Around two-thirds (63%) of people are set to take a holiday this summer, bringing a related boost to the UK retail economy.
KPMG UK’s latest quarterly Consumer Pulse survey gives insight into holiday demand, other spending plans over the coming three months, as well as the impact that the Iran conflict had on holiday bookings this summer.
Of the 3000 UK consumers polled, 45% said they have booked a summer holiday, with a further 18% planning on booking at short notice.
Three-quarters of those having booked a summer holiday say they are planning new purchases to pack in their suitcase, with 42% set to buy clothing and 25% footwear, among other items.
Linda Ellett, head of consumer, retail and leisure for KPMG UK, said: “Summer holiday demand is looking healthy, particularly given household essential cost levels, nervousness about the economy, and consequences of the Iran conflict. Spending on holidays, and UK days out, continues to be prioritised from available budget, far more so than other big-ticket items. And there are welcome signs that holidaymakers plan to spend on new purchases to pack in their suitcases – which retailers will be competing hard for this summer.”
Over half of people (56%) surveyed said that the Iran conflict did not influence their summer holiday decision. But among those reporting that it did, 8% said safety concerns about proximity to the conflict made them change intended destination, while 7% said it was the reason that they changed flight route from originally intended.
A higher cost of travel due to the impacts of the conflict also influenced summer holiday decision making, with one in ten (10%) saying they changed planned destination as a consequence, and 10% saying it’s why they are not taking a break this summer.
Concern about the risk of flight disruption this summer is why 9% say they booked, or are still to book, later than usual. While 8% said it’s why they decided not to holiday this summer at all.
Among those having already booked a holiday: 38% say they are heading abroad, 38% are holidaying in the UK, and 24% are doing both this summer.
After holidays, UK days out were the second most common priority for summer related spending, followed by eating out, then entertaining family and friends at home.
Other summer spending plans indicate that 15% of people plan to do minor home improvement work (such as the painting of one room) in the next three months, one in ten (10%) say they will buy a new household appliance, and 8% furniture. But 43% of people said they have no plans to spend on big ticket items during the period.
Consumer confidence levels over the last three months remain similar to the first quarter of 2026 but showed marginal improvement – with 55% of consumers secure in their personal finances (54% in Q1) and 23% insecure (down from 25% in Q1). 60% of people feel that the UK economy is worsening (down from 62%), with groceries cost the number one reason for (82% of) those saying so, followed by utilities (79%).
The cost of eating and drinking out as a reason for feeling the economy is worsening saw the largest quarterly rise of any category – rising seven percentage points to 59%.
