UK travelers reduce holiday spending due to cost-of-living pressures

Research from AllClear Travel Insurance indicates that financial pressures are significantly influencing how UK adults approach holiday planning and travel insurance. According to the findings, 72% of UK adults are looking for ways to cut costs on holidays abroad.

Common cost-cutting measures include opting for self-catering (38%), using public transport (33%), packing light (32%), and switching to cheaper airlines (28%). Notably, 16% of respondents identified obtaining the cheapest possible cover or traveling without insurance as a method to reduce overall holiday expenses.

The study also highlights a growing trend of travelers shopping around for cheaper insurance policies. While many opted for comprehensive cover for 2026, 72% of UK adults stated they would consider seeking cheaper alternatives in the future, primarily driven by the cost-of-living crisis. This inclination toward cheaper policies is even more pronounced among individuals with medical conditions, where 39% cited financial pressure as a factor.