As the summer holiday season approaches, Klarna, the AI-powered payments network and shopping assistant, today unveils findings from its 2024 Travel Report. The report highlights that while 66% of Britons feel the pinch of the cost of living on their travel plans, 96% are preparing for summer getaways. With 81% eyeing foreign destinations abroad and 35% planning domestic travels, budgeting emerges as a crucial focus—51% will choose destinations based on their budget.
As Klarna continues to expand into the travel sector, offering its interest-free payment solutions at the checkout of leading travel companies, such as Airbnb, Hotels.com and Booking.com, Klarna looks into the key trends shaping British holiday plans this year.
Klarna’s data further breaks down spending trends:
- Average Spend: Approximately £1,168 per person per trip.
- Baby Boomers as the highest spenders:
- 17% of Baby Boomers plan to spend between £1200-1500, compared to 11% of Gen X and 10.5% of Millennials.
- 9% of Baby Boomers will allocate £2001-2500, versus 6% of Gen X, 5% of Millennials, and only 2.5% of Gen Z.
- Gen Z as the most conservative spenders:
- 21% intend to spend no more than £300, in contrast to 10% of Millennials, 9% of Gen X, and 4% of Baby Boomers.
- 35% of Gen Z will spend between £301-600, compared to 25% of Millennials, 21% of Gen X, and 19% of Baby Boomers.
Spending priorities and cost-saving measures:
British travellers are willing to spend the most on accommodation (67%), dining (41%), and experiences (35%) and the least amount on sports (5%), shopping (21%), and transportation (29%).
To manage costs, many are opting for cheaper accommodation (31%), selecting cheaper transport options (22.9%), and reducing the number of trips they go on (26.2%). Last-minute and package deals are also a popular strategy. Approximately 20% of travellers arrange their holidays a month or less in advance. Notably, 10% of Gen Z make their travel bookings just a week ahead, highlighting a trend toward greater spontaneity.
“Booking last minute travel can sometimes score you a bargain but you do have to be aware of the potential risks.” says Chelsea Dickenson, travel expert and founder of the travel site CheapHolidayExpert.com. “Savings can be made as travel suppliers reduce prices to fill capacity but you do have to be flexible on where you go and when. This means that if you’ve got your heart set on a destination or a specific time frame, you could also end up paying more for your summer trip away – or even being left without. For peak travel dates, planning ahead is generally more reliable since it offers a great selection and more favourable deals. You also have more options when it comes to paying, and being able to spread the cost using an interest free payment option, like Klarna’s ‘Pay in 3’, which means travellers can secure deals early without needing to pay the full amount upfront.”
Travel Trends:
- Slowcations vs Party: British travellers are embracing ‘slowcations’ with 78% prioritising relaxation as their primary reason for travel. In contrast, the interest in party-centric holidays is dwindling, with less than 10% of British travellers going abroad with the intent of partying.
- Travel motivations: Travel motivations among many British travellers are rooted in self-discovery, with nearly 20% travelling for personal growth—Millennials lead this trend at 24%. Many are also drawn to ‘gig tripping,’ where trips are planned around significant events such as Taylor Swift’s Eras Tour, merging travel with personal passions. Notably, 81% of festival-goers prefer music festivals, and 43% choose festivals regardless of location. Furthermore, 55% of Brits pursue culinary adventures, showcasing their strong interest in exploring local cuisines to enhance their travel experience.
- How Brits travel: British travel styles vary widely, reflecting a mix of advance planning and spontaneity in booking habits. About 20% of travellers book their trips a month or less in advance, with a notable 10% of Gen Z making plans just a week ahead. Meanwhile, 35% prefer staycations, showing a strong inclination towards exploring local attractions and appreciating the convenience of domestic travel. Additionally, most are going on family vacations this year, with 56% of Millennials and 52% of Gen Z choosing to spend their summer holidays with family, significantly higher than the 13% and 12%, respectively, who opt to travel solo.
“The fact that British holiday-goers are either opting for a ‘slowcation’ or ‘hobby holiday’ makes total sense to me,” says Chelsea Dickenson, travel expert and founder of the travel site CheapHolidayExpert.com. “After a few rocky years where we couldn’t be sure of our travel movements, it’s no wonder that many of us are seeking total relaxation, whilst the rest are wanting to make the most of every moment! Both of these trends show just how important travel is for giving us quality downtime and time for our personal interests.”
Other Findings
- 24% of Gen Z’s will look to travel closer to home compared to 16% of Millennials, 21% of Gen X and 13% of Baby Boomers.
- 46% will travel within Europe and 31% will travel further away outside of Europe.
- Gen-Z are more than three times as likely to spend their vacation with coworkers (2.9%) vs Millennials (0.9%) and Gen X (0.7%).
- 9% of respondents take their environmental footprint into account and see it as a key factor when choosing their holiday destination.
