Nearly half of UK adults — 42% — say the cost of living is now the biggest factor shaping their summer travel plans, according to a YouGov survey from May 2026. For a family of four, that extra pressure can mean the difference between a week at the seaside and staying home. The same survey found that 36% of people expect their summer travel budget to be higher than last year, while only 21% expect it to be lower. So the question isn’t whether holidays cost more — it’s how to make them work without breaking the bank.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
What’s striking is that a third of UK adults (33%) say they don’t plan to travel at all this summer, and parents are more likely than non-parents to have already booked (40% vs. 32%). That gap tells you something about how families are prioritising — and how hard they’re working to make it happen. Between rising accommodation costs, airfare prices, and everyday expenses, the old habit of “book it and figure out the money later” doesn’t hold up anymore. Here’s what you actually need to know.
If you’re planning a summer holiday, the first concept worth getting straight is off-peak travel. What I tend to notice is that people think “off-peak” means travelling in November or February, but it doesn’t have to. During the school summer holidays, the first two weeks and the last two weeks are significantly cheaper than the middle fortnight. That’s a distinction that can save you more than any coupon code.
Accommodation costs, the VAT cut, and what a week actually costs
Accommodation is the biggest single expense on most holidays, and the type you choose changes the maths dramatically. Camping is the cheapest option: a week at a good campsite runs £200–£400 for a family. Holiday parks like Haven or Butlins come in at £300–£600 per week if you book early. Self-catering cottages are more expensive at £500–£1,200 per week, but split between two families, that drops to £250–£600 each.
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| Accommodation type | Weekly cost (family of 4) | Best booking window |
|---|---|---|
| Camping / touring | £200 – £400 | Last-minute for cancellations |
| Holiday park (e.g. Haven, Butlins) | £300 – £600 | 3–6 months ahead |
| Self-catering cottage | £500 – £1,200 | 3–6 months ahead |
| All-inclusive resort (abroad) | £800 – £1,500+ | 6–8 weeks ahead (package deal) |
One scenario that catches people out: booking a self-catering cottage for mid-August at peak rates (£1,000+) when the same cottage in the last week of August is £650. That £350 difference is a direct result of timing, not quality. If you’re tied to school holidays, the first or last two weeks of the break are your best bet — and they’re still off-peak by industry standards. Worth weighing against the savings strategies you might already use for long-term goals.
Four costly mistakes that are easy to avoid
Most holiday overspending isn’t about one big splurge. It’s a handful of small, predictable errors that add up. Here are the ones that show up most often in the research.
Buying currency at the airport
Bureau de change counters at UK airports charge 10–15% more than online providers like Wise or Revolut, according to Which? travel money research. On a £500 spend, that’s £50–£75 you’re losing to the exchange rate. Buy online at least two weeks before you travel and collect in-store or have it delivered. If you’re still organising your budget, a financial advisor can help you plan a realistic holiday pot without last-minute currency panic.
Paying to sit together on the plane
Which? found that 93% of British Airways passengers who didn’t pay for seat selection were seated together anyway, and the airline guarantees children sit with an adult family member. Jet2 and easyJet were close behind at 90%. Only Ryanair and Wizz Air consistently separate passengers who don’t pay — 62% and 61% respectively. If you’re flying with a carrier that doesn’t force separation, skip the fee. That’s £10–£30 per person saved for something that usually happens automatically.
Booking too late for holiday parks, too early for flights
For holiday parks and self-catering cottages, booking 3–6 months ahead is the sweet spot. Last-minute deals work well for camping (cancellations and unsold pitches), but for cottages, early booking is better. For flights, the opposite is true: Which? recommends booking 6–8 weeks before departure for the best balance between early-bird and last-minute prices. Tuesday and Wednesday flights are typically cheapest.
Paying for checked baggage when you don’t need it
Adding a checked bag can more than quadruple the cost of a budget airline flight. Hand luggage only saves £30–£60 per person. If you need more space, Which? found that flying with a carrier like British Airways or Jet2 (which includes a cabin case in the standard fare) often works out cheaper than a budget airline with fees added. A good-quality cabin bag that fits Ryanair’s 40x30x20cm limit pays for itself after one trip.
