Holidays and health are the two top priorities
(Picture: Virgin Atlantic)All-inclusive holidays are increasing in popularity due to the cost of living crisis, according to new research from the UK tourism industry.
Some 29 per cent of Britons are planning to take an all-inclusive holiday in 2023 to help manage their finances, according to Abta, a trade association for UK travel agents, tour operators and the wider travel industry.
This rises to 40 per cent among those aged 44 and under and 57 per cent of those with young children who are keen to “lock in” the total cost of their holiday before setting off.
Popular destinations include the Canary Islands, the Balearics and Turkey.
Firms such as Travel Republic, Barrhead Travel, TUI, Jet2holidays and easyJet holidays have reported an increase in all-inclusive deals, which remove the need to pay for lunch, dinner or drinks – and often added extras such as excursions or holiday clubs.
Club Med said all-inclusive had overtaken self-catering as the most popular option for winter breaks this year.
Abta published its “Travel in 2023” report on Thursday, showing what Britons think about going on holiday over the next 12 months.
It said the travel industry was still recovering from the pandemic and now faced the challenges of the cost of living crisis, soaring inflation, higher taxes and higher energy bills.
There is also an increase in the proportion of people booking early in a bid to secure the best deal. So-called “doom dodgers” – people keen to escape domestic worries – have caused the industry to be “cautiously optimistic” about bookings for 2023.
Emma Brennan, Abta director of communications, said: “Holidays are sacrosanct. People don’t want to sacrifice the cost of their holiday, but they’re not immune.
“The cost of living crisis means different things to different people. People are telling us they are going to cut back on different things before their holiday. For two-thirds, it’s because they want to escape the stresses of everyday life.”
She said “hibernation holidays” – 21-day or 28-day breaks to places such as the Canaries or Mexico to escape the British winter – were proving popular. Some 42 per cent of people have already booked or are planning to book a winter break.
“The desire to book early is driven by the search for value,” Ms Brennan said. “31 per cent say they intend to book early to get the best price for their holiday.
“42 per cent of people did say they plan to book their holiday a little bit later than normal because they want to see what the cost of living means for their holiday finances.”
Lisa Fitzell, managing director of Elegant Resorts, a luxury travel firm, said bookings were “completely back to 2019 levels”. She said: “It’s been an unbelievable year.”
She pointed to a survey showing how Britons saw holidays as a priority. “People are just not willing to forego their holidays – 97 per cent of people said the most important thing to them are their holidays and their health,” she said.
“They are still planning to do more than three holidays a year. We have not fully seen the pinch yet. People are making up for lost time. We have been constrained for so long. But after Christmas it’s going to be a different story.”
She added: “There was massive pent-up demand. Customers were like: ‘We are going to make up for lost time.’ They are spending like crazy. Our average spend has gone through the roof.”
Virgin Atlantic has announced two new long-haul holiday routes next year from Heathrow – to the Maldives, and the Turks & Caicos islands in the Caribbean.
It will fly to the Maldives three times a week from October 22 next year. It will fly twice a week to Turks & Caicos from November 15 next year.
Virgin has added the routes by changing the routes it flies to from Heathrow rather than winning additional take-off and landing slots.
Juha Jarvinen, chief commercial officer at Virgin Atlantic, said:⯓We couldn’t be more thrilled to add these two exotic new routes to our flying portfolio.
“The Maldives has always been an incredibly popular destination for Virgin Atlantic Holidays customers.
“We’re delighted to begin flying to the Turks & Caicos islands, as we continue to grow our Caribbean portfolio, offering more choice for our customers to explore these beautiful islands and enjoy some winter sun.”
