As cost-of-living pressures continue to affect Brits and household budgets remain under strain, one goal is still non-negotiable for many Brits: taking a well-deserved holiday.
New research from luxury travel agent Away Holidays has revealed that despite financial pressures, UK holidaymakers are finding new and flexible ways to keep their travel dreams alive this summer- even if that means taking on debt or reshaping their spending habits.
Away Holidays surveyed Brits and found that the classic “save up and book” approach is being supplemented by credit cards, BNPL (Buy Now, Pay Later) schemes, and even loans, as travellers seek smarter, more accessible ways to explore the world.
Brits willing to take on debt for their travels
While 72% of respondents said they plan to rely on personal savings to finance their 2025 holidays, this traditional method is being flanked by many alternative payment options. A significant 33% said they will use a credit card to spread the cost of travel over time- highlighting the appeal of reward points, flexibility, and the ability to book in advance before prices rise. Those aged 25-34 (40%) and 35-44 (40%) are those most likely to use credit cards to fund travel compared to the over 65+s (21%)
Meanwhile, 13% said they would use a ‘book now, pay later’ scheme, reflecting the growing popularity of interest-free instalment plans offered by online travel agents and airlines. These schemes are particularly attractive to younger travellers and families who prefer to lock in deals early without needing the full cash upfront.
When asked whether they would be willing to take on debt to fund a holiday, responses showed a pragmatic but adventurous attitude among UK consumers:
- 17% said ‘yes, absolutely’
- 20% would only do so for a once-in-a-lifetime trip
- 22% said ‘maybe’ depending on the destination or experience
- 42% said they would rather wait until they could afford it outright
This suggests that while many remain cautious, nearly half of Brits are willing to explore financing options especially if the trip offers emotional value, quality time with loved ones, or a bucket-list opportunity they don’t want to postpone.
Buy Now, Pay Later is becoming the norm
BNPL options have surged in popularity across retail, and travel is no exception. The survey found that 32% of travellers have already used a BNPL scheme to fund a trip—while another 15% said they would consider it in the future.
These solutions offer benefits beyond just delayed payments. Many include automatic monthly payments, low or zero interest options, and even protections on bookings making them more appealing than traditional credit.
How holiday attitudes have changed in the few years
Over the past two years, UK travellers have become noticeably more cautious with their holiday spending. Over a third (36%) say they’ve become more budget-conscious, making it the most common shift in travel attitudes. Despite this, a significant 16% are more willing to splurge on luxury experiences, and 12% are opting to travel less often but spend more on each trip – suggesting a “quality over quantity” mindset for some.
Age plays a key role with younger travellers aged 25–34 being the most likely to spend on luxury (25%), while over half (54%) of those aged 65+ report no change in their spending habits. The data highlights a generational divide, with younger people adapting their travel styles and older groups largely sticking to their usual approach.
Younger generations feel more pressure to keep up with friends financially
Social pressure to go on holidays despite financial struggles is most keenly felt among younger people. Over a third of 18–24s (34%) say they’ve felt pressured at least occasionally, with 17% admitting it happens “several times.”
This trend continues into the 25–34 and 35–44 age groups, where 44% and 45% respectively have felt at least occasional pressure to keep up with friends’ travel plans. However, the influence of peer pressure drops sharply with age by 55+, the majority say they’ve “never” felt such pressure. Across the UK population overall, more than a quarter (28%) have experienced at least some form of holiday-related financial pressure from friends.
Brits willing to make cutbacks to afford travel
Despite many being unwilling to take on debt, the desire to travel is so strong that 61% of people have actively adjusted their lifestyle to make it happen.
| Which would Brits be most likely to cut back on to afford travel | |
| Dining out | 46% |
| Shopping (clothes, tech, homeware etc.) | 36% |
| Nights out (bars, clubs, entertainment etc.) | 33% |
| Takeaway food | 31% |
| Daily coffees/Sweet treats | 29% |
| Subscriptions (magazines, apps, subscription boxes etc.) | 20% |
| Gym or fitness memberships | 17% |
| Beauty treatments (haircuts, nails, skincare etc.) | 15% |
| Streaming services (Netflix, Spotify etc.) | 14% |
| Home improvements or decor | 14% |
The city’s most willing to take on debt for travel
Manchester and Belfast are the UK cities most willing to take on debt for holidays, with 73% of respondents in each saying they’d consider it in some form – whether absolutely, for a once-in-a-lifetime trip, or depending on the destination.
Cities like Cardiff, Nottingham, and London also showed relatively high willingness, with over 60% open to borrowing for travel. In contrast, Sheffield, Glasgow, and Southampton were the most debt-averse, with fewer than half of respondents in each city willing to take on holiday debt.
| Rank | City | Total Willing (%) |
| 1 | Manchester | 73% (21% + 31% + 21%) |
| 2 | Belfast | 73% (17% + 30% + 26%) |
| 3 | Cardiff | 64% (15% + 23% + 26%) |
| 4 | London | 62% (18% + 20% + 24%) |
| 5 | Nottingham | 64% (18% + 18% + 28%) |
| 6 | Bristol | 55% (23% + 9% + 23%) |
| 7 | Liverpool | 50% (14% + 15% + 21%) |
| 8 | Newcastle | 61% (24% + 16% + 21%) |
| 9 | Birmingham | 52% (18% + 14% + 20%) |
| 10 | Leeds | 59% (11% + 21% + 27%) |
| 11 | Norwich | 56% (16% + 20% + 20%) |
| 12 | Edinburgh | 52% (11% + 24% + 17%) |
| 13 | Southampton | 42% (16% + 14% + 12%) |
| 14 | Glasgow | 40% (7% + 15% + 18%) |
| 15 | Sheffield | 39% (16% + 18% + 5%) |
How to save for your dream holidays
With over 20 years of experience helping customers book their perfect escape, Jaymin Borkhatria, Chief Commercial Officer at Away Holidays shares their expert advice on budgeting smarter:
- Set a realistic travel budget early
Research destinations, flight trends, accommodation options and activity costs in advance to avoid underestimating the cost. - Open a dedicated travel savings account
Keeping your holiday fund separate reduces the temptation to dip into it for everyday spending, utilising a dedicated savings account or ‘travel pot’ will help to keep spending and saving separate. You could even set a direct debit or round up spending so that you’re putting in money each month into your travel account—small amounts add up faster than you think. - Use cashback or reward cards wisely
Earn while you spend by using credit cards that offer travel points, but always pay off your balance in full each month to avoid interest. - Book early or travel off-season
Shoulder-season deals (e.g., late spring or early autumn) can offer luxury experiences at affordable prices.
. - Explore flexible payment options – responsibly
If you do choose a BNPL or finance option, make sure the provider is reputable, terms are clear, and you can afford the monthly payments.
For those who are looking for a more flexible payment plan, Away Holidays provide affordable yet luxury holidays find out more https://www.awayholidays.co.uk/payment-plan/