How to plan, book, and pay for your holiday without the stress
This section walks through the practical mechanics — what to do, when, and in what order. The research is clear that the best holidays are paid for in advance, not on credit cards, so the focus here is on sequencing your moves.
Building a holiday savings pot from January
For a £1,500 summer holiday, saving £150 per month from January means the trip is fully funded by August. That’s the simplest version, but you can adjust the numbers. The key is to treat it as a fixed monthly cost, not a leftover. Use round-up savings and spare change to top up the fund. If family members ask what to get you for birthdays or Christmas, suggest contributions to the holiday pot instead of physical gifts. This is a straightforward way to turn a vague intention into a specific number, and it’s worth comparing with how you choose a savings account for other goals.
Choosing between a package deal and booking separately
For popular destinations during peak times, package deals (flight + hotel) from TUI, Jet2, or Love Holidays can be significantly cheaper because of bulk buying power. For off-beat destinations or flexible travellers, booking separately often wins. The rule of thumb: if you’re going somewhere mass-market in August, compare the package price first. If you’re going somewhere unusual or travelling outside peak weeks, build it yourself. Which? has consistently found that package deals undercut DIY bookings for the same holiday in peak season.
Cutting accommodation costs without cutting quality
If you’re open to alternatives, house-swapping platforms like HomeExchange or Love Home Swap charge only an annual membership fee — your accommodation is effectively free. That’s a radical saving if you’re comfortable with the idea. Self-catering apartments (Booking.com, Airbnb) save on eating out, which is the biggest holiday expense after accommodation. All-inclusive resorts can work if you’d otherwise eat out every meal, but they typically cost more upfront. What I tend to notice is that people default to hotels without realising that self-catering or swapping can cut the accommodation bill by 50–70%.
The VAT cut on attractions — a temporary help worth knowing about
Until 1 September, family attractions, cinema and theatre tickets, and kids’ meals are charged at 5% VAT instead of 20%. This directly affects the cost of days out during a UK staycation. If you’re planning a domestic holiday, factor this in — it’s a genuine 15% saving on activities that would otherwise be taxed at the full rate. The KnowYourDosh report flagged this as a quiet help for families, and it’s worth checking which attractions in your area are participating.
Frequently asked questions about holiday savings
What if I can’t travel during off-peak dates because of school holidays? ▾
Is it cheaper to book a package holiday or arrange everything separately? ▾
How far in advance should I book flights for the best price? ▾
Is travel insurance worth it for a UK staycation? ▾
Does the VAT cut on attractions apply to all UK attractions? ▾
What’s the single best thing I can do this week to save on my summer holiday? ▾
Small moves, real difference — the holiday you can actually afford
The research from YouGov, Which?, and KnowYourDosh all points to the same conclusion: the biggest savings come from timing and preparation, not from finding a single secret deal. Off-peak dates, early booking, a dedicated savings pot, and avoiding airport currency exchange — these four moves alone can save a family £300–£600 on a typical summer holiday. The VAT cut on attractions is a temporary bonus for UK staycations, but it’s not a reason to build a whole trip around. What matters more is the habit of treating a holiday as a line item in your budget, not an afterthought.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Beyond the ISA: creative savings strategies for UK millennials.
Sources and Further Reading
From broke to savvy: the complete savings transformation guide for Brits — A step-by-step framework for building savings habits that work for any goal, including holidays.
Smart savings tips for buying your first home in the UK — If holiday savings are a first step, this guide shows how to scale up for larger financial goals.
YouGov (2026). UK summer travel 2026: how inflation and travel costs are changing plans. 🔗
SaveYourMoney (2026). UK summer holiday budget guide. 🔗
Which? (2026). 30 ways to save on holiday. 🔗
KnowYourDosh (2026). Summer holiday saving tactics. 🔗
