More UK consumers are putting holiday plans on hold this year due to cost pressures, disruption, and safety concerns linked to the Middle East conflict, RSM UK’s Consumer Outlook shows.
RSM’s survey of 2,000 consumers found that over a quarter (27%) of consumers are not planning to take a holiday in the next 12 months, up from 19% before the Iran war began. The top three types of holidays that have been paused are self-organized trips overseas (down 8%), cruise holidays, and adventure tour holidays (both down 6%).
In addition, one in three (31%) consumers have changed travel plans as a direct result of the current conflict in the Middle East—whether canceling the holiday completely, rescheduling, or changing the destination. This rises to 55% for Gen Z, 46% for millennials, and 43% for families.
Nearly two in ten have decided to change plans due to travel disruption and safety concerns (15%), while increased costs (15%) were also cited as a main reason. A small percentage of holidaymakers (5%) have switched from an overseas holiday to a UK destination, rising to 8% among families.
Negative impact of the Strait of Hormuz closure
Robyn Duffy, Consumer Markets Senior Analyst at RSM UK, said: “Rising tensions in the Middle East have forced some consumers to change or cancel travel plans this year. Initially thought to be a short-lived disruption for international travel, the continued closure of the Strait of Hormuz has increased jet fuel prices amid fears of scarcity, in turn pushing up airfares and squeezing demand for international travel.
“There is no doubt that consumer confidence has been shaken, and that is directly impacting travel plans for 2026. As a result, many consumers are opting for late bookings, deferring holidays altogether, or choosing simpler, lower-risk options closer to home.”
Chris Tate, Partner and Head of Hotels at RSM UK, said: “We have already seen a slowdown in London occupancy due to ongoing disruption affecting international travel plans, and this trend could continue across the UK if tensions persist. Staycations are seeing a slight uptick in interest, particularly from families looking for certainty and value. However, with costs still elevated across the sector, any increase in staycations is unlikely to fully offset the broader slowdown in travel confidence.”
