European households are scaling back on long-haul holidays, retreating to domestic destinations and prioritising lower-cost Mediterranean breaks as inflation, falling purchasing power and geopolitical instability reshape the continent’s 2026 travel market, data from official statistics agencies, trade bodies and consumer barometers show. The picture across the United Kingdom, France and Spain reveals a common pattern: holidaymaking remains a priority that consumers refuse to abandon, but the way families are spending has shifted decisively towards value, proximity and shoulder-season travel.
United Kingdom
UK families are increasingly looking to low-cost holiday options including domestic breaks, shoulder-season trips and value Mediterranean destinations as the cost of living continues to weigh on household budgets, The Association of British Travel Agents (ABTA) and Office for National Statistics (ONS) data show.
The UK’s Office for National Statistics (ONS) Travel Trends 2024 report, released on August 26, 2025, found UK residents made an estimated 94.6mn visits abroad in 2024, spending GBP78.6bn ($104.8bn). The average length of an overseas trip fell to 9.5 nights from 10.4 in 2023, suggesting British holidaymakers are taking shorter breaks abroad. Spain remained the most visited country with 17.8mn visits, followed by France (9.3mn), Italy (4.8mn), Turkey (4.1mn), the United States (4.1mn), Greece (3.8mn) and Portugal (3.7mn).
The Association of British Travel Agents (ABTA) Holiday Habits 2025-26 report, published in November 2025, found 87% of UK adults took a holiday in the past 12 months, the highest level since before the Covid-19 pandemic. Cost ranked the second most important booking driver behind destination, with 33% of those surveyed by ABTA placing price at the top of their priorities. Holidays were ranked the last discretionary spend respondents would cut to manage cost-of-living pressures, with 65% saying holidays were the most important time of the year.
A separate Mumsnet poll cited by travel platform Weather2Travel found 60% of British parents named budget constraints as the top challenge in holiday planning. Tour operators have reported strong demand for shoulder-season Mediterranean breaks, with May and October half-term weeks pricing 30% to 60% below summer peak. Bulgaria, Turkey and Egypt have emerged as the lowest-cost overseas options for families, while domestic operator Butlin’s is pushing midweek breaks from GBP39 ($52) per person.
France
French households are facing a sharper purchasing power squeeze. The Observatoire Français des Conjonctures Économiques (OFCE) forecast in April 2026 that purchasing power per consumption unit would fall 0.7% in France in 2026, with real average wages flat at 0.0% after a 1.0% rise in 2025.
The 25th edition of the Europ Assistance Holiday Barometer, conducted by Ipsos bva between February 27 and April 7, 2026, found 60% of French respondents reported daily financial difficulties. Inflation now influences the travel intentions of 78% of French respondents, up four points on the year, the survey said.
The average French holiday budget for 2026 rose to EUR1,864 ($2,033), an increase of EUR90 ($98) on the year, Économie Matin reported on May 1. Among French respondents who said they would skip summer travel entirely, 43% cited budget as the main obstacle.
The Ipsos survey identified a clear shift towards domestic destinations, with French households increasingly favouring stays within metropolitan France over foreign travel because of combined geopolitical and budget pressures. Falling purchasing power was also driving a shift from air travel to rail and car-sharing, the consumer finance website Conseils Finance reported on May 1.
Spain
In Spain, the average 2026 holiday budget was set at EUR1,758 ($1,917), a near-imperceptible drop of just EUR5 on the previous year, according to the Europ Assistance/Ipsos Holiday Barometer cited by Lanza Digital on May 7. Some 55% of Spanish respondents said they would choose Spain itself as their main 2026 destination.
Inflation and elevated prices abroad were named as a key concern for foreign travel by 79% of Spanish respondents. Geopolitical tensions also shaped destination choices, with 71% of Spaniards saying armed conflicts directly affected their willingness to travel. Iran was the country with the highest avoidance rate at 20%, followed by Afghanistan and Israel at 15% each, the United States at 13%, Saudi Arabia at 9% and the United Arab Emirates at 6%.
Spanish households are also under sustained pressure on the basics. Moncloa.com reported on April 23 that the cost of living in Spain was 45% higher than five years ago, with food inflation now structural rather than cyclical, forcing many households to choose between climate control and quality fresh produce.
A continent-wide pattern
The Europ Assistance/Ipsos barometer, which covered 26 countries across Europe, the Americas, Asia and Oceania, found that up to eight in 10 respondents globally were enthusiastic about travelling in 2026. Travel intentions stabilised at high levels following record post-pandemic figures in 2025, with nearly half of European travellers planning to increase their holiday budget on the year.
Verónica Herrando, director general of Europ Assistance Spain, said the barometer was being conducted at a time of particular relevance given armed conflicts and inflation affecting multiple countries.
“You live, we care,” Herrando said, citing the firm’s tagline, in remarks to Lanza Digital published on May 7.
The cross-border data points to a market that is resilient in volume but increasingly stratified by household budget. Cheap European Mediterranean destinations including Bulgaria, Turkey, Egypt and the Algarve are absorbing demand from cost-conscious British, French and Spanish families, while domestic operators across all three countries are reporting strong bookings for shoulder-season breaks.
The shift has been picked up in ABTA’s seasonal data, with 24% of UK travellers planning to holiday in September 2025, up from 17% in 2023, as families sought to avoid school summer holiday pricing.
Tags: UK, France, Spain, holidays, ABTA, ONS, OFCE, Ipsos, Europ Assistance, cost of living, families, travel, Bulgaria, Turkey, inflation
Website callout: European families are turning to budget Mediterranean and domestic breaks as ABTA, ONS, OFCE and Ipsos data show inflation and falling purchasing power reshape 2026 holiday plans across the UK, France and Spain.