Four in 10 UK holidaymakers to boost 2025 travel budgets by almost £3,000 on average

Aviva’s latest How We Live report^[1] finds that 83% of UK adults are planning a holiday this year, with both UK and international trips on the horizon.

Over 40% of those planning breaks intend to spend more than last year with average expenditure rising by almost £3,000 per trip (£2,982). Fourteen per cent of those expecting to pay more are planning to set aside more than £5,000 per trip^[2] and 2% are looking to spend more than £20,000 per trip^[3].

The report suggests younger generations could be leading this increase in holiday spend, with nearly half of Generation Z (47% of 16-27-year-olds) and Millennials (46% of 28-43-year-olds) who plan to travel in 2025 looking to increase their spending on getaways.

Rising travel budgets reflect shifting priorities

While not all UK holidaymakers plan to increase their getaway budgets this year, the research suggests many people still intend to spend significantly on their breaks.

Travellers heading abroad anticipate spending on average more than £4,000 on their trips, while the average cost of a UK staycation is expected to exceed £2,000.

Younger travellers, particularly those aged 25-34, are set to spend significantly more than the national average, with a typical overseas holiday budget of £5,400.

Strong travel demand led by younger generations and social media newsfeeds

The research reveals a strong appetite for travel among British holidaymakers, with both international and domestic trips high on the agenda. Two thirds (66%) of all respondents plan to go abroad this year, while three quarters (75%) are preparing for a trip within the UK.

The data shows that 20% of all travellers had already booked two or more international trips for 2025 before the end of last year^[4], reflecting continued consumer confidence in spending on travel.

Younger travellers especially show strong enthusiasm for holiday planning, with nearly three in five (58%) of 16–24-year-olds having booked overseas trips for the year ahead in 2024. Additionally, younger people are the most likely to have multiple trips booked - 14% have already arranged three or more holidays abroad, compared to just 7% of the general population who are planning to take at least three holidays abroad in 2025.

Among all holidaymakers, more than one in 10 (11%) plan to travel alone – a trend which is found across all age groups, with 10% of 16-24-year-olds, 12% of 45-54-year-olds and 13% of 64-74-year-olds planning a solo trip.  On the other hand, a further 3% plan to join a group trip with other travellers.

Social media has become a major influence for nearly one in 10 (9%) holidaymakers when choosing a destination. Seventeen per cent of Generation Z (16-27-year-olds) and 14% of Millennials (28-43-year-olds) have made decisions based on their newsfeeds, compared with 8% of Generation X (44-59-year-olds) and just 3% of Baby Boomers (60-78-year-olds). 

Younger people are also more likely to book holidays based on places they have seen on popular TV shows. Almost one in 10 (9%) of Generation Z decide based on a TV show, compared with just 4% of Baby Boomers.

Low insurance uptake poses financial risks

Despite this rise in travel spend, 11% of British holidaymakers still choose never to purchase travel insurance when heading abroad, leaving themselves vulnerable - both financially and from a health point of view - if their trip is cancelled or they require emergency medical care overseas.

Aviva data highlights the potential risks of travelling uninsured, with the insurer’s claims data showing the average cost of a cancelled trip exceeding £900.^[5] Without proper coverage, travellers could find themselves significantly out of pocket due to unforeseen events such as illness or injury that prevent people travelling, medical bills overseas or lost / stolen items while abroad.

Carolyn Scott, Head of Home and Travel Underwriting at Aviva, commented: “People’s passion for travel is clear. Whether travelling abroad or staying in the UK, people are keen to take a break and it’s heartening to see so many people plan to get away this year.

“Our research indicates roughly an extra two million people in the UK take out travel insurance now compared with five years ago. While it is great to discover more people are opting to take out travel insurance when they book a trip than historically, the number who continue to forgo this remains worryingly high. Travelling without insurance can leave people not knowing how to get assistance, and potentially facing significant medical bills in the event of illness or injury while overseas.

“Even before a trip starts, our figures show the average cost of cancelling a holiday is more than £900 if something unforeseen happens in the lead up. To ensure travellers are properly protected, insurance should be purchased as soon as a trip is booked.”

-ends-

References:

^1. _{The underlying research was conducted by Censuswide between 8 and 15 November 2024, via a survey of 4,000 nationally representative respondents across the UK (aged 16+). Censuswide abide by and employ members of the Market Research Society, which is based on the ESOMAR principles, and are the members of The British Polling Council [↑]}

^2. _{Responses ranging from ‘£5,001-£10,000’ to ‘More than £30,000, please specify’ combined [↑]}

^3. _{‘£20,001 - £30,000’ and ‘More than £30,000, please specify’ responses combined [↑]}

^4. _{‘Yes – 2’ and ‘Yes – more than 2’ responses combined [↑]}

^5. _{Aviva data based on the average cost for cancellation per claim (rather than total spend).  Claims for cancellation include unused flights, accommodation, car hire, excursions and anything else that might be involved when booking a holiday. [↑]}

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