Brits aren't cutting holidays from the budget. They're cutting costs within them. That's the picture from ABTA's latest Holiday Habits report, which polled more than 2,000 UK adults and found 70% plan to travel abroad in the next 12 months — despite a year of heatwaves, Middle East disruption and a stubborn cost of living squeeze.

Only 7% said financial pressure would stop them holidaying at all. The savings happen elsewhere: 21% plan to book cheaper accommodation and 19% will eat out less while away. In other words, the trip survives; the trimmings don't.

That value-first mindset is reshaping what people book. Package holidays are gaining ground, with 48% of buyers citing them as the best value for the price, up from 43% last year. Cruises are on a similar trajectory — 13% took one in 2026, but 17% plan to next year, drawn by value for money (52%) and the appeal of paying for everything up front (40%). Bundled pricing, it turns out, is having a moment.

The shape of trips is changing too. City breaks overtook beach holidays for the first time in a while: 53% of those surveyed took one in the past year, up from 48%, against 49% for beach breaks. Countryside escapes came third at 23%, followed by multi-destination trips (16%), adventure holidays (14%), cruises (13%), lake and mountain trips (10%) and wellness retreats (9%).

Spain remains the undisputed favourite, visited by 36% of those polled, ahead of France (24%), Italy (15%), the US (14%) and Greece (12%). Portugal nudged past Germany into sixth place with 11%, and Türkiye, Australia and Cyprus completed the top 10. ABTA also noted a knock-on effect from travellers avoiding the Middle East — or routing around it — which boosted visitor numbers to certain European destinations.

For anyone planning a trip right now, the report's message is straightforward: you're not alone in watching the pennies, and the market is responding. Operators are competing on value, packages are being positioned as the budget-friendly choice, and agents are leaning into finding holidays that fit a set budget. ABTA chief executive Mark Tanzer said demand remains strong despite geopolitical and economic headwinds, and argued that booking through an expert gives holidaymakers extra confidence when times are uncertain.

The takeaway for travellers: if you want a holiday next year without the financial guilt, consider a package deal where meals and transfers are bundled in, look at a cruise if you like knowing the total cost up front, and don't assume you have to pick between a city and a beach — the data suggests people are doing both, just more carefully. Skipping a few restaurant dinners and downgrading the hotel doesn't mean downgrading the trip itself.

First published by Euronews Travel.