UK Travel on a Budget – Trends and Insights for 2025

If like many people you are working around a tight budget, especially as it is the start of a new year, going on holiday even for a few days can stretch this to the limit. Whilst some options can be expensive, it doesn’t mean you have to sacrifice a well-earned break at some point this year.

Going on holiday is something many of us plan to do this year, so how can you still look to enjoy yourself whilst sticking to your spending limits? Well, there are a few ways to help make this happen, and below, you’ll find some top tips that may be useful. The good news is that whilst your budget may not stretch to luxury holidays in exotic locations, there is still much to explore and enjoy right here in the UK – who doesn’t like a staycation every now and then? With a few smart strategies, you can make travel this year both affordable and enjoyable. 

What Are Some of the Emerging Budget Travel Trends?

Don’t worry if you feel alone in having less to spend on weekend breaks and long-haul getaways – many of us feel the pinch in January, especially after a good Christmas break, so you’re certainly not alone when looking to find affordable, budget options.

According to travel app Skyscanner, both flights (47%) and hotels (47%) are the top cost factors determining the choice of holiday destination in 2025. This is no surprise as these two aspects can take up a significant chunk of your holiday spend. Travellers are increasingly seeking out local holidays that allow for fun and immersive experiences without the hefty price tag or environmental impact of long-haul flights​. This of course works nicely when you don’t have an unlimited holiday budget.

Despite tightening budgets, many people are still committed to getting away at some point this year. ABTA’s travel trends for 2025 report highlights that more than two-thirds (68%) of people are planning to travel abroad in the next 12 months, with 84% planning to spend just as much or more on their holiday as they did last year. If you can afford to do so without tipping your budget too much, why not!

No matter what your holiday budget is this year, it’s still nice to make a few savings here and there, so what are some of the things you can do to keep costs down?

Tips for Saving on Transportation 

Planes, trains, coaches; there are various methods of getting to and from your destination and they all will vary in cost. You may even need a combination of these depending on how far or remote the location is.

When flying, you’ll need to consider costs for getting to the airport as well as airport transfers at your destination. Similarly, when getting the train, you'll need to think about how you will get to the station and then onward to your accommodation, unless both are within walking distance – but will you want to walk when having to drag lots of luggage with you? 

The transportation part of your holiday is unavoidable, and even if you can drive directly there, you’ll need to consider fuel costs. You may even want to hire a car which adds another cost. Being savvy and comparing your options based on cost and convenience will hopefully help you make the right choice.

• Travelling at off-peak times can make a big difference for both trains and plane travel. If you can travel at less popular or quieter times, you can make considerable savings. This not only applies to the time of day but also the season – holidaying in the Summer or during school holidays will generally cost more.

• Booking tickets in advance will also help reduce costs. You may be able to take advantage of discounts if you’re over 60 or in full-time education. You may want to look at railcards or bus passes that can help reduce ticket prices further. If driving to an airport, look online for airport parking discounts as it can be cheaper to book ahead than on the day.

• Of course, if you can get a lift from friends and family to and from airports and stations this will always save a bit of money. You’ll just have to make sure you return the favour in the future!

Protecting Your Trip on a Budget 

While budget travel can be thrilling, especially when you make huge savings, there are some aspects that you’ll want to be wary of low-cost options. This is especially important when looking for travel insurance, as you won’t want to pick a cheap policy that doesn’t cover you for everything you need.

Not all policies are alike, so when comparing providers, be sure to check exactly what the policy covers. Whilst looking at the premium cost, research the provider and the features of the policy, as well as reviews about the claim process. Look for aspects important for you, for instance, a good medical travel insurance policy can ensure you are covered for a pre-existing condition, providing peace of mind if a medical emergency was to happen whilst away. You should also check it covers other important things like travel delays, cancellations, and any issues related to your baggage. 

Whilst a cheap insurance policy can be appealing, you’ll need to consider it may not provide comprehensive coverage. It could mean you may struggle to claim if the unexpected were to happen, especially if the insurance doesn’t cover the activities you are taking part in, or doesn’t cover all aspects of your health. This is where declaring any medical condition you may have to the insurance provider is important, according to travel insurer Staysure, as this will ensure you’ll be protected if needing to claim for treatment abroad or even cancelling your trip due to your health.

Choosing Affordable Accommodation 

Holiday cottage? Boutique hotel? Shepherd’s hut? There is an overwhelming array of accommodation options when you start to look into them, and each has its unique charm and practicality. The simple question will be what’s available in your planned destination – does it work well for you to stay in a city centre location or are you somewhere in the countryside? Do you want the convenience of a hotel or are you happy with self-catering options? Here’s a few things to think about:

• If you prefer to stay in a hotel, look for package deals or all-inclusive options as they may help you save money compared to booking everything separately. The earlier you can book, the more potential savings you could make.

• It can be more affordable to choose self-catering options, so being able to rent a home or holiday cottage in your destination could work out cheaper, especially when travelling as a family. Be sure to look around and compare property sizes and prices – finding the right balance of location, space and price may take a bit of time. Keep in mind that popular locations may book up early too, so start your search with plenty of time.

• If convenient, consider options like camping or caravan sites as these can be much cheaper than centrally based hotels and holiday rentals – they can also be a lot more fun and relaxed, which can be ideal for young families. Hostels are another option but may not be as convenient when travelling as a family as they are for solo travellers. 

Decide On Your Budget & Stick To It

It can be tempting to adjust your holiday budget to book something you’ll really enjoy, but if it doesn’t work for your finances right now, it’s best to stick to it – there’s always next year, and you could plan a bigger holiday at a later date, giving you more time to save.

In the meantime, and with the above tips to help, you should be able to book something to look forward to that stays in line with your current budget. Staycations are always popular for couples and families looking to keep costs down, so if you can book early enough, you can save on both accommodation and transportation, giving you more spending money for enjoyable activities instead – good luck!

Photo by Tom Podmore on Unsplash