Consumers remain broadly happy with their financial situation, and are looking to the future more positively than they were earlier this year, although their purchasing behaviour is continuing to perpetuate a late, value-driven booking environment, new research by TTG and PwC has revealed.
Nearly three-quarters of the 2,000 consumers surveyed by PwC in July said they considered their finances “OK” or “healthy”, with fewer than 10% stating they were “struggling” or “in trouble”.
And while there are still concerns about the year ahead, the picture in terms of how people rate the outlook for their household finances has improved to a net score of -5, up from -8 at the start of the year and well above the long-term (2008-2025) average level of -14%.
However, while 70% of consumers had concerns about the UK economy at the start of 2025, this has risen to 86%, while worries about rising living costs have increased from 78% in January to 84% in August.
Eleanor Scott, PwC partner Strategy&, said: “There are some common trends quite similar to last year. Consumers are still cautious about spending – they’re wanting to spend on holidays, but are being careful about what they can afford. The result is people are booking quite late, and there’s a focus on value."
Among those travel businesses polled by PwC, the current summer accounted for most sales during August, with 56% reporting the greatest number of bookings for this season.
Summer 2026 was the next biggest proportion (40%) with bookings beyond this at 19%. Easter and October half-term both scored 14%, followed by February half-term (11%) and Christmas (6%).
"Compared with this time last year, we are seeing more late bookings, but also more for further out in 2026 and fewer for the October half-term and Christmas periods,” said Scott.
‘Some suppliers and destinations lost out’
Jonathon Woodall-Johnston, Hays Travel chief operating officer, told TTG value for money has been consumers' “number one priority”, adding those operators who held their nerve on late-summer pricing may have missed out on potential sales.
Similarly, some destinations have benefited at the expense of others. “Mainland Spain has lost out this year," Woodall-Johnston continued. "Last year, it performed exceptionally well. We think hoteliers may have been expecting the same demand, and prices have remained quite high.”
He said operators were now trying to regain their position during October with exclusive promotions. “I think they're reacting to the slow start for summer lates.”
Woodall-Johnston added the industry had an advantage in 2024. “Last year, we didn’t have a particularly nice summer in the UK, so we had an exceptional August. To build on that this year was always going to be a challenge.”
‘We're still seeing strong early bookings’
Despite this, more than three-quarters of the 71 travel businesses surveyed reported 2025 bookings running ahead of 2024, with half saying this was significantly so. Average year-to-date growth in bookings compared with last year was 4%.
On average, respondents have secured 69% of this year’s booking targets so far, although just over a third said bookings have been below expectations.
Ruth Venn, P&O Cruises associate vice-president – sales and distribution, said: “We experienced positive demand for summer 2025, particularly for the fjords and Mediterranean itineraries, resulting in the highest number of families travelling this summer.
"We continue to see strong early booking volumes. Our summer 2027 launch delivered our biggest booking day on record. This means we have a reduced reliance on late volumes. Value, however, remains a key trend.”
TTG's Agenda 2025 panel: Jonathon Woodall-Johnston (Hays Travel), Eleanor Scott (PwC) and Ruth Venn (P&O Cruises) (Credit: Hays Travel, PwC,P&O Cruises)
PwC's Scott does not believe the upcoming Budget, on 26 November, will affect bookings, as it comes during a low sales period. “People will potentially wait to see before booking," she said. "But I don’t think it will affect travel as much as other sectors.”
The trading picture during August was one of high numbers of late bookings, with 60% of businesses reporting a growing number of summer lates, while 53% said this was happening even later than previous years.
Nearly half of respondents said late bookings were ahead this year, with 31% agreeing that discounting was supporting this, while 26% cited the UK’s cooler weather earlier this summer for the sales boost.
‘Travel remains a priority for people’
The biggest barrier remains consumers’ worries about their finances, cited by more than two-thirds of businesses. Geopolitical impacts and conflicts across the world have become more prominent, but concerns over extreme weather have fallen slightly compared with last year.
The research found a big increase in reports of discounting and offers compared with 2024, with 47% offering early-bird discounts, up 32 percentage points on last year. Another 40% were offering repeat booking discounts.
However, Scott remained optimistic: “There are still opportunities in the market," she said. "Travel is a priority for people who will forego spending in other areas to go on holiday."
Encouragingly, 80% of firms expected revenue to be higher than 2024, with 59% anticipating bigger profits. Asked about new opportunities, the biggest proportion, 47%, named shoulder season and off-peak dates as where their focus would be, while 41% said including experiences in a booking was the biggest opportunity for the year ahead.
TTG's Agenda 2025 Autumn Breakfast report, A summer of celebration – or concern, is available to read now.
