UK Consumers opting for AI to map out their summer breaks

• Strong demand for holidays from UK consumers but with last minute booking, trading down and fewer breaks than usual

• 32% of consumers plan to holiday in the UK

• 40% of consumers are using AI to research prospective holiday destinations

PwC has unveiled its quarterly Travel Trends survey revealing how UK consumers plan to spend their summer holidays this year. As the world continues to navigate the complexities of a dynamic economic landscape, travel demand for UK consumers remains robust, promising an exciting year ahead for the industry. However, the timing and nature of these getaways may be influenced by current financial pressures, with some consumers exercising caution in their spending. 

The PwC Travel Trends survey shows 15% of UK consumers continue to prioritise holidays and 10% will save in other areas in order to be able to afford a holiday. A further 9% state they will only take a holiday if other household bills are paid for. 

12% of consumers plan to spend more than 2023 with 34% stating they will spend around the same amount. The 44-54 age category are 14% more likely to splurge on holiday spending for 2024. However, 36% of consumers state the cost of holidays is an off putting factor as well as 14% say the weakness of the pound is off putting for travelling outside of the UK. 

However, consumers are waiting it out for a potential bargain with 25% of those surveyed stating this as the reason they are yet to book their getaway.  37% of consumers had their 2024 holiday booked prior to July with 7% planning to book this month and 7% planning to book in August. 

35% of consumers plan to head to Europe (-1% from 2023) whilst 32% plan to staycation within the UK (-4% from 2023). Asia (5%), North America (5%) and the Caribbean (4%) follow Europe and the UK as the top destinations. 

The survey reveals a significant trend towards the use of Generative AI tools in holiday research and planning, with 40% of travellers utilising these technologies for destination research. Notably, this trend is most prominent among 18-34-year-olds, with over 50% of this demographic using AI to enhance their travel planning experience. 

Generative AI is winning over consumers for holiday planning with its personalised, real-time recommendations, outshining traditional search engines. Younger travellers, particularly those aged 18-24, are leading the charge in leveraging AI for travel purposes. 54% of this category use AI to compare holiday prices. AI is also instrumental in finding hotel suggestions, with 36% of users employing it for this purpose. Other popular uses include researching itineraries (35%), summarising reviews (35%), and translating foreign language sites (30%).

Interestingly, the adoption of AI tools is not confined to younger generations. Over 65s are also engaging with AI for their travel needs, with 30% using it to research destinations, 29% to compare prices, and another 28% to plan holiday itineraries.

Eleanor Scott, Leisure Partner at PwC UK said:

“As we head into the summer holiday period, we're excited to see such strong demand for travel. We understand that financial pressures still play a role, and this is impacting where people are going on holiday and when they are booking this year.”

“It has been interesting to see how consumers have adapted their booking habits to include research using Generative AI, and given the usage among younger generations that will only increase”.