The impact of the Cost-Of-Living crisis on travel intentions
Pessimism around personal finances has a direct impact on travel intentions. The "rising cost-of-living" is the leading obstacle in taking a domestic trip, with the cost-of-accommodation being the main barrier.
One in three anticipate reducing the extent of their domestic trip taking. A further third are planning to take the same number of trips but with a cut in spending.
Domestic trips (in both Scotland and across the UK) between January and June 2024 are set to be significantly shorter than the same period in 2023 amongst all life stages and destination types.
The lure of overseas travel is also increasing. This is in particular amongst retirees who have taken longest to return to overseas travel following the pandemic. Notably, UK consumers book overseas travel earlier than domestic travel, making domestic trips more vulnerable to changing circumstances.
A strong caveat, however, is that there remains an "intentions gap". Actual trips taken in 2023 being far lower than the number intended at the start of the year. Intentions are even higher for 2024 but this comes with a caveat that some of these trips may not materialise.