Summary:
- The gap between wanting a holiday and affording one is widening: over a quarter of UK families don’t currently have a summer holiday booked this year, and cost is the main reason why
- Small, early moves beat big last-minute ones: off-peak travel, early booking, and a dedicated savings pot consistently save families the most
- A government VAT cut is quietly helping this summer: family attractions, cinema and theatre tickets, and kids’ meals are 5% VAT instead of 20% until 1 September
Here’s a scene playing out in a lot of UK households right now: the kids are already asking about the summer holiday, but the accounts are telling a different story. Fuel’s gone up, the food shop’s gone up, and the “we’ll sort it closer to the time” plan is starting to feel like wishful thinking.
You’re not imagining it. New research from Airbnb and the Family Holiday Charity found that 27% of UK families don’t currently have a summer holiday booked this year, with the cost of living and cost of travel cited as the main barriers. Even among families who have booked something, 71% are worried about what it’s going to cost them by the time they’re done.
The good news is that the families who do get away this summer aren’t necessarily the ones with the biggest budgets. They’re the ones who planned early, picked their moments, and knew exactly where their money was going. Here’s how to do the same.
Why Summer Holidays Feel So Much Harder to Afford This Year
Before the tactics, it’s worth understanding what’s actually driving the squeeze.
Cost of living is the number one factor, by a distance. YouGov’s May 2026 survey of UK adults found cost of living/inflation is influencing summer travel decisions for 42% of people, ahead of accommodation costs (32%) and airfare prices (29%).
Families are already dipping into reserves to make it happen. Among UK parents who have booked a summer holiday, a third (33%) say they’re dipping into savings and 38% have leant on financial support from extended family, according to the Airbnb/Family Holiday Charity research.
The tipping point is lower than you’d think. The same research found that 66% of UK parents say they’d have cancelled their most recent or upcoming family holiday if prices had risen by more than £100. That’s not a huge number when you’re pricing flights, accommodation and a fortnight of meals for a family of four.
None of this means the holiday is off. It means the planning has to be sharper.
Tactics That Actually Move the Needle
Go Off-Peak Wherever You Can
This is the single most common cost-saving move UK travellers are making this year. YouGov found that travelling during off-peak dates is the top strategy, used by 31% of UK adults planning to travel this summer, ahead of booking earlier (21%) and comparing multiple travel sites (20%).
If you’re not tied to the six-week school holiday window, even shifting a trip by a week or two either side of peak dates can meaningfully change the price. If you are tied to school dates, focus your flexibility on destination and day of the week instead.
Book Earlier, Not Later
It’s tempting to wait for a last-minute deal, but 21% of UK travellers say booking earlier to secure lower prices is one of their main tactics this year. Flights and family-sized accommodation in particular tend to get more expensive, not less, as the school holidays approach, since supply for the popular dates dries up.
Consider Staying Closer to Home
Nearly one in five UK adults planning to travel this summer (19%) are swapping an international trip for a domestic one, and parents are doing this at a higher rate than non-parents (21% vs. 16%), per YouGov. A UK staycation isn’t just a fallback option, it’s become a genuine, deliberate strategy for managing costs while still getting the time away together that families say matters most.
Use the Government’s Summer VAT Cut on Days Out
Here’s one that’s easy to miss: from 25 June to 1 September 2026, the government has cut VAT from 20% to 5% on a range of family-focused spending, including children’s meals, cinema and theatre tickets, and admission to family attractions like theme parks, zoos and museums. It won’t cover your flights or accommodation, but if your summer plans include days out at home or abroad-adjacent treats before you go, it’s worth timing them to fall inside this window.
Set Up a Dedicated Holiday Pot, Not a Vague Intention
“We’ll just put some money aside” rarely survives contact with a normal month. What works better is a named, separate pot with a set monthly transfer, the same logic as any other savings goal. If you’re managing this as a household rather than solo, a shared dashboard where both partners can see the holiday pot alongside the rest of your budget removes the “how much have we actually saved?” guessing game that derails a lot of good intentions by June.
Build In a Buffer, Not Just a Target
Given that two-thirds of parents say a £100 price jump would be enough to make them cancel, treat your holiday budget the way you’d treat any other financial goal: pad it. Price your trip, then save for 10-15% more than the number you’re quoted. Currency movements, fuel surcharges and the “one more thing” spend on holiday itself have a habit of turning a comfortable budget into a tight one.
Make It a Household Decision, Not One Person’s Job
A recurring theme in the research is that families are cutting back elsewhere to protect the holiday, not the other way round. Families in the Airbnb/Family Holiday Charity survey reported cutting back on eating out (49%), everyday essentials (28%) and even presents for family members (28%) to fund time away.
That kind of trade-off works better when both partners have agreed to it, rather than one person quietly absorbing the sacrifice. If you haven’t already, have the conversation about what you’re both willing to cut back on for the next few months to protect the summer trip. It’s a smaller, more specific version of the money conversations we’ve written about before, and it tends to land a lot better than a unilateral decision one of you discovers after the fact.
Frequently Asked Questions
What’s the cheapest way to save for a summer holiday in the UK?
Set up a dedicated savings pot with a fixed monthly transfer, book off-peak dates, and book earlier rather than waiting for last-minute deals. These are the three most commonly used tactics among UK travellers this year, according to YouGov.
Is the UK VAT cut on family days out still active?
Yes. The temporary reduction from 20% to 5% VAT on children’s meals, cinema and theatre tickets, and family attraction admission runs from 25 June to 1 September 2026.
How much should I budget as a buffer for holiday costs?
Given that most parents say a £100 price increase would be enough to make them cancel a trip, it’s worth building in a 10-15% buffer above your initial quote to absorb currency shifts, surcharges and on-holiday spending.
Are more UK families staying in the UK this summer to save money?
Yes. Around one in five UK adults planning summer travel are choosing a domestic holiday over an international one this year, a shift driven largely by cost.
Ready to track your holiday savings alongside the rest of your household budget? Sign up for free to get started, or download our free app, with paid plans that scale with your financial complexity. Built for families managing money together, wherever they’re headed this summer.
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