Why Are UK Holidays So Expensive Now? (+ How to Pay Less in 2026)

Why does it seem cheaper to go on an all-inclusive to Spain, than to spend school holidays in the UK? Here’s a quick look at where that money is going, and how I believe you CAN holiday in the UK for less.

Why are UK holidays expensive

I’ve travelled all over the UK and genuinely love a British break. Some of my favourite trips have been close to home. But there’s no denying that holidaying in the UK can feel really expensive now… even a day out to be honest.

In 2025, British residents took 87 million overnight trips in England. That’s actually 3% fewer than in 2024, yet the amount we spent on those trips increased by 6% to £29 billion.

The average spend per overnight trip increased by 9% in a single year, to £333. NINE PER CENT! In one year! That’s crazy.

So, we’re taking fewer trips and spending more money doing it.

What IS going on?

1. Everything costs more than it used to

The boring but unavoidable answer.

Hotels need electricity. Restaurants need ingredients. Attractions need staff. Holiday parks need heating, maintenance, insurance and cleaning. Businesses have faced rising wages, energy bills, rents, rates and supply costs, and eventually… some of those costs reach us.

Emsworth Harbour

It’s why looking back at what you paid for a hotel five or six years ago can be quite depressing.

The price of the room isn’t the only problem either.

A UK weekend away might involve:

  • two nights’ accommodation
  • petrol or train tickets
  • parking
  • breakfast
  • lunch
  • dinner
  • drinks
  • attractions
  • snacks and coffees
  • activities for the kids

None of those expenses necessarily looks ridiculous on its own.

Put them together and you’ve somehow spent £600 on a weekend in Bournemouth.

2. Covid changed UK holidays

Remember 2020 and 2021, when everyone suddenly discovered Britain? I was watching it unravel as in January 2020 I’d set up another site Day Out in England, and it’s hard to believe now but there just wasn’t that much competition. I was ranked for so many keywords and was riding high for about two years. People couldn’t get enough of England, and so many more sites were set up too.

Cornwall was booked solid. Campsites were packed. Holiday cottages were charging extortionate amounts. With international travel restricted, millions of us had little choice but to holiday closer to home.

That enormous demand encouraged investment in UK accommodation and tourism, but it also showed businesses exactly how much people were prepared to pay.

International travel has returned, but UK holiday prices haven’t magically gone back to 2019 levels. And the tourism industry itself has changed.

The interesting thing is that domestic travel isn’t currently booming. In fact, overnight trips in England fell in 2025 even as the amount spent increased.

That tells quite a story.

We’re still holidaying here. We’re just paying more when we do.

3. Hotels have become a bigger part of our UK trips

In 2025, 40% of overnight trips in England included a hotel stay, compared with around 35–36% in previous years. Hotels are convenient, particularly for short breaks, but they’re also one of the quickest ways to make a UK trip expensive.

New Park Manor Hotel

Maybe we don’t like staying in friends and families houses as much any more, seeing as we couldn’t during Covid?

Self-catering accommodation, HomeExchange, holiday parks, hostels or camping can make such a difference to the cost of travelling around Britain. Even having a fridge and somewhere to make breakfast can save a surprising amount.

4. International tourists are back

VisitBritain currently forecasts 44.2 million international visits to the UK in 2026, which would put visitor numbers above 2019 levels.

Obviously fantastic for the British tourism industry, but not so much for anyone trying to book a reasonably priced London hotel in August.

why are uk holidays so expensive

Popular destinations aren’t only catering for British holidaymakers. We’re competing for rooms, restaurant tables and attraction tickets with millions of international visitors.

London is the obvious example, but you’ll see the effect in places such as Edinburgh, Bath, Oxford, York and the UK’s most popular coastal and countryside destinations too. It’s all supply and demand, and there’s a lot of demand right now.

5. School holidays make everything worse

This is my first year of dealing with school holidays, and wow, expensive. I can’t believe the prices some places are asking – but it’s because they can, and people pay.

There’s really not much you can do but look elsewhere. I have some suggestions below.

It’s one of the reasons travelling at the very beginning or end of a school holiday can sometimes make such a difference. Even moving a trip by a day or two is worth checking.

6. Getting around Britain can be expensive

When a return train to see my parents in the Midlands (from Portsmouth) can be £160, but a flight from my local airport to Alicante is £60 you know something has gone wrong. Transport can take a huge chunk out of a UK holiday budget, even if it’s just the petrol.

