5 August 2020
- Nationwide customer data shows 46% drop in holiday spend compared to last year with research showing 44% have abandoned travel plans due to impact of Covid-19
- 32% will enjoy UK staycations, aiming to spend average of £480 boosting local economies
- A fifth use money saved during lockdown to treat themselves to a well-deserved break
- Analysis of Nationwide data shows spike in holiday transactions since lockdown eased
A staggering 44 per cent of Brits have abandoned the notion of a holiday in 2020 but close to a third will enjoy UK breaks – boosting the beleaguered economy in the process.
The impact of Covid-19 on travel plans and consumer confidence has led to a 461 per cent drop in holiday spend in 2020 compared to last year, with the number of transactions down by 64 per cent, according to the latest Spending Report data from Nationwide Building Society. The Society’s figures, combined with a poll2 of more than 2,000 people, shows how Covid-19 continues to reshape how the nation is spending.
The Nationwide survey shows that, despite the reopening of air corridors to countries across Europe and beyond, the UK is set to be the biggest beneficiary for holiday spend this year. Some 32 per cent plan to stay in the UK this year to enjoy a staycation, with a further 14 per cent preferring day trips with their family and friends. And with the recent guidance published about Spain, the research also highlights a more cautionary tale with more than four in ten (44%) not planning to go on any holiday in 2020.
Unsurprisingly, for nearly three quarters (72%) of those choosing to remain in the UK, concerns around Covid-19 are playing a part in their decision making, with those aged 25 to 34 far more likely to think this compared to those aged 55 and above – at 81 per cent compared to 64 per cent.
Lockdown has provided an opportunity for some Brits to save money. According to the survey, one in five (20%) plan to use it to treat themselves to a break to get a change of scenery after so long indoors. This is particularly prevalent amongst younger people, with three in ten (30%) of those aged 16-34 planning to use money saved on a holiday compared to 14 per cent of 45-54s and 17 per cent of those aged 55 and above.
Analysis of Nationwide’s own customer spending data shows that some of the biggest increases in transactions since lockdown eased3 have been on holiday camps, hotels, vehicle rentals and flights.
|Number of Transactions
Nationwide’s own spending data also shows that people are spending more on their credit card on holiday-related transactions in 2020 than on debit cards, presumably to protect themselves from any future issues, such as cancellations, that may arise as a result of the Covid-19 pandemic. This boost for those in the tourism industry may be short lived though, as recent changes in travel advice for Spain may have dissuaded people from booking beaks.
In a boost to local economies across the country, those choosing to remain in the UK are likely to spend, on average, £480 on items, ranging from travel and meals to entertainment and essentials. This is on top of spending on accommodation and travel, which many will have paid for prior to their staycation.