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UK Staycations Surge Amid Middle East Conflict

Financial Times Companies •
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Britons are opting for UK staycations over international trips due to rising fuel prices and travel delays linked to the war in the Middle East. Leading holiday companies report increased bookings, with Sykes Holiday Cottages seeing an 18% rise in Easter visits and Haven’s coastal sites up 10% year-on-year. Airbnb searches for UK stays rose 15% during May bank holidays, with Northumberland, Pembrokeshire, and Wales emerging as top destinations.

The war has triggered a 48% drop in UK searches for Middle Eastern trips, while Turkey and Cyprus saw over 33% declines. Meanwhile, domestic travel operators like Butlin’s and Hoseasons report surges, with the latter up 25%. Businesses hope this trend mirrors post-pandemic growth, though rising inflation and energy costs pose challenges.

Rural hospitality sectors, including pubs and hotels, face higher operational costs, with UKHospitality estimating a £3,126 annual bill increase. The Coaching Inn Group notes stronger demand but warns about consumer spending power amid petrol prices hitting £1.58 per liter. Analysts caution that inflation could limit long-term gains despite current optimism.