7. Eating out adds up

This is one I notice much more now that I travel with a child, and my partner who loves a side dish. We’ve suddenly spent £150 in a day without going anywhere particularly fancy. It feels like a necessity now to mix up supermarket meals with eating out – something that’s much easier in a holiday park or self catered accommodation.

Things to do in the New Forest

Buy breakfast from the supermarket. Make sandwiches for the beach. Take refillable water bottles. Have the nice pub dinner in the evening. And that will save quite a bit on any trip.

8. UK attractions can cost a fortune

Especially if you pay the walk up price. You can see from my article on how to get the cheapest tickets to Alton Towers that the prices vary massively. You need to be prepared!

One of the rides at Alton Towers

The good thing about Britain is that there are also loads of brilliant free things to do from walks to free museums to playgrounds. I like to mix them up with big attractions to get the most out of a destination. We recently went to Northumberland and did pay for a few attractions but it was so easy to save money with the beaches and playgrounds.

Annual passes can be brilliant too if you’ll genuinely use them. National Trust, English Heritage, local attractions and even some zoos and theme parks can work out much cheaper if you’re going to return. We’ve had the Merlin passes since April, and really need to get round to using them more!

9. Maybe this is why day trips are winning

One of the most interesting UK tourism statistics I’ve seen recently is what’s happening with day trips. A special interest of mine given the aforementioned Day Out in England site I set up.

According to Visit Britain overnight trips in England fell by 3% in 2025, but tourism day visits increased by 2%, reaching 928 million trips. It’s easy to see why.

With a day trip you can have the beach, castle, countryside walk, museum, pub lunch and ice cream, then go home and sleep in your own bed. Saving huge amounts on accommodation.

10. Is going abroad better value?

Once a three or four-night UK holiday gets expensive enough, you inevitably start thinking:

What else could I get for this money?

And suddenly you’re on Skyscanner looking at flights to Spain. Like me for the October half term. Cheap flights have completely changed our perception of what a holiday should cost.

My son on the Yak Shack kayak

If I can fly somewhere in Europe for £60 return, find a hotel for £70 a night and eat dinner for less than I’d spend in a British restaurant, the maths can start looking surprisingly good.

I mean, you still need to add in the airport parking, transfers, luggage, travel insurance and getting to the airport so don’t get too cocky.

A UK holiday can still beat it.

But I think the fact we’re even comparing a weekend in Britain with travelling to another country says a lot about how expensive domestic tourism has become.

Why don’t people like UK holidays?

VisitEngland’s August 2026 research found that 75% of UK adults intend to take a domestic overnight trip during the next 12 months, so it’s not all over. From looking at my own habits, and that of my friends, they go on UK holidays for a weekender, and then abroad for a week or more.

The UK weather, rising cost of living and the increasing cost of holidays and fun is stopping people from going on much more.

How I make UK holidays cheaper

We don’t need to stop holidaying in the UK – we just need to plan it more than people did in the past.

Clovelly in Devon

Some of the things I do to afford UK holidays are:

1. Travel outside peak dates whenever possible

Even shifting a trip slightly can make a huge difference. (Ha, won’t be able to do this anymore with my son at school!)

2. Compare the whole trip, not just accommodation

A cheap cottage miles from everything isn’t cheap if you’re spending a fortune getting around.

3. Look at Sunday nights

They’re often noticeably cheaper than Fridays and Saturdays.

4. Mix paid attractions with free days

A £100 family attraction feels much more reasonable if the following day costs £10.

5. Take food with you

I’m a big fan of a supermarket picnic, so is my son.

6. Check holiday parks

Outside peak dates, they can be excellent value for families.

7. Use memberships properly

If you have National Trust, English Heritage or another annual pass, plan trips around it.

8. Book trains intelligently

Advance tickets, Railcards and split tickets can completely change the price.

9. Don’t overlook less famous destinations

You’ll often pay a premium simply for choosing somewhere everyone else wants to visit.

And perhaps most importantly:

Actually compare Britain with going abroad. Once you’ve added all those extras in, I really don’t think it’s as cheap as we casually reference.

Read my site, follow me on Instagram, and I’ll have you holidaying in the UK in no time, with maybe even some change.

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