get the cost of their break down where they can.”
Cost of living worries were also an issue in Ireland. Two-thirds (66%) of the 2,138 respondents to Click&Go Holidays’ second quarter Travel Sentiment Survey said it had influenced their decision when booking. Perhaps surprisingly, 72% are yet to book their 2025 holiday, but of those, 85% are still planning to book in 2025.
Click&Go said: “With cost being a major factor for planning holidays in 2025, it is no surprise that 70% of people are either waiting for holiday prices to fall or feel like holiday prices are too high."
Other factors respondents ranked as influencing their holiday choices include the heat in holiday destinations during peak summer months (51%), anti-tourism protests (43%), fear of the impact of US tariffs (46%) and current geopolitical issues (68%).
"The remaining months of the year are expected to make up for travel bookings, as 49% of respondents are preparing to book their 2025 holiday in August / September and more than a quarter (28%) looking to book their 2025 holiday from October to December," it added.
Paul Hackett, Click&Go chief executive, said: “What the survey results show is that there is growing financial uncertainty and people are trying to make hard decisions in regard to their spending; this could be affecting bookings of holidays in 2025. Many are waiting for the price of their holiday to fall before they book but this strategy is unfortunately unlikely to pay off.”
Meanwhile, a survey of the Latin American Travel Association’s UK members saw 80% report stronger performance during the first six months of 2025 compared with the same period in 2024.
Lata named Peru as “the standout bestselling destination” so far, with Argentina, Brazil, Chile and Costa Rica following. Just over half (55%) of respondents said the geopolitical situation was affecting bookings, but 35% said it was not.
Looking further ahead, Cunard has claimed an almost 50% increase in UK bookings during the first week after the launch of its 2027 programme compared with the 2026 launch. It said there was a “notable surge in demand” for its most exclusive luxury suites, with bookings for Queens Grill and Princess Grill suites up over 100%.
Also joining the trend for having a longer on-sale period is Fred Holidays. The operator has 77 products bookable from October 2025 to April 2027. Of these, 19 are "out of date range".
Trade bookings now account for 80% of Fred Holidays’ sales. Last year, it doubled the size of its business development team and has had more than 100 new agents booking with it during the year to date.
