Holiday Confidence at Highest for Three Years – New Survey

The confidence of UK consumers’ to book overseas holidays is at its highest for three years despite falling confidence in the economy

That’s the findings of a new survey out today, the First Rate Exchange Services’ annual Holiday Confidence Index (HCI) based on a survey of 5,000-plus consumers in September.

The index shows a two-point rise on a year ago as an increased proportion of Britons plan to travel abroad in the next 12 months despite a 14-point fall year on year to 19 per cent in the proportion expecting the UK economy to grow.

The confidence index is a composite of six indices which reflect consumers’ intentions to travel, the planned frequency and duration of holidays, and spending on bookings and in resort.

More than half (54 per cent) of respondents declared their intention to take a holiday abroad in the next 12 months and close to another one in five (18 per cent) had yet to decide, leading to a five-point rise year on year in First Rate’s Holiday Intention Index.

The survey found 44 per cent of those intending to travel have already booked a holiday and led First Rate to conclude there is “an upturn in Britons planning trips abroad” and growing resilience in the overseas holiday market.

The Holiday Confidence Index also showed a three-point rise to 30 per cent in holidaymakers intending to take breaks of up to six nights, more than the proportion planning seven night holidays  and meaning almost three in five plan holidays of a week or less.

First Rate Exchange Services head of insight Liam Hodge said: “Doubts about personal finances are bound to make people more cautious about what they spend, but the Holiday Confidence Index underlines the importance of overseas travel.”

The Holiday Confidence Index is based on a survey of 5,293 UK consumers in September. It is produced with the support of YouGov and the Institute of Travel and Tourism.